CEOs Eye More Investments in East Africa Region

Why It Matters

The push for cross‑border acquisitions signals deeper economic integration in East Africa and underscores how Kenyan firms are leveraging innovation to capture new markets despite geopolitical risks.

Key Takeaways

• 54% of Kenyan CEOs plan 1‑4+ acquisitions in East Africa
• Tanzania, Uganda, Rwanda top destinations for regional expansion
• Intra‑EAC trade hit $14.33 bn in 2024, up 18.4%
• 89% of revenue from new products launched in past three years
• Geopolitical uncertainty makes CEOs cautious on large, long‑term investments

Pulse Analysis

The PwC‑led survey of over four thousand CEOs reveals a decisive shift among Kenyan business leaders toward regional diversification. By targeting neighboring markets such as Tanzania, Uganda and Rwanda, firms aim to mitigate sovereign‑risk exposure while tapping into untapped consumer bases. This strategic tilt aligns with the East African Community’s broader agenda of deepening intra‑regional trade, a goal reinforced by the 18.4% jump in intra‑EAC commerce to $14.33 billion last year. However, the surge in external trade outpacing regional flows highlights the bloc’s continued reliance on global markets, prompting policymakers to accelerate integration initiatives.

Trade data underscores both opportunity and challenge. While intra‑EAC imports grew 23.7% to $6.9 billion, the proportion of regional trade relative to total trade slipped to 11.8%, down from 15% in 2023. This paradox suggests that while cross‑border activity is expanding, it is being eclipsed by faster‑growing external demand. For Kenyan CEOs, the numbers translate into a clear imperative: secure market share through acquisitions that complement domestic strengths and leverage the growing intra‑regional supply chain. The survey’s finding that 62% of CEOs view innovation as a strategic pillar further reinforces the need for agile, product‑focused growth.

Yet optimism is tempered by geopolitical uncertainty. One quarter of CEOs expressed doubts about their innovation capacity to navigate an unpredictable future, and a third plan no acquisitions over the next three years. The cautious stance reflects broader macro‑risk concerns, from supply‑chain disruptions to shifting trade policies. Nonetheless, the fact that 89% of revenue derives from new products introduced in the last three years signals a resilient, purpose‑driven mindset. As East Africa’s economies strive for self‑reliance, the blend of selective M&A, robust innovation pipelines, and vigilant risk management will likely define the region’s competitive trajectory.