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Introduction
In the second week of April 2026, East Africa’s investment landscape continues to build momentum, with a mix of major cross-border deals, industrial expansion, and strategic infrastructure developments shaping the region’s outlook. This edition highlights Zenith Bank’s entry into Kenya, signalling deeper financial integration across African markets, Tanzania’s Vision 2050 undergoes its first audit test, revealing early execution and governance gaps that could influence the pace of long-term growth. In Kenya, a landmark court ruling has cleared a USD 2.3 billion foreign investment deal, strengthening investor confidence, while Uganda’s EACOP pipeline moves closer to completion, advancing the region’s oil ambitions despite ongoing challenges. Beyond these, Rwanda is positioning itself as a digital tax leader through a new agreement with Madagascar, the Democratic Republic of the Congo is attracting telecom investment with a USD 110 million expansion by Helios Towers, and Somalia is opening up its offshore energy sector through a strategic partnership with Türkiye, signalling a high-risk, high-reward frontier. Together, these developments reflect a region that is increasingly attracting capital across finance, manufacturing, energy, and digital infrastructure, offering diverse opportunities for investors while highlighting the importance of navigating evolving risks and market dynamics.
Trend of the week
Zenith bank secures East African foothold, boosting cross-border banking
On 7 April 2026, Lagos-based Zenith Bank confirmed the acquisition of 100% of Paramount Bank’s issued share capital, following regulatory approvals in both Nigeria and Kenya. First announced in November 2025, the deal marks Zenith’s first direct foothold in East Africa, a region increasingly attracting West African financial institutions. The acquisition aligns with Zenith’s long-term growth strategy, enabling the bank to support customers expanding across borders and strengthening its position as a leading financial institution in sub-Saharan Africa. Regulatory clearance was granted by the Competition Authority of Kenya, which determined the transaction would not substantially reduce competition, and required Zenith to retain all 78 Paramount Bank employees for at least 12 months. Final approvals were also secured from the Central Bank of Kenya and Central Bank of Nigeria, clearing the way for full integration. While Paramount Bank ranked 33rd out of 39 licensed Kenyan banks as of December 2024, analysts view the acquisition as a strategic entry into a fast-growing, competitive market, offering access to corporate and retail banking, SME lending, trade finance, and bancassurance capabilities. The move also positions Zenith to leverage growing trade links within East Africa and tap into the region’s accelerating adoption of digital banking. For foreign investors, this acquisition signals rising regional integration among African banks, creating opportunities to partner with established institutions that are expanding across borders, while demonstrating the East African market’s potential for growth, competition, and financial innovation.
Tanzania
Tanzania’s Vision 2050 faces execution test as audit flags governance risks
Tanzania’s ambitious Vision 2050 blueprint has faced its first real test, with audit findings highlighting critical gaps between policy ambition and execution capacity. While the long-term strategy aims to transform the country into a competitive, inclusive, and industrialised economy, early assessments by auditor’s point to weaknesses in planning, coordination, and accountability across public institutions. These challenges risk slowing the effective implementation of key development priorities, including infrastructure expansion, fiscal discipline, and service delivery. The findings underscore the importance of strengthening monitoring systems, improving institutional efficiency, and ensuring value for money in public spending to keep the Vision on track. For investors, the audit results present a balanced outlook: while Vision 2050 reinforces Tanzania’s long-term growth potential targeting a USD 1 trillion economy and a stronger investment climate, the early implementation gaps highlight execution and governance risks that must be closely monitored. Strengthened oversight, policy alignment, and institutional reforms will be key in translating strategy into bankable opportunities, particularly in infrastructure, manufacturing, and digital transformation.
Kenya
Kenya upholds USD 2.3B cross-border deal, signalling market stability
Kenya’s High Court has dismissed a legal bid to block Diageo’s USD 2.3 billion sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings, removing a key obstacle to one of the largest foreign investment transactions in the region. The deal, first announced in December 2025 as part of Diageo’s strategy to reduce debt and revive growth, had faced uncertainty after a legal challenge by a local distributor over a long-standing dispute. However, the court ruling lifted all barriers to completion, reinforcing Kenya’s regulatory environment and commitment to protecting major investment flows. The transaction is strategically significant not only for the companies involved but also for Kenya’s broader economic agenda, as the government seeks to attract foreign capital to drive industrial growth and job creation. For foreign investors, the ruling sends a strong signal of legal clarity and deal security in Kenya’s market, highlighting the country’s ability to uphold large cross-border transactions despite disputes. It also underscores continued global interest in Kenya’s consumer and manufacturing sectors, positioning the country as a key destination for multinational investment in East Africa.
