The report analyses foreign direct investment (FDI) trends in the Common Market for Eastern and Southern Africa (COMESA), a regional economic block of 21 countries.
It was prepared in close collaboration with the COMESA Secretariat in Lusaka, Zambia, and the COMESA Investment Agency based in Cairo, Egypt. The recommendations align with the COMESA Medium-Term Strategic Plan 2026–2030.
FDI surges, driven by renewable energy and mega-projects
Despite a global decline in FDI flows, inflows to COMESA rose by 154% to a record $65 billion in 2024. European and North American investors hold the largest share of FDI stock in COMESA, led by the Netherlands and the United States.
The surge was largely supported by Egypt’s Ras El-Hekma mega-project. But even without the project, FDI inflows would still have grown 16%, confirming a region-wide improvement in investor sentiment.
COMESA’s share in global FDI doubled, rising from 2% to 4%, while its share in developing-economy inflows increased from 3% to 7%.
Among all regional economic groupings, COMESA recorded the most pronounced increase in FDI inflows in 2024.
Within the continent, COMESA stood out with inflows more than doubling, far exceeding the 34% growth recorded by the Southern African Development Community (SADC) and the 12% increase seen in the East African Community (EAC). By contrast, the Economic Community of West African States (ECOWAS) experienced an 11% decline.
Outside Africa, the South Asian Association for Regional Cooperation (SAARC) saw no growth. MERCOSUR in Latin America experienced a decline of 23%, while the Caribbean Community (CARICOM) posted a 24% increase.
International project finance nearly doubles, greenfield investment remains strong
The report highlights the spike in international project finance in COMESA, which in 2024 nearly doubled to $79 billion, accounting for four-fifths of the total value in Africa.
Large-scale renewable energy, grid expansion and construction projects – especially in Egypt, Tunisia, Rwanda and Malawi – were the main contributors.
Greenfield investment also remained strong, with $77 billion announced in 2024 (second-highest amount on record). COMESA captured two-thirds of all greenfield value in Africa.
But investment remains highly concentrated. Just five countries – Egypt, Ethiopia, Uganda, DRC, Kenya – accounted for 90% of inflows. Meanwhile, Intra-COMESA investment remained extremely low at just 3% of greenfield project numbers and 6% of greenfield value.
The report warns that without wider country participation COMESA’s investment expansion may not translate into broad-based development gains.
Sectoral patterns show sharp divergence in 2024
A closer look at the trends in different sectors shows that energy and construction dominate COMESA’s announced greenfield investment projects.
Construction investment surged nearly fivefold to $24 billion, driven by inflows to Egypt. Meanwhile, energy and gas supply registered a 22% increase, remaining the region’s largest FDI sector.
SDG-related investment shows mixed trends
Investment in sectors relevant to the Sustainable Development Goals (SDGs) across COMESA delivered a mixed performance in 2024.
Renewable energy investment recorded a strong 67% increase, reinforcing COMESA’s role as a growing hub for energy transition projects. Health and education saw the highest growth (+130%), albeit from a modest baseline.
By contrast, investment in agrifood systems declined by 34%, reflecting tighter global commodity conditions. Water and sanitation investment value fell sharply by 76%, signalling a need for targeted financing support. Infrastructure investment contracted by 54% despite a rise in overall international project finance value, underscoring persistent financing constraints in transport-related infrastructure.
A call for wider, more inclusive investment in COMESA
The report stresses five priorities for sustaining momentum:
- Broaden the investment base beyond a handful of economies.
- Accelerate industrialization through value-added manufacturing and the development of SME suppliers.
- Scale up digital infrastructure, bridging a growing ICT investment gap.
- Expand human-capital investment using blended and innovative financing.
- Improve data reporting to support evidence-based policymaking.