East Africa is continuing to attract private investment despite a difficult global economic environment, with the number of disclosed investment transactions rising by 10 percent in the first seven months of 2026. New analysis from investment firm I&M Burbidge Capital recorded 66 private investment deals across the region through July, compared with 60 during the same period last year. The increase suggests that investors are still confident in East Africa’s long-term economic potential even as geopolitical tensions, inflation and higher financing costs make emerging markets more challenging.
The figures are significant because they reveal a more complicated investment story than headline capital flows alone might suggest. While more deals were completed, their disclosed value declined from $1.18 billion in the first seven months of 2025 to $1.03 billion this year. Investors are therefore continuing to enter the market, but they are doing so more selectively and, in many cases, through smaller transactions or deals whose financial details remain confidential.
More Deals, But Smaller Disclosed Values.
The I&M Burbidge Capital analysis covers private equity, venture capital, mergers and acquisitions, commercial and private debt, as well as investments involving development finance institutions. Private equity accounted for the largest share of activity, with 32 transactions recorded through July, while mergers and acquisitions contributed another 20 deals.
The difference between transaction numbers and disclosed value is particularly revealing. More transactions were completed than a year earlier, but the average publicly disclosed value was lower. Part of the explanation is that many private equity and venture capital investors do not disclose the financial terms of their investments because of confidentiality agreements.
The figures also suggest that investors are moving away from purely opportunistic bets and becoming more focused on companies with clear growth prospects, established markets and credible paths to profitability.
Kenya Remains East Africa’s Investment Hub.
Kenya continues to dominate the region’s private investment landscape. The country accounted for 43 of the 66 transactions recorded through July, putting it far ahead of Uganda with 12 deals, while Ethiopia and Tanzania each recorded four and Rwanda recorded three.
Nairobi’s position as East Africa’s financial and transport hub remains one of the country’s biggest advantages. International investors frequently use Kenya as a base for entering neighbouring markets, giving Nairobi an important role in regional expansion strategies.
The country’s investment appeal is also being reinforced by activity across a wide range of sectors. Electric mobility, agriculture, logistics, manufacturing, consumer goods and cold-chain infrastructure have all attracted significant capital this year.
That diversification is important because it demonstrates that investment interest in Kenya is no longer concentrated in traditional sectors such as banking and telecommunications.
Electric Mobility Emerges as a Major Investment Theme.
One of the most notable examples is electric motorcycle company Spiro, which has attracted hundreds of millions of dollars in financing to expand its battery-swapping network. The company raised $215 million from investors led by its Dubai-based parent Equitane and Denmark’s Impact Fund Network, followed by a separate $55 million investment from China’s NewTrails Capital.
The investments demonstrate the growing interest in Africa’s transition toward electric mobility. Motorcycle taxis are a major part of urban transport across East Africa, making electric motorcycles particularly attractive to companies looking for scalable clean-energy businesses.
Battery-swapping technology could also become an important part of the model because it addresses one of the biggest barriers to electric motorcycle adoption: charging time.
The flow of capital into companies such as Spiro suggests investors increasingly see Africa’s transport challenges not simply as infrastructure problems but as opportunities to build entirely new businesses around mobility, energy and technology.
Agriculture and Logistics Are Also Attracting Capital.
Investment activity is also spreading into sectors directly connected to Africa’s food and supply chains. AgDevCo, for example, made a $1.94 billion Kenyan shilling follow-on investment in Victory Group, an East African aquaculture business producing and distributing Nile tilapia around Lake Victoria.
Cold-chain logistics have similarly attracted investment. Mirova invested approximately 2.45 billion Kenyan shillings in Cold Solutions Kiambu, a company providing temperature-controlled warehousing and logistics services for agriculture and pharmaceutical products.
These investments point to a broader opportunity across East Africa. As populations grow and cities expand, demand for reliable food distribution, storage, transportation and healthcare logistics is increasing. Investors are increasingly targeting the infrastructure needed to make those markets function more efficiently.
Global Shocks Are Changing Investor Behaviour.
The increase in deal activity comes despite a difficult international environment. Geopolitical tensions have pushed up inflation and financing costs, while higher interest rates and uncertainty in global markets have made investors more cautious about emerging and frontier economies.
I&M Burbidge Capital noted that these conditions have encouraged capital to flow toward developed markets, making it more difficult for African economies to compete for international investment. Higher financing costs have also increased the pressure on businesses that rely heavily on debt.
Yet East Africa has continued to attract investors.
That resilience suggests that many investors are looking beyond short-term global volatility and assessing businesses according to their long-term potential. Companies operating in sectors such as digital infrastructure, financial technology, mobility, agriculture and logistics are benefiting from structural changes that are unlikely to disappear simply because global markets become more difficult.
Investors Are Becoming More Selective.
The latest figures do not necessarily mean that capital is flowing freely into every part of East Africa. Instead, they point to a more selective investment environment.
Investors are increasingly looking for businesses with scale, strong management, sustainable revenue models and clear routes to expansion. Companies with weak balance sheets, uncertain regulatory environments or heavy dependence on expensive financing are likely to face a much harder fundraising environment.
That selectivity could ultimately benefit the region’s strongest companies. Businesses that can demonstrate real demand and efficient operations may find it easier to attract strategic investors, while weaker companies could struggle to survive without substantial restructuring.
The result could be a more mature East African investment market in which quality matters more than simply having a promising idea.
East Africa’s Investment Story Is Becoming More Sophisticated.
The rise in deal numbers is also important because it demonstrates that the region’s investment ecosystem is becoming broader. Private equity firms, venture capital investors, strategic corporations and development finance institutions are increasingly participating in different parts of the market.
The diversity of investors matters because businesses at different stages of development require different forms of capital. Startups may need venture funding, established companies may seek private equity, while infrastructure projects require much larger pools of long-term capital.
East Africa’s ability to attract all of these forms of investment will be critical as governments attempt to finance infrastructure, create jobs and support private-sector growth.
The Next Challenge Is Turning Investment Into Jobs and Production.
More investment deals do not automatically translate into stronger living standards. The real economic test is what happens after the money arrives.
If investment helps companies expand production, hire workers, develop new technologies, improve infrastructure and reach regional markets, the impact can extend well beyond individual transactions. But if capital remains concentrated in financial restructurings or produces limited employment and productive capacity, its wider economic impact will be smaller.
This is why governments across East Africa increasingly need to focus not only on attracting investors but also on creating conditions that encourage long-term productive investment.
For the region, the latest numbers offer an encouraging signal. East Africa is attracting more private investment deals even as global conditions become more difficult.
The decline in disclosed deal value shows that investors remain cautious, but the increase in transaction numbers demonstrates that they have not lost faith in the region.
Kenya’s dominance, alongside growing activity in Uganda, Tanzania, Ethiopia and Rwanda, points to an investment market that is becoming increasingly diverse and sophisticated.
The bigger question now is whether East Africa can turn this continued investor interest into factories, technology companies, infrastructure, jobs and businesses capable of competing across the African Continental Free Trade Area.
If it can, the region’s current resilience could become the foundation for a much larger investment story in the years ahead.
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