The East African Insider – Week 29th November- 5th December 2025

Introduction

As we step into December, Africa continues to attract growing interest from global investors, underscored by significant developments across the region. The 2025 Africa Investment Forum (AIF) Market Days in Rabat, Morocco, showcased USD 15.3 billion in investment interest across 39 bankable projects, drawing over 2,000 delegates from nearly 80 countries and highlighting opportunities in energy, transport, and other high-growth sectors. In Tanzania, a USD 640 million agro-industrial hub in Kilwa promises to transform agricultural production, integrate over 10,000 smallholder farmers, and drive export-oriented growth. Kenya secured a USD 1 billion debt-for-food security deal with the U.S. International Development Finance Corporation, freeing fiscal space to invest in infrastructure, food security, and energy projects. Uganda launched a five-year initiative in dairy and tourism, supported by Sweden, aimed at enhancing value chains, job creation, and private-sector competitiveness. Rwanda's mining sector is being modernized into a technology-driven and diversified industry, positioning the country as a strategic source of high-value minerals. Somalia received a USD 19.7 million grant to improve housing, skills development, and climate-resilient infrastructure for displaced communities, while South Sudan–Ethiopia–Djibouti transport corridor received USD 214.5 million to enhance regional trade, connectivity, and vocational capacity building. These developments signal a strong investment climate across East Africa, highlighting opportunities for foreign investors to engage in sustainable, high-impact projects that promote growth, infrastructure development, and regional trade integration.

Trend of the week

Africa's private sector growth attracts global capital at 2025 AIF market days

The 2025 Africa Investment Forum (AIF) Market Days concluded in Rabat, Morocco, with USD 15.3 billion in investment interest spanning 39 bankable projects, underscoring the continent's growing attractiveness to global investors. The three-day event drew over 2,000 delegates, including private capital providers, international banks, multilateral finance institutions, entrepreneurs, and government representatives from nearly 80 countries. Under the theme, "Bridging the Gap: Mobilising Private Capital to Unlock Africa's Full Potential," the Forum highlighted opportunities in energy, transport, and other sectors, with projects backed by social and environmental impact studies and robust financial models.

African Development Bank Group President Sidi Ould Tah emphasized the rising profile of the AIF as a premier marketplace for investment in Africa, introducing measures to track how commitments convert into real projects. Morocco's Economy and Finance Minister Nadia Fettah highlighted the importance of mobilizing both African and international capital in alignment with the continent's development priorities. With strong participation from global investors, including Japan, the European Investment Bank, and the African Guarantee Fund, the Forum reinforces Africa's potential as a destination for sustainable, high-impact investments. The strong interest in bankable projects signals opportunities for foreign investors to partner with African governments and private-sector actors in sectors with high growth potential, particularly energy and transport. The AIF also provides a structured platform to assess project bankability, mitigate risks, and ensure investments align with social and environmental standards, making Africa an increasingly secure and profitable investment frontier.

Tanzania

Tanzania launches USD 640M agro-industrial hub to attract foreign investment

Tanzania has allocated a 25,000-hectare estate in the Kilwa district to Pan Tanzania Agriculture Development, marking the launch of a USD 640 million agro-industrial project. The investment will establish a special export processing zone of approximately 809 hectares, featuring processing units for cassava, cashew nuts, sesame, soybeans, fish, and fruit, alongside factories for packaging, animal feed production, and alternative energy. The remaining land will host modern farms employing advanced technologies such as drones, GPS, and IoT sensors to optimize irrigation and farm management, ensuring a steady supply of raw materials to the processing units. The project also plans to integrate over 10,000 smallholder farmers into its supply chain, supporting local communities while scaling production for Asian markets, including China. The initiative presents opportunities in agro-processing, export-oriented farming, technology-driven agriculture, and supply chain development, reinforcing Tanzania's potential as a strategic hub for agricultural exports and private-sector growth.

Kenya

Kenya's USD1 billion debt-for-food security deal opens new investment opportunities

Kenya has reached a landmark agreement with the U.S. International Development Finance Corporation (DFC) following President William Ruto's meeting with DFC CEO Ben Black in Washington, D.C., on December 3, 2025. Under the deal, the DFC will purchase a portion of Kenya's expensive commercial debt, enabling the country to repay it under more favorable, lower-interest terms. The savings generated from reduced interest payments will be redirected to critical food security programmes. These include investments in agricultural infrastructure, climate-smart farming, nutrition, and hunger management, providing fiscal breathing room while tackling long-term food insecurity challenges exacerbated by climate shocks and global inflation. He emphasized that the partnership aligns with Kenya's national development priorities and supports an agenda for inclusive, sustainable growth.

