The Mineral Sector contributes to a mere 2.7% of East Africa’s GDP on average. This despite the Region’s Enormous Wealth in Natural resources as Most still remains un- tapped.

Slack in Development of the East African Extractive Sector is mostly attributable to sluggish Economic Development that was linked to the Region and the African Continent as a whole.

However Africa is Different Today. Most now call it “The Continent of the Future” this Fast changing Continent is home to 6 of 10 fastest growing economies in the world. Most Sub–Saharan African Economies are growing at an average of between 5% & 7%. East Africa has embarked on better Governance and Management of its resources, Investment in Good Education, Competitive Business Environment and Mega Infrastructure Programs that have transformed the Region Economically and Socially.

A transformation that has Spurred Growth and Fierce Competition for the Region’s Influence and its Investment by the World Super Powers. China is the Biggest Investor in the Continent with its Total Investment Expected to reach $380 Billion by 2015.


The “LAPSSET” is the largest Infrastructure Project in Africa. The Project is worth $22 billion Dollars. Construction is currently underway. This is a Transport Corridor that will connect the Country from Southern Ethiopia to Lamu Port (South coast Kenya). The project Includes; a Port in Lamu, a Standard Gauge Railway to Juba, Addis Abba, South Sudanese and Ethiopian Capitals; Road Networks; Oil Pipelines ( Southern Sudan& Ethiopia); Oil Refineries; three Airports and three Resort Cities in Lamu, Isiolo and the Shores of Lake Turkana.

The standard Gauge Construction of the Northern Corridor was commissioned in November 2013. The Railway will Connect East African Regions from the Kenyan Coast town of Mombasa through two other Kenyan Cities Nairobi and Kisumu to Tororo Kampala Uganda, Kigali Rwanda covering two other Uganda’s Cities Through to Juba the South Sudanese Capital.

The Rail Gauge is expected to Transport 30 Million Tons of Cargo Annually by 2030 .The Extractive Sector poised to become one of the biggest Beneficiaries. The modern Infrastructure will cut Production cost in Logistics and Exploration. More Discoveries will become Accessible as Transportation of Ore products becomes more Efficient and Cheaper.

 Africa’s Mega infrastructure and Construction Projects has become a Big Market for its Raw material in turn boosting its own Extractive Industry. Whereas Government have also Embarked of Ambitious plan to revive Manufacturing and Industrilization all of which will provide a diverse market place for Africa’s Raw Material and Energy.


The East Africa Region has Sufficient Human Capital and Adequate Business Support for a Robust Economy. The region has a Youthful work force to satisfy the Labor Market. Free movement of workers across the East African borders with in the provisions of the East African Community Legislation. Unlimited Access to Skilled personnel and Professionals across all sectors of the Economy and a Strong investment in Quality Education.

The East Africa region is home to some of the Best Universities in Africa. Nairobi University is ranked…. Both the Nairobi University and University of Dar es salaam both have some of the Department of Geology Science in Africa. They lead in Research of the Region’s Geology. Kabarak University is offering Courses for the Extractive Industry approved by the internationally acclaimed “International Minimum Industry Safety Training”. Strathmore University School of Law has a Designated Autonomous Research Centre for the Extractive Industries Centre an Autonomous. Strathmore Extractive Research Centre Specializes on advanced research into Social Science areas of Oil& Gas as well as Mining.


Access to Energy has been a Major challenge for Many Africa Countries. Subsequently the East Africa Countries have embarked on various Initiatives to Combat the Power deficit challenge. The Countries have adopted “Smart Grid” technologies that are entailed to develop a mix of Energies form diverse Energy sources that the Region is endowed as opposed to relying on just Hydro power.

Energy Developments in East Africa is Expected to Provide the Biggest Investments Opportunities in Africa. The sector have now become of the huge Interest to Private Power Providers as well as Private Public Partnerships.

Currently underway are Mega Power Projects across East Africa from various sources most commonly Coal, Natural Gas, Wind, Solar and Geothermal, with more in the pipeline Projected For Developments in Public Private Partnerships. An Initiative to integrate the East African Power grid has been commissioned and construction of the Power Pool is currently in progress. The Integrated Power that will allow cross border Power Export.

The Power Initiatives are expected to Promote Power efficiency and bring down the Cost of Electric Energy the Region. This is the other Aspect that will incentivize the Extractive Sector as it will drive down the cost of Production. Energy has been one of the most challenging and Important Aspects in Extractive Operations.

Investment Business Environment

Over the past 8 years the 5 East African Community (EAC) Economies have implemented a total of 74 Institutional or Regulatory reforms For Improving the business Environment for Local Entrepreneurs. The EAC has achieved greater Convergence in the complexity and cost regulatory process than the strength of Legal institutions relevant to business Regulation. Of the 74 institutional or regulatory reforms implemented the largest number were in the Areas of Starting a, Business, registering property and dealing with Construction Property.

Rwanda is the top performer in the Region for making most Progress in the past seven years worldwide. Its ranked 2nd Place globally for implementing 23 regulatory reforms for “Ease to do business” and advance in closing the gap to the frontier.

Kenya and Tanzania are also ranked among the most preferred destination for Foreign Direct Investments Globally by the MSCI Frontier index 2014. The survey was carried put based Attractiveness and willingness of Global Companies like General Electric and Coca Cola to invest and their best choices for the Frontier Market. Kenya was the 2nd African County after Nigeria. Other countries East African Countries to make the list were Tanzania and Mozambique that were placed 9th & 12th Place respectively.

In 2015 Kenya was also Named 7TH in Most Preferred Foreign Investment Destination in the Emerging markets by Fortune Magazine. The Magazine also placed the Kenyan Capital Nairobi the 3RD Best City in Africa.

Fact & Figures