Introduction
This week's edition of The East Africa Insider captures pivotal economic and investment developments shaping the region. From trade negotiations to energy and agro-industry, East African markets continue to show resilience and dynamism, even amid global uncertainties. African manufacturers lobbied U.S. Congress for an extension of the African Growth and Opportunities Act (AGOA), a trade deal that underpins thousands of export jobs across the continent. In Tanzania, record cashew harvests are positioning the country as Africa's next agricultural powerhouse, backed by new industrial investments in processing. Kenya secured an USD 800 million deal with Chinese tire maker Shandong Linglong, reinforcing its industrial hub ambitions. Uganda is prioritizing oil storage infrastructure to unlock up to USD 2.5 billion in annual revenues once crude production begins in 2026, while the Democratic Republic of Congo unveiled a USD 20.3 billion budget aimed at strengthening governance, infrastructure, and social sectors. In the energy space, Burundi and its neighbours are moving forward with the long-awaited USD 800 million Ruzizi III Hydropower Project, set to boost regional clean power capacity by 206MW. Finally, South Sudan, with EU backing, launched a USD 10.7 million project to modernize the Nimule border post with Uganda, aiming to streamline trade and enhance regional integration.
These developments underscore East Africa's growing role as an investment destination across key sectors like agriculture, energy, infrastructure, and manufacturing. For foreign investors, the region presents a blend of high-growth opportunities and structural reforms that are shaping the future of African trade and development.
Trend of the week
African manufacturers lobby U.S. congress for extension of duty-free trade deal
African manufacturers are lobbying the U.S. Congress for a one- to two-year extension of the African Growth and Opportunities Act (AGOA), which provides duty-free access to U.S. markets for thousands of African exports. The programme, first passed in 2000, is set to expire at the end of September unless renewed. Kenyan manufacturer Pankaj Bedi, whose firm supplies major U.S. retailers including Target and Walmart, warned that without an extension, tariffs on synthetic textiles could jump from 10% to 43%, triggering mass layoffs and undermining Africa's export competitiveness. Delegations from Kenya and four other AGOA beneficiaries held over 30 engagements in Washington last week, securing bipartisan support from Congressional staff, though uncertainty remains over whether renewal can be attached to existing legislation in time. Failure to extend AGOA would not only jeopardize hundreds of thousands of African jobs but also shift U.S. sourcing further toward Asian manufacturers, undercutting the initiative's original purpose of strengthening U.S.-Africa economic ties while countering Chinese influence. AGOA's fate directly affects the investment climate in Africa's textiles and light manufacturing sectors, where U.S. market access has been a key driver of growth. Foreign investors should prepare for higher tariff exposure and supply chain realignments if AGOA lapses, but also monitor potential short-term extensions and policy shifts that could create opportunities for strategic positioning in African export industries.
Tanzania
Government-backed expansion positions Tanzania as Africa's next cashew powerhouse
Tanzania, East Africa's leading cashew producer and Africa's second-largest after Ivory Coast, is positioning itself for a record-breaking 2025/2026 harvest. According to the African Cashew Alliance, output could reach 700,000 tonnes, a 33% increase from 2024's all-time high of 528,000 tonnes. This growth is largely driven by new plantations coming into production under the government's orchard expansion strategy, supported by subsidies for seedlings, fertilizer, and pesticides. The sector has also adopted an auction-based sales system, which secures better export prices and keeps farmers engaged. While production is soaring, processing remains a weak link: only 2% of cashews are processed locally, with nearly all exports shipped as raw nuts. To address this, the government and Arise are building a dedicated agro-industrial park in Maranje, Mtwara, which aims to add processing capacity for 600,000 tonnes of cashews annually once completed. Tanzania's cashew sector presents two-fold opportunities tapping into its fast-growing raw nut supply chain and investing in value-added processing capacity, which is still underdeveloped. With government backing, rising global demand, and a shift toward industrialization, investors in agro-processing, export logistics, and input supply stand to benefit significantly from Tanzania's cashew boom.
