Introduction
With just days to Christmas and investors reflecting on the year behind while positioning for the year ahead, Africa’s capital landscape remains firmly in motion. This week’s edition examines how regional connectivity, strategic infrastructure investment, climate finance, and cross-border cooperation are laying the groundwork for growth opportunities into 2026. The trend of the week focuses on the rapid rise of Africa–Middle East air connectivity, a shift that is redefining aviation, trade logistics, and access to global markets, while opening new opportunities across transport infrastructure and tourism. At the country level, Tanzania attracted multilateral climate finance aimed at strengthening water security and safeguarding critical trade corridors, reinforcing climate resilience as a core investment theme. Kenya secured a landmark public-private partnership to modernise its power transmission network, underscoring the urgency of grid upgrades as electricity demand reaches record highs. Uganda advanced a multi-billion-dollar industrial park backed by Korean investors, signalling continued momentum in manufacturing and energy-linked foreign investment. Rwanda marked a turning point for its financial sector as the Kigali International Financial Centre shifted from credibility-building to scale, cementing its position as a gateway for global capital into Africa. In the Horn of Africa, renewed Sudan–South Sudan cooperation reopened select watch points in energy, oil, and trade, while Somalia secured concessional financing to expand clean power access, supporting economic resilience and private-sector growth. These developments point to a continent increasingly focused on infrastructure, climate adaptation, and institutional reform as foundations for long-term investment and sustainable growth.
Trend of the week
Rising Africa–Middle East connectivity signals new opportunities in aviation and trade
Air traffic between Africa and the Middle East is emerging as one of the continent’s fastest-growing aviation corridors, signalling deeper trade, investment, and connectivity linkages between the two regions. While intra-African travel generated approximately 77 billion revenue passenger kilometres (RPKs) in 2024 nearly on par with the 78 billion RPKs recorded on Africa–Middle East routes—Boeing forecasts a decisive shift in favour of the Middle East over the next two decades. By 2044, Africa–Middle East air traffic is projected to grow by 301 percent to 313 billion RPKs, outpacing intra-African growth, which is expected to rise by 273 percent to 287 billion RPKs. This expansion reflects strengthening regional integration within Africa, which is increasing demand for long-haul connectivity via Middle Eastern hubs that offer access to global markets. For investors, the trend underscores opportunities across aviation infrastructure, airport development, logistics, and tourism, even as African airlines focus capital expenditure on narrow-body aircraft to serve growing domestic and regional routes. Despite these shifts, Europe remains Africa’s largest external air travel market, with traffic expected to double to 399 billion RPKs by 2044.
Tanzania
Climate resilience emerges as a strategic investment theme in Tanzania
The African Development Fund (ADF) has approved a USD 9.38 million grant to Tanzania to strengthen climate resilience in the Mkondoa Catchment, a critical water resource area increasingly affected by floods and drought linked to climate change. Approved on 12 December 2025 and financed through the ADF’s Climate Action Window, the project aims to protect communities and key infrastructure while improving water security and livelihoods across the districts of Gairo, Kilosa, and Mvomero. The initiative is expected to directly benefit about 774,000 people through improved early warning systems, construction of climate-resilient infrastructure such as dikes and check dams, and the restoration of 1,200 hectares of degraded watersheds. Implementation, scheduled to begin in January 2026 under the Wami/Ruvu Basin Water Board, will create approximately 3,500 temporary jobs and 1,000 long-term positions, while also safeguarding the Morogoro–Dodoma Road, a strategic regional trade corridor. The project is positioned to reduce climate-related economic losses, strengthen institutional capacity, and support sustainable growth in one of Tanzania’s most vulnerable regions. The project signals increased multilateral support for climate adaptation in Tanzania, helping to de-risk infrastructure, agriculture, and water-dependent investments while reinforcing the country’s commitment to ESG-aligned development and long-term economic resilience.
