East Africa Energy Summit Sparks Investment and

Economic Growth
I. INTRODUCTION
Hello and welcome to this week’s edition of our investment newsletter! As we enter February, we are
excited to share the latest updates on East Africa’s investment landscape with you!

. The East Africa Energy Cooperation Summit (EA-ECS) held on January 29–30, 2025, in Arusha, Tanzania,
brought together policymakers, investors, and energy leaders to explore opportunities in renewable
energy, infrastructure development and cross-border energy trade. This summit reinforced the
importance of regional collaboration, showcasing successful initiatives like the Ethiopia-Kenya electricity
highway and emphasizing the need for stable energy sources to support industrial growth. There was
also the Mission 300 Africa Energy Ssummit which was held on January 27-28, 2025 in Dar es Salaam
hosted by government of Tanzania, the World Bank Group and African Development Bank Group. The
summit was an opportunity for governments, private sectors, development partners, and civil society to
advance the goal of providing electricity access to 300 million people by 2030. Electrification efforts in
Africa have struggled to keep up with rapid population growth, especially in rural areas where outdated
infrastructure fails to meet demand. Without reliable electricity, economic opportunities are limited,
with households and small businesses suffering the most. Many rely on costly alternative energy sources
like diesel or kerosene, which also pose health risks. The IEA reports that 600 million Africans lack
electricity, contributing to 83% of the global energy deficit.

To address this, the African Development Bank (AfDB) and partners launched Mission 300, aiming to
accelerate electrification by combining grid expansion with decentralized renewable energy solutions
like mini-grids and solar systems. The initiative focuses on reliable, affordable, and sustainable power,
requiring cooperation between governments, the private sector, and development partners.

Mission 300 aims to transform Africa's energy landscape, with support from Nigeria’s President Bola
Tinubu, who advocates for Africa's collective use of resources like solar and wind energy. The AfDB and
other institutions are working to secure investments, implement reforms, and provide technical support
to achieve these goals, ultimately improving energy access and driving economic growth across the
continent. As we take you through the events of the past week we will give extensive details on the
Mission 300 Summit which has held in Tanzania Dar es Salaam.

Beyond energy, East African economies are witnessing positive credit rating shifts, increased foreign
direct investment, and strategic economic reforms, which are reshaping the region’s business landscape.
From Tanzania’s clean energy transition to Kenya’s improved fiscal outlook, Uganda’s French investment
partnerships, and Rwanda’s surge in foreign direct investment (FDIs), the region is positioning itself as
an attractive hub for investors. In this edition, I’ll take you through the key highlights from the summit,
major investment trends, and insights shaping East Africa’s economic future.

II. TREND OF THE WEEK

East Africa Energy Summit sparks investment

Did you know that by 2050, data centers will account for 20% of global energy consumption? This
presents a major opportunity for East Africa’s energy sector to attract investors. The East Africa Energy
Cooperation Summit (EA-ECS), that took place on January 29-30, 2025 in Arusha, Tanzania, brought
together energy leaders, Independent Power Producers (IPPs) , and Engineering, Procurement and
Construction- Finance (EPC-F) stakeholders to explore the vast investment opportunities and
innovations emerging in East Africa.
The summit also showcased the importance of regional collaboration, with the EAC playing a pivotal role
in bringing together policy makers, investors, and energy sector stakeholders to promote deeper
integration. This collaboration reflects the EAC’s vision of driving industrialization and enhancing
cooperation among member states. Notable success stories, such as the Ethiopia-Kenya electricity
highway, underscore the positive impact of cross-border energy initiatives in fostering both economic
and social development.

Off-takers are increasingly seeking stable, diversified energy sources to support growing industries,
especially in mining and digital infrastructure. The summit’s agenda highlighted the importance of
maintaining grid stability to ensure sustained industrial growth, while also promoting commercial and
industrial (C&I) energy generation.