Beyond the debt swap, the DFC signaled interest in supporting Kenya's proposed National Infrastructure Fund, including upgrades to key roads, ports, and the Jomo Kenyatta International Airport. To further enhance collaboration, DFC will post a representative to Nairobi from January 2026, accelerating U.S. investments in the region and deepening bilateral ties, particularly in infrastructure, food systems, and energy. Separately, President Ruto held discussions with IMF Managing Director Kristalina Georgieva to explore enhanced support for Kenya's reform agenda and sustain economic momentum. These discussions come amid mixed signals regarding Kenya's next steps with the IMF, with the National Treasury considering a funded programme, while the Council of Economic Advisors leans toward tapping commercial markets for financing. The DFC debt-for-development model strengthens fiscal stability and signals a supportive investment environment. Reduced debt servicing costs and a focus on infrastructure, food security, and energy projects provide opportunities for foreign investors seeking secure, growth-oriented investments in Kenya's expanding markets.

Uganda

New USD 5-Year Uganda project strengthens trade and creates jobs in dairy and tourism

Uganda has launched a five-year project, supported by Sweden, aimed at strengthening regional and global trade in the dairy and tourism sectors while promoting private-sector development. The initiative will focus on value addition, market diversification, and collaboration with Swedish companies to leverage their expertise. The funding was unveiled at the International Labour Organisation (ILO) offices in Kampala at a time when regulations in the dairy sector currently cover only processed dairy products, leaving raw milk and other dairy inputs unregulated. The project will address long-standing gaps in the tourism sector, as highlighted in the National Tourism Policy, while promoting interventions that enhance competitiveness and employment. According to the 2024 value-for-money audit report by the Dairy Development Authority, national milk consumption rose from 46 litres per person in 2020/2021 to 64 litres in 2022/2023, still far below the 200 litres per person recommended by the World Health Organisation. ILO East Africa Country Director Caroline Mugalla Khamati noted that the new partnerships aim to create decent employment opportunities, particularly for young people, women, and vulnerable communities, across the dairy and tourism value chains. The project will adopt a market-systems approach to improve interventions and policies, ensuring sustainable development and economic growth. Sweden's Ambassador to Uganda, Maria Hakansson, emphasized that the investment reflects Sweden's commitment to empowering young people through private-sector growth, improving infrastructure, skilling workers, and expanding market access. Trade expert Donald Byamugisha added that improving the tourism sector will require employee skilling, market diversification, and better coordination across sectors. The Uganda-Sweden initiative highlights untapped investment opportunities in the dairy and tourism sectors. By strengthening value chains, creating jobs, and improving market access, the project signals a conducive environment for foreign investors seeking competitive returns while supporting sustainable development and inclusive growth.

Rwanda

Rwanda positions mining as key driver of economic growth and investment

Rwanda is rapidly transforming its mining sector from artisanal operations to a modern, technology-driven, and diversified industry, aiming to become a key driver of national economic growth. "We are advancing towards mechanized mineral extraction, on-site beneficiation, as well as advanced value addition, with refining facilities for gold, tantalum, and tin already operational in Rwanda," said Alice Uwase, CEO of the Rwanda Mines, Petroleum and Gas Board, at the opening of the 8th edition of Rwanda Mining Week in Kigali. The government is actively encouraging investment in value addition, positioning Rwanda as a strategic player in the global mineral economy. Board chairman Itzhak Fisher highlighted that Rwanda remains a responsible and reliable source of critical minerals, including tantalum, tin, tungsten, high-grade lithium, beryllium, gold, and a variety of gemstones. Prime Minister Justin Nsengiyumva emphasized that the mining sector will be inclusive, responsible, and aligned with international standards, ensuring benefits to local communities while safeguarding the environment. In 2024, Rwanda's mining sector generated USD 1.75 billion in export revenues, employs over 92,000 people, and contributes approximately 3 percent to the national GDP. With mechanization, value addition, and a focus on responsible practices, the sector is set to attract further domestic and foreign investment. Rwanda's modernization of its mining sector presents significant opportunities for foreign investors seeking exposure to high-value minerals. With operational refining facilities, a government committed to responsible practices, and a rapidly growing export market, investors can participate in a secure, competitive, and strategic mineral economy

Somalia

Somalia invests in resilient housing and skills signaling market potential for investors

The African Development Fund (ADF) has approved a USD 19.7 million grant to improve living conditions for 20,000 vulnerable households and support the integration of over 128,000 internally displaced people (IDPs) in Doolow, one of Somalia's most fragile border towns. The grant, under the Transition Support Facility for Somalia's Strengthening Urban Resilience of Displaced and Host Communities Project, will provide secure land tenure for 10,500 IDPs and construct 1,750 climate-resilient homes. Additional interventions include stormwater drainage systems, rehabilitated irrigation canals to protect farms, vocational training and entrepreneurship support for women and youth, startup kits, and farmer teaching fields for 4,500 households to promote climate-smart agriculture and diversified income. Beyond direct community support, the project will strengthen government capacity by training over 380 officials in land administration, conflict mitigation, and people-centred urban planning, supporting Doolow's transition into a resilient and inclusive urban center. Designed under Somalia's National Solutions Pathways Action Plan (2024–2029), this initiative is the first national project aimed at moving one million Somalis out of displacement. The project highlights Somalia's growing focus on structured urban development, skills-building, and resilient infrastructure areas with potential opportunities for investment in housing, construction, climate-smart agriculture, and community-based enterprises.

