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Economic growth

Declining Foreign Direct Investment in Africa: A Concern for Economic Growth and Development

Strategic Insights

— 1 min read

African leaders are gathered at the 9th Tokyo International Conference on African Development (TICAD 9) to discuss the challenges faced by the continent due to the declining flow of Foreign Direct Investment (FDI). President Museveni has raised concerns over the trend, urging his fellow leaders to explore alternative ways of financing Africa's development. The summit, co-hosted by Japan, the United Nations, the African Union Commission, and the World Bank, aims to promote value-added African exports, encourage Japanese investment in green technology, and expand opportunities in electronics manufacturing.

Key Takeaways:

  • President Museveni has expressed concern over the declining FDI in Africa, warning that it poses serious challenges to the continent's economic growth and development.
  • He has called for the creation of an enabling environment for the private sector to thrive, prioritizing value addition in agriculture and minerals, human capital development, artificial intelligence, infrastructure, and tourism.
  • The African Continental Free Trade Area (AfCFTA) is seen as a key solution to Africa's development challenges and competitiveness in the global economy.
  • Chairman of the African Union Commission, Mr. Mahmoud Ali Youssouf, has urged governments, development partners, civil society, and the private sector to renew their commitment to innovation-driven collaboration.
  • The digital economy is seen as a crucial pathway to a sustainable future, with a need to advance education and opening up the horizon to this vast potential.
  • South African President Cyril Ramaphosa has emphasized the need for global leaders to champion the health, dignity, and potential of women, children, and adolescents as the foundation of a fair and prosperous world.

Statistics:

  • The three-day TICAD 9 conference runs from August 20 to 22, 2025.
  • Africa is endowed with abundant opportunities and resources, including agricultural products, oil and gas, minerals, and tourism potential.
  • The conference focuses on promoting value-added African exports to Japan, encouraging Japanese investment in green technology, and expanding opportunities in electronics manufacturing.

Sources:

  • Remarks by President Museveni at TICAD 9
  • Speech by Chairman of the African Union Commission at TICAD 9
  • Statement by South African President Cyril Ramaphosa at TICAD 9
  • TICAD 9 Program and Agenda (page 3)

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