Construction and mining have attracted the largest share of FDI from China to Africa

Key takeaways

  • Construction and mining dominate Chinese FDI in Africa, accounting for nearly 60% of the total investments
  • Financial intermediation, manufacturing, and commercial services also received $10.96 billion combined, smaller than construction alone
  • Leasing and commercial services attracted $2.16 billion, the least among all sectors
  • China’s FDI strategy in Africa continues to emphasise resource extraction and infrastructure, reinforcing economic interdependence

Chinese Foreign Direct Investment (FDI) in Africa is heavily concentrated in construction and mining, which together received $23.34 billion in 2022. This represents nearly 60% of the total Chinese FDI in the region. Other sectors, including manufacturing and financial intermediation, also attract investment, but in smaller amounts. The least-funded sector, leasing and commercial services, received just $2.16 billion.

Source:

Johns Hopkins University SAIS China-Africa Research Initiative

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Europe, Asia, and the Americas have attracted a combined 94% of global foreign investment since 1990, leaving Africa and Oceania with just 6%
  • Europe ($12.58 trillion), Asia ($11.88 trillion), and the Americas ($11.49 trillion) are nearly tied after 35 years, each capturing roughly a third of global FDI
  • Asia grew from just $25 billion annually in 1990 to consistently attracting $600-700 billion per year, showing the most stable growth pattern
  • Major crises (2001, 2008-09, 2020, and 2022) caused dramatic swings, with Europe even recording negative flows in 2022
  • Africa and Oceania combined received just 6% of total FDI, remaining far behind despite Africa's recent acceleration to $97 billion in 2024
North Africa was the primary destination for FDI in 2024, attracting 52% of Africa's total FDI inflow
  • Africa attracted $97 billion in total FDI inflows in 2024.
  • North Africa dominated with $51 billion (52%), remaining the continent’s top foreign investment hub.
  • West Africa ranked second with $15 billion (15.3%).
  • East Africa secured $13 billion (13.3%).
  • Central Africa remained the least favoured, with only $8 billion (8.2%) in FDI inflows.
Nigeria’s share of Africa’s FDI collapsed from ~38% in 1994 to barely 1.1% in 2024
  • Nigeria’s FDI share plunged from 35% in 1990 to 1.1% in 2024.
  • Africa’s FDI surged over the same period, leaving Nigeria behind.
  • Q1 2025 inflow was only $126.3 million, showing persistent weakness.
  • Decline mirrors structural hurdles — unstable policies, forex issues, and weak infrastructure.
Nigeria recorded an impressive 822% growth in FDI inflows between 1999 and 2009, before gradually dropping back to $1.1B in 2024
  • FDI inflows in Nigeria peaked at $8.8 billion in 2011, marking the highest point in the Fourth Republic.
  • From 2011 to 2024, FDI inflows dropped, settling at $1.1 billion in 2024.
  • The early Fourth Republic (1999–2011) showed growth in FDI inflows.
  • FDI outflows rose from $0.2 billion in 1999 to $1.5 billion in 2009, reflecting gradual international expansion by Nigerian investors.
  • From 2015 onward, both inflows and outflows showed significant volatility, with no clear recovery trend.
Cape Verde’s FDI averaged over $68M annually over 34 years, with a record $170M in 2008 and a recent 54% drop from 2023 to 2024
  • Cape Verde attracted no foreign direct investment during the early 1990s, signalling limited investor interest at the time.
  • FDI inflows skyrocketed from $130M in 2006 to an all-time high of $170M in 2008, before stabilising above $100M for most of the 2010s.
  • The country experienced large swings, ranging from a high of $150M (2014) to lows of $50M (2020).
  • Despite recovering to $130M in 2023, inflows dropped sharply to $60M in 2024, the weakest figure in over a decade.
Zambia’s FDI rebounded to $1.24B in 2024 after sharp decline in 2022, attracted over $22B since 1990
  • Zambia recorded its highest-ever FDI inflow in 2013 at $2.10 billion.
  • After dipping to a negative inflow of -$0.07 billion in 2022, Zambia recovered to $1.24 billion in 2024.
  • The country experienced its first billion-dollar inflow in 2007, marking a turning point in foreign investment.
  • FDI inflow was consistently below $0.5 billion throughout the 1990s, indicating limited investor confidence during that period.
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