New AU leadership new investment era
Shikana Group
Leading investment and advisory firm specialized in foreign investments in Africa.
Introduction
Another week, another set of exciting investment updates! Here is what’s making waves in Africa’s financial and business sectors.This week, we take a deep dive into the most crucial developments impacting the investment climate. A major highlight is the African Union’s new leadership transition which is a shift that could redefine trade agreements, economic integration strategies, and regional collaborations. In Tanzania, government officials have reaffirmed control over Bagamoyo Port, dispelling rumors of Saudi acquisition and reinforcing the country’s commitment to infrastructure sovereignty. Meanwhile, Kenya’s booming tourism sector has shattered revenue records, positioning the nation as a top global travel destination.
Elsewhere in East Africa, China is doubling down on its investments in Uganda, particularly in infrastructure and energy, while Rwanda faces investor uncertainty as security concerns impact its international bond performance. The Democratic Republic of Congo (DRC) is reshaping global copper markets, overtaking Peru as China’s key supplier, further intensifying the battle for critical minerals. On the global trade front, Somalia is on the brink of WTO membership, a move set to unlock vast investment potential, while South Sudan’s USD 500 million injection from the African Development Bank signals transformative development opportunities. With Africa’s economic landscape evolving rapidly, understanding these shifts is crucial for investors looking to capitalize on high-growth markets. This edition provides the insights you need to navigate risks, seize opportunities, and make informed investment decisions. Let’s dive in!
Trend of the week
Mahmoud Ali Youssouf takes charge of AU to drive Africa's economic future
On 15th February 2025, the election of Mahmoud Ali Youssouf, Minister of Foreign Affairs of Djibouti, as the new African Union Commission (AUC) Chairperson marked a pivotal moment for Africa’s future. His victory came during the summit in Addis Ababa and reflects a collective commitment by African leaders to unite the continent and drive economic growth that is self-sustaining and centered on African solutions. This transition of leadership, as Youssouf takes over from Moussa Faki Mahamat, signifies a new phase for Africa’s political and economic landscape. The central focus of his leadership will be to reshape Africa’s economic system, reducing over-reliance on external financial bodies like the International Monetary Fund (IMF) and the World Bank, and instead fostering homegrown growth that prioritizes internal resources, collaboration, and innovation. Youssouf’s four-year tenure comes at a crucial time, when Africa’s development must address internal issues such as poor governance, conflict, and economic disparity. Experts are increasingly calling for people-centered reforms that emphasize accountability, transparency, and effective governance.
These reforms are not just needed to build stronger economies but also to ensure that peace and stability especially in conflict-prone regions. The call to extend the “Silencing the Guns” initiative, launched years ago, underscores the need for lasting peace in regions affected by ethnic and political conflicts. In the face of such challenges, Youssouf’s leadership is expected to pursue strategies that advance economic integration, trade facilitation, and regional cooperation, aligning with the African Agenda 2063, which calls for greater unity and collaboration across the continent. Youssouf, in his vision, emphasized the role of infrastructure development, energy solutions, and private sector investment in transforming Africa’s economies. He also pointed to the importance of security and self-reliance in addressing the continent’s challenges, proposing that African nations should take more ownership of their security forces and reduce dependency on foreign military assistance.
The African Union's ability to navigate its complex challenges ranging from geopolitical tensions to climate change and economic dependency will depend heavily on how well it can mobilize internal resources and manage external relationships. Investors must approach the market with a nuanced understanding of the challenges, such as governance issues, security concerns, and the complex socio-political landscape. As the African Union moves forward, it is crucial to embrace the vision of a more integrated, self-sufficient continent, where collaboration between governments, businesses, and local populations leads to long-term socio-economic prosperity. While governance and regional stability remain critical, these policy shifts also create a more favorable business environment for investors looking to capitalize on Africa’s economic transformation.
