East Africa’s Investment Surge: USD15 Billion Target, Key Discoveries, and Growth Opportunities

I. INTRODUCTION

Happy New Year! We are so glad to be back with our weekly newsletter which highlights all the main business and investment news taking place in East Africa. Thank you for your support and we look forward to another amazing year together. Last year we grew our community to 2,000 people and we are grateful for each and every one of you. Now let’s dive in…

As we step into 2025, East Africa is poised for an exciting economic transformation, with countries across the region making bold strides to shape their future on the global investment stage. From Tanzania's ambitious USD15 billion investment target to Rwanda's groundbreaking oil discovery, the region is brimming with unparalleled opportunities. With visionary leadership, strategic partnerships, and rapid advancements in key sectors, nations like Kenya, Uganda, Burundi, and the DRC Congo are paving the way for economic growth and innovation. For investors ready to seize the moment, East Africa’s rise is here, and the chance to be part of this dynamic shift has never been more promising!

II. TREND OF THE WEEK

?EAC Cross-Border Transactions Reach Record USD 2 Billion

This week, the East African Community (EAC) achieved a major milestone in regional trade, as cross-border transactions hit a record USD 2 billion. This growth is driven by improved trade policies, reduced barriers, and increased digital payment adoption across member states. The surge in transactions reflects stronger economic integration, with sectors like trade, finance, and e-commerce leading the way. The milestone highlights the increasing role of digital platforms in facilitating regional trade and enhancing economic cooperation within East Africa. This trend signals a promising future for intra-EAC trade, further supporting the region’s economic growth and investment opportunities.

III. TOP HEADLINES

Tanzania

1. Tanzania’s USD 15 billion investment odyssey: A nation on the brink of economic transformation

Tanzania has set its sights on an audacious goal: attracting USD15 billion in investments by 2025. With an impressive leap from USD9.3 billion in 2024—a record-breaking year for the nation—this East African powerhouse is doubling down on manufacturing, clean energy, transport, minerals, agriculture, and services to transform its economic landscape.

This ambitious vision is fueled by President Samia Suluhu Hassan’s dynamic leadership and the innovative reforms of the Sixth Phase Government. Central to the strategy is the integration of the Tanzania Investment Centre (TIC) and Export Processing Zones Authority (EPZA), alongside the streamlined One-Stop Facilitation Centre, which eliminates bureaucratic hurdles for investors.

In 2024 alone, 901 projects were registered, creating over 212,000 jobs and signaling a robust economic shift. For 2025, the government is bolstering infrastructure in special economic zones, engaging local governments, and harnessing its diaspora to supercharge Foreign Direct Investments (FDIs). Despite challenges like over-regulation, Tanzania’s commitment to fostering a thriving investment climate remains unshaken.

Companies looking to participate in Tanzania's projects should consider the following:

1. Explore opportunities under the integration of TIC and EPZA. (You can read our blog article on the upcoming legal changes and what it means for your business in Tanzania) - ????

https://shikanagroup.com/tanzania-investment-center-2/

2.? Focus on manufacturing, clean energy, logistics, infrastructure, minerals, agriculture-the government's priority sectors.

3. Establish partnerships with local governments and stakeholders for seamless entry into the Tanzanian market.

Our Managing Director, Amne Suedi, is a board member of the Tanzania Investment Center on top of being an investment adviser and investment lawyer. If you would like to get more information, book a consultation here https://calendly.com/shikanagroup/15-minute-free-consultation

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Kenya

2. Kenya leads the way: Dominating Africa’s Startup funding landscape

Kenya has emerged as a leading the continent’s startup scene with USD 638 million raised as investment in 2024- that is 29% of Africa’s total startup funding. The dominance is underpinned by government- backed initiatives like the Digital Superhighway project, which aims to lay 100,000 kilometers of fiber optic cable, and the proposed Startup act to support innovation.

Key sectors driving growth include fintech, climate tech and agriculture with trailblazers like Sun culture and BasiGo revolutionizing energy and sustainability. Kenya’s favorable investment climate, skilled workforce and thriving ecosystem have even outpaced heavy weights like Nigeria and South Africa, securing 32% of Africa’s funding.

