Global FDI up 11% to $1.4 tn in 2024, Africa leads with 84% surge

Africa’s FDI reached $94 billion, largely due to a single megaproject in Egypt. Excluding this project, the continent’s FDI rose 23 per cent, though the overall figure remained modest at $50 billion.

North America saw a 13 per cent rise in FDI, driven by an 80 per cent increase in US mergers and acquisitions (M&A). The value of greenfield projects—new investments in foreign markets—surged 93 per cent in the US, reaching $266 billion, spurred by semiconductor megaprojects, UNCTAD said in a press release.

The United Kingdom also saw an increase of 32 per cent in greenfield investments to $85 billion, and Italy posted a remarkable 71 per cent jump to $43 billion.

FDI fell 45 per cent when excluding conduit economies, with 18 out of 27 European Union (EU) countries seeing drops. Germany’s FDI plunged 60 per cent and Italy’s fell 35 per cent. Even greenfield investments, vital for future growth, dropped 10 per cent across Europe, though the region saw a 15 per cent rise in total project value, signalling the significance of a few large-scale projects.

International project finance—a key driver for infrastructure and energy investments—also faced challenges, with deals dropping 26 per cent in number and nearly a third in value across developed economies.

In developing economies, FDI fell 2 per cent, marking the second consecutive annual decline. Asia, the largest recipient of FDI among developing regions, saw inflows decline by 7 per cent. China faced a 29 per cent drop, now 40 per cent below its 2022 peak. In contrast, India recorded a 13 per cent increase in FDI, boosted by growth in greenfield project announcements. Meanwhile, ASEAN countries (Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam) saw modest growth, with FDI increasing 2 per cent to a record $235 billion.

In Latin America and the Caribbean, FDI declined by 9 per cent, with Brazil’s inflows falling 5 per cent. However, greenfield project numbers and values rose in Brazil, Argentina and Colombia, signalling potential future recovery. Mexico’s FDI rose 11 per cent, despite weaker regional project announcements, showing resilience in the face of broader challenges.

In 2025, moderate growth in foreign direct investment (FDI) is anticipated, driven by improved financing conditions and a resurgence in mergers and acquisitions activity. However, considerable challenges remain due to geopolitical tensions and global economic instability, added the press release.

Fibre2Fashion News Desk (SG)