The Common Market for Eastern and Southern Africa (COMESA) recorded a record $65 billion in foreign direct investment in 2024, a 154% year-on-year increase despite a global investment downturn. The inaugural COMESA Investment Report 2025, launched by UNCTAD and the COMESA Regional Investment Agency, attributes much of this rise to Egypt's Ras El-Hekma mega-project. Even excluding it, inflows grew by 16%.
The United Nations Conference on Trade and Development (UNCTAD) and the COMESA Regional Investment Agency launched the inaugural COMESA Investment Report 2025, spotlighting Egypt's Ras El-Hekma project as a key driver of record foreign direct investment (FDI) inflows. COMESA's global FDI share doubled to 4% from 2%, while its portion of developing-economy flows climbed to 7% from 3%, representing 67% of Africa's total FDI.
European and North American investors dominated, with the Netherlands and the United States leading. International project finance (IPF) nearly doubled to $79 billion, accounting for 80% of Africa's total, fueled by large-scale renewable energy, grid expansions, and construction in Egypt, Tunisia, Rwanda, and Malawi. Greenfield investment announcements hit $77 billion, the second-highest on record, with COMESA securing two-thirds of Africa's greenfield value.
Inflows remain concentrated, with Egypt, Ethiopia, Uganda, the Democratic Republic of the Congo, and Kenya capturing 90% of the total. Intra-COMESA investments are minimal, at 3% of greenfield projects by number and 6% by value. Sectorally, construction surged nearly fivefold due to Egyptian activity, basic metals rose 71%, and energy and gas increased 22%, staying the top sector. Extractives fell 61%, and ICT dropped 55%.
Sustainable Development Goals-linked sectors showed mixed results: renewable energy grew 67%, health and education jumped 130%, but agrifood declined 34%, water and sanitation 76%, and transport infrastructure 54%. The report urges broader, diversified investments, faster industrialization via value-added manufacturing, scaled digital infrastructure, and human capital boosts through innovative financing. It also stresses improving data-reporting for better policymaking.