Kenya
Kenya's industrial push gains momentum with USD 800M tire manufacturing deal
Kenya has secured an USD 800 million investment agreement with Chinese tire manufacturer Shandong Linglong Tire Co. Ltd. to establish a new tire factory in Mariakani, according to the Ministry of Investment, Trade and Industry. The deal was signed during the 2025 Arise Integrated Industrial Platforms investment forum, where President William Ruto reaffirmed Kenya's commitment to positioning itself as a premier global investment hub. The project is expected to create over 1,500 jobs, strengthen local supply chains, and reduce reliance on imported tires, a sector currently valued at nearly USD 30.6 million in quarterly sales. Aligned with Kenya's 2023–2027 Strategic Plan, the initiative supports the government's ambition to raise annual FDI inflows from USD 500 million to USD 10 billion by 2027 through reforms in economic zones, targeted tax incentives, and improved governance frameworks. The tire plant highlights Kenya's rising attractiveness as a manufacturing and industrial hub, offering opportunities not only in automotive supply chains but also in value-added manufacturing, logistics, and export markets. With strong policy backing and a growing consumer base, foreign investors can benefit from Kenya's strategic push to reduce imports and expand industrial production.
Uganda
Oil storage becomes the key to unlocking Uganda's USD 2.5B annual revenues
Uganda is set to become Africa's leading contributor to new oil and gas storage capacity by 2030, surpassing traditional giants such as Nigeria and Ghana, according to GlobalData. This projection stems from major infrastructure projects tied to the East African Crude Oil Pipeline (EACOP) and the planned Hoima refinery, both of which depend heavily on large-scale storage to support the launch of the Tilenga and Kingfisher oil fields expected to start production in 2026. The USD 5 billion EACOP project includes a marine terminal in Tanga, Tanzania, featuring four heated tanks of 500,000 barrels each, while Uganda is also investing in a new Kampala terminal with a capacity of 320 million liters (2 million barrels). Together, these facilities will complement Tilenga and Kingfisher's processing hubs and overcome Uganda's current limited storage, ensuring efficiency in refining and exports. With Uganda's crude requiring high-temperature storage for transport, these projects are critical to unlocking up to USD 2.5 billion in annual revenues and positioning the country as a strategic petroleum hub in East Africa. Uganda's storage expansion highlights strong opportunities in oil infrastructure, logistics, and energy services. Investors entering early can leverage partnerships around EACOP and the Hoima refinery to secure long-term stakes in East Africa's fast-growing petroleum value chain.
Democratic Republic of Congo
DRC's USD 20.3B budget opens new investment pathways in infrastructure and social Sectors
Democratic Republic of Congo's Prime Minister, Judith Suminwa Tuluka, has presented the country's 2026 finance bill to the National Assembly, setting the proposed budget at USD 20.3 billion, a 16.4% increase from the revised 2025 figure of USD 17.6 billion. The government describes the budget as balanced, with equal revenue and expenditure, and anchored on a strategy to double domestic revenues by 2028, ensure sustainable fiscal management, fund reconstruction in conflict-affected regions, and reduce social inequality. This move reflects the administration's broader USD 93 billion five-year development plan (2024–2028), which prioritizes economic diversification, territorial protection, social service access, and environmental sustainability. To support this, fiscal and administrative reforms will focus on expanding the tax base, tackling fraud, and improving transparency. Notably, the Prime Minister also presented the 2024 financial accountability bill, which reported a 79.97% implementation rate, reinforcing the government's commitment to responsible governance despite ongoing economic and security challenges in the country's mineral-rich eastern region. These reforms and budgetary commitments signal stronger policy direction and potential openings in infrastructure, agriculture, mining, and social sectors. However, persistent security risks mean investors will need robust risk management and local partnerships to tap into DRC's opportunities.