Uganda
Uganda’s oil ambitions advance as EACOP hits 82% completion
The East African Crude Oil Pipeline (EACOP), a 1,443-kilometre նախագ designed to transport crude oil from the Lake Albert fields in Uganda to the port of Tanga in Tanzania, is now approximately 82% complete, bringing it closer to first oil exports targeted for July 2026. Developed by the EACOP Company and operated by TotalEnergies and its partners, the pipeline is expected to carry up to 216,000 barrels per day once operational. Due to the highly viscous and waxy nature of Uganda’s crude, the pipeline is being constructed with specialised insulation and heating systems along its route, alongside pumping stations and an export terminal in Tanga. Construction followed a final investment decision in 2022, and commissioning is expected within months, subject to final testing and completion of remaining works. Despite nearing completion, the project remains highly contested. Legal action has been filed by Ugandan farmers in London, citing concerns over land rights and livelihoods, reflecting continued resistance from communities and advocacy groups. At the same time, the project’s financial outlook is under scrutiny, with cost estimates rising to approximately USD 5.6 billion around 55% higher than initial projections. These overruns could impact Uganda’s expected revenues, as investors recover their costs before profit-sharing mechanisms take effect. As one of Africa’s longest crude oil stakes investment shaped by economic, environmental, and social considerations. EACOP signals a major step toward unlocking East Africa’s oil export capacity, positioning Uganda as an emerging oil producer. However, rising costs, legal challenges, and environmental concerns highlight the importance of balancing long-term revenue potential with execution risks and stakeholder pressures.
Rwanda
Rwanda–Madagascar deal signals rising investment appeal in Africa’s digital tax ecosystem
Rwanda and Madagascar have signed an agreement for Madagascar to adopt Kigali’s electronic tax invoicing technology, marking a significant step in Africa’s push toward digital tax administration and improved domestic revenue mobilisation. The deal strengthens Rwanda’s position as an emerging hub for tax modernisation on the continent, drawing on more than a decade of experience since the country introduced its Electronic Billing Machines (EBMs) in 2013. These systems digitised VAT invoicing, enabled real-time transmission of sales data, and significantly reduced tax evasion, creating a scalable and efficient tax framework. Today, over 94% of VAT-registered taxpayers in Rwanda use the e-invoicing system, contributing more than 31% of total tax revenue in the 2024/25 financial year, with positive spillover effects on income tax and business licensing. Madagascar is seeking not just the technology, but a full ecosystem that includes legal frameworks, compliance systems, and institutional expertise. This transition aligns with its ongoing reforms under a USD 658 million programme with the International Monetary Fund, where improving tax revenue mobilisation is a key requirement. Rwanda’s influence in digital tax systems extends beyond this deal, having also played a key role in designing Kenya’s eTIMS platform. The Madagascar agreement adds to a growing list of African countries, including Ghana and Zambia, that are adopting electronic invoicing to enhance transparency, widen the tax base, and formalise their economies. Together, these developments signal a broader continental shift toward digital governance systems that improve fiscal stability and create a more predictable and attractive environment for investors.
Democratic Republic of Congo
USD 110M Helios investment signals investor confidence
Helios Towers, a leading operator of shared telecom infrastructure in Africa and the Middle East, is set to invest approximately USD 110 million in 2026 to deploy new tower sites, power supplies, and network expansion across urban and rural areas of the Democratic Republic of the Congo (DRC). The expansion covers all 23 provinces, including Kinshasa, Upper Katanga, North Kivu, South Kivu, and Kongo Central, building on the operator’s existing portfolio of 2,712 towers in the country. This investment is made possible through an agreement with the Agence Nationale pour la Promotion des Investissements (ANAPI), the DRC government body responsible for promoting investment and improving the country’s business climate. The Helios Towers initiative responds to rapidly growing demand for connectivity in the DRC, aiming to boost competitiveness and accelerate network construction under a favourable regulatory framework. ANAPI Director General, Rachel Pungu Luamba, highlighted that the project will generate approximately 100 direct jobs and thousands of indirect employment opportunities for Congolese youth. The investment also aligns with the government’s National Digital Plan “Horizon 2025” and the “DRC Digital Nation 2030” vision, positioning digitalisation as a key pillar of economic and social development. Helios’ commitment underscores renewed international confidence in the DRC’s economic potential and the effectiveness of ongoing business climate reforms. The Helios Towers expansion represents a high-impact investment opportunity in DRC’s telecom sector, providing both infrastructure growth and long-term returns tied to rising mobile and digital demand. Investors can view this as a strategic entry point into one of Africa’s largest emerging connectivity markets, benefiting from government backing and alignment with national digitalisation priorities.
