Introduction
As February 2026 unfolds, East Africa continues to solidify its position as a compelling frontier for strategic investment. From sovereign debt management in Kenya to industrial upgrading in Tanzania, the region is demonstrating both resilience and growth-oriented policy action. This week, Kenya captured investor attention by launching a USD 500 million Eurobond buyback, extending maturities and smoothing its debt profile, while also securing USD 6 billion for the South Lokichar oil project, signalling renewed confidence in its energy sector. Across the border, Tanzania is attracting global interest in gold value addition, creating new avenues for downstream investment and industrial partnerships. Uganda’s tech ecosystem surged ahead in 2025, drawing more than USD 30 million in start-up funding and overtaking regional peers, highlighting the rising potential of early-stage investment. Meanwhile, Rwanda’s mineral exports expanded sharply, narrowing its trade deficit, and South Sudan resumed Dar Blend crude exports, restoring operational stability after contractual disputes. Even Somalia is emerging as a digital frontier, building coordinated public infrastructure to unlock fintech, e-commerce, and cross-border investment opportunities. Collectively, these developments illustrate East Africa’s growing openness, market diversification, and investor-friendly momentum, offering multiple high-potential avenues for strategic capital deployment across the region.
Trend of the week
Kenya launches USD 500m Eurobond buyback to ease refinancing pressures
Kenya has stepped up efforts to ease its financing pressures by launching a proactive USD 500 million Eurobond buyback, alongside the issuance of longer-dated replacement bonds aimed at smoothing its debt maturity profile. According to a regulatory notice, the government is seeking to repurchase up to USD 350 million of its 8% bond due 2032 and up to USD 150 million of its 7.25% bond maturing in 2028, inclusive of accrued interest, with the offer set to close on February 25. The buyback will be financed through a new dual-tranche dollar bond with a weighted average maturity of seven and 12 years, effectively extending Kenya’s borrowing curve and reducing near-term refinancing risk. The move follows market turbulence in 2024 that triggered a credit rating downgrade and currency pressure, and reflects a broader strategy to strengthen debt sustainability after successfully tapping markets twice last year to retire maturing obligations. Kenya joins other African sovereigns, including the Republic of Congo and Ivory Coast, in capitalizing on strong global appetite for higher-yielding emerging market debt. The transaction signals improved market access, proactive liability management, and renewed confidence in Kenya’s sovereign credit trajectory.
Tanzania
Tanzania’s gold sector attracts global investment interest for industrial upgrading
Tanzania has attracted renewed interest from the World Gold Council, signalling deeper cooperation with the government as it pushes to expand gold investment, strengthen small-scale mining, and accelerate value addition within its mineral sector. During a high-level meeting involving government ministers, technical experts, and representatives from gold refining company GGR, officials explored strategies to grow gold trade, improve production standards, and attract more capital into the sector. Tanzanian authorities emphasized their desire for strategic partners who see the country not only as a source of raw gold but as a location to process, refine, and build industrial capacity, aligning with ongoing efforts to formalize mining and enhance value capture. The World Gold Council expressed readiness to collaborate across the gold value chain, including supporting improved market access, compliance with international standards, advanced geological research, and technology adoption such as satellite surveys to reduce exploration risk. Officials also highlighted initiatives to formalize small-scale miners, promote responsible sourcing, and broaden participation including youth and women in the Mining for a Brighter Tomorrow programme. With global demand rising for responsibly sourced gold and Tanzania positioning itself within the formal global gold market, this engagement presents significant opportunities for foreign investors in downstream processing, capacity building, geological services, and value-added mining ventures.
