A Lopsided Recovery
The report, launched at UNCTAD headquarters, described the rebound as “narrow, fragile and uneven,” with more than 80% of global FDI flowing to just 20 countries. Developed economies saw inflows rise 11% last year, while developing economies recorded only 2% growth, receiving $901 billion of the global total. UNCTAD’s acting secretary general, Pedro Manuel Moreno, pointed to “seismic shifts in the global investment landscape,” noting that the expansion was “driven largely by a small number of megaprojects, particularly infrastructure related to artificial intelligence”. punchng.com
Growth in project values was led by data centres, followed by oil and gas and semiconductors. Data centres alone captured more than one-fifth of global greenfield investment in 2025, with announced FDI in the sector exceeding an estimated $270 billion as demand for AI infrastructure surged. etradeforall.org punchng.com
Developing World Risks Falling Further Behind
While the headline figures suggest a return to growth after FDI fell 11% in 2024, the underlying pattern points to widening disparities. The world’s least developed countries saw inflows rise 21% to $43 billion, but the absolute sums remain small relative to the capital-intensive projects reshaping global flows. Africa attracted about $70 billion in FDI during 2025, below the exceptional $94 billion recorded the prior year though still one-third above the long-term average. imf.org engineeringnews.co.za punchng.com
UN Secretary-General António Guterres has warned that many developing countries risk being left behind as investment becomes increasingly shaped by policy incentives — such as subsidies for chip manufacturing and AI infrastructure — that poorer nations cannot match. The report noted that investment facilitation and capacity-building remain essential for countries seeking to attract productive capital in an era when technology megaprojects dominate flows. punchng.com unctad.org
What Comes Next
UNCTAD will bring these questions to its World Investment Forum in Doha this October, where ministers and investors are expected to debate how to align capital with long-term development goals. The agency has identified a persistent $4 trillion annual gap between current investment levels and what is needed to meet global development targets, a shortfall the AI-driven concentration of FDI shows no sign of closing. linkedin.com unctad.org
