The New Map of Trends Reshaping African Investment in 2025

The African investment landscape is evolving. In 2025, new data confirms that a dramatic shift of foreign capital is flowing into different regions.

Africa’s 2025 Investment Surge: The Numbers

According to the latest report from UNCTAD, foreign investment in Africa increased by 75% in 2024, reaching a historic US$97 billion. Even when excluding a massive urban development deal in Egypt, net FDI still rose.

Notably, North Africa led this rebound as two-thirds of all FDI inflows were directed there. (Africa Briefing)

This is a clear sign that 2025 was a structural recalibration of where investment went on the continent.

Read also: Bridging Africa’s Trade and Investment Readiness Gap

Regional Shifts: Who’s Winning and Why

North Africa: From Resources to Megaprojects & Industrial Zones

North Africa has reemerged as the primary destination for major inflows. According to UNCTAD, Morocco, Tunisia, and Egypt saw substantial increases. Morocco’s FDI alone rose by 55% to US$1.64 billion in 2024.

What’s driving this? First, policy reforms and investment-friendly environments have improved investor confidence. Second, investors are targeting infrastructure, industrial zones, manufacturing, and clean energy projects rather than just traditional resources.

Consequently, North Africa is becoming a hub for manufacturing, industrial exports, and renewable-energy infrastructure.

East Africa: The Ascent of the Digital & Industrial Frontier

East Africa, long known for agriculture and informal economy activity, is increasingly attracting investment in the digital economy.

For example, in Kenya, the digital economy and ICT sector have been expanding. According to data from Kenya’s trade and investment analyses, by 2025, the ICT sector was expected to contribute nearly 9–10% of GDP, reflecting growth in mobile broadband, fintech, digital services, and mobile payments. Trade.gov

Moreover, investors are eyeing opportunities in infrastructure, logistics, and data-centred projects, capitalising on East Africa’s growing urbanisation, connectivity improvements, and youthful consumer base.

Thus, East Africa is evolving into a tech-industrial frontier attractive to investors seeking a long-term regional market.

West & Other Regions: Mixed but Significant

West Africa, while more uneven, remains attractive, especially where countries combine natural resource potential with rising consumer markets and reforms. Some economies are investing in agribusiness, energy, and digital services.

Other regions saw less uniform inflows, but pockets of opportunity remain, particularly where governments implement investor-friendly policies.

What’s Fueling the Shift: Underlying Drivers

Several structural forces underlie the 2025 investment map reshaping:

• Policy reforms & investment facilitation: Many African governments implemented reforms to ease investment processes. According to UNCTAD, 36% of all investor-friendly policy measures globally in 2024 were adopted in Africa.

• Renewable energy & green infrastructure: Renewable energy emerged as the continent’s fastest-growing sector for new investment.  It is attracting significant capital for solar, wind, and clean-energy initiatives across North Africa and beyond.

• Growing domestic demand & urbanisation: With African economies growing, the demand for infrastructure, consumer goods, and services is rising. This makes investments in manufacturing, real estate, infrastructure, and digital services more attractive.

• Diversification away from resource dependence: Rather than pure resource extraction, investors increasingly value manufacturing, processing, clean energy, services, and exports.

• Regional potential & strategic positioning: Regions like East Africa combine youthful populations and growing digital adoption, making them attractive long-term markets.

What This Means for the Future: Investment, Policy & Opportunity

• Africa is no longer monolithic: It’s no longer correct to think of Africa as one uniform investment destination. Instead, the continent now features multiple regional hubs, each with its own strengths.

• Opportunity for value-added industries: The shift toward manufacturing, renewables, and industrial zones suggests that African countries can capture more value. They can export raw materials, produce, process, and export finished goods.

• Need for smart policies: To sustain and expand this boom, governments must strengthen regulatory clarity, build infrastructure, skills, and institutions.

• Africa as part of global supply-chain diversification: As global supply chains adjust, Africa’s rising industrial and energy capacities make it a compelling alternative offering cost advantage and geographic diversity.

Conclusion: 2025 Is the Year the Map Changed

The 2025 surge in African investment marks the start of a new era. Rather than a single Africa investment story, the continent now hosts diverse regional investment hubs, each poised to grow in different ways.

For investors, policymakers, and development analysts, this shift demands a more nuanced understanding. Instead, success will come to those who recognise which region fits which type of investment, and who plan accordingly.

Emmanuel Oriedo

Emmanuel Oriedo is a strategic Digital Marketer at Indepth Research Institute (IRES), specializing in digital engagement within the economy, finance, and development sectors. With a diverse background in broadcast media production, NGO communications, and creative multimedia content development, Emmanuel combines creative expertise with data-driven strategy to advance impactful communication and capacity-building across Africa’s economic landscape.