00:05Hello and welcome to this new edition of Business Africa.
00:09I'm Yasmina El Abassiré and here are today's headlines.
00:12Foreign direct investment in Africa fell by 26% in 2025,
00:16despite an increase in the number of announced projects.
00:20In Guinea, locally grown maize is helping boost the competitiveness of the poultry industry.
00:28Nearly $56 million.
00:31That's how much Nigerians spend each year on visa applications.
00:36In 2025, Egypt, Guinea and Mozambique ranked among Africa's leading destinations for foreign investment.
00:44Most of these funds went into energy, infrastructure and strategic minerals.
00:51Africa continues to attract foreign investors,
00:54but the amounts fluctuate significantly and capital is concentrated in a few countries and sectors.
01:02Where do these investments go and what do they contribute to local economies?
01:07In 2025, the continent received some $70 billion in foreign direct investment,
01:13a decline of about 26% from the previous year.
01:18But 2024 was exceptional, driven by a few major transactions.
01:232025 was roughly one-third above the long-term average.
01:28The projects announced tell a different part of the story.
01:32While their total value has fallen, their number has increased.
01:36Investors are continuing to commit capital through a larger volume of smaller-scale projects.
01:43Energy, infrastructure and strategic minerals attract much of the money.
01:48Investors from the Gulf and Asia are increasingly prominent,
01:52though benefits remain unevenly distributed.
01:56Egypt leads with $15.5 billion, followed by Guinea with $7.8 billion,
02:02Mozambique with $5.7 billion, Nigeria and Ethiopia.
02:06The challenge now lies in transforming this capital into jobs, local production and added value,
02:13through training, infrastructure development and the cultivation of local suppliers.
02:22We're joined now by Goudet Appalé, an economic intelligence expert.
02:26Monsieur Appalé, welcome.
02:28How do you explain the decline in foreign direct investment in Africa,
02:32despite continued investor interest?
02:34I think it's important to point out that Africa and its economies
02:38are becoming increasingly attractive to international investors,
02:43contrary to what the figures in the Unictad report published this summer might suggest.
02:47I won't describe this decline as alarming,
02:50because 2024 was such an exceptional year,
02:53particularly due to several major prospects in Egypt,
02:57that 2025 looks slightly weaker by comparison.
03:00But what really matters is the number of investment projects being undertaken,
03:04and on that front, we are seeing an increase of more than 10%,
03:09bringing the total to around 860 projects.
03:13Another point I would like to highlight is the continent's attractiveness
03:16is also reflected in the fact that 2025 remains a very strong year.
03:21If we exclude what statisticians call atlias,
03:25meaning the exceptional figures recorded in South Africa in 2021 and Egypt in 2024,
03:31we find that 2025 was one of the strongest years since 1990.
03:36These are important factors to highlight
03:38when assessing Africa's continued appeal to international investors.
03:43Speaking of Egypt,
03:44why has the country, along with Guinea and Mozambique,
03:47attracted so much foreign investment?
03:51One important point is that Egypt has ranked fast for the second consecutive year.
03:56In 2024, Egypt attracted $44 billion in foreign direct investments.
04:01Egypt has long been an attractive destination.
04:03But why?
04:04Because it is a major strategically located at the crossroads of the Mediterranean,
04:09the Middle East, and the Sub-Saharan Africa.
04:11It is also a hub for several sectors the country is developing,
04:15including logistics, tourism, energy, real estate, and construction.
04:19Egypt alone accounts for approximately 40% of the continent's major investment projects,
04:24Now, turning to the other two countries, in Guinea,
04:27we have all followed the launch of operations at the Simandu project,
04:31a massive iron ore development backed by approximately $20 billion in investment
04:36that has provided a major boost,
04:38making Guinea something of a surprise in these rankings.
04:42As for Mozambique, the situation is similar,
04:44but in the liquefied natural gas sector,
04:47an easing of security tension, particularly in the Cabo Delgado region,
04:51has allowed major energy companies such as Eni, Total, and ExoMobil
04:56to resume or expand certain liquefied natural gas projects.
05:00All of this has helped these three countries reach the top of the rankings.
05:04Of course, Nigeria, Ethiopia, Kenya, and Morocco also feature prominently.
05:09They have been among Africa's leading investment destinations over the past decade.
05:15How can countries receiving these investments turn them into sustainable jobs
05:20and greater local added value?
05:24We often say that the dollar invested in a mining or gas project
05:29does not necessarily translate into investment in jobs
05:32or greater prosperity for local communities.
