Africa’s FDI history runs in three distinct phases.The first, from the 1970s to the mid-1990s, was characterised by low investment volumes and heavy reliance on external capital. The US, UK, and France dominated inflows, largely targeting resource extraction in West and Central Africa. Although South Africa, Egypt, and Libya began investing modestly in neighbouring economies toward the end of this period, intra-African investment remained minimal.
The second phase, from roughly 2000 to 2015, saw a major shift in the sources of foreign capital. Asia’s share of Africa’s FDI stock rose from 5% in 2002 to 23% in 2018, driven largely by China, while Europe’s share declined below 50%. During the commodity boom, inflows peaked at $98 billion in 2013 before falling with global oil and mineral prices. At the same time, intra-African FDI began to rise steadily, growing from $253 million in 2001 to $23.3 billion in 2017, before reaching a record $31.8 billion in 2021.
The third phase, still unfolding today, is defined by the growing role of African corporate and institutional capital. Intra- African FDI stock increased from $19 billion in 2010 to $88 billion in 2022. By 2023, African countries accounted for 14% of investment projects across the continent, signalling a clear — though still limited — shift toward Africa investing in itself.