Did you know that the World Bank estimates that ~50–70% of sub-Saharan Africa's population lacks access to electricity?
Just a decade ago, power outages were the norm in Buyuni. Today, solar grids light up shops and classrooms. Mariam Yusufu, a shop owner, transitioned from solar-powered lighting to grid electricity, enabling her to sell refrigerated goods and expand her business.
Today, Dar es Salaam symbolizes the sweeping transformation underway across East Africa, where modern infrastructure is becoming the backbone of a new growth story. Driving much of this progress are Indian companies, not merely as investors, but as partners invested in local success.
From port upgrades and power plants to roads and telecommunications networks, India’s collaborative and capacity-building approach is steadily reshaping East Africa’s future. Unlike other debt-heavy models, these initiatives prioritize sustainability, skill transfer, and regional self-reliance.
The result?
A significant shift is helping East Africa become a pivotal link in global trade routes, driven by enduring partnerships. In this article, we explore these dynamic changes.
Wherever you are in the world, it pays to know how global economics works on the cornerstones of infrastructure and trade. Join us on the journey as we uncover the fundamentals and more.
Table of Contents
India’s Expanding Footprint in East African Infrastructure
Over the last twenty years, India has emerged as a key development partner in East Africa, investing heavily in roads, ports, and the energy sector. This growing engagement reflects a broader vision centered on sustainable, mutually beneficial partnerships that aim to transform regional connectivity and economic prospects.
India's cumulative investments in Africa (across all sectors) have reached US$75 billion, with a target to double this to US$150 billion by 2030. India’s cumulative investments in Africa across sectors — encompassing both government and private initiatives — have reached US$75 billion. Separately, annual infrastructure investments by Indian private firms alone are estimated to range between US$130 and US$176 billion, with a strong emphasis on East Africa.
A Collaborative Alternative to China’s Model
Unlike China’s debt-heavy Belt and Road Initiative (BRI), India’s model leans on local partnerships and market-driven strategies. By working closely with African businesses and emphasizing knowledge sharing, Indian firms focus on long-term capacity building rather than short-term gains. This cooperative model has been widely viewed as more adaptable and less likely to burden African economies with excessive debt.
Transformational Projects on the Ground
Ports: The Dar es Salaam Turnaround
A standout effort is the Adani Group’s strategic collaboration with Abu Dhabi to manage port operations in Dar es Salaam, Tanzania. Under a 30-year concession, this initiative modernizes the region’s trade infrastructure, increasing efficiency and global connectivity.
Roads: Strengthening Regional Links
Indian firms have made significant contributions to the construction of roads, highways, and bridges in Tanzania, Kenya, and Uganda. Although specific projects are less publicized, their collective impact has improved logistics, enhanced rural-urban connectivity, and supported cross-border trade.
Energy: A Focus on Power and Progress
With the lion’s share of investment directed at energy, Indian companies have constructed power generation units, upgraded transmission lines, and developed clean energy solutions. These efforts combat regional power shortages, promote industrial growth, and bolster cross-border electricity sharing.
Indian Companies Making a Difference
From ports to power plants, Indian companies are quietly reshaping East Africa’s infrastructure landscape through strategic partnerships and long-term commitment. Their collaborative, community-focused approach not only builds roads and networks—but also builds trust, resilience, and regional opportunity.
Tata Motors & Mahindra Assembly Plants, Tanzania
Location: Tanzania (various sites)
Timeline: Expansion projects have been ongoing since 2022
Details & Outcome: Indian automotive leaders Tata Motors and Mahindra & Mahindra are deepening their footprint in Tanzania with new assembly plants that will localize vehicle production, create jobs, and boost the regional automotive industry. These investments reflect India’s ongoing commitment to strengthening industrial infrastructure and fostering sustainable economic growth in East Africa.
Bharti Airtel’s Telecom Infrastructure, East Africa
Location: Multiple East African countries (notably Kenya, Uganda, Tanzania)
Timeline: Expansion since 2010; ongoing
Details & Outcome: Bharti Airtel, one of India’s leading telecommunications companies, has made substantial investments to grow mobile and digital networks across East Africa. Today, it ranks among the continent’s top mobile service providers, boosting regional connectivity and enabling new innovations in commerce and economic development.
Statistics: Investments, Job Creation, and Infrastructure Improvements in East Africa
Energy
In 2024, Africa added over 6.5 GW of utility-scale capacity to its power grid, a significant boost for electrification and industrial growth across the continent. Cross-border interconnectors and regional power markets are a growing focus, aiming to stabilize supply and enable larger-scale industrialization.
Transport & Urbanization
Africa’s urban population is growing by 24 million people per year, driving demand for roads and logistics infrastructure at twice the rate of India or China. While the exact length of new roads built in East Africa by Indian firms is not specified in the latest reports, India has funded and constructed hundreds of kilometers of highways and rural roads in Kenya, Tanzania, and Ethiopia over the past decade, improving regional connectivity and market access.