Kenya
Kenya Secures USD 6 Billion Commitment for South Lokichar Oil Development
Kenya’s upstream energy sector has received a major boost after Gulf Energy confirmed plans to invest approximately USD 6 billion in the development of the South Lokichar oil project in Turkana County. The announcement, made before a joint session of Kenya’s parliamentary energy committees on February 13, came during the review of the Field Development Plan (FDP) and Production Sharing Contracts (PSC), regulatory approvals required before commercial production can begin. The phased development will target oil discoveries in Blocks T6 and T7, with production expected to commence by December 1, 2026, pending final ratification. Under the production-sharing framework, the Kenyan state retains resource ownership while the operator finances development and recovers costs before profit-sharing begins. Over the project’s estimated 25-year lifespan, cumulative state revenues are projected between USD 1.05 billion and USD 2.9 billion, based on oil prices ranging from USD 60–USD 70 per barrel. Recoverable reserves are estimated at approximately 560 million barrels, with initial output projected at 20,000 barrels per day, potentially scaling to 50,000 barrels per day in later phases. Export infrastructure will rely on the 820-kilometer LAPSSET pipeline linking Lokichar to the Port of Lamu, positioning Kenya to move up to 80,000 barrels per day to international markets. For foreign investors, the revival of South Lokichar following Tullow Oil’s exit signals renewed capital commitment, long-term production visibility, and strengthened integration into global energy supply chains, reinforcing Kenya’s position as an emerging oil-producing economy in East Africa.
Uganda
Uganda Surges Ahead in East Africa Startup Funding
Uganda has emerged as the leading destination for start-up funding in East Africa, overtaking both Rwanda and Tanzania in 2025 as venture capital flows into its tech and innovation ecosystem surged significantly. Kampala-based start-ups attracted approximately USD 30 million in funding last year from global and Pan-African investors, compared with USD 12 million raised in Rwanda and just USD 5 million in Tanzania, highlighting shifting regional investment dynamics. According to the African Venture Capital Association (AVCA), Uganda’s start-up funding increased more than seven-fold from around USD 4 million in 2024, while the number of investment deals more than doubled, reflecting stronger investor confidence and a growing pipeline of scalable ventures. Experts attribute this uptick to rising financing from within Uganda, including support from the Uganda Development Bank, which has increased seed capital allocations and helped boost access to venture capital for emerging firms, particularly in fintech and renewable energy. While Rwanda saw fewer deals but higher average investment values, and Tanzania experienced a sharp drop in funding despite a slight rise in deal count, Uganda’s leadership signals its growing attractiveness as a hub for early-stage investment and innovation. For foreign investors, the rise suggests robust opportunities in Uganda’s start-up ecosystem underpinned by supportive financing, regulatory incentives, and a growing ecosystem that could rival more established regional markets in the medium term.
Rwanda
Rwanda’s mineral export surge narrows trade deficit
Rwanda’s mineral export sector recorded a significant surge in 2025, with shipments of tin, tungsten, and tantalum rising by about 46.2% year-on-year, helping to narrow the country’s trade deficit from around USD 3 billion in 2024 to USD 2.7 billion in 2025, according to data from the Ministry of Finance and Economic Planning. This growth is attributed to higher global commodity prices, increased investment, and a shift from artisanal to more mechanised mining operations, making minerals an increasingly important pillar of the Rwandan economy. Government statistics also indicate that raw tin emerged as one of Rwanda’s top exports to the United States by late 2025, helping the country achieve a positive trade balance with that market. The expansion of mineral exports is supporting economic growth, improving profitability for mining firms, and enabling reinvestment in operations. For foreign investors, the trend signals rising export competitiveness, stronger integration into global commodity supply chains, and growing opportunities in mining and value-addition sectors as Rwanda advances its economic transformation.
South Sudan
Dar blend export resumes as South Sudan advances BB energy agreement
South Sudan has delivered its first cargo of approximately 600,000 barrels of Dar Blend crude to BB Energy under a 2024 prepayment agreement in which the trading firm advanced USD 100 million in exchange for future oil shipments. The delivery marks a significant step forward after months of contractual tensions and legal proceedings at the High Court in London, where BB Energy had sought to suspend the sale of disputed cargoes over alleged delivery shortfalls. While the court initially granted an interim injunction, it later lifted the order, allowing the crude to be loaded and exported to international markets. The two parties have since agreed on a repayment framework supported by a delivery schedule, with further discussions planned in Juba to finalize remaining terms. Although the broader legal dispute remains pending, the successful shipment signals progress in restoring operational stability and revenue flows within South Sudan’s oil sector. For investors, the development highlights both the country’s ongoing reliance on oil-backed financing and the importance of contractual transparency and dispute resolution mechanisms in frontier energy markets.
