Top 10 African countries attracting the largest private sector investments

Africa faces a significant infrastructure gap, with the African Development Bank estimating an annual need of $130-$170 billion, while a shortfall of up to $100 billion persists. The World Bank highlights that Sub-Saharan Africa must invest 7.1% of its GDP annually to meet sustainable development goals, yet investments remain at just 3.5%.

Private capital is crucial, and the International Finance Corporation (IFC) is playing a key role in driving investment. In FY24, the IFC mobilised $22.5 billion, a 50% increase from the previous year. The funds supported projects across renewable energy, healthcare, agriculture, and digital infrastructure, improving access to electricity and empowering smallholder farmers.

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The IFC’s efforts underscore the need for continued private sector involvement in bridging Africa’s infrastructure gap.

According to the World Bank, here are the Top 10 African countries attracting the largest private sector investments

1. South Africa – $5.07 bn

South Africa leads the continent in private sector investments. Its diverse economy and strong financial systems have made it an attractive destination for businesses. Investments span various industries, including technology, manufacturing, and renewable energy.

2. Nigeria – $3.96 bn

Nigeria holds the second position, with significant investments flowing into its oil and gas, technology, and agriculture sectors. As Africa’s largest economy, Nigeria continues to attract global investors despite challenges in its operating environment.

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3. Egypt – $3.37 bn

Egypt ranks third, benefiting from investments in its growing energy, real estate, and tourism sectors. Strategic infrastructure projects and reforms to improve the business environment have further boosted investor confidence.

4. Ethiopia – $2.29 bn

Ethiopia’s economic reforms and focus on industrial parks have attracted substantial private investments. Sectors like textiles, agriculture, and renewable energy are key areas of focus, aligning with the country’s industrialisation agenda.

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5. Côte d’Ivoire – $2.18 bn

Côte d’Ivoire continues to grow as a regional economic hub, with significant investments in cocoa processing, infrastructure, and telecommunications. Its stable political climate has further enhanced its appeal to private investors.

6. Kenya – $1.7 bn

Kenya’s investment in technology and innovation, particularly in its thriving fintech sector, has drawn private sector interest. Additionally, projects in agriculture and renewable energy contribute to its investment portfolio.

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7. Guinea – $1.5 bn

Guinea attracts investments primarily in its mining sector, particularly in bauxite and iron ore. These resources have positioned the country as a key player in the global commodities market.

8. Mozambique – $1.32 bn

Mozambique benefits from private investments in its natural gas and agricultural sectors. These projects are pivotal for the country’s long-term economic recovery and growth.

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9. Morocco – $0.87 bn

Morocco’s strategic location and investment-friendly policies make it a hub for industries such as automotive, aerospace, and renewable energy. The country has also made strides in improving its infrastructure to attract more private investment.

10. Cameroon – $0.8 bn

Cameroon rounds off the list, with investments focused on agriculture, energy, and infrastructure development. The country’s economic diversification efforts have played a role in sustaining investment inflows.