Africa attracted approximately $70 billion in foreign direct investment in 2025, according to UNCTAD’s World Investment Report 2026. The figure represents a historically high level, but turning these flows into diversified industrial investment remains the continent’s central challenge.
The increase in investment reflects growing multinational interest in natural resources, infrastructure, energy and African consumer markets.
But not all investment generates the same economic impact. Investment in raw-material extraction can generate substantial revenues without creating sufficiently developed local industrial value chains. African governments therefore increasingly need to attract investment into processing and manufacturing.
From exporting resources to creating value
The continent possesses a significant share of the mineral resources required for the energy and digital transitions. Yet a large proportion of these resources is still exported with limited local processing.
Domestic transformation would increase value added, create industrial jobs and develop technological capabilities. Competition surrounding cobalt, lithium, manganese, copper and other critical minerals makes this challenge increasingly strategic.
Africa must therefore use its position in global raw-material value chains to negotiate greater local production, technology transfer and skills development.
