June 23 2025
Introduction
Welcome to this week’s investment newsletter, your essential roundup of the region’s most strategic economic and investment shifts. This edition opens with a powerful trend which include Africa’s foreign direct investment inflows surged by 75 % in 2024, led by energy and infrastructure deals across Africa. In Tanzania, the launch of a modern copper processing plant marks a key step in local value addition and industrial expansion. Kenya’s bond market showed renewed strength with an oversubscribed auction reflecting investor appetite for long-term returns. Uganda unveiled a European Union–backed USD 8.7 million project to boost SME exports, positioning the country for stronger trade links with the EU. Rwanda launched a USD 335 million climate-smart agriculture plan aimed at attracting private sector investment and building resilience in its food systems. In the DRC, over USD 50 million in foreign investment was committed to the Kiswishi City SEZ, marking a turning point for industrial growth and investor access in Central Africa. Meanwhile, Somalia announced the launch of its first stock and sukuk exchange, signalling a bold entry into regional capital markets and financial integration. Each story highlights the region’s growing investor confidence and evolving investment landscape. Let’s dive in!
Trend of the week
UNCTAD reports 75% surge in African FDI led by energy and infrastructure deals
The latest World Investment Report by UN Trade and Development shows a strong rebound in foreign direct investment inflows to Africa in 2024. FDI rose by 75 % to reach USD 97 billion, making up 6 % of global inflows compared to 4 % the previous year. This surge was largely driven by a major international project finance deal for urban development in Egypt. Even without this deal, FDI still rose by 12 % to USD 62 billion, maintaining a 4 % global share. Investment facilitation remained a key focus, with 36 % of investor-friendly policy measures in Africa supporting this area. Liberalization also continued to influence policy in Africa and Asia, representing one fifth of all measures adopted in 2024. European investors currently hold the largest FDI stock in Africa, followed by the United States and China. China’s investments, valued at USD 42 billion, are expanding into sectors such as pharmaceuticals and food processing. One third of projects linked to China’s Belt and Road Initiative now focus on social infrastructure and renewable energy. Across the continent, FDI increased in most subregions. North Africa led with a 277% rise, reaching USD 51 billion. Tunisia’s FDI grew by 21 % to USD 936 million and Morocco’s rose by 55 % to USD 1.6 billion. East Africa recorded a 12 % increase while Southern and Central Africa saw growth of 44 % and 13 % respectively. West Africa was the only region to decline, with FDI dropping by 7 % to USD 15 billion. International project finance deals across Africa rose by 15 % in value, driven by large energy and transport infrastructure projects, especially in Egypt where commitments more than doubled. While the number of projects fell by 3 %, renewable energy remained a bright spot with seven major deals worth USD 17 billion focused on offshore power cables and solar and wind plants in Egypt, Morocco, Namibia and Tunisia. In contrast, greenfield investments declined across most of Africa, with the number of announcements dropping by 5 % and total value falling by 37 % to USD 113 billion. North Africa was the exception, where greenfield investments increased by 12 % to USD 76 billion and accounted for two thirds of Africa’s project capital spending. Sector-wise, construction and metal products saw the largest increases while electricity and gas supply projects dropped by USD 51 billion. Cross-border mergers and acquisitions, which normally represent around 15 % of Africa’s FDI, recorded negative activity in 2024. These trends show that Africa is not only attracting more capital but also laying the foundation for long-term investment opportunities. Foreign investors should take note of the continent’s shifting investment landscape and act early to secure positions in its fastest-growing sectors.
