Introduction
East Africa is stepping into 2026 with a surge of transformative investment activity poised to redefine the region’s economic landscape. Tanzania has captured global attention as CRDB Bank opened its Dubai office, connecting international capital directly to the country and the wider East and Central Africa region. The World Bank projects Tanzania’s GDP will grow by 6.2%, reinforcing its reputation as a stable and diversified investment destination. In Kenya, the government has launched the sale of a 65% stake in the state-owned Kenya Pipeline Company, a USD 825 million transaction expected to become East Africa’s largest IPO, attracting both domestic and international investors. Uganda is accelerating its USD 4 billion national oil refinery project with UAE-backed Alpha MBM Investments, positioning the country as a regional energy hub and reducing fuel import reliance. The Democratic Republic of Congo is strategically courting U.S. investors for its state-owned critical mineral assets, offering access to copper, cobalt, lithium, and other metals critical for global supply chains. South Sudan is emerging as a high-potential frontier market, with projected GDP growth of 4.3% in 2026, driven by commodity rebounds, rising domestic investment, and opportunities in infrastructure, mining, and agriculture. Meanwhile, Taiwanese investors have launched the USD 20 million Central Sky Livestock Quarantine Zone in Somaliland, modernizing export infrastructure and cementing Berbera as a strategic logistics hub for Gulf markets. From banking to energy, mining, and trade-linked infrastructure, East Africa in January 2026 is not just achieving milestones, it is signalling a region in motion, where bold capital decisions today could shape the economic map of tomorrow.
Trend of the week
CRDB bank opens Dubai office, bridging global capital to Tanzania and East Africa
Africa–UAE economic ties reached a new milestone with the official launch of the CRDB Bank Dubai representative office at the Dubai International Financial Centre (DIFC), marking the first time a Tanzanian bank has established a presence in one of the world’s leading global financial hubs. The move positions Tanzania and the wider East and Central Africa region directly within the global capital ecosystem, using a home-grown African financial institution to bridge regional investment opportunities with international finance. Backed by Tanzania’s long-standing macroeconomic stability, sustained GDP growth of 6–7 percent, and its role as a gateway linking the Indian Ocean to landlocked markets across East and Central Africa, the expansion strengthens access to structured, long-term capital for African projects. Designed to originate deals, structure financing, and mobilize global and Islamic finance for infrastructure, trade, energy, and mineral investments, the Dubai office is expected to deepen cross-border trade finance and syndicated investment flows between the Gulf and Africa, reinforcing Tanzania’s position as a strategic anchor for foreign investors seeking scalable opportunities across a nearly 400-million-person regional market.
Tanzania
World bank sees Tanzania posting 6.2% growth in 2026
Tanzania’s economy is projected to grow by 6.2 percent in 2026, placing it among the top three performers in the East African Community (EAC), according to the World Bank’s latest Global Economic Prospects report. Rwanda leads the bloc at 7.2 percent, driven by services, construction, and ICT, while Uganda is expected to expand by 6.4 percent as its oil sector gains momentum. Kenya and Burundi lag at 4.9 percent, highlighting Tanzania’s relative stability and resilience. The growth forecast reflects sustained domestic momentum, supported by agriculture, mining, construction, tourism, and manufacturing. Mainland Tanzania is expected to grow by 6 percent in the first quarter of 2026, while Zanzibar is projected at 7.2 percent, buoyed by tourism and construction. Rising exports, expanding private investment, and strong public-private partnerships further reinforce investor confidence. Experts note that Tanzania’s robust institutions, stable economic indicators, and responsive social services have helped the country weather global geopolitical shocks and maintain steady growth. For foreign investors, Tanzania’s outlook signals macroeconomic stability, sectoral diversification, and long-term growth potential. Opportunities are particularly strong in infrastructure, mining, energy, tourism, and ICT, as the country continues to position itself as a gateway to East and Central African markets, with favourable conditions for both domestic and international capital deployment
Kenya
Kenya offers 65% of state pipeline firm to investors in USD 825m deal
Kenya has launched the sale of a 65% stake in the state-owned Kenya Pipeline Company (KPC), aiming to raise approximately USD 825 million in what would be East Africa’s largest initial public offering (IPO) in local-currency terms. The offering forms part of President William Ruto’s broader privatisation drive as the government seeks alternative financing options amid elevated public debt levels and constrained fiscal space. Priced at roughly USD 0.07 per share, the IPO opened on Monday and will run until 19 February with shares scheduled to list on the Nairobi Securities Exchange on 9 March. Of the total stake on offer, 15% has been reserved for oil marketing companies and 5% for employees, while the remaining shares will be allocated equally across local retail investors, local institutional investors, East African investors, and foreign investors, underscoring Kenya’s push to deepen capital markets participation. The government will retain a 35% strategic stake, while analysts expect strong interest from both retail and institutional energy-sector investors, positioning the transaction as a landmark test of Kenya’s ability to mobilise domestic and international capital through market-based funding mechanisms.
