Uganda Records $2.61 Billion in New Projects as Rwanda Targets 300 Fintech Firms
Shikana Group
Leading legal and investment advisory firm specialized in foreign investments in Africa.
INTRODUCTION
Last week's investment landscape in East Africa reveals a clear pivot toward institutional funding mechanisms and public-private partnerships.
From Tanzania's energy summit to Rwanda's fintech ambitions, regional governments are moving beyond traditional aid models toward market-based financing solutions. This shift is particularly evident in the rise of guarantee facilities, strategic infrastructure funds, and sector-specific investment vehicles that are reshaping how capital flows into key industries.
TREND OF THE WEEK
Africa's critical minerals strategy faces a major hurdle: severe underinvestment in exploration. Current spending of US$5 per squared meter (m2) on geoscience exploration contrasts sharply with developed economies' US$65/m2, creating a US$60/m2 gap that limits Africa's ability to capitalize on its mineral wealth for the global clean energy transition.
Key metrics:
●?Current Investment: $5/m2 average African exploration spending vs. $65/m2 in developed economies
●?Resource Gap: Less than 10% of Africa's mineral systems are comprehensively mapped
●?Success Benchmark: Zambia's $100+ million geophysics survey investment has already identified new mineral deposits
●?Market Impact: African countries supply 40% of global critical minerals but capture only 3% of value chain revenues
The immediate implications are quantifiable:
For investors, this exploration gap represents an arbitrage opportunity. Countries that close this gap first will likely see outsized returns from early-mover advantages in the critical minerals value chain. However, success requires targeted policy reforms and public-private partnerships to derisk initial exploration investments.
COUNTRY UPDATES
1. TANZANIA: Energy Investment Summit Catalyzes New Strategic Partnership
The inaugural Tanzania Energy Investment Summit concluded recently, marking an important milestone in the country's emergence as a regional energy hub. Co-organized by HBZ International (a creative communications agency) and? TAOMAC (Tanzania Association of Oil Marketing Companies), the summit showcased Tanzania's growing focus on clean energy solutions and sustainable development. The event, which was endorsed by the Tanzania Trade Development Authority (TanTrade), brought together key stakeholders to explore investment opportunities in Tanzania's evolving energy market.
Following the summit, Tanzania further strengthened its energy partnerships through high-level bilateral talks in Brazil. During a November 17 meeting in Rio de Janeiro, President Samia Suluhu Hassan and Indonesian President Prabowo Subianto discussed strategic cooperation in energy, oil, and gas sectors. The talks built upon existing agreements from January 2024, which established frameworks for preferential trade and collaboration with Indonesian state-owned enterprises Pertamina and Medco Energi.
Key Outcomes:
●??Operational partnerships established with Indonesian state energy companies
●??New framework for bilateral energy trade agreements
●??Enhanced focus on clean cooking solutions under the National Strategy (2024-2034)
●??Strengthened public-private partnerships in energy infrastructure
In parallel developments, Tanzania's sports economy received a boost as Taifa Stars secured their fourth AFCON qualification for the 2025 tournament in Morocco. This achievement was particularly celebrated by Chinese Ambassador Chen Mingjian, highlighting the growing economic ties between Tanzania and China across multiple sectors.
2. KENYA: New Financial Guarantees Reshape Investment Climate
Kenya's financial infrastructure underwent significant transformation this month with the launch of Dhamana Guarantee Company, backed by a US$10 million equity investment from the African Development Bank. The company has emerged as a key player in credit enhancement, following successful anchor investments from the UK-Government's PIGD (Private Infrastructure Development Group) through InfraCo Africa.
The initiative coincides with the UK government's deployment of a KSH 667 million (US$5.2 million) fund, designed to catalyze up to KSH 38.85 billion ($300 million) in sustainable finance. The program has already begun processing applications with specific targets:
●?Current SME reach: 10,000 businesses engaged
●?Job creation: 89,000 positions supported
●?Service access: 200,000 individuals benefiting
●?Household impact: 50,000 families reached
On another hand, the Kenyan shilling demonstrated stability through November 22, maintaining a rate of 129.00/130.00 against the dollar, supported by strategic central bank interventions. This currency stability has proven crucial for ongoing infrastructure and development projects.
Market Impact:
●?Reduced SME lending rates from previous highs of 40%
●?Unlocked pension fund investments, with access to US$30 billion pool
●?Streamlined regulatory framework for alternative assets
●?Enhanced cross-border trade facilitation
The stabilization of trade financing has been particularly evident in the Northern Corridor, where Kenya's integration efforts with DR Congo and South Sudan have accelerated customs processing and reduced border delays.
