The East African Insider – Week 6th-12th December 2025

Introduction

This month, East Africa continues to attract significant investor attention, with major developments across infrastructure, energy, mining, health, and trade sectors. The African Development Bank approved USD 76.37 million for Somalia's Road Infrastructure Programme, enhancing connectivity along the Horn of Africa corridor and supporting regional trade and community development. In Tanzania, a USD 1.4 billion minerals deal with the United States is set to unlock strategic investment opportunities in nickel, graphite, and LNG, crucial for renewable energy and battery production. Kenya is reshaping its development financing through the launch of the National Infrastructure Fund, which channels privatization proceeds and private capital into roads, energy, and water projects while expanding energy capacity and institutional reforms. In Uganda, Blencowe Resources raised USD 4 million to advance its Orom-Cross graphite project, positioning the country to meet growing global graphite demand. Meanwhile, the United States and Rwanda committed USD 228 million to strengthen the public health system, signaling growing investment stability and opportunities in health infrastructure. In the Democratic Republic of Congo, Vingroup announced a USD 28 million subsidiary to support urban development, green mobility, and real estate projects, while in South Sudan, the AfDB extended its Interim Country Strategy to 2027, prioritizing infrastructure, governance, and climate-resilient investments to support recovery and attract investors. Collectively, these developments underscore East Africa's emerging role as a dynamic frontier for high-value investment, regional integration, and sustainable growth.

Trend of the week

AfDB injects USD 76M to accelerate horn of Africa corridor and boost regional trade

The African Development Bank Group has approved USD 76.37 million in additional financing for Somalia's Road Infrastructure Programme, a flagship component of the Horn of Africa transport corridor linking Somalia, Djibouti, and Ethiopia. The new funding includes USD 49.16 million from the African Development Fund and USD 27.21 million from the Transition Support Facility, reflecting the Bank's continued commitment to strengthening economic resilience in fragile states. The Programme aims to enhance transport connectivity both within Somalia and across its borders, supporting regional integration, trade expansion, and long-term stability. According to Mike Salawou, the Bank's Director of Infrastructure and Urban Development, the request for additional financing reflects a significant expansion of the project's scope from basic interventions to comprehensive road upgrades, including bridges, extended road sections, and integrated trade facilitation and social infrastructure components. The financing will upgrade two critical transport links: a 15-kilometre Zeila–Asha Addo road in Somaliland and a 22-kilometre Beled Weyne–Kalabeyr stretch in Hirshabelle State.

Beyond roadworks, the Programme incorporates targeted community development measures designed to maximize economic impact. These include constructing boreholes, rehabilitating classrooms into skills development centers, upgrading markets and storage facilities, and improving health infrastructure. To stimulate trade, the project will also enhance support for small-scale traders, implement a simplified trade regime between Somalia and Ethiopia, and expand Somalia's automated customs system to streamline border operations. Together, these interventions position the Horn of Africa corridor as a strategic investment zone with rising potential for logistics, agriculture, manufacturing, and cross-border commerce.

Tanzania

US-Tanzania USD 1.4B minerals deal opens doors for strategic investors

Tanzania and the United States are nearing a USD 1.4 billion minerals investment deal, signaling a major boost for the country's energy and battery minerals sectors. The agreement covers three key projects: the Tembo Nickel Project (USD 942 million) in Ngara, the Mahenge Graphite Project (USD 300 million), and a USD 42 million LNG initiative to develop offshore gas reserves. These projects, vital for electric vehicle batteries, renewable energy, and energy security, are structured to attract foreign investors, with the Tanzanian government emphasizing openness to partners who respect its sovereignty and share its vision for prosperity. For foreign investors, the deal represents significant opportunities in mining, energy, and infrastructure. Early engagement with Tanzanian authorities could provide access to high-value contracts and strategic insights, although investors must carefully consider political and regulatory risks, including recent unrest and international scrutiny over human rights concerns. Navigating these dynamics will be essential for capitalizing on Tanzania's rich natural resources while ensuring sustainable and secure investment participation.

