A persistent infrastructure funding shortfall is stalling regional integration and economic growth in East Africa, according to financial experts and institutional investors who gathered for the 2025 East Africa Institutional Investors Forum in Arusha, Tanzania.
The region is grappling with an estimated $42 billion annual infrastructure deficit, affecting transportation, energy, and communication systems. This shortfall is not only reducing East Africa’s global competitiveness but also raising business costs and limiting access to regional markets.
In response, Stanbic Bank affiliates from Kenya, Uganda, and Tanzania joined policymakers, regulators, and investors to champion the shift of domestic capital from passive reserves to active infrastructure investments.
Aime Uwase, Director of Planning at the East African Community (EAC) Secretariat, opened the forum by emphasizing the importance of internal financing. “Traditionally, much of our development funding has depended on external sources. However, by unlocking domestic capital, we not only diversify our funding but also strengthen our economic resilience,” Uwase said.
Zoya Sisulu, Sector Head for Financial Institutions at Standard Bank, called for joint efforts to address market constraints and speed up infrastructure development. Her sentiments were echoed by Michael Sseguya, Head of Financial Institutions Group for Corporate and Investment Banking at Stanbic Bank Uganda, who advocated for expanding investment options beyond treasury instruments to include infrastructure and commercial real estate.
The forum also addressed the risks that discourage domestic investment, including unpredictability, lack of transparency, political interference, and vested interests.
Alex Rumanyika, Head of Strategy at Uganda’s National Social Security Fund (NSSF), highlighted the delicate balance between investment ambition and fiduciary responsibility. “The key is having the right vehicle and the right people to do the heavy lifting. Pensions are long-term funds, but safety comes first,” he said.
Rumanyika added that partnering with the Trade and Development Bank (TDB) to create stock exchange-listed infrastructure instruments could enable greater pension fund participation in regional development.
Participants concluded that establishing appropriate investment structures and improving governance could unlock domestic resources, power transformative infrastructure projects and advancing East Africa’s integration goals.