The Africa Energy Summit held on January 27-28, 2025 had twelve African countries present their
National Energy compacts. Each country identified specific policy measures to address constraints
across the energy sector. Countries are encouraged to hold public consultations with civil society and
other relevant stakeholders to inform the development of the compacts. These countries include Chad,
Cote D'Ivoire, Democratic Republic of Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria,
Senegal, Tanzania and Zambia. In Africa, electrification efforts have been indifferent, failing to keep pace
with rapid population growth, especially in rural and remote areas where outdated energy
infrastructure is struggling to meet current demand. Without dependable electricity, economic
opportunities are limited, with households and small businesses facing the greatest impact. The
dependence on alternative energy solutions, such as diesel power generating plants place significant
strain on household budgets and limit the growth of small enterprises due to high costs of operations. In
the rural settlements, the lack of extensive power infrastructure is also forcing families to depend on
kerosene lamps, which aside from being expensive, expose them to serious health risks as a result of
indoor air pollution. The International Energy Agency (IEA) reported that 600 million Africans lack access
to electricity, out of a population of over 1.3 billion, accounting for approximately 83% of the global
energy deficit. The power sector has been plagued with challenges that are interconnected including low
access rates, poor maintenance, inadequate investment, non-cost-reflective tariffs, unsustainable
subsidies, and financial instability. In response to the continent’s urgent energy crisis, the African
Development Bank (AfDB), in partnership with the World Bank and other development partners,
recently unveiled the Mission 300 initiative. The initiative is aimed at accelerating electrification by
combining grid expansions with decentralized renewable energy solutions like mini-grids and stand-
alone solar home systems. These solutions are especially useful in reaching vulnerable and remote
regions where traditional grid infrastructure is not practical. There are also investments in generation,
transmission, regional interconnection, and sector reform that are made to guarantee that the power
supply is reliable, affordable, and sustainable. Stakeholders emphasized that Mission 300's success
depends on cooperation from governments, the private sector, and development partners. Key reforms,
transparent processes, and the integration of renewable energy are critical to achieving reliable and
affordable power. Africa Development Bank's leaders and stakeholders stress the transformative
potential of energy access, with Nigeria showing commitment to renewable energy through
partnerships and funding. Nigeria President Ahmed Tinubu suggested that Africa coming together to
pool its resources, whether it’s hydro, solar, wind, or the emerging green hydrogen is commendable.
With the enormous gas deposits and tropical sunlight, we have what it takes to power the continent.
Tinubu is a president who can make a pitch for his country, win deals, and secure solid commitments for
foreign direct investments. Considering what happened in Brazil and what’s happening in agriculture.
He’s bringing that same determination to energy. Africa Development Bank and other institutions are
working to secure investments, implement sector reforms, and provide technical support to achieve
these ambitious goals.

III. TOP HEADLINES

Tanzania

1. Tanzania’s clean energy transition: Samia unveils national strategy

The Mission 300 Africa Energy Summit, held on January 27-28 in Tanzania, convened African and global
leaders from the public, private, and the energy sectors to commit to the ambitious goal of accelerating
energy access for 300 million people in Africa by 2030. Twelve African countries presented their National
Energy Compacts at the Summit, each identifying specific policy measures to address constraints across
the energy sector and setting targets. The National Energy Compacts set ambitious targets with
timelines for implementation to expand energy infrastructure at competitive costs, leverage the benefits
of regional power integration, embrace distributed renewable energy and clean cooking solutions as
critical elements of the access agenda, foster greater private sector participation to unlock additional
resources, and strengthen utilities.

President Samia Suluhu Hassan during the this week launchedpresented and launched Tanzania’s
National Energy Compact... She said that theThe initiative aims to accelerate electricity access in the
country, targeting 75% coverage by 2030. To achieve this goal within the next five years, she stated
thatTanzania needs an investment of USD 13 billion (approximately TZS 32.8 trillion) will be required, of
which USD 5 billion (around TZS 12.5 trillion) is anticipated to come from the private sector. The current
electricity generation stands at 3,431.20 Megawatts (MW), with 58 % sourced from hydropower, 35%
from natural gas, and 7% from other sources. The country’s goal is to add 2,463 Megawatts (MW) of
energy from solar, natural gas, wind, geothermal, and other sources by 2030.
She also expressed concerns that lack of access to clean energy by the majority Africans has significant
costs for the continent such as:

 Increased poverty
 Health threats
 Environmental degradation
 Higher carbon emissions
 Biodiversity loss

