The East African Insider – Week 9TH – 15TH AUGUST 2025

Introduction

Welcome to this week's edition of our newsletter, your curated roundup of transformative projects, policy shifts, and market trends shaping the continent's investment landscape. This week, Cape Town hosted the Africa Water Investment Summit, where global leaders and investors laid the groundwork for climate-resilient water infrastructure ahead of the 2026 UN Water Conference. In Tanzania, five new Special Economic Zones were launched to accelerate industrial growth under Vision 2050, while Uganda doubled down on tourism as a key economic driver, posting strong earnings growth. The African Development Bank approved nearly USD 700 million to advance the Tanzania–Burundi–DRC Standard Gauge Railway, boosting regional trade potential. In the DRC, Symbion Power pledged USD 700 million for a record methane-to-power project contingent on peace under the Washington Accord. Somalia secured the final USD 125 million tranche from the World Bank to drive economic reforms and renewable energy expansion. Finally, the Bank of South Sudan announced a USD 200 million term deposit auction to stabilise liquidity amid inflationary pressures. Each of these developments signals evolving opportunities and challenges for investors across Africa's dynamic markets. Let's unpack this!

Trend of the week

Africa water investment summit sets stage for climate-resilient infrastructure deals

The Africa Water Investment Summit, held from 13–15 August 2025 in Cape Town, brought together world leaders, investors, and policymakers to mobilize financing for climate-resilient water and sanitation projects across Africa. Co-convened by the Republic of South Africa under its G20 Presidency, in partnership with the African Union Commission, the AU–AIP International High-Level Panel on Water Investments, and the African Union Development Agency–NEPAD, the summit served as a key milestone in the lead-up to the 2026 UN Water Conference. Representing the UAE President, His Excellency Sheikh Shakhboot bin Nahyan Al Nahyan, Minister of State, led the UAE delegation alongside H.E. Abdulla Balalaa, Assistant Minister of Foreign Affairs for Energy and Sustainability Affairs. The UAE's participation underscored its long-standing commitment to expanding water access in Africa, rooted in the philanthropic legacy of its founding father. The delegation highlighted the Mohamed bin Zayed Water Initiative, launched in 2024 to tackle global water scarcity with cutting-edge technologies.

In addition to receiving recognition through the Global Water Changemakers Awards for its role as co-host of the 2026 UN Water Conference, the UAE co-led a plenary session with over 1,000 stakeholders to identify concrete deliverables on water financing and investment. This included partnerships with Senegal, AUDA–NEPAD, the Children's Investment Fund Foundation, the Global Climate Finance Center, and the Global Water Partnership. For investors, the summit offered insight into a growing pipeline of bankable water-related infrastructure projects that align with ESG priorities, blended finance mechanisms, and sustainable development goals. With water security directly linked to agriculture, energy, manufacturing, and urban growth, the UAE's high-profile engagement signals that global capital is increasingly targeting Africa's water sector as a gateway to long-term, climate-resilient investment opportunities.

Tanzania

Tanzania launches five new special economic zones to drive industrial growth

The Tanzania Investment and Special Economic Zones Authority (TISEZA) has unveiled five new Special Economic Zones (SEZs) as part of the country's aggressive industrialization strategy under Vision 2050. The newly designated areas include the Nala SEZ (607 hectares), Kwala SEZ (40.5 hectares), Buzwagi SEZ (1,333 hectares), Bagamoyo Eco Maritime City – Phase One (151 hectares), and the Benjamin William Mkapa SEZ Expansion (13,000 sqm). Targeted incentives, streamlined regulatory processes, and strategic land allocation within these SEZs aim to attract investments in priority sectors such as textiles, pharmaceuticals, automotive assembly, agro-processing, electronics, and green energy. Notably, TISEZA is offering free land to Tanzanians establishing factories, provided construction is completed within one year and has pre-approved over 200 factory designs to enable building permits within 24 hours.

Officiating the launch, Prof. Kitila Mkumbo, Minister of Planning and Investment, emphasized that the government's reforms focus on removing bureaucratic hurdles, ensuring equal facilitation for local and international investors, and aligning projects with national economic goals. Dr. Tausi Kida, Secretary General in the President's Office, called the initiative "a strategic turning point" that leverages Tanzania's stability, resources, and location to attract sustainable investment. TISEZA Director General Gilead Teri added that officers will soon be stationed at all major border points to support exporters in reaching regional and global markets.

By integrating the former Tanzania Investment Centre and Export Processing Zones Authority, TISEZA offers a unified platform to make Tanzania one of Africa's easiest locations for manufacturing investment. The new SEZs are expected to boost exports, create jobs, and increase government revenue while cementing Tanzania's position as a competitive, export-oriented economy.