Tanzania
Tanzania affirms control over Bagamoyo Port despite Saudi rumors
Recent reports suggesting Saudi Arabia’s involvement in acquiring Tanzania’s Bagamoyo Port have been firmly denied by the Saudi Embassy in Tanzania. The embassy clarified that there are no ongoing negotiations or agreements regarding the port’s acquisition and labeled the rumors as misleading. This statement is particularly significant for foreign investors seeking clarity on Tanzania’s infrastructure projects. The speculation emerged after images circulated online showing Saudi officials meeting with Tanzania Ports Authority (TPA) Director General Plasduce Mbossa and other government representatives. Some reports misinterpreted these images as evidence of a port transfer deal. However, Tanzanian officials have reiterated that discussions with Saudi investors were focused on broader economic partnerships rather than ownership of the port.
Saudi Arabia has reaffirmed its commitment to investing in Tanzania through transparent, mutually beneficial projects that align with the country’s national interests. The Kingdom’s investments in East Africa, particularly in infrastructure and trade, are part of its broader strategy to strengthen economic ties across the region. However, the embassy emphasized that any speculation about Saudi control over Bagamoyo Port is inaccurate. The Bagamoyo Port project has long been a subject of interest originally planned as a joint venture between Tanzania, China Merchant Holding International (CMHI), and Oman’s State General Reserve Fund (SGRF). However, the project was stalled due to concerns over contract terms that were deemed unfavorable to Tanzania. Recent efforts to revive the project have sparked renewed international interest which may have contributed to the misinformation regarding Saudi involvement. This clarification underscores the importance of verifying information from credible sources before making investment decisions for foreign investors. It also highlights Tanzania’s ongoing efforts to attract global investments while maintaining control over strategic national assets. The Bagamoyo Port project remains open to international investors but any future agreements will follow due process ensuring they align with Tanzania’s long-term economic vision.
This development serves as a reminder of the growing interest in Tanzania’s infrastructure sector and the need for transparent communication between governments, investors, and the public. As Tanzania positions itself as a key trade hub in East Africa, opportunities in the transport and logistics sectors continue to grow presenting promising prospects for investors willing to engage through official channels.
Kenya
Kenya's tourism sector breaks records and eyes bright future
Kenya’s tourism sector is experiencing remarkable growth, with 2024 revenues reaching USD 3.4 billion, a significant boost from previous years. This surge is driven by a growing number of international tourists, with arrivals hitting 2.4 million. The country's diverse attractions, from the breathtaking Maasai Mara to the pristine beaches of Mombasa and Lamu, continue to draw visitors, particularly from Europe and North America. The Coast region, in particular, is seeing high booking rates, with Lamu’s Shella Beach becoming a favorite for many French tourists. Events like the Lamu Cultural Festival are also playing a crucial role in attracting tourists.
Despite challenges, including the occasional travel advisories and disruptions from protests last year, the sector has remained resilient. The Kenyan government’s initiatives such as enhanced marketing campaigns and improvements to infrastructure have helped bolster the country’s position as a premier travel destination. The hospitality industry is also responding with many hotels upgrading their facilities to meet international standards offering top-tier services to an increasingly sophisticated clientele. Looking ahead, projections for 2025 are even more optimistic. Tourism earnings are expected to hit USD 5 billion marking a 20% increase from 2024. This growth is expected to be driven by continued global travel recovery, Kenya’s rich biodiversity, and the government’s ongoing efforts to promote the sector. As tourism remains one of Kenya's top foreign exchange earners, alongside tea exports and remittances, its positive economic impact is undeniable. The sector’s expansion is expected to create more jobs, contribute to community development, and stimulate the broader economy, positioning Kenya as a key player in Africa’s tourism industry. The increased earnings will also pave the way for further investments in eco-tourism and sustainable travel ensuring that Kenya’s natural resources and wildlife are preserved for future generations. As Kenya builds on this momentum, it is set to become an even more attractive destination for travelers and investors alike with both economic and cultural growth on the horizon.
