Foreign direct investment trends in Sub-Saharan Africa

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The United States and the European Union maintain the largest foreign direct investment (FDI) stock in sub-Saharan Africa. The substantial scale of these investments, with the US and the EU accounting for 16.30% and 36.14% of the total FDI stock in 2023, respectively, indicates that these countries will remain the largest holders of FDI stock in the region over the next five years.

The growth in FDI into the region is being sourced from other countries. Significant growth in FDI has been recorded from Singapore, Gulf Cooperation Council (GCC) members and India, with FDI stock increasing by 37.5%, 35.2% and 30.4%, respectively, based on a compound annual growth rate (CAGR) from 2010 to 2023.

African Business reports that the number of Singapore-based companies operating in Africa increased from about 60 in 2018 to over 155 as of 2023, reflecting a growing interest driven by financial technology (fintech) innovations and strategic partnerships.

Singaporean private-sector firms lead the way in facilitating cross-border transactions and connecting African financial ecosystems, bolstering the e-payment sector. Singaporean private-sector firms are also investing in e-government services and in providing logistics solutions in West and Central Africa.