East Africa has been experiencing strong economic growth over the past few years, and it looks like things are going to continue surging in the right direction. According to The East African Economic Outlook 2024, released by RSM Eastern Africa Consulting Ltd, East African economies are projected to grow by over 5 % for the next two years.
These positive predictions are based in part on the past strong performance of several East African countries. Kenya, for example, experienced nearly 6 % growth during the third quarter of 2023. Furthermore, John Bosco Kalisa, CEO of the East African Business Council, noted that both Kenya and Tanzania have been driving growth in East Africa over the recent past. Tanzania’s GDP growth is projected to be 6.3 percent in the upcoming year, a great sign for one of the continent’s most important economies. Finally, Uganda and Rwanda have been averaging high GDP growth rates since the Covid-19 recovery too.
Now this doesn’t mean that these economies won’t face challenges in the near future. There are still many issues in these countries, including how the global economic slowdown will likely hurt East African exporters. In addition, these countries are still working to improve their institutional environments in terms of corruption, the protection of property rights, and strengthening the private sector – all of which remain necessary for this region as a whole to flourish.
Nevertheless, there is much to be excited about. When growth is occurring, Africans are getting wealthier. As economic governance improves, economic freedom improves, making it easier for market mechanisms to make countries productive. There are positive signs in East Africa, and hopefully for the continent as a whole.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.
East Africa has been experiencing strong economic growth over the past few years, and it looks like things are going to continue surging in the right direction. According to The East African Economic Outlook 2024, released by RSM Eastern Africa Consulting Ltd, East African economies are projected to grow by over 5 % for the next two years.
These positive predictions are based in part on the past strong performance of several East African countries. Kenya, for example, experienced nearly 6 % growth during the third quarter of 2023. Furthermore, John Bosco Kalisa, CEO of the East African Business Council, noted that both Kenya and Tanzania have been driving growth in East Africa over the recent past. Tanzania’s GDP growth is projected to be 6.3 percent in the upcoming year, a great sign for one of the continent’s most important economies. Finally, Uganda and Rwanda have been averaging high GDP growth rates since the Covid-19 recovery too.
Now this doesn’t mean that these economies won’t face challenges in the near future. There are still many issues in these countries, including how the global economic slowdown will likely hurt East African exporters. In addition, these countries are still working to improve their institutional environments in terms of corruption, the protection of property rights, and strengthening the private sector – all of which remain necessary for this region as a whole to flourish.
Nevertheless, there is much to be excited about. When growth is occurring, Africans are getting wealthier. As economic governance improves, economic freedom improves, making it easier for market mechanisms to make countries productive. There are positive signs in East Africa, and hopefully for the continent as a whole.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.