Digital Infrastructure
Data consumption per subscriber in Africa is expected to increase eightfold by 2025, compared to 4.5 times globally, fueling investments in communications infrastructure such as fiber, data centers, and towers. Smartphone penetration is projected to rise from 45% to 65% in the next five years, with mobile internet users increasing from 26% to 39%.
Case Studies
The following case studies portray the developments on the ground.
Case Study 1: Tanzania Rural Electrification Expansion Project (TREEP)
Location: Buyuni and thousands of other villages, Tanzania
Timeline: Project ongoing; significant expansion in recent years
Investment: US$550 million (financed by the International Development Association/World Bank)
Details & Outcomes:
- The TREEP project aims to provide new and improved electricity services to rural Tanzanians, increase the supply of renewable energy, and boost sector resilience.
- In Buyuni village, access to grid electricity enabled local entrepreneurs to expand their businesses.
- The project is part of a broader initiative to connect 300 million people in sub-Saharan Africa to electricity by 2030, supporting new businesses, job creation, and improved quality of life.
Case Study 2: Kenya Power Transmission Lines and Substations
Location: Multiple regions, Kenya
Timeline: Completed in 2024
Investment: US$61.6 million (funded under Government of India Lines of Credit)
Details & Outcomes:
- The project delivered 330 km of 132 kV transmission lines, extended existing substations, and constructed seven new 132/33 kV substations for Kenya Electricity Transmission Company (KETRACO).
- This infrastructure upgrade improved access to clean energy for thousands of households, enhanced grid reliability, and supported economic growth by enabling more consistent power supply for homes and businesses.
Case Study 3: Uganda Last-Mile Rural Electrification
Location: Rural communities across Uganda
Timeline: Project start date: 2015; ongoing
Investment: €42.9 million (funded by the Government of Uganda and AFD)
Details & Outcomes:
- The project aims to extend the national grid to local communities that have not previously had access to clean energy, with a target of 40,000 new connections, benefiting over 200,000 people.
- By intensifying last-mile connectivity, the project supports sustainable economic and social development, enabling rural households and businesses to access reliable electricity for the first time.
These case studies demonstrate the transformative impact of rural electrification in East Africa, from enabling entrepreneurship in Tanzania to large-scale transmission upgrades in Kenya and last-mile connectivity in Uganda.
Infrastructure Development Challenges
Regulatory Hurdles: Indian companies combat project delays by partnering with local businesses, acquiring subsidiaries, and collaborating with African governments to navigate local regulations and ensure compliance with them.
Local Opposition: Indian firms are addressing local community resistance to infrastructure projects by focusing on local partnerships, skills transfer, and community engagement, aiming to create jobs and build trust with stakeholders.
Environmental Issues: Indian investments in the green energy and transport sectors are shifting towards renewable energy and clean technology, aiming to meet local development goals and global sustainability standards.
By prioritizing local partnerships, skills development, and sustainable practices, Indian firms differentiate themselves from other foreign investors and build more enduring relationships in East Africa.
Forward-Looking Trends in East Africa’s Infrastructure
Trends indicate the path forward. Therefore, they cannot be ignored.
Digital Infrastructure
East Africa is enhancing its digital infrastructure, with broadband users expected to surpass 1 billion by 2030. Major investments in data centers, fiber networks, and cross-border broadband projects are bridging the digital divide and supporting smart city initiatives. Kenya is developing AI strategies and strengthening data governance for a future centered on digital skills and cybersecurity.
Green Energy
The region is prioritizing renewable energy, with ongoing investments in solar, wind, and hydropower projects. Cross-border power interconnectors are enabling countries to share clean energy, reduce costs, and improve grid stability, supporting both rural electrification and industrialization.
New Trade Corridors
Efforts to enhance regional integration include new and upgraded road, rail, and port infrastructure, connecting landlocked countries to global markets. The development of shared digital and physical infrastructure is expected to accelerate trade, lower logistics costs, and foster inclusive growth across East Africa.
These trends position East Africa as a dynamic hub for technology-driven, sustainable, and interconnected growth in the coming decade.
Conclusion: A Sustainable Edge
As East Africa’s infrastructure landscape rapidly evolves, India’s role emerges as both a catalyst and a trusted partner. This partnership isn’t just about ports, power stations, or highways; it’s about empowering people and laying the groundwork for self-sustaining growth. By prioritizing local expertise, skill-building, and mutual benefit, Indian companies are showing that infrastructure can be a bridge to prosperity rather than a burden of debt.
The story of Dar es Salaam’s port, or the new energy corridors lighting up remote villages, underscores a deeper commitment to long-term progress. Looking ahead, as East Africa solidifies its position in global trade and regional integration, India’s inclusive model will serve as a blueprint for collaborative development.
Challenges will come, from political shifts to global competition, but the trust and goodwill already fostered will keep this partnership resilient. Together, India and East Africa are shaping a future where connectivity, commerce, and community thrive in harmony.