Somalia
Somalia accelerates digital infrastructure to attract investment
Somalia is accelerating its digital transformation agenda ahead of the upcoming Digital Public Infrastructure (DPI 2026) Conference in Mogadishu, signalling a strategic shift toward building an investment-ready digital economy. Led by the Office of the Prime Minister and the Ministry of Communications and Technology, the initiative aims to unify fragmented digital systems into a coordinated national framework encompassing digital ID, interoperable payment platforms, broadband expansion, and secure data exchange systems. The National Communication Authority reports progress in expanding 4G coverage, strengthening spectrum regulation, and advancing cybersecurity guidelines, critical foundations for fintech, e-commerce, and enterprise growth. For investors, the push toward structured digital infrastructure enhances predictability, regulatory clarity, and scalability, positioning Somalia as an emerging digital frontier market with rising opportunities in telecoms, fintech, and cross-border digital trade integration across East Africa.
Upcoming events
East African Business & Investment Summit & Expo 2026
Date: 24–25 February 2026
Venue: Safari Park Hotel, Nairobi, Kenya
Agenda:
A high-level platform to drive private sector-led regional integration, unlock intra- and extra-EAC trade and investment, and explore strategic opportunities across finance, technology, infrastructure, and market expansion.
How to register:
Registration details are available via the official event page @ https://forms.gle/Tz44ethSVMuFxJ6S6
Who should attend:
- Cabinet Ministers and Government Officials
- CEOs, Business Leaders & Investors
- Development Partners & International Agencies
- Private Sector Executives
- SMEs and Trade Associations
- Regional and global trade and investment stakeholders
Key features:
- Presidential Panel on Regional Prosperity — high-level policy dialogue.
- Panel Sessions on Integration & Open Skies — strategic talks on air transport and borders.
- Breakout Sessions on E-commerce, AI & Trade Tools — including launch of the Non-Tariff Measures Self-Assessment Tool (NTM SAT).
- Fireside Chats on AI, Climate Finance & Connectivity — forward-looking sector discussions.
- Networking & Deal-Making Opportunities — connecting regional leaders with global investors.
Opinion of the week
“Africa’s vast renewable resources make it ideal for climate adaptation and clean energy investments… [we must] reindustrialise,”- Dr. William Ruto – President of Kenya
Conclusion
East Africa is clearly entering a phase of strategic growth, where policy, infrastructure, and market reforms are aligning to create long-term investment opportunities. From Kenya’s proactive debt management and energy expansion to Tanzania’s push for gold value addition, Uganda’s thriving start-up ecosystem, Rwanda’s rising mineral exports, South Sudan’s renewed oil shipments, and Somalia’s digital transformation, the region offers a diverse and dynamic landscape for forward-looking investors. For those positioning themselves now, the potential for high returns, market diversification, and first-mover advantage is substantial. The question is no longer whether East Africa is investable, it is how quickly and strategically investors will act to capture its unfolding opportunities.
Resources
- CNBC Africa (2026)
https://www.cnbcafrica.com/2026/kenya-returns-to-global-markets-to-fund-500-million-buyback
- The Citizen (2026)
https://www.thecitizen.co.tz/tanzania/business/world-gold-council-signals-deeper-engagement-with-tanzania-as-government-pushes-value-addition-5359872
- Ecofin agency (2026)
https://www.ecofinagency.com/news-industry/1602-52944-gulf-energy-confirms-6bn-investment-in-kenya-s-south-lokichar-oil-project
- The East African (2026)
- The East African (2026)
https://www.theeastafrican.co.ke/tea/business-tech/as-rwanda-s-mineral-exports-surge-trade-deficit-narrows-5362638
- Ecofin agency (2026)
https://www.ecofinagency.com/news-industry/1802-53020-south-sudan-delivers-first-dar-blend-cargo-to-bb-energy-amid-ongoing-legal-case
- The star (2026)
https://www.the-star.co.ke/news/africa/2026-02-15-somalia-banks-on-digital-infrastructure-for-regional-growth
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