Strengthening ties: Norway and East Africa intensify economic partnership with emerging trade opportunities  

By Pauline Kairu
Norway’s growing trade relationship with East Africa is proving to be a robust, mutually beneficial partnership. With investments in vital areas like infrastructure, energy, agriculture, and digital innovation, Norway’s involvement in Kenya, Tanzania, and Uganda is contributing to economic resilience across the region.

In recent years, as Norwegian Ambassador to Kenya, Somalia and the Seychelles, Gunnar Andreas Holm notes, trade between Kenya and Norway has seen a notable increase, with Kenyan exports to Norway being valued at $70 million. Norway, on the other hand, imports items from Kenya worth a total of $20 million.

In Tanzania, trade with Norway has primarily centred on capital equipment imports from Norway, particularly for infrastructure projects, while Tanzania exports agricultural products like flowers, coffee, andfruits to Norway.
The latest data (2023) records exports from Norway to Tanzania at $10.3 million, while Tanzanian exports to Norway reached $815,523.

However, Norway’s impact in Tanzania extends beyond trade, most notably through Foreign Direct Investment (FDI). Norway ranks as one of the top investors in Tanzania, spearheaded by energy company Equinor, which is in negotiation with the government to develop a major liquefied natural gas (LNG) project that will bring economic opportunities to Tanzania and the region.

These investments, according to Norwegian Ambassador to Tanzania, Uganda, Rwanda, Burundi, the Comoros and EAC, Tone Tinnes, underscore Norway's commitment to infrastructure and energy development in Tanzania, complemented by power sector contributions in hydro and gas, as well as industrial inputs from Yara.

Norfund, Norwegian Government's Investments Funds for Developing Countries, also maintains a regional office in Nairobi, positioning Kenya as its largest global investment portfolio with approximately $330 million spread across sectors like, renewable energy, financial inclusion, agriculture and manufacturing.

Additionally, Norfund has been active in Tanzania for decades. Its portfolio in the country is robust, with $155 million in direct and indirect investments across 30 diverse ventures in renewable energy, agriculture, financial inclusion, forestry and tourism, placing Tanzania as the third largest investment recipient globally under Norfund’s development mandate. This strong portfolio reflects Norfund’s long-term view of Tanzania as a reliable investment environment in East Africa.

Perhaps more significant is the Norwegian Sovereign Wealth Fund’s strategic investment in the Nairobi Securities Exchange. Though modest at $150 million, it signals confidence in Kenya’s economy and governance. The Sovereign Wealth Fund's presence in Kenya, one of only three Sub-Saharan countries it invests in, speaks to Kenya’s growing appeal to global investors.

As East African economies grow, their expanding infrastructure, energy needs, and agricultural exports present attractive opportunities for Norway to deepen its economic footprint in the region.

Norwegian investments, represented by organisations such as Norfund, support East Africa’s transition to renewable energy, agricultural innovation, and financial technology, with a notable presence in Kenya, Tanzania and Uganda.

In Kenya alone, revealed the ambassadors in a recent interview with The EastAfrican, approximately 50 Norwegian companies are engaged in sectors like agri-tech, renewable energy, and fintech. Global fertilizer giant Yara, is the largest. About 30 companies operate in Tanzania, often providing critical resources like high-quality, specialised fertilizers from Yara, enhancing agricultural productivity.

Norway is also present in Uganda, with about 20 companies, working particularly in the agriculture and tech spaces.

Norway and East African nations have long-standing collaborations across a range of vital sectors, from energy and agriculture to climate, education, health, and water.

One prominent area of joint interest is the blue economy, with recent bilateral agreements between Kenya and Norway focused on sustainable fishing and marine conservation.

Norway’s state-of-the-art research vessel, Dr Fridtjof Nansen, exemplifies this partnership, notes Ambassador Tinnes. The ship has visited Tanzania and Kenya several times.

“The scientists from Norway, in collaboration with local ones, have been conducting studies on fish stocks and ocean health along East Africa’s coast. The data collected is fundamental for local scientists in developing sustainable fishing policies, underscoring the importance of environmental stewardship in mutual economic growth,” says Tinnes.