Furthermore, iIn Tanzania, over 90% of households rely on firewood and charcoal for cooking and the
country cannot overlook the severe health and welfare impacts this has on women and girls. To address
this, Tanzania has adopted a National Clean Cooking Energy Strategy aimed at increasing the use of
clean cooking energy from less than 10% to 80% by 2034 creating investment opportunities in. This
demands immediate action from companies that would like to consider this as an investment
opportunity. The companies should consider key areas of investment such as LPG, biogas, ethanol and
electric cooking solutions. Partnering with Tanzanian companies will also help set up clean energy
production, distribution and retail networks. They should also develop innovative financing options such
as pay-as-you-go models for clean cooking technology. An example of pay-as-you-go model is PayGO
Energy which provides LPG with a smart meter system that allows customers to top up their fuel credit
as needed via mobile money payments. Establishing local manufacturing plants will help reduce cost and
meet local demand. Lastly, the companies should take advantage of potential public- private
partnerships for infrastructure development. This whole strategy marks a significant step towards
sustainability, energy security and environmental conservation.

Kenya

2. Moody's revises Kenya's credit outlook to 'positive'

After months of severe austerity measures being implemented to comply with the IMF, currency
devaluation, civil unrest and wide spread discontent from the private sector, it would seems that things
may be turning around as Kenya’s fiscal position has received a boost after global credit rating agency,
Moody’s, revised the country’s credit outlook from “negative to positive.”
Moody’s, however, affirmed that the local and foreign-currency long-term issuer ratings and foreign-
currency senior unsecured debt ratings still stand at CAA1. Moody’s cited potential ease in liquidity risks
and improving debt affordability over time for the positive rating. Domestic financing costs have started
to decline amid monetary easing and could continue to do so if the government sustains its more
effective management of social demand and fiscal consolidation. Such a track record would also boost
Kenya’s access to both concessional and commercial external funding. Revenue collection efforts, if
successful; present the potential for further improvements in debt affordability.
As domestic financing costs decline, investors may view Kenya's fiscal position as stabilizing, making it a
more attractive destination for investment with key areas of investment being infrastructure
development, renewable energy, financial services, digital economy and agribusiness. However,
setbacks in fiscal reforms or rising borrowing costs could result in a downgrade. Moody’s emphasized
that for Kenya to achieve long-term economic stability; it must tackle institutional shortcomings and
enhance the consistency of its fiscal policies.

Uganda

[3.] France Commits to Invest USD 4 billionUGX 15 Trillion in Uganda

in 2025
France is set to deepen its economic partnership with Uganda, with French companies committing USD 4
billion (UGX 15 trillion) in investments in 2025. These funds will target vital sectors like water, energy,
agriculture, and mining while creating thousands of jobs and building local skills. The 40 French
companies operating in Uganda already support thousands of direct and indirect jobs while providing
46,000 hours of training annually. In the coming weeks, it is expected that there will be more
partnerships from additional delegations from the mining, water and agribusiness sectors. This
investment aims to accelerate Uganda’s economic growth, create jobs and opportunities for investors.
The water sector is a key focus, with USD 95 million108,507 out of the total USD 4 billion€92 million
(UGX 400 billion) allocated to expand access in northern Kampala, benefiting 500,000 people.
Agriculture is another critical area, with French cooperation supporting projects such as the “Rwenzori
Mountain of the Moon IG Coffee “benefiting 11,000 producers. The main goal s of this initiative isare to
help Uganda create value within its agricultural sector while providing the tools for long-term resilience,
create an ecosystem where business can thrive and contribute to Uganda's development.

