FDIs to COMESA: Why they are shooting high



BY PAUL TENTENA

The COMESA Council of Ministers has  launched the COMESA Investment Report 2025 which was developed by the UN Trade and Development (UNCTAD) in collaboration with the COMESA Regional Investment Agency (RIA). 

The report provides a comprehensive assessment of Foreign Direct Investment (FDI) dynamics in the region and presents evidence-based recommendations aligned with the COMESA Medium-Term Strategic Plan 2026–2030.

In 2024, Foreign Direct Investment inflows to COMESA rose by 154 per cent to a record USD 65 billion, largely supported by Egypt’s Ras El-Hekma mega-project, but even excluding this project, FDI inflows would still have grown by 16 per cent, confirming a region-wide improvement in investor sentiment. 

As a result, COMESA’s share in global FDI doubled, rising from 2 to 4 per cent, while its share in developing-economy inflows increased from 3 to 7 per cent, accounting for 67 per cent of total FDI inflows in Africa. This is according to the COMESA Investment Report 2025, released this week. 

International project finance nearly doubles

A major highlight of the report is the exceptional increase in international project finance (IPF) in COMESA, which:

· Nearly doubled to USD 79 billion (+93%)

· Accounted for four-fifths of Africa’s total IPF value

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

· USD 77 billion announced in 2024 (second-highest on record)

· COMESA captured two-thirds of all greenfield value in Africa

 

Investment remains highly concentrated

Despite strong headline growth:

· Five countries—Egypt, Ethiopia, Uganda, DRC, Kenya—accounted for 90% of inflows.

· Intra-COMESA investment remained extremely low (figure 3):

o 3% of greenfield project numbers

o 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

· Construction investment increased nearly fivefold, driven by Egypt.

· Basic metals rose 71%, supported by manufacturing and infrastructure demand.

· Energy and gas supply rose 22%, remaining the region’s largest FDI sector.

· Extractives fell 61%, following two strong years.

· ICT investment declined 55%, after peaking in 2023.

SDG-related investment shows mixed trends

Investment in Sustainable Development Goal (SDG)–relevant sectors across COMESA delivered a mixed performance in 2024.

· Renewable energy investment recorded strong growth of 67%, 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.

· Investment in agrifood systems declined by 34%, reflecting tighter global commodity conditions.

· WASH (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 stressed five priorities for sustaining momentum, with broadening the investment base beyond a handful of economies, accelerating industrialization through value-added manufacturing and SME supplier development and scaling up digital infrastructure, bridging a growing ICT investment gap as the key priorities.


Others are expanding human-capital investment using blended and innovative financing and improving data reporting to support evidence-based policymaking.

 

Amb. Dr. Mohamed Kadah the Assistant Secretary General (Programmes), welcomed the report findings, underscoring their strategic importance for the region.


"These results confirm the growing confidence of global investors in the COMESA region. 


"The record surge in FDI underscores our commitment to deepening regional integration, and our determination to position COMESA as a leading destination investments in the continent. This report will guide our Member States as we work to translate this momentum into long-term, inclusive economic transformation,” said Kadah.

Richard Bolwijn, Director, Investment Research Branch, UNCTAD,  said the COMESA Investment Report clearly shows an exceptional year for the region.

"While global FDI declined, COMESA achieved record growth driven by renewable energy and major infrastructure projects. Going forward, COMESA has an important opportunity," said Bolwijn.

By broadening the investment base, strengthening digital and physical connectivity, supporting SMEs, and deepening regional integration, member States can turn today’s momentum into long-term resilience. 

UNCTAD continues to support the region—modernizing investment agreements, strengthening facilitation mechanisms, and improving data quality—and will continue providing this report and its analysis to guide policymakers across COMESA

Heba Salama the Chief Executive Officer of the COMESA Regional Investment Agency, added that the inaugural Investment Report is a powerful tool for strengthening their region’s competitiveness. 

"By identifying trends and opportunities, it equips COMESA Member States with actionable insights to attract higher-quality, sustainable investment. RIA remains committed to working with our partners to ensure that the report’s findings translate into meaningful reforms and greater prosperity for all.”

Comments

Post a Comment

Popular posts from this blog

African Integration ThinkTank (AfITT) Founder wins coveted COMESA Media award

Image
  BY EABN CORRESPONDENT The Founder of the African Integration ThinkTank (AfITT), Gashegu Muramira has won the 2024 Common Market for Eastern and Southern Africa (COMESA) Media award. COMESA is an African economic grouping of 21 member states with over 600 million people, making it the largest market for trade & investment in the world.   AfITT is a vibrant research, awareness and advocacy institute bringing together over 1,000 professionals in different fields from the different regions of Africa.   “Gashegu’s article was relevant, informative, and well-presented and no doubt contributed immensely to promoting awareness of the benefits and impact of the COMESA regional integration agenda,” reads a letter signed by Mwangi Gakunga, the Head of Communications, on behalf of COMESA Secretary General Chileshe Mpundu Kapwepwe.   Gakunga added that the information presented in the article encouraged stakeholders and citizens to understand and support the dev...
Read more

Why Uganda Breweries parent company Diageo was fined $750,000

Image
  BY PAUL TENTENA Diageo, the majority shareholders of East African Breweries Ltd, the parent company of Uganda Breweries Ltd, have been fined $750,000 by the COMESA Competition Commission (CCC). The COMESA CC, said in Nairobi that it concluded its investigation into Diageo over allegations of market allocation and anti-competitive practices within the Common Market for Eastern and Southern African countries whose membership is 21 countries . Market allocation refers to agreements signed between competitors to divide markets, customers, or territories reducing competition and increasing prices while anticompetitive practices are business practices that restrict or distort competition, harming consumers and the economy. These practices may be price fixing, bid rigging, market sharing, abuse of dominance and exclusive agreements. According to Dr. Willard Mwemba, the COMESA Competition Commission Chief Executive Officer, they initiated the investigation on 21 June 2021 and ...
Read more

United Nations disagrees with Uganda military law

Image
UN High Commissioner for Human Rights Volker  T ürk has expressed concern at the passing in Uganda’s Parliament of proposed legislation to allow for civilians to be tried in military courts.   The Uganda People’s Defence Forces Amendment Bill 2025, which was passed on 20 May and now awaits presidential signature to become law, among others broadens the jurisdiction of military courts, authorising them to try a wide range of offences against civilians.   “I am concerned that rather than encouraging efforts to implement the Supreme Court’s crystal-clear decision of January this year, Uganda’s legislators have voted to reinstate and broaden military court’s jurisdiction to try civilians, which would contravene international human rights law obligations,” said Türk.   “I respectfully urge President Museveni to reject the retrogressive bill and take the necessary steps to comply fully and promptly with the Supreme Court’s decision.”   The trial of civilians by milita...
Read more