Global foreign direct investment rose 6% to $1.6 trillion in 2025, ending two years of decline, but inflows to Africa fell 26% to $70 billion, according to UNCTAD’s World Investment Report 2026. Much of the global increase came from a small number of megaprojects, many of them AI-related data centres.
For impact investors and development practitioners, the more useful part of the report is what happened to investment in SDG sectors in developing economies. That is where this summary focuses.
About the report
| Publisher | UN Trade and Development (UNCTAD) |
| Launched | 7 July 2026 |
| Title | World Investment Report 2026: International investment in a turbulent era |
| Data covered | FDI flows, greenfield announcements and international project finance in 2025, with an outlook for 2026 |
| Latest edition? | Yes, as of October 2026. UNCTAD publishes the report annually |
UNCTAD tracks three kinds of cross-border investment: FDI flows recorded in balance-of-payments data, announced greenfield projects, and international project finance deals. They often move in different directions, so it is worth checking which measure a figure refers to before quoting it.
Key findings
- Global FDI rose 6% to $1.6 trillion in 2025, or 4% when conduit flows through European financial centres are excluded, according to chapter 1 of the World Investment Report 2026.
- Inflows to developed economies grew 11% to $723 billion, while developing economies grew 2% to $901 billion, the report finds.
- The 20 largest host economies attracted more than 80% of global FDI, and strategic sectors accounted for 44% of global greenfield project value, up from 16% in 2020, according to UNCTAD.
- FDI to Africa fell 26% to $70 billion from $94 billion after an exceptional 2024, still the third-highest level since 1990. North Africa fell 56% to $22 billion, with Egypt receiving about $15 billion, the World Investment Report 2026 reports.
- Inflows to the least developed countries rose 21% to $43 billion, and African LDCs received about $33 billion of that, according to the report.
- Inflows to West Asia rose from $92 billion to almost $111 billion, led by the United Arab Emirates and Saudi Arabia, UNCTAD reports, while the 2026 Middle East conflict is expected to delay or cancel many capital-intensive projects.
Change in announced project values in SDG sectors in developing economies, 2025 versus 2024, according to UNCTAD:
| SDG sector | Change in project value |
|---|---|
| Agrifood systems | +69% |
| Infrastructure | +61% |
| Renewable energy | -5% |
| Water, sanitation and hygiene | -5% |
| Health and education | -7% |
What the World Investment Report 2026 means for impact investors in MENA and Africa
Read together, the figures describe a recovery that skipped the places and sectors impact capital cares about most. Money flowed to large digital and infrastructure assets in a few economies. Social sectors in developing countries lost ground.
- Impact investors: falling commercial interest in water, sanitation, health and education in developing economies is a gap that patient and blended capital is built for. These are also the sectors where outcome data is easiest to define and verify.
- North African ecosystems: a 56% fall in North African FDI, in the same year Gulf inflows rose, means local founders and funds should plan for less foreign capital in 2026 and look harder at regional and domestic investors.
- Sub-Saharan African LDCs: inflows to African LDCs held up at about $33 billion. Enterprises that supply or serve large incoming projects, from agrifood processing to local services, can position themselves as partners for local-content commitments.
- Researchers: headline FDI is distorted by conduit flows and megaprojects. For development analysis, the sector-level greenfield and project finance tables are more informative than the topline number.
New to the field? Our guide to impact investing explains how impact funds differ from conventional FDI.
Download the full report
UNCTAD makes the World Investment Report 2026, its chapters and its annex tables available free of charge. The report is authored by UNCTAD, not by Impact DOTS.
FAQ
Global FDI rose 6% to $1.6 trillion in 2025, ending two years of decline. Excluding conduit flows, the increase was 4%.
About $70 billion, a 26% drop from $94 billion in 2024. North Africa fell 56% to $22 billion.
UNCTAD launched it on 7 July 2026.
It depends on the sector. In developing economies, announced project values rose 69% in agrifood systems and 61% in infrastructure, but fell 5% in renewable energy and in water and sanitation, and 7% in health and education.
Yes. The 2026 report is the latest edition as of October 2026.
Sources
- UNCTAD: World Investment Report 2026: International investment in a turbulent era
- UNCTAD: World Investment Report 2026, chapter 1 (PDF)
