Introduction
East Africa is positioning itself as a magnet for high-impact investment, driven by innovation, infrastructure, and inclusive growth. The African Union, in collaboration with GIZ and Sterling One Foundation, has unveiled a bold USD 100 billion private-sector investment agenda aimed at empowering 10 million women and youth across the continent by 2030. In Uganda, the government is adopting blended financing models to fast-track electricity access while managing debt, with innovative public-private transmission projects under consideration. Kenya's oil and gas sector is poised for a shake-up following Tullow Oil's USD 120 million exit, opening the market to new players and fresh capital. Rwanda's successful USD 17 billion "Umuganda" infrastructure bond, issued by the IFC, marks a growing investor appetite for local-currency financing and digital development. Meanwhile, Tanzania is on track to achieve its highest growth rate in six years, backed by expanded investment in banking, transport, and mining. In Burundi, the African Development Bank's USD 696 million investment in the SGR Phase 2 signals a strong push for regional integration and trade expansion. These coordinated efforts reflect East Africa's increasing appeal to global investors seeking scalable opportunities in infrastructure, climate resilience, and sustainable development.
Let's dive in!
Trend of the week
Strategic partnerships drive Africa's USD 100B inclusion ambition
The African Union Commission, in partnership with the Sterling One Foundation and supported by GIZ through Germany's BMZ, has intensified efforts to mobilize private sector capital for Africa's women and youth through the Women and Youth Financial and Economic Inclusion (WYFEI 2030) Initiative. Since its launch in 2022 as part of the African Women's Decade on Financial and Economic Inclusion (2020–2030), the initiative has established platforms to advance inclusive financial strategies. A recent high-level convening held ahead of the 2025 Africa Social Impact Summit called for USD 100 billion in private capital to empower 10 million women and youth by 2030. The event focused on reforming financial services, eliminating regulatory hurdles, and expanding blended finance models to bridge longstanding financing gaps.
AU's Director of Women, Gender and Youth, Ms. Prudence Ngwenya, urged systemic reform to centre women and youth in policy and investment decision-making, while Sterling One Foundation's CEO, Ms. Olapeju Ibekwe, stressed the urgency of shared execution and moving beyond rhetorical commitments. Dr. Tobias Thiel of GIZ echoed these calls, labelling inclusion a moral and economic imperative. Panellists explored practical strategies for unlocking early-stage capital in underserved markets, with UNICEF's Dr. Nadi Albino unveiling Empower Her Africa, a bold initiative to connect 50 million adolescent girls and young women to financing, tech, and entrepreneurship resources.
This event kicks off a series of continent-wide engagements that aim to forge strategic partnerships, reshape financing ecosystems, and remove structural barriers to opportunity. For foreign investors, WYFEI 2030 signals a growing investment pipeline in inclusive finance, technology, and gender-focused enterprise areas ripe for innovation, impact, and scalable returns in Africa's evolving economic landscape.
Tanzania
Tanzania's GDP set to hit six-year high in 2025 amid infrastructure boom
Tanzania's economy is poised for robust growth in 2025, with GDP projected to hit a six-year high of 5.9%, largely driven by pre-election government spending and strong momentum in mining and infrastructure projects. According to the August Sub-Saharan Africa Consensus Report by Focus Economics, these developments reflect a continuation of healthy economic trends, underpinned by solid performances in agriculture, construction, and financial services. While official Q1 GDP data is yet to be released, both Focus Economics panellists and the Bank of Tanzania estimate Q1 and Q2 growth at 5.8% and 5.5% respectively. Growth is further expected to accelerate to 6.1% in 2026.
However, external risks remain. The report highlights global trade tensions and extreme weather events as key threats to the outlook. Export growth is forecast to slow, while elevated inflation could suppress consumer spending. Inflation rose slightly to 3.3% in June and is expected to average slightly higher than in 2024, though it will likely remain within the Bank of Tanzania's 3.0–5.0% target range. In response, the central bank cut its policy rate from 6.0% to 5.75% in July, with projections for a further cut by year-end to support economic activity.
