The Continent's Turn To Rise and Attract Major Investments

Tourism In Africa

By Shumirai Chimombe

Key Tourism Statistics For Africa

• USD 7-billion - Greenfield investment projects 2019 - 2024

• 75 million - international tourist arrivals, 2024

• USD 43-billion - international tourism receipts , 2024

• USD 52.1-billion - international tourism exports, 2024

• 7.7% - tourism in total exports, 2024

• 3.5% - tourism contribution to regional GDP, 2023

Source: UN Tourism

“Africa stands at a transformative moment in its development journey, positioning itself as a dynamic frontier for longterm tourism investment. Comprised of 54 countries and an estimated population of 1.5 billion people, with 60% of it under the age of 25,2 the continent combines demographic strength, improving economic fundamentals and deepening regional integration. Its unparalleled cultural and natural diversity, coupled with growing demand for authentic and sustainable travel experiences, makes Africa increasingly attractive to global investors.” -Investing in Africa guidelines, UN Tourism

Africa’s steady rise as an investment destination came into the spotlight at the Tourism Investment Summit held in Cape Town from 9 to 10 September in Cape Town. The summit, hosted by the South African Department of Tourism, brought together global leaders in the tourism sector to network and to explore emerging investment opportunities on the continent.

Opening the Summit, UN Tourism Secretary-General Zurab Pololikashvili said that investing in tourism is about more than infrastructure, it's about building a sustainable future through education and inclusion. “We are proud to be leading the conversation around tourism investments and building bridges between investors and projects right across Africa."

UN Tourism also unveiled the executive summary of the Investing in Africa guidebook. The report, which is the first of its kind, gives a comprehensive overview of Africa’s tourism investment landscape and emerging business opportunities.

According to the guideline summary, a growing range of investmentready niches are taking shape across the continent - from integrated destination zones and ecotourism to gastronomy, wellness, cultural and religious tourism, sports, diaspora travel, and maritime experiences. Strategic investments in digital, energy, transport and social infrastructure are enabling scalable, high-impact projects aligned with global trends. Supported by regulatory reforms, fiscal incentives, emerging Special Economic Zones (SEZs) and public–private-community partnerships, Africa is not only open for tourism investment but ready to co-create inclusive, future-ready tourism models.

In addition to important data and up-to-date information on tourism dynamics on the continent, the summary is also interspersed with insights from international public and private investors who offer critical reflections and strategies for advancing Africa's tourism potential.

Some Insights From Stakeholders

“Tourism is not just a growth driver –it is a driver of change. It is how we include youth, create culture, and build futures in Africa. People today want stories, not just structures. Local culture is the bridge to global understanding – and tourism is the gateway that connects them all.” -Hamza Farooqui, Chief Executive Officer and Founder, Millat Group

“Investing in tourism in Africa is not just commercially sound, it is a powerful form of impact investing that protects ecosystems, creates jobs and strengthens communities.” -Lucía González Rodríguez-Sahagún, Investment Director, ThirdWay Partners

“The markets are not saturated. A lot of hotel markets in developed countries offer limited growth opportunities, whereas Africa presents enormous potential for expansion. If you are first to a market or enter a relatively unsaturated location, your market share can be extensive. Profitability in such cases is often very high.” Sandra Kneubuhler, Managing Director Sub-Saharan Africa, Radisson Hotel Group

“If governments want to boost tourism, they should focus on two things: reducing barriers to entry for tourists - such as providing easy visa-on-arrival options - and investing in infrastructure to improve accessibility.” Benjamin Peterson, CoFounder and Chief Executive Officer, Purple Elephant Ventures

Investing In Africa At A Glance

Executive Director of UN Tourism Natalia Bayona gave a presentation on “Investment Trends and Opportunities in Africa”.

“This is the time of emerging countries. When you see the globe, the emerging destinations are the ones that are growing the most. So this is the opportunity to focus on them. And when it comes to investing, investors are committed if they see security, confidence, trust,” she said as she presented the statistics.

In Africa, the top performing destinations in terms of growth as of Q1 2025 were The Gambia (46%), Morocco (22%), Eswatini and Ethiopia (7%), South Africa (6%) and Kenya at 4%.

