Foreign Investment in Developing Countries Hits Lowest Level Since 2005

Foreign direct investment (FDI), one of the most powerful engines of growth for developing countries, has slowed dramatically — dropping to levels not seen since 2005, according to new World Bank research. In 2023, developing economies attracted just $435 billion in FDI, while wealthier countries also saw sharp declines. 

The report warns that rising trade and investment barriers are choking the flow of capital exactly when it's most needed to fund development, create jobs, and raise living standards.

“It’s not a coincidence that FDI is plumbing new lows while public debt is soaring,” said Indermit Gill, the World Bank’s Chief Economist. “Private investment has to drive growth now—but governments are busy putting up barriers when they should be pulling them down.”

The World Bank’s new analysis comes ahead of the Financing for Development conference in Seville, Spain, where global leaders will discuss how to fund development goals in a world struggling with slow growth and shrinking aid budgets. Alarmingly, half of all FDI-related policy moves in developing countries so far this year have been restrictive — the highest share since 2010.

FDI is especially critical for developing nations because of its long-term growth benefits. The World Bank’s research shows that a 10% rise in FDI can boost GDP by 0.3% over three years, and even more — up to 0.8% — in countries with stronger institutions, better human capital, and more open economies. But the benefits aren’t evenly spread: 10 countries, including China, Brazil, and India, captured two-thirds of all FDI to developing economies over the past decade. The poorest countries received just 2%.

The report calls for urgent action. First, countries need to attract more FDI by improving their investment climate and lifting restrictions. Second, they should amplify FDI’s benefits by investing in human capital, trade integration, and women’s participation in the workforce. Third, stronger global cooperation is vital to steer investment where it’s most needed, especially as geopolitical tensions rise.

“The sharp drop in FDI should sound alarm bells,” said M. Ayhan Kose, the World Bank’s Deputy Chief Economist. “Reversing this slowdown is essential for growth, job creation, and achieving global development goals.”

Gender Gap Narrows at Fastest Pace Since Pandemic – But Full Equality Still 123 Years Away

 The world is inching closer to gender equality—but at a pace that means true parity is still more than a century away.

According to the World Economic Forum’s Global Gender Gap Report 2025, released today in Geneva, the global gender gap has closed to 68.8%, marking the strongest annual improvement since the onset of the COVID-19 pandemic. However, at the current rate of progress, it will take 123 years to fully close the gap.

Iceland remains the world’s most gender-equal country for the 16th consecutive year, followed by Finland, Norway, the United Kingdom, and New Zealand. These top-performing economies have all closed more than 80% of their gender gaps.

Yet, the report also lays bare persistent inequalities, particularly in economic participation and political empowerment—the latter still the largest barrier, with only 22.9% of the global gap closed. Women continue to outnumber men in higher education, but just 28.8% make it to senior leadership positions, revealing a deep underutilization of talent that’s hampering innovation, resilience, and growth.

“At a time of economic uncertainty and technological transformation, achieving gender parity is not just a moral imperative—it’s an economic one,” said Saadia Zahidi, Managing Director of the World Economic Forum. “Countries that invest in closing gender gaps are setting themselves up for more sustainable and inclusive growth.”

Regional and Economic Trends

Northern America leads globally with a parity score of 75.8%, showing particularly strong results in economic participation. Europe follows closely at 75.1%, driven by gains in political empowerment. Latin America and the Caribbean recorded the fastest overall progress since 2006, now ranking third globally with 74.5% parity.

In contrast, Sub-Saharan Africa ranks sixth with a 68.0% score, but shows promise: women now hold 40.2% of ministerial positions and 37.7% of parliamentary seats across the region. Bangladesh leads in Southern Asia (77.5%) and is the only economy from the region in the global top 50. Meanwhile, the Middle East and North Africa, though lowest-ranked, has more than tripled its political empowerment score since 2006.

Notably, income does not guarantee equality. While high-income countries average 74.3% parity, several low- and middle-income nations—such as Ethiopia, Ecuador, and Bangladesh—have made faster progress than many wealthier economies, proving that focused policy interventions and inclusive growth models can make a difference at any income level.

Progress Still Too Slow

Despite signs of acceleration, parity remains elusive. Political empowerment, although the fastest-improving area, would still take 162 years to close at the current pace. Economic parity would take 135 years, and disparities in leadership continue to widen even as women advance in education.

A key challenge is the failure to translate education into leadership. “Women dominate higher education but remain underrepresented in top management. That’s a structural inefficiency,” said Sue Duke, Global Head of Public Policy at LinkedIn. “With AI transforming the global economy, diverse leadership is more critical than ever.”

LinkedIn data reveals that modern leadership paths are increasingly nonlinear—requiring cross-sector moves, adaptability, and re-entry after career breaks. Yet women are 55% more likely than men to take career breaks, mainly for caregiving, and these breaks can become long-term setbacks in traditional career structures.

A Call to Action

As the global economy adapts to new risks—from technological disruption to trade fragmentation—gender parity must remain central to recovery and reform strategies. The report underscores that when countries prioritize parity, they unlock growth, innovation, and a more resilient future.

“Rapid progress is possible,” the report concludes. “Countries that treat gender parity as a cornerstone of economic strategy—not a side issue—are those positioning themselves for long-term success.”

📘 Read the full Global Gender Gap Report 2025 here: https://www.weforum.org/reports/global-gender-gap-report-2025
📢 Join the conversation using #gendergap25

Kenya and MindHYVE.ai Forge Path Toward Ethical and Inclusive AI Governance

Kenya has taken a significant step in shaping the future of artificial intelligence (AI) governance with the signing of a landmark Memorandum of Understanding (MoU) between MindHYVE.ai, DV8 Infosystems, and the Kenya ICT Action Network (KICTANet). 