Uganda
China’s investments in Uganda set to expand with new projects
China's Foreign Minister Wang Yi recently expressed the country’s eagerness to deepen its partnership with Uganda and emphasized China's commitment to enhancing bilateral ties in various sectors. During his visit, Wang Yi highlighted that China is ready to further expand its cooperation with Uganda particularly in infrastructure, trade, and investment, with the aim of helping Uganda achieve its long-term development goals. This visit marks another milestone in the growing relationship between China and Uganda and showcasing China’s strategic focus on supporting Africa’s development through robust partnerships. China has been a significant investor in Uganda over the past decade with substantial investments flowing into infrastructure projects such as roads, energy, and telecommunications. One of the key areas of focus has been Uganda’s energy sector, where China has played a pivotal role in financing and developing major energy projects including hydropower plants and transmission lines. The Chinese government and state-owned enterprises have also contributed to the construction of critical infrastructure, such as roads and bridges, enhancing Uganda's connectivity and supporting its economic growth.
One of the most high-profile projects in Uganda is the East African Crude Oil Pipeline (EACOP) which aims to transport oil from Uganda’s oilfields in the Albertine region to the Tanzanian coast for export. This pipeline is a major part of the China-Uganda partnership with China National Offshore Oil Corporation (CNOOC) being one of the key stakeholders in the venture. EACOP, which is expected to cost over USD 3.5 billion, has attracted both significant attention and scrutiny. Proponents argue that it will boost Uganda’s economy, create jobs, and enhance energy security for the region. However, environmental groups and local communities have raised concerns about the ecological impact of the pipeline and the displacement of people along its route.
Despite the challenges, China’s continued support for EACOP reflects its broader strategy to strengthen its presence in Africa's energy sector and boost regional integration through large-scale infrastructure projects. The pipeline is part of China’s Belt and Road Initiative (BRI) which aims to foster closer economic ties between China and developing countries through investment in infrastructure and trade. Looking ahead, China’s investments in Uganda and the East African region are expected to continue growing, particularly in sectors like energy, minerals, transport, and manufacturing. As Uganda seeks to diversify its economy and reduce its dependence on foreign aid, partnerships with countries like China will play a crucial role in shaping its development trajectory. The continued collaboration between Uganda and China is a testament to the growing importance of Sino-African relations in the global economy
Rwanda
Rwanda’s international bond faces setback over M23 instability
Rwanda’s international bond has taken a significant hit amid rising concerns over the security situation in the country particularly with the ongoing conflict involving the M23 rebels. The rebels who have been causing instability in the eastern region of the country have raised fears among investors, leading to a sharp decline in Rwanda’s bond value. The political and security uncertainties surrounding this issue have created a ripple effect as international markets respond to the perceived risk of investing in Rwanda. As the M23 rebels continue to pose a threat, international investors are growing cautious wary of the potential impacts on Rwanda's economic stability. This volatility has led to a loss of investor confidence which is reflected in the country's bond performance. With the security situation in the eastern region being a critical concern, Rwanda’s government is under increasing pressure to resolve the conflict and restore investor trust. However, Rwanda’s government remains determined to address the issue emphasizing its commitment to peace and stability.
The country’s strong track record of economic growth and development as well as its strategic positioning in East Africa, continue to make it an attractive investment destination in the long term. Despite the current setbacks, experts believe that once the security situation stabilizes, Rwanda’s bond market will likely recover especially as the country remains focused on fostering economic resilience and attracting foreign investments. For investors, the current situation serves as a reminder of the importance of assessing political and security risks when making investment decisions. Rwanda’s ability to manage the M23 crisis and restore stability will be a key factor in determining the trajectory of its bond market and overall economic outlook in the coming months.
