The East African Insider – Week 31st January -6th February 2026

Introduction

Welcome to the first East Africa Investment Newsletter of February 2026. This week, the region is showcasing renewed momentum with initiatives designed to unlock investment opportunities and drive growth. From the revival of the long-stalled Capital Markets Infrastructure (CMI) project, which aims to electronically link exchanges across Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Somalia, and the DRC, to Tanzania’s ambitious USD 24.3 billion fiscal expansion, the region is signalling both policy commitment and market potential. Kenya projects near-5% economic growth in 2026, strengthening its investment case, while Uganda is opening doors for investors to participate in the largest regional energy infrastructure IPO through the Kenya Pipeline Company. Rwanda is attracting global partnerships, notably with Brazil, to boost trade and private sector development, and South Sudan is introducing a fiscal framework aimed at stabilizing its economy and supporting sustainable growth. Meanwhile, Somalia is benefiting from EU-backed initiatives totalling USD 35.5 million, creating avenues for private sector participation in post-conflict reconstruction and resilience-building. Collectively, these developments reflect a dynamic investment environment across East Africa, offering opportunities in capital markets, infrastructure, energy, trade, and development-driven sectors.

Trend of the week

East Africa revives Capital Market Integration to unlock investment opportunities

East African stock market leaders are moving to revive the long-stalled Capital Markets Infrastructure (CMI) project, a regional initiative designed to electronically link exchanges and enhance cross-border trading, liquidity, and investment opportunities. The project, under development for over a decade, aims to connect eight markets namely Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo (DRC) in line with the East African Community (EAC) integration agenda. After initially withdrawing in 2015 due to procurement concerns and the absence of functioning exchanges in some countries, the Nairobi Securities Exchange (NSE) announced its return in 2025, citing expanded growth potential following the inclusion of the DRC and Somalia. The second phase of the project now brings together Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the DRC, Somalia, and Ethiopia, with funding expected from the African Development Bank (AfDB). Phase two seeks to address past obstacles by including wider participation and linking both established and nascent exchanges, such as Ethiopia and Somalia, to the regional network. The initiative promises to lower costs and settlement times for cross-border trades, facilitate capital raising, and create new investment opportunities across the region, marking a critical step toward an integrated East African capital market.

Tanzania

Tanzania’s 2026 fiscal expansion signals opportunities for infrastructure and development investments

Tanzania plans to increase its overall government spending by 10% to USD 24.29 billion in the next fiscal year, signalling a strong commitment to development projects despite mounting fiscal pressures. The government anticipates borrowing approximately USD 5.98 billion next year, up from USD 5.87 billion in the current fiscal year, to bridge funding gaps exacerbated by the withdrawal of budget support from key partners, including the U.S. and European Union. President Samia Suluhu Hassan has acknowledged that the country may face challenges securing funding from international institutions due to reputational concerns, but the government remains focused on sustaining growth. The Tanzanian economy is forecast to expand by 6.3% in 2026, up from 5.9% in 2025, with medium-term growth expected to average 6.9%, reflecting resilience in domestic investment, infrastructure development, and fiscal management. For investors, these developments highlight opportunities in infrastructure, public-private partnerships, and sectors aligned with government priorities, even amid global financing uncertainties.

Kenya

Kenya eyes near-5% growth in 2026, strengthening its investment case

Kenya’s economy is projected to grow by between 4.9 % and 5.2 % in 2026, signalling a resilient rebound after a period of slower growth. This outlook was shared during the 2026 Economic Outlook Forum hosted in Nairobi by the Kenya Private Sector Alliance (KEPSA) in partnership with the Nairobi Securities Exchange (NSE) and KPMG, where business leaders were equipped with insights to navigate a complex global environment. While the recovery highlights Kenya’s economic resilience, it remains below the pre-pandemic average growth rate of 6 per cent. Speakers noted that a stabilising macroeconomic environment, marked by easing inflation within the 3.0–5.0 % range and a relatively stable shilling, presents opportunities for investment, job creation, and productivity growth. However, persistent risks such as food and fuel price volatility, geopolitical tensions, and fiscal pressures continue to pose challenges. The forum underscored the importance of private-sector leadership, diversification of funding through capital markets, and strategic adaptation to global shifts, concluding that transparency, innovation, and effective use of financial markets will be critical in unlocking inclusive growth in 2026.