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Uganda

3. Uganda unveils ambitious USD 160 billion masterplan to transform its economy

In a bold move to redefine its economic landscape, Uganda has launched the National Development Plan 4 (NDPIV), a staggering 593-trillion-shilling (USD 160 billion) blueprint. This visionary strategy aims to catapult the country’s economy to unprecedented heights by 2040, promising to multiply its current GDP tenfold—from USD 53 billion to USD 500 billion. Quite ambitious!

Themed “Sustainable Industrialization for Inclusive Growth, Employment, and Wealth Creation,” NDPIV targets double-digit economic growth of 10.1% annually, with a mission to elevate household incomes, create millions of jobs, and bridge critical infrastructure gaps.

For the above to be attained, investment is required in these key sectors:

·???????? Agro-Industry

·???????? Tourism

·???????? Mining and Mineral Beneficiation

·???????? Oil and Gas Development

·???????? Knowledge Economy and ICT

The strategy’s bold aspirations include reducing poverty from 20.3% to 10.1% by 2029/30, a common goal for most of the African countries, and creating nearly 900,000 direct jobs annually. It will also emphasize urbanization, industrialization, and wealth creation through programs like the Parish Development Model (PDM) and Emyooga.

Burundi

4. World Bank invests USD 168 million to power Burundi’s climate and energy future

The Burundi government and the World Bank have signed agreements for three grants totaling USD 168.3 million to finance a climate resilience project and two energy projects[AS1]?. The first project is Burundi's energy access project valued at USD 150 million which aims to increase access to reliable and sustainable electricity for households, businesses, and public institutions by electrifying 400 schools and 400 health centers in rural areas, providing off-grid electricity solutions to 70,000 households and promoting clean cooking solutions for 300,000 households.

The second project is landscape restoration and resilience project valued at USD 18 million which addresses climate resilience by rehabilitating degraded lands, enhancing agricultural productivity, and promoting sustainable practices. It aims to improve livelihoods for rural communities while addressing environmental challenges caused by deforestation and poor soil health.

The climate resilience project, which has a budget of USD 88.3 million, aims to increase the productivity of fragile land in Burundi’s targeted hills. The project will run for six years.

?The agreements between the Burundian government and the World Bank a significant step toward achieving Burundi’s long term development goals of becoming an emerging economy by 2040 and a developed nation by 2060. These investments in climate resilience and energy projects not only address critical environmental and energy needs but also create a foundation for sustainable growth and opportunities for both local and foreign stakeholders.

?Rwanda

5. Rwanda discovers a multi-million dollar opportunity

Rwanda's discovery of 13 oil reservoirs in Lake Kivu is a significant milestone for its energy sector, with the potential to transform its economy. Preliminary research indicates promising prospects, though further exploration and deeper drilling are required to determine the commercial viability. Current challenges include high extraction costs, with each reservoir ?estimated at USD15 million. If successful, the discovery could reduce Rwanda's reliance on imported petroleum, enhance energy security, and spur growth in related industries. This positions Rwanda as a potential energy player in Africa's regional market. Initial studies revealed favorable conditions for oil?with seismic surveys confirming oil presence at depths reaching 480 meters.

Discovering oil reservoirs could present many opportunities for investment. These will in turn promote economic growth which will lead to dependency and be in line with what the newly elected U.S.A President Donald trump suggests of African countries. It will ensure infrastructure development such as roads and pipelines, which will in turn benefit other sectors. It will also increase global influence, offering more leverage in international affairs.

Its implication on investment for Rwanda ?includes lucrative strategic joint ventures ??and the growth of ancillary industries like logistics, engineering and technology.

?Rwanda looks to have the perfect?opportunity presenting itself right at the start of 2025. Even though there may be challenges such as regulatory risks, environmental concerns and economic over reliance investors may have to conduct risk assessments, diversify investments within the energy sector to hedge against oil price volatilities to benefit from the opportunities.?

DRC Congo

6. Democratic Republic of Congo and Kazakhstan Forge stronger ties in mining and oil and gas

With GDP growth projected at 3.4% annually in 2025- 2026, the Democratic Republic of Congo aims to monetize natural gas and revitalize oil production, targeting 500,000 barrels per day. Kazakhstan is the second largest oil producer in Eurasia with a daily output of 1.77 million barrels in 2024. It relies on oil and gas revenues accounting for 35% of its GDP and 75% of its exports. The oil and gas collaboration between the two countries will benefit the Democratic Republic of Congo through acquiring the expertise that will help in them in capitalizing on oil and gas production, boosting its energy output and attracting investment.