Uganda

Uganda positions tourism as a key engine for economic growth

Tourism remains one of Uganda's top investment priorities under the country's National Development Plan 4 (2025–2030), with the Uganda Investment Authority (UIA) actively promoting opportunities across the sector. Working closely with the Uganda Tourism Board (UTB) and the Uganda Wildlife Authority (UWA), the UIA is driving the development of high-value and high-end tourism projects within protected areas, while also creating avenues for investment in cultural, adventure, and eco-tourism. The UIA One-Stop Centre now hosts UTB to provide streamlined tourism investment services, alongside partners such as the Giants Club, which champions conservation of big mammals. According to UTB CEO Juliana Kagwa, this partnership aims to scale up tourism investment to unlock the sector's full potential. Tourism continues to be a key driver of Uganda's economy, recording a 13.1% rise in earnings to about USD 1.53 billion in the year to March 2025, up from around USD 1.37 billion in the same period of 2024. This growth is attributed to sustained peace, improved competitiveness, strategic infrastructure investments, and generous incentives. With its rich wildlife, safaris, bird-watching, cultural heritage, and adventure experiences, Uganda offers a diverse and thriving tourism landscape for investors.

Burundi

AfDB backs USD 3.93B SGR project linking Burundi to Tanzania's rail network

The African Development Bank (AfDB) has approved USD 696.41 million in financing for Tanzania and Burundi to advance Phase 2 of the Tanzania–Burundi–DRC Standard Gauge Railway (SGR) project. This phase will see the construction of 651 kilometers of one-way electrified railway linking Burundi to Tanzania's existing rail network, extending all the way to the Port of Dar es Salaam. The project is divided into three key sections: the 411 km Tabora–Kigoma line, the 156 km Uvinza–Malagarasi line, and the 84 km Malagarasi–Musongati section in Burundi. With a total estimated cost of $3.93 billion, the AfDB's contribution includes USD 98.62 million in grants for Burundi and $597.79 million in loans and guarantees for Tanzania. The Bank will also serve as the Initial Mandate Lead Arranger (IMLA), mobilizing up to USD 3.2 billion from commercial banks, institutional investors, Export Credit Agencies (ECAs), and Development Finance Institutions (DFIs).

The new railway is expected to transform regional connectivity by providing affordable, efficient long-distance transportation for people and goods, while unlocking economic opportunities. In Burundi, large-scale mining particularly nickel and commercial agriculture stand to benefit significantly. Across the corridor, the SGR will connect economic zones, population centers, and industrial parks, catalysing industrialization and economic diversification. Aligned with the East African Community (EAC) Rail Master Plan, the African Union's Infrastructure Development in Africa Strategy, and the AfDB's "High 5" priorities, the project also supports the Bank's Regional Integration Strategy Paper for East Africa and its Country Strategy Papers for both Burundi and Tanzania.

Democratic Republic of Congo

Symbion power pledges USD 700M for record methane-to-power project in Eastern Congo

Symbion Power LLC, a New York–based independent power producer, announced a record-breaking pledge of USD 700 million to develop a 140-megawatt methane-to-power plant on the Democratic Republic of Congo's (DRC) side of Lake Kivu, the largest private energy investment ever in eastern Congo. The Final Investment Decision, however, is contingent upon full implementation of the 27 June 2025 Washington Accord, a U.S.-brokered cease-fire and troop-withdrawal agreement between the DRC and Rwanda. This represents a significant scale-up from Symbion's original January 2023 commitment, when it secured the Makelele gas block in a competitive tender for a 60 MW, US $300 million plant figures still reflected in official filings. By August 2024, the company had already hinted at expansion plans during talks with Prime Minister Judith Suminwa, aiming to merge the original licence with an adjacent area. The resulting 140 MW scheme raises both capacity and investment costs by 133%.

The enlarged project aligns with the Washington Accord's aim of leveraging private capital to solidify peace in the region. According to the U.S. State Department, the plant will qualify for Development Finance Corporation (DFC) and Export-Import Bank guarantees once independent monitors confirm the withdrawal of Rwandan forces and M23 rebels from Goma and surrounding territories. Symbion's initial 60 MW project was already the largest methane licence in the DRC and was projected to raise the national electrification rate currently at about 19% by two percentage points when connected to the North Kivu grid. The expanded 140 MW facility would account for over 5% of the government's 2030 target of 32% electrification, helping to position Lake Kivu as a regional energy hub. Still, CEO Paul Hinks emphasized that the project's future hinges on security: the DRC must retain control of Goma, and lasting peace must be secured before construction can proceed.

Somalia

World bank approves final USD 125M funding phase for Somalia's economic reforms

The World Bank's Board of Executive Directors has approved a second round of funding for Somalia, amounting to USD 125 million through the International Development Association (IDA) to support development policies. This marks the second and final phase of a program designed to strengthen Somalia's economic resilience, improve public financial management, and foster sustainable private sector growth. The first tranche, also worth USD 125 million, was approved in 2024. According to Hideki Matsunaga, the World Bank's representative in Somalia, the new funding underscores the Somali government's commitment to implementing substantial institutional reforms aimed at building a stable state and reinforcing the social contract. The initiative targets increasing tax revenue, improving efficiency in government spending, and reducing reliance on international aid.

