Introduction
This week’s developments underscore a clear theme across Africa where governments are strengthening trade access, deepening strategic partnerships, and unlocking new investment pathways as the continent positions itself for the next phase of growth. At the continental level, the renewal of AGOA restores critical certainty for exporters and investors, reinforcing Africa’s integration into global value chains. Country-specific moves reinforce this momentum. Tanzania is expanding South-South cooperation with Indonesia in agriculture and energy, Kenya is mobilizing World Bank-backed capital to de-risk green SME investments, and Uganda has secured a landmark dairy export deal with Nigeria that opens access to West Africa’s import-dependent market. Rwanda continues to attract rising African-led investment, cementing its role as a Pan-African business hub, while the Democratic Republic of Congo is pursuing large-scale diversification through a USD 29 billion iron ore project. Meanwhile, Somalia’s new labour framework with Türkiye strengthens workforce governance and investment readiness. Together, these developments highlight a continent moving decisively toward deeper regional integration, diversified capital sources, and more investable markets setting the stage for investors seeking scalable, long-term opportunities across Africa’s evolving economic landscape.
Trend of the week
Renewal of AGOA unlocks new opportunities for continental value chains
African governments and businesses have welcomed the U.S. House of Representatives’ decision to extend the African Growth and Opportunity Act (AGOA) for another three years, restoring critical trade certainty and preserving duty-free access for more than 32 Sub-Saharan African countries to the U.S. market which is a key destination for manufactured goods, agricultural products and value-added exports. AGOA has been a cornerstone of U.S.–Africa economic relations for over two decades, supporting industrialization, job creation and the development of regional value chains across the continent, particularly in sectors such as textiles, apparel, horticulture and processed foods. Kenyan authorities have already signalled plans to diversify exports under the renewed AGOA framework beyond traditional garments and apparel into broader product lines, leveraging the pact to create jobs, expand production and generate wealth. Continued preferential access under AGOA is also being paired with discussions on a bilateral trade agreement with the United States, underscoring an intensifying commercial partnership that strengthens Africa’s integration into global markets amidst shifting geopolitical competition with China and Russia. The extension not only provides much-needed predictability for exporters and multinational investors but also signals the U.S.’s enduring strategic economic engagement with Africa at a time when global trade dynamics are realigning.
Tanzania
Tanzania and Indonesia deepen agriculture and energy ties, opening new investment channels
Tanzania and Indonesia have agreed to strengthen development cooperation in agriculture and energy following high-level talks held in Dodoma, signalling deeper bilateral engagement with clear investment implications. The discussions, led by Tanzania’s Minister of Finance Ambassador Khamis Mussa Omary and Indonesia’s Ambassador Tri Yogo Jatmiko Avetisyan, underscored the two countries’ long-standing partnership, which dates back to the establishment of diplomatic relations in 1964. Tanzanian officials highlighted Indonesia’s contributions to the country’s economic transformation through financial support, technical expertise, and capacity-building programs across sectors such as mining, agriculture, livestock, and energy. As part of the renewed cooperation, Tanzania has invited Indonesian investors to explore opportunities across agriculture and value addition, mining, industry, energy, infrastructure, health, education, and tourism. The partnership is further reinforced by leadership-level engagements and human capital development with more than 170 Tanzanians already trained under Indonesian programs, positioning the cooperation as a platform for productivity-driven investment, skills transfer and long-term sustainable growth.
Kenya
World bank commits USD 43M to de-risk and scale green SME investments in Kenya
The World Bank has committed USD 43 million to the Government of Kenya to accelerate green investments and job creation amid ongoing economic pressures. The funding will be deployed through the Kenya Development Corporation’s (KDC) Green Investment Fund, targeting small and medium-sized enterprises adopting climate-friendly and sustainable technologies. Priority sectors include electric mobility and transport, energy-efficient and green buildings, sustainable agriculture, and waste management solutions. The initiative falls under Component 3 of the Kenya Jobs and Economic Transformation (KJET) Project, which aims to boost private sector investment, expand market access, and strengthen sustainable finance. By blending public capital, technical assistance, and private investment, the fund is designed to de-risk climate-aligned projects and crowd in private capital. KDC is currently finalising the appointment of an independent fund manager to ensure strong governance and safeguard development and financial objectives. The commitment builds on earlier progress under the SAFER Project, which has supported more than 37,000 enterprises with 38% of them women-owned and contributed to the creation of over 25,000 jobs. These programs integrate ESG standards, strengthen financial intermediaries, and position Kenya as a growing hub for climate-smart, investable SME opportunities.