When it comes to mining, Democratic Republic of Congo is rich in mineral resources, such as 800 million tons of magnesium salt, 690 million tons of iron oxide and significant reserves of lead and zinc. Kazakhstan, with the world’s eighth- largest iron ore reserves estimated at 12.5 billion tons, can offer valuable expertise and sharing best practices to help Democratic Republic of Congo develop its mining industry, enhancing production efficiency and attracting international investment.

Key advantages of these ties include resource management as both countries are resource-rich allowing this alliance to enhance efficiency and profitability in mining operations. There will also be collaboration focus as it will involve knowledge exchange and technology sharing.

IV. UPCOMING EVENTS

1. East African Petroleum Conference 2025

Date: May 5 - 7, 2025.

Location: Zanzibar, Tanzania.

Agenda: Focus on petroleum investment opportunities and the energy mix for sustainable development.

Registration: To register, you can visit the official website EAPCE’25 or contact the East African Community Secretariat. You can register through this link: https://www.eapce25.eac.int/index.php/about/register

Who Should Attend?

·???????? Energy sector professionals.

·???????? Investors.

·???????? Policymakers.

Key Features:

·???????? Technical presentations.

·???????? Exhibitions.

·???????? Field excursions showcasing regional energy opportunities.

2. Global Trade Repository East Africa 2025

Date: May 7 - 8, 2025.

Location: JW Marriott Hotel, Nairobi, Kenya.

Agenda: Discussions on trade finance, infrastructure financing, energy industry trends, and climate financing.

Registration: Available at GTR East Africa event page You can register through this link https://www.gtreview.com/

Who Should Attend?

• Bankers
• Financiers
• Trade professionals
• Policymakers.

Key Features:

• Over 40 C-level speakers.
• Networking.
• Sponsorship opportunities.

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V. OPINION OF THE WEEK

“Africa must focus on brokering win-win trade and investment deals that include technology and knowledge transfers. Empowering the continent to be self-reliant is the only way to withstand the changing tides of global politics. A new dawn for Africa lies in its ability to rise above dependency, harness its resources, and embrace unity for sustainable development."

Amne Suedi, Founder and Managing Director, Shikana Investment and Advisory

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VI. CONCLUSION

As East Africa accelerates towards a future of greater economic integration and growth, we encourage foreign investors to take a closer look at this record-breaking USD2 billion milestone in cross-border transactions. This is more than just a statistic; it’s a clear signal that the region is ripe for investment, with the digital transformation and streamlined trade policies opening doors like never before. We are committed to keeping you informed with the latest investment trends and opportunities, ensuring that you can make well-timed, strategic decisions. Now is the moment to tap into East Africa’s flourishing markets, whether through e-commerce, trade, or infrastructure projects. The region is evolving rapidly, and we are here to guide you every step of the way to ensure that you don’t miss out on the vast opportunities ahead. Let’s navigate this exciting growth journey together and unlock the potential of East Africa’s economic future!

VII. RESOURCES

For more detailed information on the topics covered in this newsletter, please refer to the following resources:

1.?????? The East African (2025). E.A.C? Cross-Border Transactions

https://www.theeastafrican.co.ke/tea/business-tech/eac-cross-border-transactions-hit-record-2bn-4892600

2.?????? Investment Promotion (2024)? Startup Funding Africa Press Release

https://www.investmentpromotion.go.ke/kenya-tops-african-startup-funding-africa-2024

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3.?????? Uganda Invest? (2025) National Development Plan

https://www.ugandainvest.go.ug/value-addition-industrialization-at-centre-of-ugandas-national-development-plan-2025-2030/

4.?????? Tanzania Invest (2025) Tanzanian Economy

https://www.tanzaniainvest.com/economy/us-15-billion-investments-target-2025

5.?????? The East Africa (2025) Business Tech

https://www.theeastafrican.co.ke/tea/business-tech/world-bank-grants-168m-to-support-burundi-s-climate-resilience-4897694

6.?????? Rio times Online ( January 2025)

https://www.riotimesonline.com/rwandas-oil-discovery-a-potential-game-changer-in-lake-kivu/

7.?????? Energy Capital Power (2025)

https://energycapitalpower.com/republic-of-congo-kazakhstan-forge-stronger-ties-in-oil-gas-mining/