Egypt has emerged as the top destination for foreign direct investment (FDI) in Africa, attracting a total of $11.4 billion in inflows in 2022, the highest amount since 2017, according to the United Nations Conference on Trade and Development (UNCTAD).
UNCTAD’s World Investment Report 2023, released on Wednesday, highlights Egypt’s position as the leading recipient of FDI in Africa. Although the country’s total FDI outflows in 2022 slightly decreased to $342 million compared to $367 million in 2021, Egypt’s strong performance in attracting investments remains noteworthy.
In a May report by global management consulting firm Kearney, Egypt ranked 14th among the world’s most attractive and trusted emerging markets for foreign investments, surpassing countries like Turkey, Morocco, South Africa, and Russia.
Egypt has implemented a series of measures to improve its investment climate, address the shortage of US dollars in the local market, and attract more foreign direct investments. These efforts are in line with Egypt’s $3 billion loan agreement with the International Monetary Fund (IMF), which aims to reduce government intervention in the local economy and create a more favorable environment for private sector activities.
The report also revealed an increase in investments in sectors aligned with the Sustainable Development Goals (SDGs) in developing countries, including Egypt. Sectors such as infrastructure, energy, water and sanitation, agrifood systems, health, and education experienced a growth in project numbers.
Egypt’s top ranking in FDI inflows demonstrates its appeal as an investment destination and underscores its commitment to fostering a favorable business climate. The country’s ongoing efforts to attract investments contribute to its economic growth and development goals.