Kenya
Kenya secures USD 311m PPP to upgrade power transmission infrastructure
Kenya has signed a USD 311 million public-private partnership (PPP) agreement to strengthen its power transmission network as rising electricity demand continues to strain grid reliability. Through the state-owned Kenya Electricity Transmission Company (KETRACO), the government has partnered with Africa50, a pan-African infrastructure fund majority-owned by African states, and India’s PowerGrid Corporation to design, finance, build, and operate two high-voltage transmission lines. Operating at 400 kV and 220 kV, the new lines and associated substations are expected to reduce technical losses, ease congestion, and enable the efficient transport of large volumes of electricity over long distances. The private partners will finance and operate the infrastructure under a 30-year concession, highlighting Kenya’s push to attract long-term private capital into strategic energy assets. The investment comes as Kenya recorded a historic peak electricity demand of 2,439 MW in December 2025, underscoring sustained growth in household and industrial consumption and reinforcing the strategic importance of modernizing transmission infrastructure to support domestic supply and regional power trade.
Uganda
Korean investors advance USD 3 billion industrial park in Uganda
Korean investors from Livingstone Construction Limited have advanced plans for a multi-billion-dollar industrial park in Mukono District, Uganda, following engagements with the State House Investors’ Protection Unit (SHIPU). Led by Chairman Wanjoo Song and Director Joon Song, the project spans 500 acres and will include a power plant valued at over USD 3 billion, alongside coffee processing and juice production facilities. The power plant is expected to enhance electricity supply and lower business costs, supporting competitiveness in the region. SHIPU head Col. Edith Nakalema reaffirmed government backing for credible investors, emphasizing their role in Uganda’s socio-economic transformation, while multiple government agencies pledged coordinated support for the initiative. The investors highlighted Uganda’s strategic location and access to regional markets via the African Union, East African Community, and COMESA, as well as incentives such as tax holidays. The Mukono Industrial Park is poised to strengthen Uganda’s manufacturing sector, expand industrial capacity, and create employment, reflecting the growing role of foreign investment in the country’s long-term economic growth.
Rwanda
Rwanda’s financial hub enters growth phase after attracting USD 1 billion in commitments
Kigali International Financial Centre (KIFC) has entered a new growth phase as it marked its fifth anniversary with the launch of an ambitious strategy aimed at scaling its role as a gateway for global capital into Africa. Unveiled on December 10 in Kigali, the strategy builds on five years of regulatory credibility, institutional trust, and investor confidence that have positioned Rwanda as a distinct and reform-driven financial hub. Since commencing operations in 2020, KIFC has attracted over USD 1 billion in targeted investment commitments, underscoring growing confidence in Rwanda’s transparent, agile, and investor-friendly financial ecosystem. The Centre has evolved from a concept into a fully functioning international investment platform, supported by responsive regulators, strong domestic anchor investors, and proactive government backing. Investors and partners at the anniversary event highlighted Rwanda’s clear regulatory framework, fast decision-making, and coordinated institutional support as key advantages. Looking ahead, KIFC’s new five-year strategy shifts focus from proof of concept to scale, with priority areas including asset and wealth management, climate finance, and fintech as enablers of efficiency and innovation. With sustained government commitment and deepening institutional capacity, KIFC aims to position itself as Sub-Saharan Africa’s most trusted financial centre for mobilizing long-term capital. KIFC’s scaling strategy strengthens Rwanda’s appeal as a stable, well-regulated entry point for African investments, offering foreign investors regulatory clarity, access to long-term local capital, and a platform aligned with high-growth themes such as climate finance and fintech.
South Sudan
Renewed Sudan–South Sudan cooperation opens select investment watchpoints
Sudan and South Sudan have agreed to strengthen bilateral relations and expand cooperation across key economic sectors, including energy, oil, trade, and investment, signalling renewed efforts to deepen economic ties between the two neighbours. The agreement was reached during a meeting between Sudan’s Transitional Sovereign Council Chairman Abdel Fattah Al-Burhan and a high-level South Sudanese delegation led by presidential adviser Tut Gatluak, who delivered a message from President Salva Kiir. Sudan’s leadership has directed relevant ministries and technical institutions to engage their South Sudanese counterparts to address outstanding issues and advance collaboration, particularly in the oil industry and cross-border trade. Both sides confirmed that joint technical and bilateral delegations will convene to translate political commitments into practical cooperation, reflecting a push to stabilise and revitalise economic relations amid ongoing regional challenges. For foreign investors, the renewed dialogue signals potential medium-term opportunities in oil, energy infrastructure, and cross-border trade, while also highlighting the importance of monitoring political stability and the pace at which bilateral agreements are converted into bankable projects.