In terms of Foreign Direct Investment (FDI) in the world in all sectors, not just tourism, Natalia indicated that the first tipping point of dropping investments was COVID-19, then they recovered, however the war started.

“So again when there are geopolitical tensions investors are not that open for investments. That's why it's key that our role is to maintain investments through tourism. To assure that from the most human economic sector that is tourism we are able to maintain stability as a driver of mutual understanding and openness.”

Currently the numbers are going up again with global FDI reaching $1.5 trillion in 2024. In Africa there were 104 announced projects representing a capital investment of USD 7-billion with some 15 000 direct jobs expected to be created from 2019 to 2024. In the last five years 90% of the projects focused on accommodation. So that's another key message.

So where are the projects? According to the Financial Times rankings South Africa leads when it comes to foreign direct investment in tourism with 17 greenfield projects. It is followed by Morocco (15), Tanzania (11), Kenya (7), Tunisia (7),Nigeria (5), Senegal (5), Tunisia (7), Cameroon (4), Ethiopia (4) and finally Mozambique (3).

“There are opportunities all around Africa and that's why this is the perfect moment to announce why to invest in Africa.”

Main Reasons To Invest In Africa’s Tourism Sector

According to the World Economic Forum Travel and Tourism Index, Africa shows the strongest global improvement and 16 out of 19 countries improved their scores ince 2019.

Natalia reported one of the key reasons why African countries are performing well is that government policies are introducing innovative incentives to attract tourism investments.

For example, countries are creating tourism special economic zones such as Maio Island in Cabo Verde SEZ to promote tourism with tax benefits and other incentives for investors who settle there. Others include the Inhambane SEZ in Mozambique combining beach tourism and nature conservation; and the Masuwe SEZ in Victoria Falls, Zimbabwe developed as part of a drive to develop a USD 5-billion tourism economy in the country.

“These incentives go beyond building a new hotel but it is about developing the whole infrastructure creating mega cities or mega developments.” -Natalia

Morocco has a long-term tourism vision with five years corporate income tax exemption. Ghana reduced corporate tax, introduced 5-year tax holidays for young entrepreneurs and diaspora-driven initiatives. Cameroon introduced a one-stop service with VAT/customs exemption and full foreign ownership allowed PPPs such as the Radisson Blu Douala; and Namibia has a community conservancy model granting land rights for tourism concessions.

Investment Opportunities Per Niches

The guideline identified key niches that had strong investment potential.

Integrated tourism zones and destination clusters - consisting of large scale master-planned destinations combining hospitality, leisure and infrastructure

Ecotourism and conservation finance - Africa’s rich biodiversity creates strong ecotourism potential with opportunities in ecolodges, carbon offsets, and conservation bonds.

Urban tourism - supported by rising Meetings, Congresses, Conventions and Incentives (MCCI) to hubs such as Addis Ababa, Abuja, Casablanca, Johannesburg and Kigali.

Cultural tourism - Africa’s rich heritage offers strong potential for cultural tourism. Creative travel is also thriving through festivals and art events in cities such as Abidjan, Cape Town and Dakar.

“I believe that we are on the right track to develop Africa’s tourism industry by investing in people, protecting the planet and fostering prosperity. This is just the opening of the hard work that we have to do. Count on us. Count on UN Tourism”, said Natalia as she concluded her presentation.

The Invest in Africa guideline can be downloaded from the UN Tourism website.

Zimbabwe and Morocco have been ranked among the world’s best destinations by Kayak’s latest Travel Check-in report. Zimbabwe, taking the No. 1 spot, impresses with the grandeur of Victoria Falls, the mystique of Great Zimbabwe’s ancient ruins, and the serene trails of the Eastern Highlands. Interest in the country has grown, with flight searches to cities like Bulawayo surging by more than 80% this year. Morocco, ranked sixth, is enchanting with desert dunes, the Atlas Mountains, and vibrant cities like Marrakech, Fez, and Chefchaouen, alongside coastal gems such as Essaouira.

Source: Business Insider Africa

Source: UN Tourism | TourismRSA | Department of Tourism | Business Insider Africa