Uganda
Uganda Lands Landmark USD 1B Nigeria dairy deal, unlocking West Africa’s import-driven milk market
Uganda has taken a major step in expanding its dairy export footprint after concluding a dairy marketing agreement with Nigeria in mid-December 2025, under which Abuja committed to purchase 200,000 tonnes of milk powder valued at an estimated USD 1 billion. The deal marks only the second documented case of dairy trade between Uganda and West Africa, following earlier exports to Mali worth approximately USD 305,000 during the 2024/2025 marketing year. The agreement strengthens Uganda’s entry into an import-dependent West African dairy market, where FAO data show annual imports averaging 1.98 million tonnes in milk equivalent between 2020 and 2024, with an average import bill of USD 934 million per year. Nigeria and Senegal remain priority markets for Kampala’s export diversification strategy, as Uganda continues discussions with Dakar focused on dairy infrastructure development, cooperative strengthening, technological innovation, and farmer support. Backed by rapidly rising domestic production, up from 1.9 million tonnes in 2013 to a record 5.4 million tonnes in 2024, Uganda is increasingly positioning itself as a competitive regional supplier. Dairy export revenues have grown eightfold over the past decade to USD 264.5 million in 2023, with milk powder and UHT milk accounting for the majority of export value.
Rwanda
Rwanda emerges as a Pan-African investment hub as African FDI surges
Investments in Rwanda are increasingly being driven by African capital, marking a significant shift away from traditional reliance on Western funding sources. New data released in 2025 show that Nigeria has emerged as the largest African investor in Rwanda, underscoring growing continental confidence in the country’s economic model. In 2024 alone, Nigerian investors injected approximately USD 300 million into Rwanda, compared with around USD 150 million from Eritrea and roughly USD 100 million from Ethiopia. Beyond the numbers, these flows signal Rwanda’s rising appeal among African economies, reflecting trust in its economic governance, political stability, and pro-business regulatory environment. Nigeria’s leading position highlights Rwanda’s attractiveness to Africa’s largest economy and private sector, particularly across finance, real estate, services, and technology. Meanwhile, investments from Eritrea and Ethiopia reinforce Rwanda’s role as a neutral, well-regulated gateway for regional and continental expansion. For Rwanda, the growing dominance of African-led investment strengthens its ambition to become a Pan-African business and investment hub, while supporting industrialization, job creation, and economic resilience through diversified sources of foreign direct investment.
Democratic Republic of Congo
DRC targets iron ore expansion with USD 29 billion MIFOR mega project
The Democratic Republic of Congo (DRC), already one of the world’s largest producers of copper and cobalt, has announced plans to diversify its mining portfolio through a USD 29 billion iron ore project. The government has established Mines de Fer de la Grande Orientale (MIFOR) to develop a high-grade iron ore deposit in the country’s remote northern region, with estimated resources of 20 billion tons at an average grade of 60%, according to Mines Minister Louis Watum. The first phase of the project, estimated at USD 28.9 billion, will involve the construction of heavy rail infrastructure and river transport linking the site to the deep-water port of Banana on the Atlantic Ocean. Initial production capacity is projected at 50 million tons per year, with the potential to scale up to 300 million tons annually. Watum noted that the project represents a major strategic shift for the DRC after more than a century of reliance on copper and cobalt, adding that MIFOR has already attracted interest from institutional investors, prompting the government to establish an inter-ministerial commission to oversee its development.