Somalia
AfDB approves USD 23.36 million grant to expand clean power access in Somalia
The African Development Fund, the concessional financing arm of the African Development Bank Group, has approved a USD 23.36 million grant to expand access to clean and reliable electricity in Bosaso, a key commercial hub in northern Somalia. The project will deliver solar home systems to households that have never had electricity access, including internally displaced communities living in vulnerable conditions, while also rehabilitating and expanding Bosaso’s power grid. Funded through a USD 9.62 million contribution from the African Development Fund and USD 13.74 million from the Transition Support Facility, the initiative will introduce new solar generation capacity, expand electricity distribution networks, and install modern metering systems to improve energy efficiency. Beyond improving affordability and reliability of power for families and small businesses, the project is expected to create jobs during construction and long-term operations, while strengthening Somalia’s energy institutions through technical training and capacity building, marking a significant step toward a more resilient and sustainable energy sector.
Upcoming events
International conference on investment analysis and financial asset management
Date: 22 December 2025
Venue: Durban, South Africa
Agenda:
To provide participants with expert insights, practical strategies, and global perspectives on investment analysis and financial asset management through keynote talks and professional networking.
How to register: Interested participants can register online through the official website at https://www.snrischolars.com/event/index.php?id=3305297
Who should attend:
- Investment and financial analysts
- Asset and portfolio managers
- Finance professionals and consultants
- Academics and researchers in finance and economics
- Students and early-career professionals seeking global exposure
- Investors interested in international markets
Key features:
- Expert-led keynote sessions by industry specialists
- Practical insights on investment analysis and asset management
- Discussions on emerging challenges and innovative financial solutions
- Professional networking with global participants
- Exposure to international investment trends and opportunities
Opinion of the week
“The speed of innovation in Africa’s fintech sector is astonishing. Mobile-first solutions are standard, not experimental. Investors who want to see leapfrogging in action should start here.”
Chad S. Pollock- CEO, Fintech Accelerator
Conclusion
As 2025 comes to a close, Africa’s investment landscape demonstrates both resilience and momentum, with strategic opportunities emerging across aviation, energy, industrial development, financial services, and climate resilience. From the rapid expansion of Africa–Middle East air connectivity and Kenya’s USD 311 million power transmission upgrade, to Tanzania’s climate adaptation initiative and Uganda’s USD 3 billion industrial park, the continent is showcasing projects that combine infrastructure, sustainability, and growth potential. Rwanda’s Kigali International Financial Centre exemplifies how institutional trust and regulatory clarity can attract global capital, while renewed Sudan–South Sudan cooperation and Somalia’s clean energy investment highlight the importance of cross-border collaboration and concessional financing in unlocking long-term value. For investors, these developments signal an array of actionable opportunities—from aviation and renewable energy to industrial parks, financial services, and regional trade—positioning Africa as a high-potential frontier for 2026 and beyond.
Resources
- The East African (2025)
https://www.theeastafrican.co.ke/tea/business-tech/africa-middle-east-routes-growth-outpacing-intra-africa-travel-5295474
- African Development Bank (2025)
https://www.afdb.org/en/news-and-events/press-releases/african-development-fund-approves-9-million-grant-boost-climate-resilience-tanzanias-mkondoa-catchment-89724
- Ecofin agency (2025)
https://www.ecofinagency.com/news-industry/1612-51428-kenya-raises-311-million-to-upgrade-power-transmission-network
- All Africa (2025)
https://allafrica.com/stories/202512160522.html
- All Africa (2025)
https://allafrica.com/stories/202512170222.html
- Xinhua (2025)
https://english.news.cn/africa/20251215/4419f9af76744f24980cd93de34ab231/c.html
- Xinhua (2025)
https://english.news.cn/africa/20251218/b4aa9903ec644bcd9dc8bfadb5d72d77/c.html
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