Kenya

Kenya targets privatization proceeds and private capital in new infrastructure fund

President William Ruto has announced a major shift in Kenya's development financing with the creation of a National Infrastructure Fund (NIF), aimed at ending the country's reliance on borrowing and high taxation. Speaking during Jamhuri Day celebrations, he said the Fund set for Cabinet approval on Monday will ensure that proceeds from privatization are invested in long-term infrastructure rather than used for recurrent government expenses. Ruto noted that for years, revenue from selling State assets like Kenya Airways and KenGen was absorbed into the national budget without producing any flagship projects. The NIF will channel all current and future privatization returns into key projects such as roads, energy, and water systems, while also attracting long-term capital from pension funds, international investors, and sovereign wealth partners. Each shilling invested is expected to unlock at least ten more from these partners. Kenya needs nearly Sh5 trillion for four priority national projects, a challenge Ruto said cannot be ignored. A central pillar of the plan is expanding energy output by 10,000MW in seven years to power industries, data centers, electric mobility, and an AI-driven economy. The President also highlighted reforms under the new Government-Owned Enterprises Act, which introduces merit-based management and reduces political interference. Alongside the NIF, the Cabinet will review the Sovereign Wealth Fund Policy to safeguard national savings and strengthen economic resilience. Ruto said the new framework reflects consultations with leaders including the late Raila Odinga and former President Uhuru Kenyatta, marking "a new chapter where Kenya finances development through strength, not struggle."

Uganda

Blencowe secures more funding as graphite demand set to double by 2040

London-listed miner Blencowe Resources has raised USD 4 million through a share placement, marking its third fundraising effort in 2025 as it advances the Orom-Cross graphite project in Uganda. The company's definitive feasibility study outlines an initial production capacity of 20,000 tonnes of graphite concentrate per year, backed by a required USD 40 million investment. Despite months of discussions with potential lenders, Blencowe has yet to secure a final funding agreement, and ongoing work at Orom-Cross is being supported by existing cash from repeated equity raises. Prior to this latest placement, the miner had already secured approximately USD 1.33 million in April and about USD 1.49 million in September, signaling continued investor confidence in the project. Although global graphite prices remain subdued and the market is oversupplied, Orom-Cross stands out as a strategically important project—positioned as a potential alternative to China-dominated supply chains, particularly as Western economies seek diversification. With global demand for graphite projected by the IEA to more than double and surpass 10 million tonnes by 2040, Blencowe aims to accelerate its financing push and move toward first production in 2027, which would make Orom-Cross Uganda's first industrial graphite mine.

Rwanda

USD 228M US-Rwanda health partnership signals growing investment stability in East Africa

The United States and Rwanda have signed a USD 228 million memorandum of understanding to strengthen Rwanda's public health system, with Washington committing USD 158 million over the next five years and the Rwandan government adding USD 70 million in domestic funding. The partnership aims to combat HIV/AIDS, malaria, and other infectious diseases while enhancing disease surveillance and epidemic response capacity. This agreement follows a joint initiative with Zipline International Inc., expanding drone-based delivery of essential medical supplies and deploying radar systems to track potential epidemics. Rwanda has achieved significant health improvements, including near-universal health coverage and rising life expectancy, positioning it as a model for health infrastructure development in the region. This partnership signals a more resilient and stable business environment, with strengthened public health systems reducing economic risks and creating opportunities in health technology, logistics, and infrastructure sectors. Similar initiatives in Kenya further underscore the region's growing alignment with long-term U.S.-backed development strategies, highlighting East Africa as a viable destination for strategic investments in health-related industries.

Democratic Republic of Congo

Investors eye DRC's mega-development as Vingroup moves In

On December 6, Vingroup announced a USD 28 million investment to establish a wholly owned subsidiary, Vingroup DRC Holdings SARL, in the Democratic Republic of Congo (DRC), with headquarters in Kinshasa. The subsidiary will initially focus on market research and identifying investment opportunities in real estate, electric vehicles, and other sectors. This follows a prior MoU with the DRC government to develop a 6,300-hectare urban riverside mega-development, including housing, hospitals, schools, commercial centers, recreational facilities, and zones for government offices. The project also plans the transition of over 300,000 petrol vehicles to electric models, alongside deployment of electric buses and charging infrastructure, with land provided free by the Congolese government. Vingroup's move signals growing strategic opportunities in African infrastructure, urban development, and green mobility, highlighting the region as a frontier market for long-term, high-value projects. The initiative demonstrates how global conglomerates are entering Africa, paving the way for partnerships and investment flows in emerging sectors while leveraging government-backed incentives and early-mover advantages.