Tanzania
Tanzania enters global copper map with opening of modern processing facility
Tanzania has officially launched its first modern copper processing plant, marking a significant milestone in positioning the country on the global copper production map. The facility, located in Chunya district in the Mbeya region, was inaugurated by Prime Minister Kassim Majaliwa and is operated by Mineral Access Systems Tanzania Ltd. The Prime Minister described the plant as a symbol of national aspiration and economic transformation, noting that its construction reflects the government’s commitment to promoting local value addition, advancing technology use, and embracing environmentally responsible mining practices. He also highlighted the launch as a sign of Tanzania’s improving investment and business climate and a major step toward shifting from raw mineral exports to industrial production of high-value mineral products. MAST Director Godfrey Kente stated that the plant will process low-grade copper ore containing between 0.5 and 2 % copper from the Mbugani area in Chunya. It will upgrade the ore into copper concentrate with up to 75 % purity using leaching and cementation technology. The plant has a monthly processing capacity of 31,200 tonnes of copper ore, including 27,200 tonnes from MAST’s own mine and 4,000 tonnes sourced from small-scale miners across the country. MAST also plans to expand its operations by constructing three additional copper processing plants in the Manyara, Ruvuma, and Dodoma regions where copper reserves have been identified. The launch of modern copper facilities signals a prime opportunity for investors seeking exposure to East Africa’s industrial mineral sector.
Kenya
Kenya’s bond auction oversubscribed as investors pivot to long-term returns
The Central Bank of Kenya has successfully raised approximately USD 551.1 million in a reopened Treasury bond auction dated June 23, 2025, surpassing its target of USD 384.6 million. The offering included the 15-Year Fixed Coupon Treasury Bond FXD1/2020/015 and the 30-Year Savings Development Bond SDB1/2011/030. The auction attracted total bids worth USD 779.7 million, achieving a performance rate of 202.72 %. This strong uptake reflects a shift by institutional investors toward longer-term instruments in response to declining short-term returns. In the previous week, T-bill yields dropped to their lowest since June 2022, following the CBK’s rate cut. The 364-day bill fell to 9.75 % while the 91-day and 182-day papers dropped to 8.18 % and 8.49 % respectively. Despite the 91-day paper being heavily oversubscribed, demand for the longer T-bills was weak, with the government raising only USD 19.8 million and USD 23 million against offers of USD 76.9 million each for the 182- and 364-day bills. The appeal of higher yields above 13 % in the bond market redirected investor attention to long-term papers. CBK accepted USD 445.9 million in the 15-Year FXD bond and USD 105.9 million in the 30-Year SDB bond. The respective yields were 13.49 % and 13.99 %, both above their coupon rates. This outcome underscores strong investor confidence in Kenya’s long-term debt instruments, supported by attractive returns and improved liquidity in the market. For investors, this signals renewed confidence in Kenya’s debt market and rising appetite for high-yield, long-term instruments. With yields topping 13 %, the opportunity to lock in strong returns in a stable macro environment is growing especially as short-term paper loses its appeal. Fixed-income investors should monitor upcoming auctions closely as liquidity shifts toward the long end of the curve.
Uganda
Uganda unveils USD 8.7M EU-backed project to boost SME exports
Uganda’s Ministry of Trade, Industry and Cooperatives, in partnership with the International Trade Center and with funding support from the European Union has launched a transformative new project aimed at strengthening the country’s Small and Medium Enterprises (SMEs). The four-year initiative valued at approximately USD 8.7 million seeks to empower local SMEs by creating a more conducive policy and business environment that enhances their ability to compete and trade on both continental and international levels, with a particular focus on accessing the European Union (EU) market. Central to the project are efforts to improve quality compliance and standards, broaden access to e-commerce tools, and stimulate innovation across various sectors. During the official launch, Trade Minister Hon. Francis Mwebesa noted that the program is expected to boost Uganda’s export volumes to the EU, which currently stand at USD 1.4 billion.
For foreign investors, this initiative signals a strategic shift towards building export-ready enterprises and modernizing Uganda’s SME sector key factors in reducing operational risks and increasing the reliability of local partnerships. With enhanced standards and digital capabilities, Ugandan SMEs are likely to become more attractive as suppliers, collaborators, or acquisition targets. Additionally, the project reflects Uganda’s broader commitment to integrating into global value chains particularly within the EU market making it an increasingly viable destination for trade-oriented investment.
