Political Stability Drives FDI in Africa as MAN Calls for Investment Reforms

Despite a gradual rise in foreign investment flows into Africa, the Manufacturers Association of Nigeria (MAN) has warned that Foreign Direct Investments (FDIs) across the continent are still being slowed by deep structural challenges, especially political instability and weak infrastructure.

Speaking in Lagos, MAN President Otunba Francis Meshioye explained that political instability and conflict remain major factors shaping where investors choose to put their money in Africa. He noted that manufacturing investments are particularly sensitive because they require long-term stability and predictable economic conditions.

He pointed out that countries facing insecurity and governance disruptions such as Sudan, Ethiopia, and the Democratic Republic of the Congo continue to experience reduced investor confidence, project delays, and even capital withdrawal. In contrast, more stable economies like Morocco, Rwanda, and Ghana have continued to attract stronger and more consistent manufacturing investments due to better policy environments.

Meshioye also highlighted infrastructure gaps as a major barrier, stressing that unreliable electricity, weak transport systems, and inefficient logistics continue to raise production costs across the continent. He noted that these challenges often push investors away from manufacturing into quicker-return sectors like energy and construction, limiting Africa’s industrial growth potential.

Beyond infrastructure and security, he warned that macroeconomic instability—including inflation, currency volatility, and inconsistent policies—continues to increase investment risks. He urged African governments to prioritize stable governance, policy consistency, and stronger investor protections while leveraging regional integration frameworks like the African Continental Free Trade Area (AfCFTA) to boost industrial development and attract long-term manufacturing FDI.

source: newtelegraph