The digital economy has become a major driver of innovation and global growth. It’s expected to generate more than two thirds of new value creation over the next decade, expanding at an annual rate of 10% to 12%.
The World Investment Report 2025 analyses international investment trends in the digital economy and sets out strategic policy measures to help governments and stakeholders attract and leverage foreign direct investment in support of the Sustainable Development Goals and commitments under the Global Digital Compact and the Pact for the Future adopted in 2024.
FDI in the digital economy remains highly uneven
Large multinational enterprises dominate cross-border investment in digital sectors, with the top 20 players mostly headquartered in China and the United States.
Over the past decade, cross-border mergers and acquisitions in the technology sector averaged nearly $1 trillion a year. Less than 15% involved companies from developing countries
Greenfield investment is similarly concentrated. Between 2020 and 2024, developing countries attracted $531 billion in announced digital economy projects, yet nearly 80% went to just 10 countries. The United States accounted for 36% of greenfield investment.
Uneven investment deepens the digital divide in the Global South
Greenfield investment in digital services in developing countries rose from $6 billion in 2020 to $37 billion in 2024. Yet growth remains highly uneven across regions and sectors.
In 2024, only 18 fintech projects were announced in Africa, compared with 206 in developing Asia. Investment in digital equipment manufacturing is similarly concentrated in Asia.
Digital infrastructure investment falls far short of needs
The digital infrastructure investment gap that underpins the digital divide is estimated at $1.6 trillion. Yet greenfield investment in information and communication technology reached just $15 billion in 2024, far below the $61 billion needed annually.
This gap leaves regions such as sub-Saharan Africa severely underserved. Least developed countries accounted for only 3% of total investment in data centres.
Policies for the digital economy matter
Investors prioritize transparent, stable and predictable regulatory environments, access to digital skills and talent and supportive sectoral regulations. Experience across developing countries shows that those with more mature digital economy frameworks consistently attract higher levels of FDI in digital sectors.
At the same time, digital investment brings new policy challenges. These include environmental impacts from data centres, risks of market concentration by dominant digital firms and concerns over control of strategic digital assets. Realizing the full benefits of FDI therefore requires targeted, forward-looking policy frameworks that balance investor needs with broader development goals.
A toolkit – from analysis to practical guidance
This toolkit distils policy lessons into concrete guidance for policymakers. It draws on the mapping of 101 national digital strategies, analysis of investment policy trends and the experience of 15 developing countries with mature regulatory frameworks and significant digital economy investment.
It translates the World Investment Report 2025 recommendations into practical, action-oriented guidance. By highlighting good practices to promote investment in the digital economy, the toolkit also contributes to the Digital Infrastructure Investment Catalyzer, launched by ITU and UN Trade and Development at the 4th International Conference on Financing for Development and endorsed by the Sevilla Platform for Action.