The Tanzanian shilling appreciated marginally in July but is forecast to depreciate slightly, ending 2025 at 2,711 per USD, due to continued monetary easing and a current account deficit. Despite currency pressures, Fitch Ratings has maintained Tanzania's B+ credit rating, signaling overall macroeconomic stability. Across the region, Sub-Saharan Africa is also gaining economic momentum, with GDP expected to grow by 3.9% in 2025 and 4.1% in 2026, driven by higher private consumption and investment. While Angola, Ghana, and Nigeria are experiencing stronger growth, Kenya's pace has softened, and South Africa remains sluggish. Ethiopia, meanwhile, secured a major debt relief deal worth USD 3.5 billion.
For foreign investors, Tanzania's strong growth prospects, policy stability, and Fitch's reaffirmed credit rating present a positive investment climate, especially in infrastructure, agriculture, and financial services despite caution warranted around global risks and currency movements.
Kenya
Fresh start for Kenya's oil industry as tullow sells to gulf energy
UK-based oil and gas company Tullow Oil Plc is advancing plans to exit its Kenyan operations after signing a Sales and Purchase Agreement (SPA) with Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd. The agreement, announced on July 21, involves the sale of 100% of Tullow's shares in Tullow Kenya BV, which holds its entire working interests in Kenya. The transaction is valued at a minimum of USD 120 million, subject to customary adjustments. The deal includes an upfront payment of USD 40 million upon completion, another USD 40 million by June 2026 or upon Field Development Plan (FDP) approval, and the final USD 40 million payable over five years starting in Q3 2028. Tullow will also receive royalty payments under specific conditions and retains a 30% back-in right to participate in future development phases at no historical cost, provided a third-party investor becomes involved.
This strategic move is part of Tullow's broader plan to strengthen its balance sheet and optimize its capital structure by 2025. According to Richard Miller, the company's CFO and Interim CEO, the transaction aligns with efforts to reduce net debt and supports Tullow's overall refinancing strategy. Combined with the sale of Tullow's assets in Gabon, these disposals are expected to generate around USD 380 million in cash proceeds in 2025. This cash inflow is projected to lower financial risks and support the company's long-term goals.
The assets being sold include all of Tullow's working interests in Kenya, particularly in the South Lokichar Basin in Turkana County, where significant oil discoveries were made. Since the first commercial oil find in 2012, Tullow has faced challenges bringing the resource into full production, including financial constraints in developing critical infrastructure like a heated pipeline to the coast. In 2023, former partners Africa Oil Corp and TotalEnergies exited the Lokichar project, leaving Tullow as the sole stakeholder. Earlier talks with Indian state-run firms also failed to yield a sale. This latest transaction with Gulf Energy now paves the way for potential progress in developing Kenya's oil sector.
Uganda
Uganda turns to innovative financing to expand energy access
Uganda is embracing innovative and flexible financing models to expand electricity access amid rising public debt and evolving energy demands. Speaking at Enlit Africa 2025, Robert Mubiru, Project Manager at Uganda's Ministry of Energy and Mineral Development, emphasized the challenges posed by traditional commercial financing for large-scale energy infrastructure, especially in emerging economies with limited sovereign guarantees. Mubiru noted that blended and syndicated financing models are becoming increasingly critical to move projects forward without overburdening national debt. He cited Uganda's experience with the "Jaguar" hydropower project, where government seed capital was instrumental in unlocking additional funding from development partners at later stages.
The country is also exploring third-party involvement in financing and operating transmission infrastructure, allowing investors to recover their costs through usage fees a model particularly effective in underserved regions with low demand and limited grid access. Mubiru pointed to the potential of extending power lines to neighbouring South Sudan, which lacks national grid connectivity but holds vast industrial and mineral development potential. Additionally, on the distribution side, regulators in Uganda are becoming more flexible, supporting easier and more consumer-friendly grid connections. These adaptive strategies signal Uganda's intent to reduce dependency on traditional borrowing while accelerating energy access for economic growth and regional integration.