Somalia
Türkiye–Somalia deal opens untapped hydrocarbon potential to investors
Somalia is on the verge of launching its first-ever offshore oil drilling campaign, marked by the arrival of a deep-water drillship operated by the Turkish Petroleum Corporation. The vessel is expected to begin drilling at the Curad-1 well, following earlier seismic surveys conducted by Türkiye that identified potential reserves estimated between 30 and 40 billion barrels of oil and gas equivalent. The project is part of a 2024 hydrocarbon cooperation agreement between Somalia and Türkiye, positioning Somalia as a potential new energy frontier in East Africa if commercially viable reserves are confirmed. If successful, the drilling programme could significantly transform Somalia’s economy by unlocking new revenue streams, financing infrastructure development, and elevating the country’s role in regional energy markets. However, the agreement has drawn criticism due to its front-loaded revenue structure, which allows Türkiye’s state-owned operator to retain up to 90% of early revenues for cost recovery, while Somalia receives a modest royalty in the initial phase. Concerns have also been raised around sovereignty and long-term control, particularly given Türkiye’s broader strategic presence in Somalia, including military cooperation and infrastructure investments. Supporters of the deal argue that such terms are typical for high-risk, underexplored markets, where foreign investors assume the financial and technical burden, with Somalia expected to secure a significantly larger share of profits once costs are recovered. The development signals the emergence of a high-risk, high-reward energy frontier in East Africa. While the potential scale of reserves presents significant upside, the investment case depends on successful exploration outcomes, evolving revenue-sharing dynamics, and the country’s ability to manage resource wealth effectively. The deal also reflects a broader trend of strategic partnerships shaping access to Africa’s untapped natural resources.
Upcoming events
ISOA East Africa Forum
Venue: Trademark Suites at Enaki Town, Nairobi, Kenya
Date: April 20, 2026
Agenda: A high-level forum focused on building partnerships between the private sector and development finance institutions to unlock investment, trade, and infrastructure opportunities in East Africa.
Who Should Attend:
- Senior leaders from development finance institutions
- Multilateral organizations
- Government agencies
- Private sector investors
- Contractors
- Service providers.
Key features:
- Keynote addresses from global policy and security leaders
- Panels with institutions like the World Bank, AfDB, and DFC
- Discussions on investment in fragile and emerging markets
- Insights on trade corridors, infrastructure, and PPP models
- High-level networking with regional and international decision-makers
Opinion of the week
“Africa now accounts for 12 of the world’s 20 fastest‑growing economies — investors who recognise this growth story early will capture outsized returns.”
Sidi Ould Tah, Chief Economist, African Development Bank
Conclusion
Overall, the second week of April 2026 underscores East Africa’s growing appeal as a destination for both regional and global investment, driven by expanding financial integration, industrial growth, and strategic infrastructure development. From cross-border banking expansion and billion-dollar project pipelines to energy and digital transformation initiatives, the region continues to demonstrate strong long-term fundamentals. However, these opportunities are accompanied by important considerations, including regulatory dynamics, project execution risks, and evolving global economic conditions. For investors, the key lies in identifying markets and sectors where growth is supported by policy alignment, infrastructure development, and increasing demand. As momentum builds across multiple fronts, East Africa remains a compelling, high-potential region offering both immediate opportunities and a strong foundation for sustained investment growth.
Resources
1. Africa Business Insider (2026)
2. The citizen (2026)
3. Reuters (2026)
4. Ecofin agency (2026)
5. Zawya (2026)
6. Mobile Europe (2026)
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