Dr Mahmoud Mohieldin, Chair of the African Advisory Council to the G-FAFS, said Africa continues to capture only a limited share of global foreign direct investment (FDI), which does not exceed 6% at best, despite the continent’s vast potential.
Speaking at a roundtable hosted by the International Finance Corporation (IFC), Mohieldin described the forum as an important platform for exchanging expertise between the public and private sectors. He said past editions reflected positive momentum, particularly in strengthening cooperation and tackling key issues, including global headwinds and domestic constraints, while focusing on practical solutions through partnerships.
“We are living in a fast-changing world,” Mohieldin said, noting that the forum has played a role in improving the quality of solutions across different countries and sectors by bringing stakeholders together. He pointed to infrastructure and energy as sectors that now require a different set of approaches than in the past.
Referring to a recent report by the African Union and the OECD, Mohieldin said infrastructure financing in Africa remains largely dependent on external funding, which accounts for 48% of total financing, while public funding contributes 41%. Meanwhile, the local private sector accounts for only about 9%.
He added that Africa attracts roughly 5% of global FDI flows, despite being home to around 18% of the world’s population.
“In a fair global economy, Africa’s share should not be less than 20%,” he said. “Yet it currently accounts for just 3% of global GDP, while its share of FDI does not exceed 6% even in the best-case scenario.”
Mohieldin said the figures underscore the need to rethink financing structures and strengthen both domestic and international partnerships to better tap into the continent’s potential, particularly in light of ongoing global tensions and economic challenges.