Uganda

Ugandan investors invited into East Africa’s largest energy infrastructure IPO

The Government of Kenya has formally invited Ugandan investors, institutions, and oil marketing companies to participate in the landmark Initial Public Offering (IPO) of the Kenya Pipeline Company (KPC), underscoring deepening bilateral ties and a shared commitment to regional energy security and economic integration. The IPO, currently open at the Nairobi Securities Exchange, will see the Kenyan government divest 65 per cent of its stake in KPC, East Africa’s most strategic petroleum infrastructure operator, in what is the largest and first fully electronic IPO in the exchange’s history. Uganda has been allocated a significant 20 per cent share under the East African Community investor allocation, reflecting its role as one of KPC’s largest regional markets, with over 90 per cent of its petroleum imports routed through KPC infrastructure and delivery volumes growing at a compound annual rate of about 9 per cent over the past five years. Proceeds from the IPO will support commercially viable infrastructure investments, including expanded storage at Kisumu, operationalisation of the Kisumu Oil Jetty, capacity expansion in Western Kenya, and feasibility work on the proposed Eldoret–Kampala pipeline projects expected to directly benefit Uganda’s energy supply chain. Open from 19 January to 19 February 2026, with listing anticipated in March 2026, the offer provides Ugandan investors a rare opportunity to co-own a critical regional asset that underpins trade, stabilises fuel supply, and unlocks long-term value across East Africa.

Rwanda

Rwanda and Brazil sign MoUs to accelerate trade, investment, and private sector growth

Rwanda and Brazil have strengthened their economic partnership through the signing of two memorandums of understanding aimed at boosting trade, investment promotion, and private sector cooperation. The agreements, signed between the Rwanda Development Board (RDB), the Brazilian Trade and Investment Promotion Agency (ApexBrasil), and Rwanda’s Private Sector Federation (PSF), were concluded during the first-ever Rwanda-Brazil Business Forum held in Kigali, which brought together over 60 business leaders from both countries. The MoUs establish a structured framework for trade promotion, investment facilitation, business missions, and joint initiatives in priority sectors, while encouraging joint ventures and technology transfer. Brazilian officials highlighted Rwanda’s stable, reform-driven business environment and its strategic position as a gateway to East and Central Africa, particularly for Brazilian firms seeking continental expansion. With Brazil’s global strengths in agribusiness, manufacturing, energy, and large-scale industry complementing Rwanda’s investor-friendly ecosystem, early interest has already emerged in sectors such as agriculture, fertilizers, food processing, health, and manufacturing. Notably, a proposed USD 50 million Brazilian agricultural investment is expected to be signed soon, underscoring the deal’s potential to translate dialogue into tangible investment outcomes and deepen bilateral economic ties.

South Sudan

South Sudan unveils fiscal framework to stabilize economy and boost growth

South Sudan has unveiled a new fiscal framework aimed at stabilizing the economy, addressing structural imbalances, and laying the foundation for sustainable growth. Announced by Finance Minister Bak Barnaba Chol, the policy prioritizes economic stabilization, essential spending, and disciplined expenditure rationalization while addressing mounting fiscal pressures, high inflation, and currency volatility. The framework reflects collective Cabinet deliberations and coordination with key institutions, including the Bank of South Sudan and the South Sudan Revenue Authority. It emphasizes fiscal discipline, prioritizing salaries, security, peace implementation, and elections, while temporarily limiting recruitment and non-essential payments. Importantly, the reforms also focus on strengthening public-private partnerships, supporting small and medium-sized enterprises, and diversifying the economy beyond oil reliance. For investors, the framework signals a government commitment to transparent policy implementation, institutional coordination, and long-term economic resilience, creating a more predictable environment for strategic investment and private sector engagement.

