COMESA FDI Inflows Surge 154% to Record $65 Billion in 2024, Led by Egypt
A new investment report on the Common Market for Eastern and Southern Africa (COMESA), issued by United Nations Conference on Trade and Development for 2025, revealed that the bloc delivered an exceptional performance in 2024, with foreign direct investment (FDI) inflows surging to a record $65 billion—an increase of 154% year-on-year—despite a global downturn in investment activity.
The report highlighted that this strong performance across the 21-member African bloc comes at a time when global FDI flows declined by around 11%, amid tighter financial conditions, elevated interest rates, ongoing policy uncertainty, and rising geopolitical tensions.
Egypt Drives Investment Boom
According to the report, Egypt played a pivotal role in driving this surge, leading growth within COMESA through the implementation of a major investment project that significantly boosted overall inflows.
FDI into Egypt jumped from $9.8 billion in 2023 to approximately $46.6 billion in 2024, accounting for more than 70% of total inflows into the bloc. This sharp increase was largely driven by the Ras El Hekma mega project, one of the region’s largest investment developments, which includes integrated urban infrastructure alongside tourism, education, and service components.
While the project had a substantial impact, the report noted that even excluding it, COMESA would still have recorded a 16% increase in FDI inflows—indicating broader structural improvements in the region’s investment climate.
Rising Global Share
The bloc’s strong performance lifted its share of FDI flows to developing economies from 3% in 2023 to around 7% in 2024, while its share of global flows doubled to 4% from 2% a year earlier, reflecting growing investor confidence in COMESA markets.
This trend is attributed to investors increasingly diversifying away from traditional markets and seeking opportunities in high-growth emerging economies across Africa.
Concentration and Growth Trends
Despite the positive outlook, the report pointed to continued geographic concentration of investments. Five countries—Egypt, Ethiopia, Uganda, Democratic Republic of the Congo, and Kenya—accounted for nearly 90% of total inflows in 2024, up from 80% in the previous year.
Meanwhile, other countries showed notable improvements. Zambia recorded a more than 14-fold increase in FDI, while Ethiopia saw inflows rise by 22%. Tunisia and the Democratic Republic of the Congo both posted gains of 21%, with moderate growth also observed in Rwanda, Seychelles, and Somalia.
Project Finance Gains Momentum
One of the key indicators of the bloc’s strong performance was the sharp rise in international project finance, which surged by 93% to reach approximately $79 billion in 2024, up from $41 billion in 2023. This stands in contrast to a global decline of 26% in project finance, reflecting financing constraints and economic uncertainty worldwide.