The vessel is scheduled to make port of call in Mombasa in April or May of next year. Yet, as Ambassador Holm notes, this is just the beginning. There is substantial potential to deepen trade between Norway and East Africa, leveraging the unique capacities of each country. Meetings such as the conferences organised by the Norwegian-African Business Association (NABA), which convene African leaders and Norwegian businesses, present crucial opportunities to advance this collaboration further. The ambition is clear: To strengthen economic ties and work towards a prosperous, sustainable future that equally benefits Norway and East Africa.

Digital and financial inclusion

Wakandi and Telenor Linx are two companies at the forefront of driving digital innovation and financial inclusion in Africa, each contributing to the landscape in unique ways. They both signed MoUs with strategic partners in East African countries last week.

Wakandi is a Norwegian FinTech company with subsidiaries in Kenya, Tanzania, and Uganda. Focused on advancing financial inclusion, Wakandi has, according to the Chief Operating Officer (COO) Terje Width, developed a platform tailored to co-operatives. In the region, where a significant portion of the population remains unbanked, these savings and credit co-operatives (Saccos) provide vital financial services.

Wakandi’s digital solution allows Sacco members to seamlessly access and participate in financial activities, which are often inaccessible through traditional banks. The company’s platform, licensed by the central banks in Kenya, Uganda and Tanzania as a Payment Service Provider (PSP), facilitates secure financial transactions and empowers about 50,000 users monthly.

Wakandi’s collaboration with institutions like Co-operative Bank helps bring smaller, unregulated Saccos into the digital ecosystem, providing a pathway to financial stability for thousands.

Telenor Linx, a part of the global Telenor Group, has recently expanded into Africa with a strategic base in Kenya. Known as one of the world's leading telco groups, according to Charlotte Nystuen, the Vice-President, Telenor Linx focuses on delivering telco services and digital content solutions. Its managed services enable smaller mobile operators to compete effectively by leveraging Telenor Linx’s economies of scale to reduce costs and improve services.

The company’s Direct Carrier Billing (DCB) solution, in partnership with Google Play, allows users to make purchases on app stores directly through their mobile bills. This offers convenience for consumers who may not have access to credit cards or traditional banking methods, thereby deepening digital inclusion. Telenor Linx’s extensive network of over 600 global partners also supports African mobile operators by enhancing service reach, lowering tariffs, and improving customer engagement and loyalty.

Lessons for other countries

As Norway strengthens its partnership with East Africa, mutual benefits are emerging, offering a model for enduring collaboration. Through investments in education, renewable energy, research, institutional cooperation and people-to-people collaborations, Norway and East Africa are paving the way for sustainable growth that aligns with the United Nations’ Sustainable Development Goals (SDGs) and Africa’s Agenda 2063.

Central to this engagement is knowledge exchange. Norwegian universities collaborate with institutions in Tanzania, Uganda, and Kenya, fostering student and scholar exchanges that enrich local talent while providing Norwegian institutions with insights into the region's unique challenges. This partnership is enhanced by robust academic and professional networks, facilitating valuable knowledge sharing that benefits both regions.

Norway’s commitment extends beyond academia, as support for civil society initiatives and people-to-people collaborations has created strong personal and professional links. This has fostered a deeper appreciation among Norwegians, for East Africa’s stunning landscapes, from Kilimanjaro, via the Pearl of Africa to the coasts of Zanzibar and Kenya.

The success of Norway's efforts offers important lessons for other nations. First, investing in education is key to building long-term relationships. Second, sustained engagement fosters trust and respect. Lastly, personal connections are essential for sustainable partnerships, reinforcing both diplomatic and grassroots ties.

Looking ahead, Norway’s Africa strategy aligns with Agenda 2063, focusing on socio-economic transformation through climate partnerships, renewable energy, and sustainable agriculture. Initiatives in Tanzania and Kenya exemplify this commitment, aiming to empower local communities while driving economic growth.

Norway’s support for gender equality and education remains a priority, with initiatives aimed at empowering women and girls in Kenya and Tanzania. By linking education to job creation in green energy and technology, Norway is fostering economic empowerment and preparing a skilled workforce for sustainable careers.