Kenya
Central Bank of Kenya cuts benchmark rate ahead of the festive season
The Central Bank of Kenya (CBK) moved to support economic activity during the festive period by reducing the Central Bank Rate (CBR) from 9.25% to 9.00% in December 2025. The decision reflects confidence that inflation will remain contained, while signalling a push to stimulate credit uptake among businesses and households. Lower borrowing costs are expected to ease liquidity conditions for SMEs and corporates as they plan for year-end operations and early 2026 investments.
Source: The Kenya Times
Banks respond with lower lending rates
Following the CBK’s decision, several leading commercial banks, including KCB, Equity Bank, and Diamond Trust Bank, announced reductions in their lending rates. The adjustments are intended to improve access to affordable credit, particularly for small and medium-sized enterprises, at a time when working capital and expansion financing remain critical.
Source: The Standard
Cabinet approves the National Infrastructure Fund as a limited liability company
Kenya’s Cabinet approved the establishment of the National Infrastructure Fund as a limited liability company, marking a significant shift in how large-scale development projects may be financed going forward. The fund forms part of a broader infrastructure and sovereign investment roadmap aimed at mobilising private capital, reducing reliance on external borrowing, and accelerating delivery of priority projects through asset recycling and privatisation proceeds.
Source: Daily Nation
Uganda
Uganda targets US$26 billion in exports through Free and Special Economic Zones
Uganda is pursuing an ambitious export-led growth strategy, with the Uganda Free Zones and Export Promotions Authority (UFZEPA) targeting annual export revenues of US$26 billion by the end of the decade. The strategy centres on scaling production within licensed Free Zones and Special Economic Zones, including a major public free zone near Entebbe. Authorities view SEZs as a key mechanism for industrialisation, diversification beyond traditional commodities, and long-term competitiveness.
Source: Watchdog Uganda
Uganda posts one of East Africa’s strongest growth performances
Uganda’s economy delivered robust growth in FY 2024/25, with real GDP expanding by 6.3%, according to the Bank of Uganda’s annual report. Growth was supported by stronger agricultural output, industrial recovery, and a resilient services sector. Prudent monetary policy helped keep inflation within target, while stable foreign exchange inflows supported currency appreciation and strengthened foreign reserves, providing a buffer against external shocks.
Source: Bank of Uganda Annual Report
Tanzania
Economic resilience underpinned by exports and stable inflation
Recent data from the Bank of Tanzania shows continued economic resilience, with exports of goods and services increasing by over 15% year-on-year and inflation remaining stable at approximately 3.5%. GDP growth is estimated at over 6% for FY 2025/26, reflecting steady domestic demand and improving trade performance.
Source: The Citizen
Improving investor climate supports industrial growth
The Tanzanian government has reaffirmed its commitment to improving the investment climate through infrastructure upgrades and regulatory reforms. Recent factory investments, including large-scale manufacturing operations, are generating employment and strengthening local supply chains, reinforcing the role of industry in inclusive growth.
Source: The Citizen
Foreign direct investment inflows on the rise
Tanzania recorded an estimated US$1.5 billion in foreign direct investment during Q3 2025, representing year-on-year growth of approximately 10%. Rising FDI inflows have contributed to stronger foreign reserves and enhanced trade capacity.
Source: Tanzania Investment Centre
Rwanda
Industry sector drives strong economic performance
Rwanda’s industry sector continued to perform strongly in 2025, with growth of approximately 7% in the second quarter and an increased contribution to GDP. Manufacturing output expanded notably, supported by gains in construction, mining, and value-added production across key subsectors.
Source: The New Times
How Rwanda’s transport policies can strengthen the East African Supply Chain
Rwanda’s transport sector is entering a new era of modernisation, guided by policies that prioritise sustainability, professionalism, and safety. The rollout of electric buses in public transit, combined with mandatory driver education and structured safety programs, reflects a forward-thinking approach to mobility. These reforms are enhancing passenger comfort while laying the foundation for safer roads across the country.