Somalia

EU commits USD 35.5M to strengthen Somalia’s economic resilience and growth

Somalia and the European Union have signed a USD 35.5 million agreement to support governance, economic resilience, and growth, as part of a broader USD 121 million financing package under the EU’s Global Gateway initiative. The programs, announced in early February 2026, target education, migration management, and community development through strategic investments in infrastructure and livelihoods. While Somalia faces slower economic growth projected at 3% in 2025 down from 4.1% in 2024 due to aid reductions and climate shocks these EU-backed initiatives provide opportunities for private sector participation and long-term investment. According to the World Bank, sustained reforms in public finance management and the private sector are essential to expand fiscal space, unlock human capital, and drive job creation, making Somalia a growing market for investors focused on post-conflict reconstruction, infrastructure development, and resilience-building.

Upcoming events

Africa Tech Summit Nairobi 2026

Dates: 11–12 February 2026

Venue: Sarit Expo Centre, Nairobi, Kenya

Agenda:

Africa Tech Summit Nairobi 2026 brings together African and global technology leaders to explore innovation, connect key ecosystem players, and unlock investment opportunities across the continent’s fast-growing tech sectors.

How to register:

Participants can register online through the official Africa Tech Summit website via this link – https://www.africatechsummit.com/nairobi/register/

Who should attend:

• Technology founders and start-ups
• Venture capitalists, angel investors, and DFIs
• Fintech, DeFi, and crypto companies
• Mobile operators and tech corporates
• Regulators and policymakers
• Innovation hubs and ecosystem enablers
• International firms seeking African tech exposure

Key features

• High-level networking with African and international tech leaders
• Investor–start up matchmaking opportunities
• Insights into fintech, digital finance, Web3, and emerging technologies
• Policy and regulatory discussions shaping Africa’s digital economy
• Showcasing of high-growth African start-ups
• Platform for cross-border partnerships and deal-making

Opinion of the week

“With AfCFTA, Africa becomes a USD 3.4 trillion market with reduced fragmentation. Trade drives investment, and investment drives prosperity. We are entering a new era of African integration.”

H.E. Dr. Amany Asfour — President, Continental Business Council

Conclusion

East Africa is entering 2026 with renewed momentum and a range of opportunities for strategic investors. From the revival of regional capital markets to bold fiscal expansions, infrastructure projects, and cross-border investment initiatives, the region is laying the foundation for sustainable growth and long-term value creation. For investors, staying informed and engaged with these developments is key to capturing early opportunities in high-impact sectors, including capital markets, energy, trade, and infrastructure. As East Africa continues to integrate, innovate, and attract capital, the coming months promise a dynamic landscape where timely action can yield significant returns.

Resources

1. Zawya (2026)

https://www.zawya.com/en/economy/africa/east-africa-tries-again-to-integrate-its-capital-markets-rm5vhdr1

2. CNBC Africa (2026)

https://www.cnbcafrica.com/2026/tanzanias-spending-to-rise-10-next-fiscal-year-finance-minister-says

3. Kenya news (2026)

4. Nile post (2026)

https://nilepost.co.ug/news/317492/kpc-calls-on-ugandan-investors#google_vignette

5. New Times (2026)

https://www.newtimes.co.rw/article/33083/news/business/rwanda-brazil-sign-agreements-on-trade-investment

6. Xinhua (2026)

https://english.news.cn/africa/20260204/e222d8f123e14040bc1f8811ed884bd5/c.html

7. Ecofin Agency (2026)

https://www.ecofinagency.com/news/0202-52497-somalia-eu-sign-35-million-deal-to-support-growth-and-governance