UNCTAD report: Developing economies relegated to extractive sectors

A report from the United Nations Conference on Trade and Development (UNCTAD) reveals a growing investment gap between developed and developing nations amid the rise of artificial intelligence and green technologies. Developed economies are capturing approximately 70% of the investment value for new projects in high-value strategic sectors, such as semiconductors, energy transition technologies, and AI infrastructure.

In contrast, middle- and low-income countries are primarily attracting investment in the extractive sector. Approximately 60% of new foreign direct investment in these regions is directed toward mining. While Africa provides much of the world's cobalt—essential for green technologies—the continent receives only 1% of the value from that specific supply chain. Similarly, Latin America faces increased dependence on raw material exports; while 25% of new investments in the region target critical mineral extraction, less than 2% are directed toward advanced technologies.