?
3. UGANDA: Record Investment Licensing Signals Economic Diversification Push
The Uganda Investment Authority (UIA) reported substantial growth in licensed investment projects for fiscal year 2023/24, with 426 projects valued at US$2.61 billion (UGX 9.63 trillion) representing a 6.5% increase in project volume from the previous year. The manufacturing sector led with 262 projects, accounting for 62% of all licensed investments.
Key Performance Metrics:
●?Direct job creation: 67,911 positions (55.9% increase from FY 2022/23)
●?Local employment: 41,920 jobs (61.7% of total planned employment)
●?Industrial park occupancy: 625 companies allocated land, up from 514
●?Capital investment in industrial parks: $3.31 billion, up from $2.99 billion
The country's strategic positioning has also yielded results, with MultiChoice Uganda celebrating 30 years of operations and representing huge investments in local content. This milestone was complemented by Goodwell Investments' first entry into Uganda through the Agent Banking Company (ABC), part of their €150m uMunthu II fund aimed at expanding financial inclusion.
Uganda's coffee sector, on the other hand, made notable steps at the Xiamen International Coffee Fair 2024, where the country showcased premium offerings as a co-organizer. The event highlighted Uganda's position as China's 7th largest coffee supplier, accounting for 4.03% of total coffee exports with 20,005 60kg bags in October 2024.
4. RWANDA: Fintech and Digital Innovation Drive Economic Transformation
Rwanda unveiled ambitious plans to invest US$200 million in fintech enterprises between 2025-2029, targeting advancement from its current position as Africa's fifth-ranked fintech hub to continental leadership. The strategy aims to increase fintech players from 75 to 300, positioning Rwanda among the global top 30 fintech hubs.
Recent developments include:
●?Central Bank maintained key rate at 6.5%
●?Inflation contained at 3.8% in October
●?Economic growth remained robust in Q3, driven by services and industry
●?2024 inflation forecast: 4.6%
The Nyagatare Investment Forum, held on November 22, revealed specific investment opportunities:
●?Daily milk demand: 650,000 liters
●?Livestock capacity: 220,000 cows
●?Annual maize production: 132,000 tonnes
●?Rice production: 10,000 tonnes
Simultaneously, the Bank of Kigali has intensified agricultural financing, offering loans up to Rwf50 million (US$36,637) for cooperatives growing rice, tea, and maize, with 12-month repayment terms and produce insurance as collateral. This initiative aligns with Rwanda's broader strategy to transform its agricultural sector.
International Engagement:
●?Host of Africa HR Summit (November 20-22, 2024)
●?Strengthened Chinese investment in tea sector
●?Enhanced regional trade cooperation through improved customs systems
●?Focus on clean energy and sustainable development initiatives
The combination of targeted sector development and strategic international partnerships has positioned Rwanda to achieve its National Strategy for Transformation goals, with particular emphasis on private sector growth and innovation-led development.
?
5. DRC: Strategic Economic Reforms Backed by $2.9B IMF Package Amid Mining Sector Revival
The Democratic Republic of Congo secured a landmark US$2.9 billion financing package from the IMF, structured as $1.77 billion through the Extended Credit Facility (ECF) and $1.1 billion via the Resilience and Sustainability Facility (RSF). Announced on November 13, this funding targets economic diversification, climate resilience, and governance improvements, with IMF board approval expected by mid-January 2025.
Major Mining Developments:
●?Kipushi Mine officially reopened on November 17 by President Félix Tshisekedi
●?Facility ranks as lowest greenhouse gas emitter per tonne of zinc produced globally
●?Expected 2025 production: 278,000 tonnes of payable zinc concentrate
●?GHG emissions intensity: 0.019 tonnes CO2e per tonne of zinc
The SADC extraordinary summit in Harare on November 20 extended the SAMIDRC mission in DR Congo for another year, responding to ongoing security challenges in the eastern regions. This extension aims to stabilize the region for increased economic activity and investment.
Economic Indicators:
●?Growth projection: Above 5% throughout the program period
●?Inflation target: 7% by 2026
●?Key reforms: Treasury centralization and tax system modernization
●?Focus sectors: Security, humanitarian assistance, education, health, infrastructure
6. SOUTH SUDAN: Digital Integration and Revenue Reform Mark Economic Transition
South Sudan is undertaking pivotal reforms in its revenue management systems, as evidenced by the appointment of Simon Akuei Deng as the new Commissioner General of the South Sudan Revenue Authority (SSRA) on November 20. This leadership change comes as the country integrates its revenue systems with other Northern Corridor members to enhance trade efficiency.