Democratic Republic of Congo
Congo overtakes Peru as China’s key copper supplier reshaping global markets
The Democratic Republic of Congo (DRC) has become a key player in the global copper market, overtaking Peru as the world’s second-largest producer. The DRC produced approximately 2.5 million metric tons of copper in 2024, accounting for nearly 14% of global output. With China importing over 60% of the world’s copper supply, this shift further cements the DRC’s strategic importance in global trade. As China moves to secure its copper supply, it continues to deepen its economic ties with Africa, reducing its reliance on Western-controlled sources. However, this also introduces geopolitical complexities, as Western nations seek to counterbalance China’s influence in critical mineral supply chains. Despite strong demand, the copper market is facing notable challenges. Glencore, a major mining company, is considering selling its multi billion-dollar copper assets in the DRC and Kazakhstan, which could disrupt supply chains. Meanwhile, BHP (one of the world’s largest mining and resource companies) is expanding its copper production, anticipating a 70% increase in demand by 2050 due to AI-driven growth. The market is also experiencing price volatility, with fluctuating demand from China and supply disruptions influencing costs.
Additionally, policy shifts in major economies are shaping the copper trade. The United States is set to impose tariffs on copper and other metals, prompting traders to secure supplies before the levies take effect. At the same time, the telecom industry is capitalizing on copper recycling, expecting a USD 10 billion boost from decommissioning legacy infrastructure. This underscores the growing role of sustainable practices in meeting future copper needs. For investors, the evolving copper market presents both opportunities and risks. While the DRC’s resource potential is immense, challenges such as shifting tax policies, mining regulations, and political instability could impact investment security. Recent policy changes in the mining sector, including royalty increases, may affect profit margins for major stakeholders. As global demand continues to rise, those involved in mining, infrastructure, and logistics must navigate shifting trade dynamics, price fluctuations, and supply chain disruptions to maximize returns.
Somalia
Somalia’s path to WTO membership and its impact on investment
Somalia is taking a significant step toward enhancing its global economic integration with its impending membership in the World Trade Organization (WTO). As Somalia moves closer to WTO membership, this milestone is set to create significant opportunities for both domestic and foreign investors. The WTO accession process, which has seen Somali officials actively engaging in trade negotiations and reforms, will lead to more streamlined and transparent trade regulations, enhanced market access, and a stronger legal framework for protecting investments. This is a promising development for international businesses seeking to explore new markets in East Africa, particularly in Somalia’s sectors such as agriculture, fisheries, energy, and infrastructure, where the country has significant untapped potential. With Somalia’s GDP projected to grow by 3.5% annually and FDI inflows increasing by 20% over the past three years, WTO membership is expected to further accelerate economic expansion and investor confidence. Somalia's decision to join the WTO will also encourage more foreign direct investment (FDI), as it creates a more stable and predictable economic environment. Investors can look forward to increased access to international markets and the possibility of forming long-term partnerships with Somali companies. Furthermore, as Somalia opens up to global trade, it will be able to better capitalize on its strategic geographic location, which connects the Horn of Africa to major international shipping routes. This offers immense opportunities for port development, logistics, and regional trade expansion, as Somalia’s ports are poised to become central hubs for the broader East African and Arabian Peninsula markets.
In addition to trade opportunities, Somalia’s WTO accession is expected to spur domestic reforms that will further improve business conditions. The country is likely to implement policies that foster economic diversification, better infrastructure development, and enhanced governance structures. These reforms will not only attract global investors but also ensure that Somalia's local businesses are more competitive on the world stage. As a result, Somalia’s entry into the WTO marks the beginning of an era where the country will be better equipped to meet the demands of a globalized economy, unlocking exciting opportunities for foreign investors seeking to enter one of Africa's emerging markets.