South Sudan

USD 214.5M boost for South Sudan–Ethiopia–Djibouti transport corridor unlocks regional trade opportunities

The African Development Bank (AfDB) has approved USD 214.47 million in financing for Phase II of the South Sudan–Ethiopia–Djibouti Transport Corridor Project. The funding, drawn from the AfDB's concessional window, includes USD 181.5 million for Ethiopia, USD 29.71 million for Djibouti, USD 1.96 million for South Sudan, and an additional USD 1.3 million from the Bank's Transition Support Facility for fragile countries. The project will deliver major infrastructure upgrades, including a 67-km expressway and intelligent transport systems in Ethiopia, an 18-km road upgrade in Djibouti, and studies for upgrading 280 km of roads in South Sudan, alongside improvements to feeder roads in all three countries. Beyond infrastructure, the project emphasizes skills and capacity building: Ethiopia will establish a vocational training center for automotive and engineering skills, training 300 women and youth in technical and entrepreneurship skills; Djibouti will host professional internships for engineers, including women; and South Sudan will strengthen its Ministry of Roads and Bridges and Roads Authority capacities. This corridor enhances regional connectivity, reduces transport costs, opens new trade and logistics opportunities, and supports agro-industrial and infrastructure-related investments, creating a favorable environment for private sector engagement in East Africa.

Upcoming event

Africa Investment Conference (AfIC) 2025 – 1st Edition

Date: 10^th-11^th December 2025

Venue: Mövenpick Hotel & Residences Nairobi, Kenya – Hosted by CFA Society East Africa

Agenda:

A premier platform bringing together global investors, policymakers, and financial leaders to explore next-generation investment strategies driving Africa's digital and economic transformation.

How to register:

Register online through the Africa Investment Conference website via this link- https://www.afic2025.com/tickets

Who should attend:

• Investment professionals (fund managers, analysts, portfolio managers)
• Policymakers & regulators
• CEOs, CFOs, and business leaders
• Development finance institutions
• Tech leaders & digital transformation experts
• Students & young professionals in finance

Key Features:

• 500+ participants from Africa and beyond
• 25+ expert speakers from global and regional finance
• 2-day high-level investment conference
• Deep-dives into Africa's digital transformation & new investment frontiers
• Networking with policymakers, investors, and industry leaders
• Practical sessions on capital markets, private equity, fintech growth, and macroeconomic trends

Opinion of week

"Africa represents the most dynamic growth story of the next three decades. Investors who step in now position themselves to ride demographic expansion, urbanization, and digital transformation. The returns will reward those prepared to think long-term."

Professor Kevin Chika Urama.- Chief Economist, African Development Institution (2025)

Conclusion

The developments highlighted this month underscore East Africa's emergence as a dynamic investment frontier. From large-scale infrastructure projects and modernized mining operations to agro-industrial hubs, private-sector growth initiatives, and climate-resilient urban programs, the region is offering diverse opportunities for investors seeking sustainable and high-impact returns. With strong government partnerships, supportive policies, and engagement from global financial institutions, East Africa is increasingly providing a secure and structured environment for foreign investment. For investors, this means not only access to high-growth sectors but also the chance to contribute to inclusive development and regional integration, positioning the continent as a compelling destination for strategic and long-term capital.

Resources

1. African Development Bank (2025)

https://www.afdb.org/en/news-and-events/press-releases/africa-investment-forum-secures-153-billion-39-bankable-projects-2025-rabat-gathering-89103

• Ecofin agency (2025)

https://www.ecofinagency.com/news-agriculture/0312-51062-tanzania-secures-640mln-agro-industry-investment

• Kenyans (2025)

https://www.kenyans.co.ke/news/118724-washington-greenlights-kenyas-ksh129-billion-debt-food-deal

• Dairy business (2025).

• Xinhua (2025)

https://english.news.cn/africa/20251203/41feb6ba448943359553d8da46ddcc01/c.html

• African Development Bank (2025)

https://www.afdb.org/en/news-and-events/press-releases/somalia-african-development-fund-approves-19-million-grant-strengthen-urban-resilience-displaced-and-host-communities-89274

• African Development Bank (2025)

https://www.afdb.org/en/news-and-events/press-releases/boards-directors-approve-2144-million-phase-ii-south-sudan-ethiopia-djibouti-transport-corridor-89290

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