East Africa faces not a lack of investment opportunities but a shortage of capital, partnerships, and a conducive policy environment to actualize these projects. This was a key message from the inaugural East Africa CEO & Investment Forum held in Nairobi on September 17-18. The forum, convened by the East African Business Council, the East African Community Secretariat, and the East African Development Bank, gathered governments, CEOs, investors, and development finance institutions. They discussed transforming investment potential into tangible deals.
The forum showcased 95 pre-screened investment opportunities worth nearly $3.95 billion across various sectors, including agribusiness, manufacturing, and energy. However, investors emphasized that capital alone is insufficient for transformation. Businesses require predictable regulations, efficient borders, harmonized standards, reliable infrastructure, and easier access to finance. They also need governments to implement regional agreements already in place.
The forum called for East Africa to move beyond declarations and focus on implementation, stronger regional value chains, and converting investment opportunities into financed projects and jobs. This brings the conversation to the United Arab Emirates, which is more than just another source of foreign investment for East Africa. The UAE has experience in building infrastructure and commercial ecosystems that facilitate efficient capital movement.
Emirati sovereign wealth funds, banks, and private businesses have expanded their African interests across various sectors, including logistics, ports, and energy. In Kenya, Dubai-based Arise IIP plans to mobilize over $3 billion for investments, including industrial and export parks and textile manufacturing. The opportunity now is to connect this capital with the wider regional investment agenda.
The Nairobi forum highlighted the importance of treating East Africa as one investment ecosystem rather than eight competing national markets. This idea resonates strongly in the UAE, where Dubai's rise as a global trading and logistics hub was built around connectivity. East Africa needs a similar approach, with efficient roads, railways, reliable energy, and logistics.
Agriculture offers a natural starting point for collaboration between East Africa and the UAE. The UAE has substantial demand for food imports, while East Africa has land, labor, and agricultural potential. A partnership where East African farmers supply produce, local companies process and transport it, and UAE investors provide capital and market access could be transformative.
The forum identified that East Africa must become better at preparing projects for investors. What investors need are projects with credible business models, capable management, clear revenue streams, and manageable risks. The UAE can play a catalytic role by bringing money and global networks, while East African governments must provide policy certainty and infrastructure to make investments commercially viable.
Key points
- East Africa seeks $3.95 billion in investments across various sectors.
- UAE investors can provide capital and expertise to support East Africa's growth.
- East Africa must improve project preparation to attract investors.
