Given the growth prospects in Africa’s economy, the Africa Pulse study observed that East Africa remains the sub-region with the greatest economic performance on the continent.
According to the report by the World Bank, the Eastern and Southern Africa (AFE) sub region’s economy is expected to grow from 1.7% in 2023 to 2.2% in 2024 and then reach 3.9 percent in 2025–2026.
With a growth rate of 4.7 percent in 2024 and an anticipated rate of 5.7 percent in 2025–2026, the East African Community outperformed other African sub-regions.
The countries that contributed most to the East African Community’s growth performance were Kenya, Rwanda, Tanzania, and Uganda.
Kenya’s economy alone is projected to rise to 5% in 2024 and 5.1% in 2025–2026.
Private consumption and investment in the East African country are being bolstered by improved macroeconomic circumstances, which are demonstrated by reduced inflation and a more stable local currency.
The Kenyan Shilling had gone from one of the worst performing currencies in 2023, to the best in 2024. The currency appreciated by 21 percent year-to-date by end-August 2024.
Furthermore, as a result of liquidity constraints, Kenya was more vulnerable to macrofinancial instability as it needed to raise money to pay for larger fiscal deficits and bond redemptions.
From the standpoint of sectoral production, economic activity is being supported by the recovery in tourism and agriculture.