Key priorities include investments in renewable energy to expand electricity access, with the aim of achieving 50 megawatts of total power generation capacity by the end of 2026. On the private sector front, the program will promote microfinance, establish drought risk insurance mechanisms, and boost investment in the fisheries sector to increase exports of marine products. This program is part of the World Bank's broader engagement with Somalia under a 2024–2028 plan implemented in partnership with international development stakeholders, reflecting a long-term commitment to building economic resilience and sustainable growth.

South Sudan

BoSS seeks monetary stability through targeted term deposit auction

The Bank of South Sudan (BoSS) has announced plans to auction USD 200 million in term deposits to eligible commercial banks this week, in a bid to manage liquidity and stabilise the financial system. According to a public notice issued on Monday, the auction took place on Wednesday, August 13, 2025, with same-day settlement. The facility offers tenors of 28 days (USD 100 million allocation), 84 days (USD 60 million), and 336 days (USD 40 million), with interest and principal payable at maturity. Ceiling rates will be set below the Central Bank Rate of 13 %, and early withdrawals will attract a 25% penalty on accrued interest.

The move comes amid mounting economic pressures, with annual inflation surpassing 40 % in July, driven by currency depreciation, high import costs, and domestic production disruptions. Fuel shortages, declining oil revenues the country's primary foreign exchange source and liquidity challenges in the banking sector have further strained the economy. While BoSS says the term deposit auction is intended to mop up excess liquidity and support monetary stability, critics question whether the benefits will extend beyond a handful of well-positioned institutions. For foreign investors, the auction signals tighter domestic liquidity conditions and possible upward pressure on local interest rates, factors that could influence currency trends, cross-border banking operations, and the cost of doing business in South Sudan. Although direct participation in the auction is limited to locally licensed banks, the policy stance provides insight into the country's monetary priorities and macroeconomic risks. Bids from banks without the Refinitiv platform must be authenticated, consolidated into a single PDF file, and emailed to BoSS, according to the notice signed by Grace Araba Gordon, Director for the Financial Markets Department. Maturity dates for the deposits are set for September 10, 2025, November 5, 2025, and July 15, 2026, depending on the tenor selected. Economic analysts note that the auction's impact will hinge on its ability to tighten liquidity without constraining private-sector credit, alongside complementary fiscal reforms and targeted investments in productive sectors.

Upcoming events

Building the Future: Sustainable Infrastructure in Africa

Date: Wednesday, 20 August 2025

Time: 13:30 – 15:30 (local time)

Venue: Webber Wentzel, 90 Rivonia Road, Sandton, Johannesburg, GP, 2196, South Africa

How to register: click this link to book your spot – https://events.investafrica.com/event/home/buildingthefuture

Agenda:

To explore financing, policy, and innovation strategies for delivering sustainable, climate-resilient infrastructure that drives Africa's long-term growth and regional integration.

Who should attend:

• Infrastructure developers (energy, transport, water, digital)
• International and regional investors (DFIs, institutional investors, impact investors)
• Policymakers and regulators in infrastructure and urban development
• Legal and advisory professionals specializing in infrastructure financing
• City planners, sustainability experts, and infrastructure technologists

Key features:

• Cross-sector Dialogue: Panels to span energy, transport, water, and digital infrastructure with a sustainability lens.
• Regional Lens: Focused on Africa's unique urbanization, climate risks, and economic realities.
• Actionable Insights: Emphasis on financing models, regulatory innovation, and scalable solutions for accelerating infrastructure investment.
• Expert Voices: Mix of leading infrastructure financiers, policymakers, and legal advisors — for example, Anne Keppler (DEG), Shabari Shaily (FCDO), Tyrone Theesen (Webber Wentzel), Matthew Venturas (S-RM)
• Networking Value: A rare in-person forum to engage with stakeholders shaping Africa's infrastructure future.

Opinion of the week

USA President Donald Trump, addressing West African leaders on recalibrating U.S. engagement

Conclusion

As these developments show, Africa's investment landscape is rapidly evolving from multi-billion-dollar infrastructure projects and sector-specific reforms to targeted policies aimed at boosting economic resilience. For investors, the momentum spans diverse sectors: climate-resilient water systems, industrial hubs, tourism, transport corridors, renewable energy, and financial stability measures. Each story reflects a broader narrative of opportunity where strategic capital, innovative partnerships, and long-term vision can deliver both returns and lasting impact. As the continent continues to align investment priorities with sustainable growth and regional integration, the weeks ahead promise even more pathways for those ready to engage with Africa's next chapter.

Resources

UAE (2025)

https://www.mofa.gov.ae/en/MediaHub/News/2025/8/14/14-8-2025-UAE-africa

Tanzania invest (2025)

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