Burundi
206MW hydropower project signals Africa's next big renewable energy play
The long-delayed USD 800 million Ruzizi III Regional Hydropower Project is finally set to break ground in December 2025, with full construction works beginning in January 2026. Expected to generate 206MW of electricity, the plant will supply clean power to more than 300,000 residents across Rwanda, Burundi, and the Democratic Republic of Congo, while symbolizing a new phase of regional cooperation. Developed under a public-private partnership and managed by Ruzizi III Energy Limited, the project has already attracted international interest, with U.S.-based Anzana Electric Group negotiating a potential equity stake. Beyond power generation, Ruzizi III is expected to spur infrastructure upgrades, improve local livelihoods, and strengthen cross-border integration, making it one of the most significant regional clean energy projects in Sub-Saharan Africa. The project underscores growing opportunities in Africa's renewable energy sector, particularly through public-private partnerships and cross-border infrastructure projects. With equity stakes on offer and rising demand for clean power, foreign investors stand to benefit from both long-term returns and strategic positioning in the region's energy transition.
South Sudan
EU-Backed border upgrade to boost trade between Uganda and South Sudan
The Nimule border post, South Sudan's busiest crossing point with Uganda, is undergoing a major transformation under the USD 10.7 million EU-funded One-Stop Border Post Project, implemented by UNOPS and TradeMark Africa. Currently not fully operational, Nimule has long hampered smooth customs and immigration procedures, slowing trade between the two countries. The four-year project seeks to streamline processes, upgrade infrastructure, and reduce barriers that increase the cost of doing business. Planned works include the construction of a climate-resilient administration building, improved road access, and a dedicated women and youth market to support small-scale cross-border traders. In parallel, TradeMark Africa will focus on capacity building, digital trade systems, and stronger quality and safety inspections, helping automate processes and reduce bottlenecks. The initiative, part of the EU Global Gateway Africa–Europe Investment Package, is designed to foster regional integration, expand economic opportunities, and improve South Sudan's connectivity while aligning with its development and peacebuilding priorities. By lowering transaction costs and modernizing trade infrastructure, the project enhances the attractiveness of South Sudan as a frontier investment destination. Opportunities are emerging for foreign investors in logistics, ICT, construction, and trade facilitation services, with the added benefit of EU-backed reforms that reduce risk and improve transparency along this critical East African trade corridor.
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Date: 24–25 September 2025
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Opinion of the week
"Africa represents our fastest-growing region in the world. If you want to be relevant, you need to be in this part of the world."
Dominic Barton, Global Managing Director of McKinsey & Company
Conclusion
East Africa continues to position itself as a frontier of opportunity, balancing reform-driven governance with bold investments in energy, agriculture, manufacturing, and trade infrastructure. From Tanzania's cashew sector expansion to Uganda's oil storage push, Kenya's industrial rise, and South Sudan's trade facilitation efforts, the region is actively reshaping its economic landscape. These developments highlight both the scale of opportunity and the importance of strategic engagement whether through partnerships, value-chain integration, or long-term commitments to industrialization and regional trade. While challenges such as infrastructure gaps, security concerns, and policy uncertainties remain, the direction is clear: East Africa is moving toward stronger integration, greater competitiveness, and a more attractive investment climate. As we move into the final quarter of 2025, the region offers compelling signals for investors seeking growth, diversification, and sustainable impact in one of the world's fastest-evolving markets
Resources
Reuters (2025) Africa
https://www.reuters.com/world/africa/african-manufacturers-last-ditch-bid-extend-us-trade-
programme-2025-09-17/
Ecofin agency
https://www.ecofinagency.com/news-agriculture/1809-48786-tanzania-ramps-up-cashew-output-trails-ivory-coast-in-processing
Ecofin agency (2025)
https://www.ecofinagency.com/news-industry/1809-48796-kenya-signs-800-million-deal-with-chinese-firm-for-tire-factory
Ecofin agency (2025)
https://www.ecofinagency.com/news-industry/1709-48769-uganda-to-drive-africa-s-oil-storage-growth-with-major-projects-by-2030
Ecofin agency (2025)
https://www.ecofinagency.com/news-finances/1609-48726-drc-unveils-20-3-billion-budget-for-2026-targets-security-and-rebuilding-the-east
ESI- Africa (2025)
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