April 14, (THEWILL) — The Pan-African Manufacturers Association has warned that Africa’s share of global Foreign Direct Investment (FDI) remains stalled between four and six per cent, underscoring the continent’s limited role in global manufacturing.
In its March 2026 Manufacturing Review, PAMA noted that this stagnation persists despite a 14 per cent rise in global FDI to $1.6tn in 2025. During the same period, inflows into Africa dropped sharply by 38 percent to $59bn.
Even the spike to $97bn in 2024 was driven largely by a few large-scale projects rather than broad-based industrial growth.
The report describes Africa’s investment climate as marked by volatility and shallow industrialisation. Capital continues to flow predominantly into extractive industries and low-value services, limiting progress in industrial upgrading, value chain integration, and job creation.
Regional disparities are pronounced. North African economies such as Egypt and Morocco have leveraged trade ties with Europe to build automotive and textile hubs.
Meanwhile, Southern Africa, particularly South Africa, has faced setbacks, recording negative inflows of $6bn due to divestments.
PAMA is calling for a strategic shift away from “generic openness” toward targeted investment policies anchored on regulatory discipline, macroeconomic stability, and policy certainty.
It emphasised the need for performance-linked incentives tied to technology transfer and local value creation.
The report also highlighted structural constraints, including unreliable power supply, weak logistics, and skills shortages, as key barriers.
Initiatives such as regional value chains and Special Economic Zones are seen as critical to unlocking higher-value manufacturing investment.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
