East African trade surges — EAC reports USD 38.2bn in Q2, region eyes pension-backed infrastructure funds
East Africa’s merchandise trade jumped sharply in Q2 2025 to USD 38.2 billion, and regional leaders are eyeing bold finance moves — including pension-backed mega funds — to close a massive infrastructure financing gap.
The East African Community (EAC) reported a 28.4% rise in international trade for Q2 2025, reaching USD 38.2 billion. Officials credited export growth, stronger regional integration and recovering global demand for commodities. For Kampala businesses that trade across borders, the upswing signals opportunity — but also logistical pressure on ports and transport corridors.
Seeking to capitalise on momentum, policymakers in the region have been discussing pooling pension assets into large-scale funds to finance roads, power and urban projects — a plan that could mobilize hundreds of billions but raises governance and fiduciary concerns. The East African press reports a possible move to pension-backed vehicles to narrow the region’s infrastructure funding gap.
If implemented with strong safeguards, pension-backed funds could unlock transformative projects for cities like Kampala — faster roads, upgraded drainage and more reliable power — but experts warn that transparency and risk management will be critical to protect citizens’ retirement savings.
