The East African Insider – Week 7th -13th March 2026

Introduction

March 2026 is shaping up as a dynamic month for East African investment, with positive developments across startups, infrastructure, trade, and financial innovation. From a rebound in African startup funding to Tanzania’s rising appeal as a mining destination, regional markets are capturing investor attention with new opportunities and growing confidence. Kenya is pioneering innovative public-private partnerships to de-risk infrastructure projects, while Uganda deepens trade and industrial ties with Japan. Rwanda and Kenya are streamlining cross-border fintech operations, and the Democratic Republic of Congo is opening doors for international infrastructure investment with Standard Bank’s involvement. Meanwhile, Somalia demonstrates financial innovation with climate-linked livestock insurance, strengthening resilience in pastoral economies. Collectively, these developments highlight a region increasingly ready for foreign investment, offering both high-growth opportunities and sustainable returns across multiple sectors.

Trend of the week

Africa start-up funding picks up after weak start to 2026

Startup funding in Africa rebounded in February 2026, reaching USD 272 million after a slow start to the year, according to data from Africa: The Big Deal. However, investment remained highly concentrated, with six startups capturing around 80% of total funding. Major recipients included Spiro (USD 57 million in electric mobility), Breadfast (USD 50 million in Egypt’s online grocery sector), and GoCab (USD 45 million in ride-hailing), highlighting investor focus on larger and more established companies. The data also indicates a shift toward debt financing, which made up about 45% of capital raised, as global venture capital slows and startups seek loans or structured funding. Regionally, West Africa led with 53% of the funding, followed by North Africa (24%) and Southern Africa (21%), while East Africa’s share dropped sharply to just 3%, a significant decline from 34% in 2025. Despite the uneven distribution, overall investment remains slightly stronger than last year, with African startups raising USD 446 million in the first two months of 2026 compared with USD 417 million in the same period in 2025. For foreign investors, the rebound signals continued opportunities in Africa’s startup ecosystem, particularly in West Africa, while highlighting the importance of focusing on established, scalable startups and considering debt-based financing models.

Tanzania

Mining capital flows into Tanzania as investor confidence climbs

Tanzania is rapidly emerging as Africa’s fastest‑growing mining investment destination, ranking fourth on the continent and 34th globally, according to the Fraser Institute’s 2025 survey on mining investment attractiveness. The significant rise in Tanzania’s score reflects improved perceptions of the country’s mineral potential and a strengthening policy environment that is encouraging investor engagement. Analysts note that Tanzania’s vast deposits of gold, gemstones, industrial minerals, and emerging rare earth prospects have captured global exploration interest. Coupled with recent regulatory reforms and efforts to provide clearer licensing and fiscal terms, the country is increasingly seen as a key frontier for mining capital amid heightened global competition for resources. The improved ranking also signals growing investor confidence that Tanzania can deliver predictable long‑term returns. For foreign investors, this trend presents opportunities not only in extraction and exploration but in supporting industries such as mining services, logistics, energy supply, and downstream processing. As capital flows into Tanzania’s mining sector accelerate, the country is positioning itself as a major hub for resource‑driven growth in sub‑Saharan Africa.

Kenya

Kenya moves to de-risk infrastructure projects to attract global investors

Kenya is turning to private capital to finance major infrastructure projects as rising debt levels and limited fiscal space constrain traditional government funding. According to John Mbadi, the government plans to leverage the newly established National Infrastructure Fund to prepare large projects and make them attractive to institutional investors. The fund will help structure projects such as highways, ports, airports, and energy infrastructure through blended financing models that combine public participation with private investment. To reduce risks that have historically discouraged investors, projects will be developed to an “investment-ready” stage through feasibility studies, financial structuring, and clear return projections before being offered to investors. In addition, infrastructure ventures will be structured through Special Purpose Vehicles (SPVs), allowing project assets, revenue, and debt to be ring-fenced from government balance sheets while distributing risk among investors and lenders. For foreign investors, the strategy signals a growing shift toward public-private partnership (PPP) models in Kenya’s infrastructure sector. By preparing bankable projects and sharing early-stage risks through the fund, the government aims to attract global institutional capital into commercially viable infrastructure areas such as toll roads, power generation, irrigation systems, and water projects. If successfully implemented, the approach could unlock significant investment opportunities while easing pressure on Kenya’s public debt.

Uganda

Uganda and Japan strengthen trade partnership to boost exports and investment

Uganda is strengthening its economic partnership with Japan following a high-level networking event in Kampala that brought together government officials and private sector leaders from both countries to explore opportunities in trade, exports, and industrial development. The engagement, organized by the Embassy of Japan to Uganda in collaboration with the Uganda Free Zones and Export Promotions Authority, focused on expanding market access for Ugandan products while fostering sustainable business partnerships. Speaking at the event, David Bahati emphasized the importance of strengthening commercial ties and continuous engagement between businesses from both countries. A key highlight was the reaffirmation of a Memorandum of Understanding between UFZEPA and the Osaka Chamber of Commerce and Industry aimed at promoting trade, improving export access, and attracting Japanese investment into Uganda’s industrial sectors. Uganda also highlighted its participation in Expo 2025 Osaka as an opportunity to showcase its industrial potential to global investors. Bilateral trade between Uganda and Japan reached USD 14 million in 2025, driven mainly by Ugandan exports such as coffee, flowers, vanilla, fish, and cocoa beans. For foreign investors, the deepening partnership signals growing opportunities in export-oriented industries, agribusiness value chains, and industrial development within Uganda’s free zones, as the country positions itself to expand trade with Asian markets and attract new capital into its manufacturing and processing sectors.

