The East African Community’s five core economies (EAC-5) posted mixed results in real GDP growth, reflecting varied structural dynamics, sectoral performances, and fiscal strategies among member states.
Kenya’s economy experienced a slowdown in 2024, registering a real GDP growth of 4.7%, a decline from 5.6% in 2023. While key sectors such as agriculture, finance, and transportation drove growth, contractions in construction and mining held back overall performance. This deceleration highlights the ongoing challenges in balancing infrastructure expansion with macroeconomic stability. Rising interest rates, delayed public projects, and global commodity price fluctuations have also played a role in the slowing momentum.
Uganda recorded an improved growth rate of 5.2% in the fiscal year 2022/23, compared to 4.6% in the previous period. This upward trend signals the country’s resilience, bolstered by post-pandemic recovery efforts and increased activity in manufacturing and services. However, Uganda still faces fiscal pressures and must manage its debt prudently to sustain this growth trajectory.
Tanzania maintained a moderate growth rate of 5.0% in 2023, according to central bank estimates. The performance was underpinned by significant public infrastructure investments and a relatively stable inflation environment. The government’s continued focus on transport networks, energy, and agriculture modernization has played a critical role, but challenges remain in private sector stimulation and job creation.
In stark contrast, Rwanda emerged as the region’s fastest-growing economy, with a remarkable real GDP growth of 8.9% in 2024, up from 8.2% in 2023. The country’s robust performance was driven by strength across agriculture, industry, and services. Government reforms, strong investor confidence, and a focus on digital transformation have contributed to Rwanda’s economic dynamism.
Overall, while Rwanda leads in terms of growth momentum, the EAC-5’s broader outlook remains cautiously optimistic. Regional integration, economic diversification, and improved governance are critical for sustaining long-term growth. Policymakers across the region must address sectoral imbalances, climate risks, and debt vulnerabilities to foster inclusive and resilient economic development.
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