Democratic Republic of Congo

3.[4.] "Global Gateway Green Corridor”: A New Era for Green Growth
and Cross-Continent Connectivity
The European Commissioner for international partnerships Jozef Síkela confirmed European Union (EU)
support for the groundbreaking programme called the Green Corridor Kivu-Kinshasa, just announced by
President of Democratic Republic of Congo (DRC) Felix Tshisekedi. This support to Democratic Republic
of Congo’s Green Corridor is a transformative Global Gateway initiative which aims to help establish a
sustainable 2,600 kilometers corridor connecting Eastern DRC to Kinshasa and the Atlantic Coast
covering 540,000 kilometers. It is expected to improve the livelihoods of DRC’s citizens through
increased agricultural production and inclusive economic development whilst preserving DRC’s unique
biodiversity considered as the last lungs of the earth.
This Gglobal Ggateway is all about connecting communities in partner countries, empowering local
producers, fostering environmental protection and improving security. This initiative lays the foundation
for a greener and more prosperous future. It also represents a step towards mobilizing European and
local private sector and building the infrastructure and governance needed to unlock the full potential of
the corridor for the benefit of all.
This Global Gateway initiative is designed to achieve three strategic objectives for the DRC’s long-term
development. The first is to enhance connectivity by bridging Eastern and Western DRC to facilitate the
transportation of important commodities and unlock sustainable development opportunities along the
corridor.
Secondly, to strengthen agricultural value chains by supporting local small holder producers and
transformation through agro ecological practices that respect biodiversity, while boosting livelihoods
and regional security. Lastly, to protect biodiversity and human rights through improved governance,
notably the establishment of the community reserve following a free prior informed consent of the local
communities regarding economic development and biodiversity conservation on their land. Once fully
operational through the mobilization of the private sector and the support of Tteam Europe, the Global
Gateway Green Corridor will facilitate the annual transport of 1 million tons of agricultural products
from the Kivu region to Kinshasa, including a flow of goods from the capital to the East as well. It will
straddle the strategic continental corridors namely Corridor 6 (Douala – Kampala) and Corridor 8
(Mombasa – Kisangani), which are jointly supported by the African Union and the European Union.
Given the developments in with the M23 invasion of Kivu, we will have to see whether or not this
project will be implemented given the insecurity and uncertainty in the East of Congo.
The Green Corridor will be realized through investments in high Environmental, Social, and Governance
(ESG) quality infrastructure, policy and technical assistance and support for an inclusive green and
circular economy. Additionally, trade assistance will enhance the development of sustainable value
chains. A mapping of key ecosystems along the corridor will be achieved.

Rwanda

4.[5.] Rwanda Sees Significant Surge in Foreign Direct Investment

Despite accusations of Rwanda’s dealings in Eastern Congo and that the government is backing M23
rebels, it continues to attract Rwanda is attracting more investment from international businesses, with
a significant rise in Foreign Private Capital (FPC) inflows with Mauritius, the United States, and Europe
being the biggest drivers of the growth, according to the Foreign Private Capital 2024 – Survey Report
compiled by the National Institute of Statistics (NISR) a new reportand released on 22nd January 2025.

FPC refers to money that businesses or investors from outside the country bring into Rwanda to start or
grow companies. This can include opening factories, expanding existing businesses, or funding large
projects like real estate developments and technology systems. In 2023, these inflows grew by 33.8%,
reaching USD 886.9 million, up from USD 663 million in 2022, as per the Foreign Private Capital 2024 –
Survey Report compiled annually by the National Institute of Statistics (NISR).The financial sector
brought in the most investment, with USD 236 million, making up 26.6% of total inflows. This was
followed by manufacturing (USD 165.2 million, 18.6%) and Iinformation and Ccommunication
Ttechnology (ICT) (USD 107.4 million, 12.1%). One standout sector was agriculture, which saw
investments grow by an impressive 123.5%. Real estate also made headlines with a massive 1,552%
increase in foreign investment. This suggests that international investors see opportunities in Rwanda’s
growing cities and housing market. This highlighted increase shows that more foreign companies and
investors are choosing Rwanda as a place to do business, helping to grow the economy and create jobs.
The report highlights how FPC has had a direct impact on the economy. The total turnover (or sales
revenue) of foreign-funded companies in Rwanda grew by 18.2%, reaching USD 3.6 billion in 2023 which
accounts. This account for nearly 26% of the country’s GDP, showing how much these businesses
contribute to Rwanda’s economic activity.
The increase in investment has also meant more jobs for Rwandans. The number of people employed by
companies funded through FPC rose by 20.3%, with 59,916 people employed in 2024 compared to
49,790 in 2023. As Rwanda continues to strengthen its investment climate, these trends suggest a
promising trajectory for sustained economic growth and development in the coming years.

