According to a publication by the Director of Investment and Enterprise, United Nations (UN) Conference on Trade and Development, Nan Li Collins and Head, International Trade and Investment; Member of the Executive Committee, World Economic Forum (WEF), Sean Doherty, a more significant trend is emerging as capital becomes increasingly concentrated in a small number of industries and markets that are expected to drive future economic growth.
Artificial intelligence (AI), data centres, semiconductors, critical minerals, energy-transition technologies and advanced manufacturing have moved from niche investment areas to core pillars of economic competitiveness. As a result, investment patterns are changing, with capital flowing towards countries that offer technological expertise, skilled labour, reliable infrastructure, strong domestic markets or access to strategic resources.
The publication on Tuesday by the WEF, says many developing economies, this shift presents a challenge. Limited participation in these sectors could result in lower investment inflows and reduced access to the value chains that are expected to shape future production and trade.
According to the UN Conference on Trade and Development’s World Investment Report 2026, global foreign direct investment reached $1.6 trillion in 2025. Despite the increase, growth remained uneven. Much of the investment was directed towards developed markets and a relatively small group of capital-intensive and technology-focused industries.
Data centres led announced investment projects, followed by oil and gas developments and semiconductor production. Many other sectors, including parts of manufacturing, infrastructure and renewable energy, experienced slower growth. Greenfield investment in strategic sectors rose from $109 billion in 2020 to $576 billion in 2025, increasing from 16% to 44% of total global greenfield investment.
The distribution of that investment remains highly uneven. Low- and lower-middle-income economies receive only around 10% of global greenfield investment in strategic industries, compared with more than 20% in other sectors.
Government policy is playing an increasingly important role in directing investment. Incentives, subsidies, local-content requirements, investment screening measures and targeted promotion programmes are influencing where companies invest and how projects are structured. In 2025, governments introduced a record number of investment policy measures, with many focused on strategic technologies and industries.
Large economies often possess the financial resources and market scale needed to support sectors such as semiconductors, clean technology and digital infrastructure. Many developing countries do not. As a result, competing through large subsidy programmes is often not feasible.
Opportunities remain available. Many developing economies possess valuable assets, including critical minerals, renewable energy resources, growing digital markets and expanding workforces. Rather than competing across entire industries, many countries can target specific areas such as mineral processing, component manufacturing, logistics, renewable energy equipment, recycling and digital services.
Success will depend on creating attractive investment environments through reliable infrastructure, skilled labour, efficient regulation and strong regional cooperation. Greater participation in strategic industries would not only support development goals but also create a more diversified and resilient global economy.
–WEF/ChannelAfrica–