Rwanda
IFC issues USD 17 million local currency bond to boost Rwanda's capital market
The International Finance Corporation (IFC), a member of the World Bank Group, has announced the successful issuance of a local currency bond worth USD 17 million on July 21, 2025. This eight-year amortizing bond, named "Umuganda," is designed to strengthen Rwanda's capital markets and support the country's digital infrastructure development. By raising funds in Rwandan francs, the bond also aims to mitigate exchange rate risks typically associated with foreign currency borrowing.
The "Umuganda" bond so named after the Kinyarwanda word symbolizing community effort has been listed on the Rwanda Stock Exchange and attracted strong demand from domestic institutional investors, including pension funds, insurance firms, banks, and asset managers. Arranged by BK Capital and Rand Merchant Bank, the issuance was oversubscribed by 1.75 times and offers a coupon rate of 10.50%, 55 basis points below the yield on comparable government bonds. This overwhelming response reflects growing investor confidence and the increasing depth of Rwanda's financial markets.
This marks IFC's second "Umuganda" bond, the first of which was issued in 2014 to raise USD 10.6 million which is the first-ever bond by a non-resident issuer in the country. The new issuance builds on that milestone, signaling Rwanda's progress in attracting international capital. IFC noted that in 2024, it also issued two offshore Rwandan franc-denominated bonds listed on the London and Luxembourg Stock Exchanges, further underlining its commitment to developing local currency financing across global markets.
Burundi
AfDB approves USD 696M for phase 2 of Tanzania-Burundi-DRC railway
In a major boost to regional infrastructure, the African Development Bank (AfDB) has approved USD 696.41 million in financing for Phase 2 of the Tanzania-Burundi-DRC Standard Gauge Railway (SGR) project. This phase involves the construction of a 651-kilometer electrified one-way railway, connecting Burundi to Tanzania's existing railway network, extending all the way to the Port of Dar es Salaam. The development is expected to significantly enhance cross-border trade and transport efficiency between the three countries.
Phase 2 of the project is divided into three critical segments: the Tabora-Kigoma railway (411 km), Uvinza-Malagarasi railway (156 km), and the Malagarasi-Musongati stretch (84 km) in Burundi. The entire project is estimated to cost USD 3.93 billion, with the AfDB contributing USD 98.62 million in grants for Burundi and USD 597.79 million in loans and guarantees for Tanzania. The Bank will also play the role of Initial Mandate Lead Arranger (IMLA), tasked with mobilizing an additional USD 3.2 billion from commercial banks, institutional investors, Export Credit Agencies, and Development Finance Institutions.
This transformative infrastructure project is expected to unlock vast economic opportunities for the region. By providing a reliable and cost-effective long-distance transport corridor, it will support Burundi's mining and agriculture sectors, particularly nickel production. Additionally, the railway will stimulate industrialization and economic diversification by linking economic hubs, industrial parks, and population centers across the region. Aligned with broader development agendas such as the EAC Rail Master Plan, AU Infrastructure Strategy, and the AfDB's "High 5" and "Integrate Africa" priorities, the SGR initiative is a strategic move toward deeper regional integration and sustainable economic growth in East Africa.
Democratic Republic of Congo
UAE deepens investment ties with DRC's USD 24 trillion mining sector
Mining and investment ties between the United Arab Emirates (UAE) and the Democratic Republic of Congo (DRC) significantly deepened in 2025, marked by the signing of several key agreements. As the world's largest producer of cobalt accounting for over 70% of global supply along with being a leading tin producer and Africa's top copper producer, the DRC's mining sector is increasingly capturing the attention of UAE investors. With an estimated USD 24 trillion in untapped mineral wealth, the DRC is seeking to harness foreign investment to unlock its vast potential, and the UAE has emerged as a strategic partner. The upcoming African Mining Week (AMW) 2025 is expected to play a crucial role in accelerating this cooperation, featuring a Middle East-Africa Roundtable with high-level panel discussions and project showcases that will connect UAE investors with key DRC mining stakeholders.