Ethiopia

5.[6.] IMF backs Ethiopia’s tax reforms to boost revenue amid

economic challenges; warns inflation could hit 25% after mid-2025
Ethiopia is moving ahead with tax reforms aimed at boosting revenue, with new measures to streamline
exemptions and close corporate tax loopholes, according to the International Monetary Fund (IMF). The
tax exemptions are for imported intermediate inputs for new local and foreign investments.

The key updates on tax and economic reforms are that the include personal income tax reforms where
the government is considering “amendments updates to personal income tax exemptions”minimum
exemptions to improve on fairness while maintaining revenue collection targets. Secondly is theThese
reforms have been met with parliamentary resistance where to tax reforms with some Members of
Parliament (MPs) and stakeholders having raised concerns about the financial burden on fixed-income
earners, questioning the need for additional taxes given the recent increase in revenue collection. There
will also be new tax categories and expansions as the government plans to broaden the tax base,
including amendments to the VAT and excise tax laws and the introduction of property and
environmental taxes. In addition to this, the government’s has revenue goals for 2024/2025 with the
aim of raisingare to collect USD 11.8 billion Birr 1.5 trillion in revenue for the fiscal year as part of its
Homegrown Economic Reform Agenda. Lastly the IMF Support and Loan Disbursement; Ethiopia’s USD
3.4 billion IMF program under the Extended Credit Facility (ECF) is ongoing, with the second review
completed on January 17, 2025, leading to an immediate disbursement of USD 248 million, bringing
total funding to USD 1.611 billion

As is custom of IMF programs, the credit facility comes with severe e Economic measures such as higher
electricity tariffs, revised tax laws, and increased service fees, which will have further strained
households finances. While the government has implemented measures to curb inflation and adjust
public sector salaries, experts also caution that these reforms disproportionately burden lower-income
groups. The IMF cautioned that inflation is projected to peak at approximately 25% between mid- and
late 2025, before declining to single-digit levels by 2028.

IV. UPCOMING EVENTS

1) Invest in Africa Summit 2025
Date: April 29-30, 2025

Agenda: Focus on unlocking trade and investment opportunities across the continent.

How to Register: Online at register online at www.investinginafrica.eu

Location: Van der Valk Hotel Den Haag, Wassenaar, Netherlands

Time: 9:00 AM - 5:30 PM

Who Should Attend:

 Global investors
 Entrepreneurs
 Business leaders
 Government officials looking to explore investment opportunities in Africa.

Key Features:

 Exclusive networking with investors, CEOs, and industry experts

 Investment deal rooms for startups and businesses seeking funding

 High-potential project showcases in agribusiness, digital technology, infrastructure, and energy

 Expert-led panels & workshops on Africa’s investment climate and growth strategies.

 Engaging social events, including an African fashion show and innovation awards

2) Africa CEO Forum 2025
Date: May 12-13, 2025

Agenda: Continental summit focused on advancing Africa’s private sector by addressing key economic
and business priorities.

Location: Sofitel Abidjan Hotel Ivoire, Abidjan, Cote d’Ivoire

Registration: To register, you can visit this link [email protected] and

[email protected] for sponsorship inquiries.

Who Should Attend:

 Business leaders
 Investors
 Political decision-makers
 Key stakeholders in sectors such as finance, agriculture, infrastructure, ICT, oil and gas, and
transportation.

Key Features:
  High-level discussions on African economic transformation

 Business-to-business meetings

 Networking events

 Digital transformation and regional integration panels

 Leadership and financing strategy discussions

[2)] Invest in Africa Summit 2025

Date: April 29-30, 2025

Agenda: Focus on unlocking trade and investment opportunities across the continent.

How to Register: Online at register online at www.investinginafrica.eu

Location: Van der Valk Hotel Den Haag, Wassenaar, Netherlands

Time: 9:00 AM - 5:30 PM

Who Should Attend:

 Global investors
 Entrepreneurs
 Business leaders
 Government officials looking to explore investment opportunities in Africa.

Key Features:

 Exclusive networking with investors, CEOs, and industry experts

 Investment deal rooms for startups and businesses seeking funding

 High-potential project showcases in agribusiness, digital technology, infrastructure, and energy

 Expert-led panels & workshops on Africa’s investment climate and growth strategies.