Rwanda

Kenya and Rwanda move to ease cross-border fintech expansion with new licensing framework

The Central Bank of Kenya and the National Bank of Rwanda have signed a Memorandum of Understanding (MoU) to simplify the expansion of payment service providers across the two markets. Announced on March 11, 2026, the agreement commits both regulators to develop a Licence Passporting Framework that will allow fintech firms, mobile money operators, and other payment companies licensed in one country to operate in the other without undergoing a full new licensing process. The framework aims to eliminate duplicative regulatory requirements that have historically slowed the cross-border growth of financial services while maintaining strong supervisory oversight from both central banks. The initiative also aligns with the East African Community’s Cross-Border Payment System Masterplan, which seeks to create a more integrated and efficient regional payments ecosystem. By reducing regulatory barriers, policymakers expect the arrangement to accelerate fintech innovation, expand digital payment networks, and support smoother remittances and financial transactions between Kenya and Rwanda, potentially setting a model for broader financial integration across East Africa.

Democratic Republic of Congo

Standard bank and DRC discuss financing for transport and energy projects

Standard Bank Group is exploring new infrastructure investment opportunities in the Democratic Republic of Congo as the country seeks greater private financing for large development projects. A delegation from the bank met with John Banza Lunda in Kinshasa on March 6, 2026, to discuss potential financing mechanisms for transport, energy, and economic infrastructure projects that are critical to supporting the country’s long-term growth. The meeting followed earlier discussions in Cape Town during the African Markets Conference, where both sides explored ways to deepen cooperation. Officials also discussed the formation of joint working groups to identify priority projects and evaluate their feasibility before financing decisions are made. The discussions build on earlier engagements between the Congolese government and Standard Bank leadership, including talks in 2025 on supporting projects such as the strategic Lobito Corridor as well as investments in roads, energy, and telecommunications. For foreign investors, Standard Bank’s involvement signals growing opportunities in the DRC’s infrastructure sector, as the government increasingly seeks international capital and private sector partnerships to support economic transformation and expand critical infrastructure.

Somalia

Somalia distributes USD 3.88M in drought insurance payouts to pastoralists

Somalia has distributed USD 3.88 million in drought insurance payouts to over 17,000 pastoralists under its Climate Risk Insurance Program, marking a major milestone in the country’s financial innovation and climate resilience efforts. The index-based livestock insurance scheme compensates pastoralists when drought conditions affect livestock, providing a safety net for one of Somalia’s most vulnerable sectors. This initiative also signals growing investment potential for foreign investors, as it demonstrates Somalia’s commitment to creating innovative, risk-mitigating financial instruments. By reducing agricultural and climate-related risks, the program enhances the predictability of returns, attracts impact-focused capital, and supports sustainable rural markets that could expand opportunities in agribusiness, fintech, insurance, and related services.

Upcoming events

Kenya International Investment Conference (KIICO) 2026

Date: 25 – 27 March 2026

Venue: Nairobi, Kenya

Agenda:

A three-day global investment forum connecting international investors, policymakers, and business leaders to explore high-impact opportunities across sectors such as ICT, agriculture, manufacturing, mining, and renewable energy.

How to register:

Participants can register online through the official KIICO event platform by selecting a delegate, sponsor, exhibitor, or media pass under the conference registration section.

Who should attend:

• International and regional investors
• Government officials and policymakers
• CEOs and business leaders
• Private equity and venture capital firms
• Development finance institutions
• Entrepreneurs and startups
• Industry associations and chambers of commerce

Key features:

• High-level plenary sessions with government leaders and global investors
• Signing of major investment deals and policy announcements
• Sector-focused forums covering agriculture, ICT/BPO, finance, energy, mining, and the creative economy
• Strategic networking with over 700+ global delegates and 30+ countries represented
• Side events including the COMESA Investment Forum and Africa Green Industrialisation Initiative Forum

Opinion of the week

“The next billion mobile-native users will largely come from Africa. That shapes the future of payments, content, and commerce. Investors who understand youth dynamics understand Africa.”

Head of Innovation, Telecommunications Group- Neil McArthur

Conclusion

East Africa’s investment landscape in March 2026 demonstrates resilience, innovation, and growing opportunity across multiple sectors. From start-ups attracting fresh capital to infrastructure and mining projects opening up to private and international investment, the region is signalling confidence to foreign investors. Strategic partnerships, regulatory reforms, and innovative financial solutions—like Somalia’s climate risk insurance—further highlight the potential for sustainable, high-return investments. For investors looking to engage in East Africa, the message is clear: the region is ready for capital, collaboration, and long-term growth.

Resources

1. Africa Business Insider (2026)

https://africa.businessinsider.com/local/markets/africa-startup-funding-rebounds-to-dollar272m-in-february-but-six-companies-dominate

2. Energy Capital Power (2026)

https://energycapitalpower.com/tanzania-breaks-ground-on-274-million-fuel-storage-expansion-at-dar-es-salaam-port/

3. The star (2026)

https://www.the-star.co.ke/news/2026-03-11-how-kenya-plans-to-de-risk-infrastructure-fund

4. Nile post (2026)

https://nilepost.co.ug/business/326698/uganda-japan-deepen-trade-and-investment-ties-to-boost-exports-and-industrial-growth#google_vignette

5. People Daily (2026)

https://peopledaily.digital/business/cbk-and-rwanda-central-bank-sign-deal-to-ease-cross-border-payments

6. Ecofin agency (2026)

https://www.ecofinagency.com/news/1203-53698-standard-bank-explores-infrastructure-investment-opportunities-in-the-drc

7. Serrai Group (2026)