Somalia
New Türkiye–Somalia labour agreement signals improved investment readiness
Türkiye and Somalia have formally brought into force the Türkiye–Somalia Joint Labor Commission First Meeting Protocol and the 2026–2027 Action Plan following a high-level meeting in Ankara between Turkish Minister of Labour and Social Security Vedat Isikhan and Somali Minister of Labor and Social Affairs Salim Alio Ibro. The agreement establishes a structured framework for cooperation across labour inspections, occupational health and safety, labour migration management, vocational training, and the development of national occupational standards. Turkish officials emphasized that the action plan elevates bilateral cooperation to a more advanced and sustainable level, creating a legal foundation for continuous exchange of expertise, data, and institutional support. The framework reflects the deepening strategic relationship between the two countries and signals a shift toward stronger labour governance and capacity building in Somalia. For foreign investors, the agreement improves workforce predictability, regulatory clarity, and execution capacity which are key factors for reducing operational risk and supporting long-term investments in infrastructure, energy, logistics, and manufacturing.
Upcoming events
East Africa prospects 2026
Date: Friday, 23 January 2026
Time: 12:00 – 14:00 (GMT)
Venue: London, United Kingdom
Agenda: A high-level strategic briefing examining East Africa’s 2026 investment outlook, focusing on political stability, macroeconomic trends, debt pressures, and geopolitical risks shaping capital flows across the region.
How to register: Registration is available via the Eastern Africa Association official event page via this link- https://www.eventbrite.co.uk/e/east-africa-prospects-2026-tickets-1979831681856?aff=oddtdtcreator
Who should attend:
- Institutional and private equity investors
- Corporate executives and board members with East Africa exposure
- Financial institutions and risk analysts
- Diplomats and policy advisors
- Infrastructure, energy, and market entry professionals
- Development finance institutions (DFIs) and advisory firms
Key features:
- High-level peer-to-peer briefing opening the Eastern Africa strategic calendar for 2026
- On-the-ground political and macroeconomic insights beyond headline risk
- Investor-focused analysis on policy stability, debt sustainability, and capital flows
- Horn of Africa geopolitical assessment, including post-election and security dynamics
- Global policy implications affecting East Africa, including trade protectionism and shifting Western policies
- Confirmed senior speakers from Tanzania, Ethiopia, Rwanda, and global risk advisory firms
Opinion of the week
“Africa holds 60% of the world’s uncultivated arable land. Feeding the planet will increasingly rely on this continent. Agricultural investors have a generational opportunity.”
Natasha Hayward- Director, Global Agriculture Investment Fund
Conclusion
Taken together, this week’s developments point to a continent that is steadily lowering investment risk while expanding opportunity across sectors and regions. From renewed access to global markets under AGOA, to deeper South-South partnerships, green finance mobilization, export diversification, and large-scale resource development, African economies are aligning policy, capital, and capacity to support sustainable growth. The growing role of African capital in markets such as Rwanda, alongside institutional backing in Kenya and mega-projects in the DRC, reflects increasing confidence in the continent’s economic direction. For investors, these signals matter: they indicate improving governance frameworks, clearer market access, and a widening pipeline of bankable opportunities. As Africa continues to integrate regionally and position itself within shifting global trade dynamics, the outlook remains one of disciplined optimism inviting long-term capital to participate in the continent’s next chapter of growth and value creation.
Resources
- The East African (2026)
https://www.theeastafrican.co.ke/tea/business-tech/agoa-renewal-keeps-us-africa-trade-alive-5326798
- Tanzania invest (2026)
- co.ke (2026)
https://www.kenyans.co.ke/news/119857-world-bank-commits-ksh55-billion-boost-green-investments-kenyan-smes
- Ecofin agency (2026)
https://www.ecofinagency.com/news-industry/1301-51872-uganda-moves-to-position-dairy-exports-in-west-africa
- Taarifa (2026)
https://taarifa.rw/index.php/2026/01/14/africa-investing-in-africa-rwandas-rise-as-continental-investment-hub
- Mining (2026)
https://www.mining.com/web/congo-pitches-new-29-billion-iron-ore-and-logistics-project/
- AA (2026)
https://www.aa.com.tr/en/africa/turkiye-somalia-sign-joint-labor-commission-protocol-2026-27-action-plan/3798980
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