Rwanda
Rwanda unveils USD 335M climate-smart agriculture plan to boost private sector investment
Rwanda has unveiled a transformative Climate Smart Agriculture (CSA) investment plan aimed at mobilizing USD 335.4 million in private sector financing to strengthen food security, enhance agricultural productivity, and foster climate resilience. Jointly launched by the Ministry of Agriculture and Animal Resources, the Rwanda Green Fund, and the International Finance Corporation (IFC), the plan identifies significant investment opportunities across critical areas such as water supply and irrigation, climate-resilient crops and livestock, soil health, and post-harvest loss reduction. In the short term, the strategy focuses on building awareness, supporting farmers and agribusinesses through technical assistance, and laying a strong policy foundation. Over the longer term, the goal is to mainstream climate-smart agriculture across the sector through expanded funding, increased bankable projects, and enabling regulatory reforms.
Approximately two-thirds of the total investment will target irrigation and water infrastructure to support 83,250 hectares of land, boosting productivity and climate resilience. The plan also aims to connect 170,200 farmers and 375 companies to climate-smart financing through commercially viable models. It aligns with Rwanda’s Strategic Plan for the Transformation of Agriculture (PSTA5) and the National Strategy for Transformation (NST2), which seeks to raise private investment in the economy from USD 2.2 billion (15.9% of GDP) to USD 4.6 billion (21.5% of GDP). Government officials emphasized the plan’s role as a roadmap for attracting large-scale investment, improving livelihoods, and accelerating green economic growth. With IFC’s backing and Rwanda Green Fund’s evolving programmatic model, this initiative represents a critical step toward building climate-resilient agri-food systems and securing sustainable development in the face of growing climate threats.
Democratic Republic of Congo
Kiswishi City SEZ launches with USD 50M in foreign investments to transform DRC’s economy
American, British, and Congolese officials have marked a major milestone in the Democratic Republic of the Congo (DRC) with the launch of over USD 50 million in foreign direct investments at the Kiswishi City Special Economic Zone (SEZ) in Haut-Katanga Province. Among the headline projects are a Pepsi bottling plant, developed by India’s Varun Beverages which is the largest bottler of Pepsi outside the U.S. and a state-of-the-art 8,000 cubic metre fuel depot by Congo Petrol, a licensee of Kenya’s Dalbit Petroleum. Spanning 15 and 7 hectares respectively, these developments are expected to generate thousands of jobs, expand industrial capacity, and strengthen regional supply chains. The inauguration of Kiswishi City SEZ, the first privately developed SEZ in the DRC, also featured the ground-breaking of a One-Stop Shop designed to streamline investor access to government services.
Backed by American, British, New Zealand, and Norwegian investors, Kiswishi City SEZ is spearheaded by Rendeavour, Africa’s leading new city developer, whose urban projects across five African countries have unlocked billions in investment and created tens of thousands of jobs. The project reflects a growing global confidence in the DRC’s economic trajectory. U.S. Ambassador Lucy Tamlyn praised Kiswishi as a long-term investment that will reshape local economies, while UK Ambassador Alyson King noted its alignment with the UK’s vision for inclusive partnerships and local value addition. Congolese officials, including Prof. Jean-Marie Kanda, also commended Rendeavour’s role in advancing the President’s industrial development agenda by delivering high-quality infrastructure such as power, roads, internet, and water. Kiswishi City SEZ presents a unique opportunity to tap into DRC’s fast-growing market within a secure, serviced, and investor-friendly environment. The presence of global brands and the near sell-out of the residential estate’s first phase underscores investor appetite. As the One-Stop Shop becomes operational, bureaucratic barriers to doing business are expected to reduce significantly, making Kiswishi a launchpad for regional and international businesses looking to establish a footprint in Central Africa’s resource-rich but underdeveloped economy.
