$34 Billion Project in Mauritania Boosts Africa’s FDI Momentum

Africa’s foreign direct investment (FDI) landscape in 2023 reflected a blend of challenges and opportunities, experiencing a slight decline of 3% in overall FDI flows to a total of $53 billion. According to the latest World Investment Report by UNCTAD, this dip was significantly influenced by economic fluctuations in Egypt and South Africa, two of the continent’s largest economies.

Despite the overall decrease, Africa saw a remarkable surge in greenfield megaprojects. Leading this trend was Mauritania, where a groundbreaking green hydrogen initiative attracted investments projected to exceed $34 billion, an amount several times the nation’s GDP. This project highlights Africa’s growing momentum in the renewable energy sector and green technology.

The renewable energy sector has drawn substantial investments across various African nations. Over $10 billion has been allocated to wind and solar electricity production projects in Egypt, South Africa, and Zimbabwe. Additionally, Morocco secured a significant deal for a $6.4 billion electric vehicle battery manufacturing facility, reflecting increasing interest in Africa’s electric vehicle value chains.

In terms of FDI stock, key investors in Africa include the Kingdom of the Netherlands, France, the United States, the United Kingdom, and China. This diverse international interest underscores global recognition of the continent’s economic potential.

Mauritania’s $34 billion green hydrogen project exemplifies Africa’s resilience and strategic shift towards sustainable investments. The continent’s increasing focus on greenfield projects and renewable energy investments highlights a promising path for economic development and sustainable growth in the coming years. As Africa continues to attract diverse international investments, its evolving FDI dynamics are set to drive significant socio-economic advancements and contribute to global sustainability goals.