Uganda
UAE-backed investor steps in as Uganda advances USD 4bn refinery project
Uganda’s long-delayed national oil refinery has entered a decisive execution phase after the government moved closer to sealing a USD 4 billion partnership with UAE-backed Alpha MBM Investments LLC, marking a major step toward a Final Investment Decision (FID) targeted for 2026. Planned for the Albertine Graben, the refinery is designed to process 60,000 barrels per day, a capacity that could significantly reduce Uganda’s USD 2 billion annual fuel import bill, ease pressure on foreign exchange reserves, and strengthen domestic energy security. Under the new ownership structure, Alpha MBM will hold a 60% equity stake, with the Uganda National Oil Company (UNOC) retaining 40%, a framework officials say reflects renewed investor confidence after years of stalled negotiations. Beyond meeting domestic demand, the project is expected to position Uganda as a regional refining hub, supplying neighbouring markets including South Sudan, eastern DRC, Rwanda, and Burundi, many of which rely on long fuel supply routes via Kenya and Tanzania. The refinery is also expected to generate thousands of jobs, catalyse downstream industries such as petrochemicals and fertilisers, and anchor Uganda more firmly within regional energy trade networks at a time of heightened global energy market volatility.
Democratic Republic of Congo
DRC offers strategic mining assets to U.S. investors in critical minerals push
The Democratic Republic of Congo has taken a significant step toward deepening its strategic minerals partnership with the United States after submitting a vetted shortlist of state-owned mining assets for consideration by U.S. investors, including manganese, copper-cobalt, gold, lithium, coltan and germanium projects. Delivered to U.S. officials last week, the list marks Washington’s most concrete progress yet in translating recent peace and investment agreements with Kinshasa into influence over one of the world’s most critical mineral supply chains. The move follows heightened U.S. engagement in Congo after a U.S.-brokered pact eased tensions between Congo and Rwanda, accelerating American efforts to secure access to strategic metals as part of a broader push to reduce reliance on China, which currently dominates global refining of key minerals. The shortlisted assets held by state-owned firms including Gécamines, Sokimo, Cominière, Sakima and Kisenge have undergone multiple rounds of internal vetting and are not encumbered by existing joint ventures. Oversight of the process will fall to a newly established Joint Steering Committee for American Investors, comprising senior Congolese officials and U.S. representatives, with next steps expected to include formal meetings, contract negotiations and project-level evaluations, positioning Congo as a central node in emerging Western-aligned critical minerals supply chains
South Sudan
Sub-Saharan Africa’s growth boost highlights opportunities in South Sudan
Africa enters 2026 at a delicate economic crossroads, balancing persistent structural challenges with renewed momentum fuelled by reform, investment, and regional integration. Sub-Saharan Africa’s GDP growth is projected to strengthen to 4.3% in 2026, up from 4.0% in 2025, supported by easing inflation, stronger domestic investment, and improved export performance in key economies. This recovery follows recent shocks, including currency pressures, high debt-servicing costs, and reduced development assistance, prompting governments to pursue fiscal consolidation and increased reliance on private-sector investment. The momentum is expected to extend into 2027, with growth projected at 4.5%, contingent on stable external conditions and improved security in fragile states. Higher commodity prices, particularly for gold, precious metals, and coffee, have boosted revenues in several countries, stabilizing public finances and creating attractive opportunities for foreign investors. Africa’s largest economies, including South Africa and Nigeria, are contributing to the continental recovery, with South Africa benefiting from improved electricity supply, strong agricultural output, and rising business confidence, while Nigeria’s growth is driven by services, finance, ICT, and its emergence as a net exporter of refined petroleum products. For investors, these trends signal rising opportunities across infrastructure, energy, mining, agriculture, and financial services, especially in economies implementing reforms and attracting capital inflows. Countries forecasted to outperform the continental average in 2026 are poised to become strategic investment destinations, as sector-specific growth and improved fiscal management enhance long-term returns.
