Stanbic pushes for domestic capital to unlock E.Africa’s infrastructure opportunities
A persistent funding deficit continues to stall regional integration and infrastructure development in the East African Community (EAC), financial experts have said.
The region faces an estimated $42 billion annual infrastructure gap, hampering efforts to modernize transportation, energy, and communication systems. Beyond limiting East Africa’s global competitiveness, inadequate infrastructure is also a major barrier to regional trade, increasing the cost of doing business and restricting market access.
At the 2025 East Africa Institutional Investors Forum, held recently in Arusha, Tanzania, Standard Bank Group affiliates, Stanbic Bank Kenya, Stanbic Bank Uganda, and Stanbic Bank Tanzania joined institutional investors, policymakers, and regulators to explore new ways of mobilizing domestic capital for strategic infrastructure development.
The two-day forum focused on transitioning local capital from passive reserves into active investments in major projects critical to regional growth. Opening the discussions, Aime Uwase, director of planning EAC Secretariat, emphasized that a strong infrastructure network is the backbone of regional integration.
“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, stressed the need for collective action to overcome market challenges and accelerate infrastructure development.
Echoing her remarks, Michael Sseguya, head of financial institutions group for corporate and investment banking at Stanbic Bank Uganda, called for diversifying investments beyond treasury bills and bonds into commercial real estate, infrastructure, and large-scale development projects.
He said East African countries need new infrastructure to support the logistics of moving people and goods. Benedict Nkini, vice president for financial institutions at Stanbic Bank Tanzania, noted that substantial private capital exists within the EAC held across commercial banks, pension funds, and asset managers yet remains underutilized in infrastructure financing.
The forum also examined the risk factors that often deter domestic institutional investors, including unpredictability, lack of transparency, political interference, and vested interests.
Alex Rumanyika, head of strategy at Uganda’s National Social Security Fund (NSSF), explained that as custodians of citizens’ savings, safety remains their first priority. However, NSSF is increasingly taking a more active investment role in large-scale projects.
“One option is to work with the Trade and Development Bank (TDB) to create infrastructure instruments listed on the stock exchange, making it easier for pension funds to participate,” Rumanyika said.
“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.”
By structuring appropriate investment vehicles and addressing governance and risk management issues, experts at the forum agreed that East Africa could unlock domestic capital to drive transformative infrastructure growth and deepen regional integration.
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