This transformation also signals opportunities beyond urban transport. For the wider logistics industry, particularly cross-border cargo and passenger services, Rwanda’s model offers lessons in efficiency and risk reduction.
Highway logistics remains the lifeline of regional trade, connecting inland markets to key ports in Mombasa and Dar es Salaam. Yet, persistent challenges such as safety gaps, delays, and operational inefficiencies continue to undermine competitiveness. Addressing these issues will be critical for unlocking East Africa’s full trade potential.
Source: The New Times
GDP growth remains robust
Rwanda’s economy recorded GDP growth of 7.8% in both the first and second quarters of 2025. The expansion was driven by a combination of services sector momentum and rising industrial output, reflecting the impact of sustained macroeconomic stability and a pro-investment policy environment.
Source: CNBC Africa
Africa Round-Up
Startup funding surges across Africa in 2025
After a few years of constrained activity, Africa’s startup ecosystem is showing clear signs of recovery in 2025. Total venture funding has already surpassed US$3 billion, marking one of the strongest years for African startups in recent history.
The rebound has been supported by larger equity deals and strategic investments across key sectors such as fintech, mobility, and payments. Notable rounds include Spiro, which raised $100 million to expand electric mobility solutions, and Moniepoint, whose Series C equity financing exceeded $200 million, highlighting sustained investor interest in African fintech.
This resurgence reflects a broader shift in investor sentiment, with increased confidence in companies demonstrating strong governance, clear business models, and scalability. Media outlets like Forbes Africa and TechRound note that this trend signals growing maturity in the African tech ecosystem and renewed global attention on the continent’s innovation hubs.
As 2025 closes, Africa’s startup landscape is poised for further growth, with opportunities for both early-stage ventures and later-stage scale-ups to attract capital, expand operations, and drive regional economic impact.
Source: Technext24, Moniepoint, Forbes Africa, TechRound
COP30 spotlights Africa’s climate agenda and finance gaps
Africa’s climate agenda took centre stage at COP30, with negotiators underscoring the continent’s need for targeted climate finance, particularly to address adaptation efforts and capacity building for a green workforce. Africa has emphasised that climate finance should extend beyond infrastructure and include funding for skills development, essential for creating the human capital needed for the green economy.
African leaders are calling for at least US $1.3 trillion annually by 2035 to fund climate adaptation and resilience efforts, with an emphasis on grants over loans. This aligns with the Africa Adaptation Acceleration Program (AAAP), which has already garnered pledges for critical initiatives.
The summit reaffirmed the importance of adaptation finance as the top priority for Africa, which remains disproportionately vulnerable to climate change despite contributing minimally to global emissions. Key priorities include water management, agriculture resilience, and scaling renewable energy solutions.
Sources: UNEP; African Climate Reports; Africa Climate Pact
African Development Bank deepens focus on energy, connectivity, and ESG financing
The African Development Bank (AfDB) continues to drive pivotal infrastructure projects across the continent, focusing on renewable energy, transport improvements, and environmental, social, and governance (ESG) initiatives. In a major partnership, AfDB and ACWA Power have committed to a US$5 billion framework to accelerate renewable energy parojects and water desalination efforts in Africa from 2025 to 2030. This collaboration aims to address the continent’s energy access challenges while contributing to global sustainability goals.
In Somalia, AfDB has approved US $76 million to upgrade strategic road corridors, boosting trade and regional integration in one of the continent’s most underserved regions. This funding is expected to enhance infrastructure connectivity and provide long-term economic benefits through improved access to markets.
Additionally, the AfDB has announced a new US$25 billion fundraising drive aimed at replenishing its concessional lending arm, as it seeks to combat declining support from traditional donor countries like the U.S. This initiative is critical for financing infrastructure, climate change adaptation, and development projects across Africa’s emerging economies.
Sources: African Development Bank; Utilities Middle East; Zawya; African Review
