Foreign direct investment is flowing into Africa’s industrial and natural resource sectors, highlighted by a landmark US$8 billion commitment to South Africa and resilient investment in mining across the continent, even as overall FDI to the region saw a decline in 2025.
In a significant boost for one of the continent’s largest economies, the African Export–Import Bank (Afreximbank) has committed US$8 billion to South Africa. According to SAnews, the investment is aimed at fostering industrial growth, creating jobs, and strengthening the economy. The funds will target the expansion of local manufacturing, mineral processing, and critical energy infrastructure. This strategic partnership was solidified as South Africa became a full sovereign member of the bank, granting it greater access to Afreximbank’s financial facilities to support development in key areas like industrial parks and special economic zones under the African Continental Free Trade Agreement (AfCFTA).
This major financial injection aligns with a broader trend of robust FDI into Africa’s mining sector. According to a report from Mining Review Africa, while overall FDI to the continent fell in 2025, the mining industry remained active with significant capital inflows. Notable projects include a $124.6 million investment in the Yaouré Underground Mine in Ivory Coast and $523 million for the Nyanzaga gold project in Tanzania.
A key feature of this trend is the diversification of capital sources. While traditional Western partners remain involved, investors from the Middle East and Asia are expanding their footprint. The United Arab Emirates is emerging as a leading capital investor, exemplified by a massive $34 billion green hydrogen project in Mauritania, while China maintains its position as a dominant partner with an FDI stock exceeding $42 billion.
The success in attracting this capital stands in contrast to challenges faced by other resource-rich nations. In Chile, for example, the potential to attract at least US$20 billion in FDI for its copper sector over the next five years is being hampered by significant bottlenecks, as reported by BNamericas. An expert from CRU Group cited slow permitting, inadequate logistics infrastructure, and water access issues as major hurdles preventing Chile from realizing its investment potential, which could be as high as US$60 billion in the next decade. This highlights the importance of addressing regulatory and operational constraints to unlock FDI, an area where several African nations are making progress.
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