Africa's global investment share remains low, according to Pan-African Manufacturers Association
via Punch Nigeria19 hours ago2 min read
The Pan-African Manufacturers Association's March 2026 Manufacturing Review indicates that Africa's share of global Foreign Direct Investment FDI remains between four and six percent. This occurs despite a 14 percent increase in global FDI to $1.6 trillion in 2025, during which inflows to Africa decreased by 38 percent to $59 billion. The report describes the investment climate as one of "extreme volatility and shallow industrialisation," noting that a surge to $97 billion in 2024 was due to isolated major projects rather than fundamental industrial capacity shifts. PAMA researchers argue that capital is directed towards extractive industries and low-value-added services, hindering industrial upgrading and employment generation. Regional performance is polarized, with North African nations like Egypt and Morocco leveraging trade linkages for automotive and textile hubs. In contrast, Southern Africa, particularly South Africa, experienced negative inflows of $6 billion due to capital withdrawals. PAMA highlights that investors often adopt low-risk, low-complexity production models, reinforcing shallow industrialization. The association calls for a shift in Africa's FDI strategy from "generic openness" to "precision," emphasizing policy certainty, regulatory discipline, and macroeconomic stability. Incentives, the review suggests, must be strategic, linked to performance, technology transfer, and local value creation, supported by world-class industrial infrastructure. Persiste
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Original source
This summary was AI-generated from a story originally published by Punch Nigeria.