South Sudan

AfDB's commitment boosts investor confidence in South Sudan's recovery

The African Development Bank (AfDB) has extended its Interim Country Strategy Paper for South Sudan through 2027, reaffirming its commitment to supporting peace, stability, and economic recovery in one of Africa's most fragile contexts. The strategy focuses on two key priorities: investing in essential infrastructure including transport networks, energy access, and water systems to connect communities, improve service delivery, and boost agricultural production; and strengthening core state institutions to enhance economic management, public financial governance, and coordination with development partners. The plan also emphasizes resilience to climate shocks, promoting climate-informed investments to protect communities from future disruptions. These efforts aim to create a more stable environment, improve governance, and expand economic opportunities, laying the foundation for sustainable development and long-term investor confidence. The strategy signals emerging opportunities in infrastructure, agriculture, and institutional development, while offering reassurance that international institutions are actively supporting South Sudan's recovery and stability key factors for de-risking long-term investments in the country.

Upcoming events

Cameroon: Pre-bid Supplier Briefing Event on the Sustainable Cities and Land Project (PVGFD)

Date:

December 15, 2025

Time:

07:00 AM – 10:00 AM ET (2:00 PM – 5:00 PM Yaoundé, Cameroon local time)

Venue / Format:

Hybrid – In-person at Star Land Hotel, Yaoundé, Cameroon + Virtual

Agenda:

A preliminary market consultation to brief participants on the Sustainable Cities and Land Project (PVGFD) objectives, activities, and risks, and to gather feedback before the procurement process.

How to register:

For more information or to register, email: pvgfdminhdu2025@gmail.com

Who should attend:

• Companies interested in urban development and land projects
• Consulting firms and technical service providers
• Suppliers and contractors exploring project opportunities

Key features:

• Early engagement with project preparation team
• Overview of project objectives and high-value activities
• Discussion of technical, logistical, environmental, social, and financial risks
• Confidential feedback to help optimize project structuring

Opinion of the week

"Energy, transport, and water investments in Africa are among the most economically transformative globally. These sectors unlock everything else. No investor should ignore them."

Isabel Sprackman, Director of Global Infrastructure Advisory Group

Conclusion

East Africa's investment landscape is rapidly evolving, driven by strategic infrastructure projects, natural resource development, and innovative financing models. From Somalia's corridor upgrades and Kenya's National Infrastructure Fund to Tanzania's minerals deal and Uganda's graphite expansion, the region is demonstrating both resilience and growth potential. Coupled with health initiatives in Rwanda, urban development in the DRC, and South Sudan's recovery efforts, these developments signal a compelling environment for long-term, diversified investments. For investors, East Africa offers not only immediate opportunities in infrastructure, energy, and trade but also a pathway to participate in sustainable growth, regional integration, and frontier market expansion. Staying informed and strategically engaged now could position stakeholders to reap significant benefits as these transformative projects take shape

Resources

1. Highways today (2025)

Regional Corridor Investment Advancing Connectivity Across East Africa

Regional Corridor Investment Advancing Connectivity Across East Africa The Board of Directors of the African Development Bank Group has approved US$214.47 million in financing to advance the second phase of the South Sudan Ethiopia Djibouti Transport Corridor Project. The investment marks another decisive step in the region's long term ambition to establish a seamless, high ... Continue readingRegional Corridor Investment Advancing Connectivity Across East Africa
Highways Today

2. The star (2025)
https://www.the-star.co.ke/news/2025-12-09-us-tz-close-sh180bn-deal-despite-poll-queries

3. Dawan (2025)
https://www.dawan.africa/news/ruto-launches-infrastructure-fund-to-cut-kenyas-borrowing-dependence

4. Ecofin agency (2025)
https://www.ecofinagency.com/news-industry/1212-51351-uganda-s-orom-cross-graphite-project-gets-fresh-investor-backing

5. Ecofin agency (2025)
https://www.ecofinagency.com/news/0912-51210-usa-rwanda-memorandum-sets-228-million-health-cooperation-framework

6. VIR (2025)
https://vir.com.vn/vingroup-broadens-africa-footprint-with-28-million-drc-move-142389.html

7. African Development Bank (2025)
https://www.afdb.org/en/news-and-events/press-releases/african-development-bank-extends-country-strategy-support-stability-and-growth-south-sudan-89408

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