Somalia
Taiwanese investors break ground on USD 20M export infrastructure project in Somaliland
A Taiwan-led private investment has broken ground in Somaliland with the launch of the US$20 million Central Sky Livestock Quarantine Zone in the port city of Berbera, marking Taiwan’s first large-scale private-sector infrastructure project in the region. Developed by Central Sky International Trading Co., the facility is designed to modernize livestock export infrastructure, enhance sanitary standards, and strengthen supply chains serving Gulf markets. The project brings together international capital, advanced Taiwanese technologies including solar photovoltaic power generation, waste treatment systems, and electronic livestock identification and local economic participation, positioning Berbera as a strategic export and logistics hub. Supported by senior Somaliland government officials and Taiwanese investors, the initiative is expected to expand export capacity, create employment, and signal growing confidence among foreign investors in Somaliland’s trade-linked infrastructure and cross-border investment potential.
Upcoming events
Eastern Africa members regional breakfast meeting
Date: Wednesday, 28 January 2026
Time: 07:30 – 09:30 (EAT)
Venue: Nairobi Serena Hotel, Nairobi, Kenya
How to register: Registration is via the Eastern Africa Association (EAA) official events page via this link – https://www.easternafricaassociation.org/events/eastern-africa-members-regional-breakfast-meeting-in-nairobi-3/
Agenda:
A high-level regional breakfast briefing featuring short, sector-focused presentations and a regional economic round-up aimed at informing members on current market and investment trends across Eastern Africa.
Who should attend:
- Regional and international investors
- Business executives and company directors
- Policy advisors and trade professionals
- Market analysts and economic consultants
- Eastern Africa Association members operating or investing in the region
Key features:
- Six-weekly exclusive regional meeting for EAA members
- Moderated by the EAA Executive Regional Director for East Africa
- Welcome remarks from the EAA-Kenya Chairman
- Short, focused presentations from four speakers across different economic sectors
- Regional economic update and market insights
- High-value networking over breakfast with senior business and investment leader
Opinion of the week
“AI, gaming, digital content, and IP monetization are exploding across African creative industries. This is a frontier sector with fast scalability. Investors who engage early gain the edge.”
H.E. Mr. Omar Hilale- Chairperson, Technology Innovation Forum
Conclusion
East Africa in early 2026 is transforming from a region of potential into a dynamic hub for global investment. Tanzania is connecting nearly 400 million consumers to international capital through CRDB Bank’s Dubai office, while Kenya’s USD 825 million KPC IPO signals growing capital market maturity. Uganda’s USD 4 billion refinery and South Sudan’s rising commodity-driven growth highlight regional energy and frontier opportunities, as Congo opens strategic mineral assets to U.S. investors and Somaliland modernizes trade infrastructure with a USD 20 million quarantine zone in Berbera. East Africa is no longer just growing, it is evolving into a nexus where capital meets opportunity, and forward-thinking investors can shape the continent’s next economic frontier.
Resources
- Gulf news (2026)
https://gulfnews.com/gn-focus/crdb-bank-opens-dubai-office-to-channel-gulf-capital-into-africas-34-trillion-economy-1.500416761
- The Citizen (2026)
https://www.thecitizen.co.tz/tanzania/business/world-bank-projects-6-2-percent-economic-growth-for-tanzania-in-2026-5330860
- Reuters (2026)
https://www.reuters.com/business/energy/kenya-launches-state-oil-pipeline-firm-ipo-looks-raise-825-million-2026-01-19/
- Africa business insider (2026)
https://africa.businessinsider.com/local/markets/uganda-to-become-east-africas-fuel-hub-as-uae-backed-dollar4bn-refinery-deal-enters/b2lzyqz
- Reuters (2026)
https://www.reuters.com/world/africa/congo-offers-manganese-coppercobalt-lithium-assets-us-investors-under-minerals-2026-01-20/
- Africa Business Insider (2026)
https://africa.businessinsider.com/local/markets/top-10-african-countries-with-the-highest-gdp-growth-forecast-for-2026/5kntnhv
- Yahoo finance (2026)
https://finance.yahoo.com/news/us-taiwan-sign-trade-deal-201326712.html
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