 Engaging social events, including an African fashion show and innovation awards

[V.] OPINION OF THE WEEK

 "East Africa is at the cusp of a transformative economic period, with projected GDP growth rates that
are among the highest globally. The investments being made in infrastructure, energy, and the private
sector are shaping a future ripe for transformative business opportunities.”

Dr. Akinwumi Adesina, President of the African Development Bank (AfDB)

V.[VI.] CONCLUSION
As East Africa advances its economic and energy transformation, collaboration between
governments, investors, and businesses will be crucial in unlocking sustainable growth. The
discussions at East Africa Energy Cooperation Summit and the recent surge in foreign
investments across various sectors signal a promising future for the region. With key summits
like Africa CEO Forum 2025 and Invest in Africa Summit 2025 on the horizon, stakeholders
must seize emerging opportunities to drive sustainable growth and regional integration. We are
here to keep you informed on the latest investment opportunities and economic trends, helping
businesses and investors navigate opportunities in East Africa. Stay tuned for more updates on
market trends and policy developments shaping the region’s economic future. The East Africa
Energy Summit has provided a crucial platform for discussing the region’s growing energy needs
and the innovative solutions required to meet them. It highlighted the importance of energy
access for economic development, underscoring the need for infrastructure investments, clean
energy solutions, and greater regional cooperation. The discussions were centered around
enhancing energy security, driving industrialization, and addressing climate challenges through
sustainable energy sources.

One of the standout initiatives emerging from the summit is Mission 300, a bold and ambitious
plan aimed at electrifying 300 million people across Africa by 2030. This initiative serves as a
critical step in closing the energy access gap, especially in rural and off-grid areas, where
millions still live without reliable electricity. By leveraging a combination of grid expansion and
decentralized renewable energy solutions such as solar power, Mission 300 holds the potential to
transform communities, improve quality of life, and drive economic development.

As East Africa looks to the future, the success of the energy sector will rely heavily on strategic
partnerships between governments, private investors, and development agencies. Collaborations
will be key to overcoming the financial, technical, and political challenges facing the energy
sector. The summit's discussions on policy alignment, innovative financing mechanisms, and
investment opportunities have set the stage for continued growth and transformation. Beyond
energy, significant strides are being made across multiple sectors. Tanzania is advancing its
clean energy transition with bold targets for clean cooking energy and increased electricity
generation. Kenya's improved fiscal outlook has made it an attractive investment destination,
especially in infrastructure, renewable energy, and agriculture. Uganda is set to benefit from
French investments aimed at boosting water, energy, and agriculture, while Rwanda’s surge in
foreign direct investment is transforming its economy. In the Democratic Republic of Congo, the
Green Corridor initiative promises to unlock sustainable growth, though security challenges
remain a concern. We’re committed to keeping you updated on the latest investment prospects
and economic trends, offering valuable insights to help businesses and investors navigate the
 dynamic opportunities in East Africa. Stay connected for more updates on market shifts and
policy changes that are shaping the region's economic landscape.

VI.[VII.] RESOURCES
1. African Review (2025) East Africa Energy Summit

https://africanreview.com/energy/east-africa-energy-summit-sparks-investment

2. Daily news (2024) National Energy Compact

https://dailynews.co.tz/national-energy-compact-samia-unveils-pathway/

3. Star news (2025) Moody’s credit outlook

https://www.the-star.co.ke/news/2025-01-25-moodys-revises-kenyas-credit-outlook-to-positive

4. Chimp reports (2025)

https://chimpreports.com/france-commits-to-invest-shs-15-trillion-in-uganda-in-2025/

5. European commission (2025) Global Gateway

https://international-partnerships.ec.europa.eu/news-and-events/news/global-gateway-green-
corridor-preserving-last-lungs-earth-through-green-economic-growth-2025-01-22_en

6. Ktpress (2025) Record Increase in Foreign Private Capital

https://www.ktpress.rw/2025/01/rwanda-sees-record-increase-in-foreign-private-capital/

7. Addis Standard (2025) Ethiopia’s tax reforms

https://addisstandard.com/imf-backs-ethiopias-tax-reforms-to-boost-revenue-amid-economic-
challenges-warns-inflation-could-hit-25-after-mid-2025/