South sudan
South Sudan receives USD 500 million from AfDB sparking development opportunities
The African Development Bank (AfDB) has made a substantial commitment to South Sudan’s future, reaching an investment of USD 500 million. South Sudan’s infrastructure sector alone is projected to grow by 15% annually, driven by increased public-private partnerships and foreign investment. Additionally, improved agricultural productivity is expected to boost food security, reducing dependency on imports by 30% over the next five years. This marks a significant step in the country’s development trajectory, especially as it seeks to recover from years of conflict and instability. AfDB's investment is being channeled into vital sectors such as infrastructure, agriculture, clean energy, and water access, which are crucial for improving the standard of living for the population. One of the key projects includes providing clean drinking water to more than 8,300 residents in underserved areas, which will significantly improve health outcomes and quality of life. Additionally, the investment is being used to enhance agricultural productivity, with smallholder farmers in Kapoeta benefiting from support that will help them become nearly self-sufficient in food production, a crucial step toward food security. Moreover, in collaboration with the World Bank, AfDB has spearheaded the mobilization of USD 50 billion for clean energy initiatives, with South Sudan playing a central role in the improved irrigation systems in Aweil, which promises to increase agricultural yields and sustainability.
This USD 500 million investment not only highlights AfDB’s faith in South Sudan’s potential but also sets the stage for significant economic diversification. For foreign investors, this is a crucial signal that South Sudan is open for business, with opportunities in sectors like infrastructure, agriculture, energy, and water management. As the country stabilizes, these sectors are poised for rapid growth, and investors can leverage the support of AfDB to help drive development and returns. This investment is paving the way for South Sudan to move toward long-term sustainability, offering an exciting avenue for both public and private sector investment. The AfDB’s efforts demonstrate a solid foundation for building a more prosperous, stable South Sudan in the years to come, making it an attractive prospect for those looking to engage with Africa’s emerging markets.
Upcoming events
Africa investment exchange (AIX) Nairobi 2025
Date: March 19–20, 2025, Nairobi, Kenya.
Agenda: Focus on developments in Kenya and the East African Power Pool (EAPP), covering topics such as unlocking the region's power market, the future of Independent Power Producers (IPPs) and wheeling, and exploring the post-carbon economy.
Registration: Early bird registration is available until February 26, 2025. For more details and to register, visit the official website- https://africa-investment-exchange.com/events/africa-investment-exchange-aix-nairobi-2025/
Who should attend:
Key Features:
Opinion of the week
"When there is no unity of purpose among neighboring countries, peace will be compromised"
African Union Commission’s chairperson, Mahmoud Ali Youssouf
CONCLUSION
Africa’s economic landscape is undergoing a profound transformation driven by strategic leadership changes, infrastructure expansion, financial market evolution, and increased global trade integration. The election of Mahmoud Ali Youssouf as AU Chairperson signals a shift towards economic self-reliance, regional unity, and enhanced investment environments, all of which present new opportunities for foreign investors. From South Sudan’s USD 500 million AfDB-backed development projects to Tanzania’s strategic control over Bagamoyo Port, governments across the continent are prioritizing sustainable growth, trade efficiency, and infrastructure modernization. At the same time, the DRC’s rise as a dominant copper supplier, Kenya’s booming tourism industry, and Somalia’s WTO accession illustrate Africa’s increasing integration into global markets. These developments not only open doors for investment in logistics, manufacturing, energy, and digital finance but also cement Africa’s role in shaping the global economy. However, navigating Africa’s investment landscape requires more than just capital it demands a deep understanding of policy shifts, regulatory frameworks, and emerging risks. While the continent's young and growing population, vast natural resources, and technological advancements make it one of the most attractive frontiers for investors. Challenges such as governance concerns, security risks, and market volatility must be carefully managed. Whether you are looking to enter high-growth markets, expand your business footprint, or identify long-term investment prospects, we are here to guide you through Africa’s evolving economic terrain. With record-breaking investments, strengthened regional partnerships, and a rising focus on sustainability, the time to act is now.
We remain committed to providing timely and in-depth insights into Africa’s investment landscape. Stay with us for continuous updates on the opportunities shaping the future of business and investment across the continent.
RESOURCES
2. Daily news TZ (2025)
3. Eastleigh voice (2025) business
4. CGTN news
5. CNBC Africa (2025)
6. Reuters (2025)
7. FTL Somalia (2025)
8. One citizen daily (2025)