China becomes Africa's largest investor in top new projects, $4.7 bn announced for 2025

China emerged as the leading source of capital behind Africa's biggest new foreign‑backed projects in 2025, pledging nearly $4.7 billion across three of the continent's largest announced greenfield developments, according to the UNCTAD World Investment Report 2026. The largest Chinese‑backed venture is a $2.5 billion oil‑and‑gas project in Ethiopia, followed by $1.1 billion oil‑and‑gas and metals projects in Zambia and the Democratic Republic of the Congo respectively. The report notes that while the overall value of announced greenfield investments in Africa fell by about one‑third in 2025, the number of projects rose, signalling a shift toward a broader mix of developments.

At the same time, social stability in Africa – particularly recurring xenophobic violence in South Africa – is identified as a growing risk to continued capital inflows. Foreign direct investment to the continent surged to a record $97 billion in 2024, yet outbreaks of xenophobic attacks have damaged commercial property, deterred investors and disrupted intra‑regional trade. South Africa alone saw more than 13,000 foreign nationals repatriated or deported in the weeks leading up to July 2026, underscoring the volatility that could undermine Africa’s position as a major growth frontier.