Somalia
Somalia Prepares to Launch First-Ever Stock and Sukuk Bond Exchange
Somalia is set to begin trading equities and government-issued Sukuk bonds early next year through the newly established National Securities Exchange of Somalia (NSES), marking a major step toward integrating the country into regional and global financial markets. The exchange will initially target listings from companies in key sectors such as telecommunications, banking, real estate, energy, and agriculture to stimulate economic growth. Yasin Ibar, formerly the CEO of the Somali Bankers’ Association, has been appointed as the founding CEO of NSES.
According to Ibar, the exchange aims to create new avenues for companies to access capital, empower investors to participate in Somalia’s growth, and enhance the country’s financial inclusion within the region. The exchange was launched by a coalition of local investors and financial professionals and will begin as a private, self-regulatory organization. A comprehensive securities policy and legal framework is being developed in collaboration with the Ministry of Finance and other government bodies.
As a member of the East African Stock Exchanges Association, NSES plans to pursue cross-listing opportunities with established exchanges in Kenya, Rwanda, Tanzania, and Uganda. The exchange will also embark on investor education campaigns and host roadshows targeting Somali diaspora communities in countries such as Turkey, Kenya, the UK, Norway, and the US. This development follows similar capital market reforms in neighbouring Ethiopia, which announced plans in April 2024 to begin trading equities and fixed income products, reinforcing a broader trend of capital market modernization across the region.
Upcoming event
10th Solar Africa 2025 (International Solar Exhibition Kenya)
Date: Thursday, 26 June – Saturday, 28 June 2025
Time: 8:00 AM–5:00 PM daily
Venue: Kenyatta International Convention Centre (KICC), Nairobi, Kenya
How to register
Entry: Free for trade visitors
Registration: Via the official Solar Africa website@ (https://www.expogr.com/solarafrica/) — complete the visitor registration form to obtain a badge
Who Should Attend
- Industry professionals (manufacturers, distributors, installers)
- Renewable energy investors and financiers
- Project developers & system integrators
- Government representatives & trade associations
- Technical experts, engineers, and consultants
Key Features & Agenda
- Trade Exhibition showcasing solar panels, inverters, battery storage, off-grid systems, solar water heating, BIPV, street lighting, and software solutions
- Seminars & Workshops on integration, project financing, energy storage innovations, and market trends
- Networking Hubs connecting exhibitors, investors, gov’t bodies, and regional players
- Regional Focus on East and Central Africa (attendees expected from Kenya, Uganda, Ethiopia, Tanzania, Rwanda, Somalia)
Opinion of the week
“Corruption is the cancer that eats away at the fabric of societies; it erodes trust, undermines democracy, and stifles economic growth.”
Mo Ibrahim, Sudanese-British entrepreneur and philanthropist.
Conclusion
These developments reflect the growing momentum behind East Africa’s transformation into a more connected, investable, and opportunity-rich region. From rising FDI inflows and industrial upgrades to strategic reforms in agriculture, energy, infrastructure, and capital markets, governments are making bold moves to attract long-term investment and drive inclusive growth. The signals are clear, this is no longer a story of potential but of action. For foreign investors, now is the time to move from observation to participation. Opportunities are opening up in sectors that are not only growing fast but are backed by supportive policies, improving infrastructure, and growing demand. Whether in green energy, industrial minerals, agri-tech, logistics, or capital markets, early movers will benefit from shaping the landscape while competition is still low. Engage with regional stakeholders, explore local partnerships, and take advantage of government incentives designed to attract foreign capital. East Africa is not waiting and neither should you.
Resources
UN Trade and Development (2025)
Xinhua (2025)
The Kenyan wall street (2025)
UBC Uganda (2025)
International Finance Corporation (2025)
Rendeavour (2025)
Bloomberg (2025)
Recent Comments