05:34And this is precisely one of the major concerns raised by UNICTAD.
05:38Large investment figures and mega-projects can sometimes distort our understanding
05:43of what we call the real economy.
05:45And what is the real economy?
05:47It means jobs, a skilled and trained workforce, infrastructure,
05:51and a range of services that can develop around a major investment project.
05:54So how can this investment be turned?
05:57First, African economists must continue to consider
06:00how to gain market share in regional and international value chains.
06:04The share of African capital in foreign direct investment fell from approximately 18% in 2020
06:11to 10% in 2025, an 8% point decline.
06:15This means that we are missing out on a number of opportunities, dividends, and so on.
06:20In 2025, investments in the continent's manufacturing industries almost doubled,
06:25reaching approximately $36 billion.
06:27I would like to conclude by reminding you that Africa was a continent
06:32that generated the most wealth in 2025.
06:35This means that we remain a land of opportunity today,
06:38and it is important to highlight that.
06:42Thanks for joining us on the program.
06:45Thank you for the invitation.
06:48In Guinea, the maize industry is seeking to cut import costs
06:52and meet the needs of poultry farmers.
06:55The goal is to boost domestic production
06:57and make the poultry sector more competitive.
07:02In Guinea, maize production has increased by 33%,
07:05rising from 569,000 tonnes in 2024-2025
07:10to nearly 757,000 tonnes in 2025-2026.
07:16However, local output is still insufficient
07:19to regularly supply poultry feed manufacturers
07:23in Faranajiba, Tunkara Farms, 15 hectares of maize.
07:30Our regret today is seeing players in the livestock sector
07:34travel to Mali or Cote d'Ivoire to buy maize.
07:37They often spend between $5,000 to $10,000 by operator.
07:43Under this presidential initiative,
07:45they will now be able to source their supplies directly from us.
07:52In Conakry, a factory produces up to 1,500 tonnes of poultry feed every month.
07:58Maize account for half of its ingredients.
08:01Increasing local production would help reduce exposure
08:04to international price fluctuations.
08:06With the crisis in Ukraine, we saw raw material prices skyrocket.
08:11So producing locally is really a way of ensuring
08:15the long-term sustainability of our business.
08:18The Institute of Agricultural Research provides seeds
08:21and technical support to farmers.
08:23With 25 kilograms of seed per hectare,
08:26average yields are reported to exceed 4 tonnes.
08:29But when should fertiliser be applied to a crop?
08:32And in what quantity, at what stage?
08:35We as researchers conduct experiments
08:38to find the precise answers to these questions.
08:42The challenge now is to ensure a reliable and consistent supply of locally produced maize
08:47to support the growth of Guinea's poultry industry.
08:51In Nigeria, applying to travel abroad comes with a heavy financial burden.
08:56Every year, visa applicants spend millions of dollars,
09:01often with no guarantee of approval.
09:06For Olisa Obeche, a visa refusal meant losing money and putting his plans on hold.
09:11The businessman had hoped to travel to Canada last year.
09:16We are going as a group of young guys who are going to go and do this training
09:21on manned aerial vehicle piloting.
09:23You know, we are all rejected.
09:24And the reason why we are being rejected was not really clear to us.
09:27It wasn't a good feeling for me at all.
09:29Olisa had already paid a non-refundable fee of about $130.
09:33And his experience is shared by many others.
09:37Hundreds of thousands of applicants are rejected each year.
09:40For some destination countries,
09:42concerns about whether applicants can support themselves or part of the reason.
09:47This country is believing that a lot of people who are coming into their countries from Nigeria
09:51do not have the financial might, the economic strength to actually add to their economy.
09:56They feel that Nigerians coming there are going to be burdened.
09:59The reasons people want to leave go beyond travel.
10:03Many are looking for jobs, education and better economic opportunities,
10:07a pressure felt by people across Africa.
10:10In Nigeria, ActionAid estimates that more than 80 million young people are without jobs,
10:16with youth unemployment above 50%.
10:19Nigerian leaders need to make the economic situation better.
10:23Things have to improve.
10:24More opportunities need to be created, especially for young people.
10:27The Nigerian government says it is trying to create more opportunities at home.
10:32It has launched initiatives such as Hire from Nigeria,
10:35aimed at training young people in digital and technical skills and connecting them with jobs.
10:41But the demand for opportunities abroad remains strong.
10:44For those still determined to leave, a visa refusal may mean losing money.
10:49But it does not necessarily end to search for a way out.