In July 2025, Congolese mining firm Buenassa partnered with UAE-based NG9 Holding to establish the DRC's first integrated copper-cobalt refinery. This facility is expected to produce 30,000 tons of copper cathodes and 5,000 tons of cobalt sulphate annually, advancing the country's push for local mineral beneficiation and value addition. In a major deal in June 2025, Abu Dhabi's International Resources Holding (IRH) acquired a majority stake in Alphamin Resources for $366 million, securing access to the Bisie Tin Complex one of the highest-grade tin deposits globally and source of 6% of the world's tin. These investments not only highlight the DRC's growing importance in global critical mineral supply chains but also reinforce its role in the energy transition and electric vehicle revolution. At AMW 2025, a dedicated panel titled Cobalt Opportunity: DRC's Strategic Position in the EV Revolution will spotlight such opportunities for UAE investors.
Beyond the mining sector, UAE investments are also supporting the DRC's energy infrastructure. NG9 Holding has signed a deal with Kipay Energy to build a 46 MW hydropower plant in Haut-Katanga, contributing to a total of 166 MW aimed at stabilizing electricity supply for mining activities in the region. As the DRC continues to prioritize industrialization and value addition, UAE involvement is expected to grow across mining and energy domains. African Mining Week 2025 will serve as a catalytic event, enabling new partnerships, project announcements, and expanded cooperation between the two countries in developing critical mineral resources.
Upcoming events
BFSI Week East Africa – Nairobi
Date: August 6–7, 2025
Venue: Hyatt Regency Nairobi, Westlands, Nairobi, Kenya
How to register:
Tickets available via CIO Africa's event portal. Visit this link for more details: https://tickets.cioafrica.co/events/bfsi-week
Agenda overview:
BFSI Week features three core tracks, designed to spotlight innovation across financial services:
- Smart Banking Summit: Focus on digital banking trends, AI-driven customer experiences, cybersecurity, core system modernization, open banking, digital payments, regulatory readiness, and data protection.
- SaccoTech Forum: Showcases how SACCOs are using digital platforms to scale operations, improve governance, and reach underserved communities.
- InsureTech Forum: Covers embedded insurance models, micro‑insurance, automation, fraud detection, and next-gen risk management.
Who should attend:
- Senior executives
- CIOs
- CTOs
- innovation leaders from banks, SACCOs, insurance firms, and fintechs.
- Investors
- Technology vendors
- Systems integrators
- Risk/compliance professionals.
Key features:
- High-impact networking with over 600+ attendees, including BFSI leaders and innovators
- Cutting-edge sessions on digital transformation, cybersecurity, regulatory frameworks, and embedded finance
- Matchmaking and deal-making within East Africa's financial ecosystem
- Vendor showcases: Explore live demos of emerging fintech, SACCO, and insurtech solutions
- Regional investor appeal: Leverage insights on growth trends and buy-side interest in Africa's BFSI sector
Opinion of the week
"Across our corporate base globally the interest in Africa is high and growing.... If you look at how developing Asia has moved on, that is good news."- Dominic Barton, Global MD at McKinsey & Company
Conclusion
East Africa is charting a dynamic path toward sustainable development through bold infrastructure investments, innovative financing models, and strategic public-private partnerships. From Uganda's creative approaches to energy access, to multi-billion-dollar transport projects and capital market reforms across the region, these initiatives reflect a deepening commitment to long-term economic resilience. For foreign investors, this momentum signals a maturing investment landscape one that is not only ripe with opportunity but also aligned with global priorities in energy, climate, and inclusive growth. Now is the time to engage, partner, and invest in the region's transformation story.
Resources
Africa Union (2025)
https://au.int/en/pressreleases/20250723/100-billion-investment-agenda-au-giz-and-sterling-one-foundation
IPP media (2025)
https://www.ippmedia.com/the-guardian/business/read/tanzanias-economy-sets-for-six-year-high-growth-in-2025-2025-07-23-171530
The Kenya Times (2025)
ESI Africa (2025)
Ecofin agency (2025)
https://www.ecofinagency.com/news-finances/2207-47783-rwanda-raises-17m-in-local-currency-bond-for-capital-market-growth
Build mart Africa (2025)
http://directory.buildmartafrica.com/detail-news.php?NEWS_ID=1184&PAGE_ID=7
Energy Capital Power (2025)
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