Key Developments:
●?Integration with Northern Corridor customs systems underway
●?Implementation of electronic documentation processes
●?Focus on reducing border queues and improving trade flow
●?Enhanced coordination with Kenya and DRC customs authorities
The UNDP's third quarter 2024 capacity-building initiatives revealed critical challenges:
●?Current fiscal deficit: Approximately 50% for FY 2024/2025
●?Oil dependency: Previously 98% of total revenues
●?Banking sector: Only 45% of population accessed financial services
●?Revenue mobilization: Significant gaps in non-oil revenue collection
Reform Priorities:
●?Electronic Payroll System implementation
●?Single Treasury Account establishment
●?Modernization of tax collection systems
●?Strengthening of legislative oversight
The World Bank estimates that South Sudan's economic reforms, particularly in revenue management, could potentially reduce processing times at borders by up to 60% and increase non-oil revenue collection by 25% within the first year of full implementation. However, success depends heavily on continued institutional capacity building and regional cooperation.
UPCOMING EVENTS
1. 2nd AAAG Annual Conference 2024
When: December 2-6, 2024 (8:00 AM - 5:00 PM EAT)
What: High-level gathering of public finance leaders focusing on "Building Public Trust in PFM Systems for Sustainable Growth"
Where: Arusha International Conference Centre, Afrika Mashariki Road, Arusha, Tanzania
How: Registration through official website www.aaag.org.zm
Cost: Contact secretariat at +260979883099 for pricing tiers
Who Should Attend:
●?Accountants General from 20 member countries
●?Public Financial Management experts
●?African Union Commission representatives
●?AfDB and World Bank officials
●?Government finance officers
●?Public sector auditors and accountants
●?Policy makers in public finance
Key Features:
●?Digital transformation in public sector efficiency
●?Strategies for combating illicit financial flows
●?Networking with regional finance leaders
●?Policy development workshops
●?Sponsored by SAP and ACCA
?
2. East Africa Energy Cooperation Summit (EA-ECS) 2025
When: January 29-30, 2025
What: High-level regional energy summit focusing on resource wealth, regional collaboration, and investment opportunities across East Africa
Where: Gran Melia Hotel, Arusha, Tanzania
How: Registration is available through EnergyNet's official platform
Cost: Contact organizers for tiered pricing ([email protected])
Key Focus Areas:
●?Regional power market development
●?Cross-border energy projects
●?Renewable energy initiatives
●?Gas-to-power opportunities
●?Mining sector energy integration
●?Digital infrastructure development
Who Should Attend:
●?Government energy ministers and officials
●?EAC representatives
●?Power utilities executives
●?Renewable energy developers
●?Mining sector leaders
●?Infrastructure investors
●?Digital infrastructure providers
●?Energy regulators
●?Project financiers
Unique Features:
●?Interactive country-specific boardroom sessions
●?Public-private sector dialogue platforms
●?Project fast-tracking workshops
●?Regional collaboration frameworks
●?Investment matchmaking opportunities
Official Endorsement: Supported by the East African Community (EAC) Secretariat Organizer: EnergyNet Ltd (Clarion Events)
OPINION OF THE WEEK
Culture, in my view, is how your people and organization behave on a day-to-day basis. It's all the small habits, routines, and tone of the people that cumulatively come together to create culture. People often think that the best way to develop a culture is by sitting in a conference room and listing down attributes that you think would make a great work culture, but we took a different approach at Beem.
Taha Jiwaji, CEO Beem
CONCLUSION
Last week's developments across East Africa reveal a distinct pattern of economic maturation through institutional reforms rather than isolated project announcements. The region is moving beyond traditional development narratives, with countries leveraging their unique advantages: Tanzania's energy diplomacy, Kenya's financial innovation, Uganda's manufacturing momentum, Rwanda's digital transformation, DRC's mineral wealth optimization, and South Sudan's customs modernization.
Three key trends emerge from this week's analysis:
For investors, this evolution presents opportunities in institutional-grade investments rather than standalone projects. The challenge ahead lies in scaling these reforms while maintaining momentum in implementation, particularly as global economic headwinds persist.
RESOURCES
TANZANIA:
KENYA:
UGANDA:
RWANDA:
DRC:
SOUTH SUDAN:
?
?
?
?