The agreement was formalized in Nairobi, underscoring a joint commitment to co-develop Kenya’s National Artificial Intelligence Policy and position the country as a global leader in responsible, sovereign AI development.

The tripartite partnership brings together unique strengths. MindHYVE.ai, a California-based AI firm, is globally recognized for its pioneering work in agentic artificial general intelligence (AGI)—a paradigm that merges decentralized intelligence, ethical alignment, and national-scale adaptability. 

Its integration partner, DV8 Infosystems, specializes in designing and deploying AI systems for government transformation, built on swarm intelligence and real-world multi-agent orchestration. 

KICTANet, Kenya’s leading think tank on ICT policy, will anchor the initiative with its extensive multi-stakeholder networks and expertise in promoting open, rights-based digital ecosystems.

At the core of the MoU is the co-creation of Kenya’s National AI Strategy for 2025–2030. This strategy will go beyond technical frameworks, embedding ethical, regulatory, and participatory components rooted in local context. 

Together, the partners will contribute to a comprehensive policy that reflects Kenya’s constitutional, cultural, and socio-economic values.

A Joint Policy Task Team may be constituted to coordinate stakeholder engagement and interface with government authorities.

“This is not just a policy document,” said Bill Faruki, Founder and CEO of MindHYVE.ai, during the signing ceremony. “It’s a national protocol for intelligence itself. Kenya is not merely responding to global AI trends—it is positioning to set them. We are honored to help architect cognitive infrastructure that is sovereign by design and exponential by nature.”

Dr. Grace Githaiga, CEO of KICTANet, echoed the importance of the moment: “KICTANet views this MoU as a pivotal moment in our national journey toward responsible AI. We are pleased to align with technical partners who recognize the societal weight of this policy work and the urgency of getting it right.”

The agreement also affirms Kenya’s ambition to lead in Africa’s digital transformation by setting a precedent for homegrown, ethically grounded AI governance. 

With this strategic collaboration, Kenya aims to demonstrate that artificial intelligence can be developed in a way that is not only technologically advanced but also socially inclusive and aligned with national priorities.

UK and US Stereotypes Still See Africa as a Place of Animals and Safaris, Study Finds

Africa continues to be seen more as a place of animals and hardship than of people, progress, or potential — and now, a groundbreaking study has the data to prove it.

A new report titled Stereotypes About Africa in Britain and the United States: A Social-Psychological Study of Their Impact on Engagement with Africa reveals that outdated and negative stereotypes still dominate how many people in the UK and US perceive Africa. The consequences are real — affecting cultural curiosity, economic choices, and the willingness to engage with the continent at all.

Conducted by Africa No Filter in partnership with Dr. Adam Hahn of the University of Bath and researchers from the US and Germany, the study surveyed 1,126 participants across the UK and US to uncover what people really think about Africa. 

It also explored how those thoughts shape engagement — from buying products to exploring cultures. An additional 863 Americans were surveyed to test whether positive storytelling could shift these perceptions. It did.

What Do People in the UK and US Think About Africa?

The findings are stark. When asked to name three things that come to mind when they think about Africa, 57.9% of participants mentioned wildlife or nature — often with words like “dangerous,” “hot,” or even “uninhabitable.” Hardly anyone referenced African people, cities, or innovations. In comparison, thoughts about Europe were linked to modern infrastructure, architecture, culture, and stability.

Africa, in the minds of many, is not a place where people live, work, and innovate — but a distant, wild land of animals and instability. Its society and economy were described using terms like “corruption,” “poverty,” and “dictatorship.” Europe, meanwhile, was considered prosperous, liberal, and globally influential.

“This report shows that Africa still exists as an abstract concept for many — one that is defined more by animals and hardship than by people, progress, or potential,” said Dr. Adam Hahn, the study’s lead researcher and senior lecturer in social psychology at the University of Bath.

Why Stereotypes Matter

These views are more than just uninformed — they directly influence behaviour. The study found that negative thoughts about Africa made people less likely to buy African products or engage with its cultures. While many participants said they found Africa “beautiful,” that didn’t translate into action. Aesthetic appreciation of nature wasn’t enough to inspire economic or cultural interest.

Crucially, people who associated Africa with societal challenges like poverty and conflict — and failed to think about its cultures or tourism opportunities — were the least likely to engage with the continent in any meaningful way. The data suggests that shifting this narrative is essential to unlocking Africa’s global potential.

Positive Stories Can Change Perceptions

The good news? People’s perceptions can change — and storytelling is the key. The study tested whether positive narratives could reshape views. When participants were exposed to stories that emphasized Africa’s cultures, tourism, and innovations, their interest in African products and engagement increased.

“We now have hard data showing that the stories told about Africa — and the ones left untold — have real-world consequences,” said Moky Makura, Executive Director of Africa No Filter. 

“This research is a wake-up call and a roadmap. It tells us that we must go beyond economic data and media headlines — we must reframe how we talk about Africa to truly unlock its potential and opportunity.”

Rethinking the Narrative

This study adds a critical psychological layer to conversations about Africa’s place in the world. It makes clear that tackling economic inequality or media bias isn't enough — we must also confront and rewrite the deep-rooted perceptions held by the everyday person in the UK or US.

What does this mean in practice? It means showcasing African tech innovators, spotlighting cultural leaders, promoting African-made products, and telling nuanced stories about African societies that go far beyond animals and poverty.

Because until we do, the mental image of Africa will remain outdated — and so too will the world’s engagement with the continent.

The full report is available for download here: https://www.africanofilter.org/stereotypes-about-africa-us-uk-english