Uganda and Tanzania outperform their East African peers in economic performance in 2024, recording increased growth rates buoyed by improved activity in infrastructure, industrial and oil sectors.

 

Data from Kenya’s Economic Survey (2025) released on Tuesday shows that the rest of the East African Community member states posted declines in economic growth during the year, signalling economies weighed down by various domestic and external shocks such as debt repayment.

The report says that, overall, five EAC partners, Kenya, Uganda, Tanzania, Burundi and Rwanda, registered marginal growth in GDP -- 5.4 percent, from 5.3 percent in 2023.

But Uganda saw 5.9 percent GDP growth, from 4.6 percent in 2023, propelled by advancements in oil sector developments and public infrastructure projects.

In Tanzania, the economy grew by 5.4 percent, from 5.1 percent the previous year, attributed to robust industrial activity and infrastructure investments.

The marginal growth in the bloc’s overall economic performance was mainly driven by robust performance in agriculture, services, and manufacturing sectors, and increased foreign direct investment.

The EAC also benefited from favourable global commodity prices and a rebound in tourism, contributing to the overall economic expansion, according to the report.

Inflation within the EAC eased to 4.4 percent in 2024, from 6.7 percent in 2023, while the current account deficit as a percentage of GDP narrowed to 5.1 percent in 2024, from 5.6 percent in the same period in 2023, indicating a modest improvement in the region’s external balance.

According to the report, Kenya’s real GDP expanded by 4.7 percent in 2024, compared with 5.7 percent in 2023, largely driven by agricultural, financial, insurance and transportation activities.

Rwanda’s growth declined to 7 percent, from 8.2 percent, reflecting a moderation after previous rapid expansion, while Burundi’s economy slowed to 2.2 percent, from 2.7 percent growth in 2023, strained by political uncertainties and limited investment inflows.

The report notes that the Democratic Republic of the Congo (DRC) recorded a slowed growth of 4.7 percent in 2024, compared with 8.4 percent in 2023, blamed on fluctuation in commodity prices that impacted the mining sector.

The real GDP of South Sudan contracted by 26.4 percent in 2024, compared to a 2.5 percent growth in 2023, due to internal conflicts disrupting oil production and exports.

The real GDP growth in the Southern African Development Community (SADC) slowed to 2.5 percent in 2024, from 2.7 percent in 2023, partly due to subdued economic activity in key member states, South Africa and Angola, which were hit by drought, persistent power outages and terms of trade shocks.

Read: East African economy projected to register marginal growth in 2025The region’s inflation rose to 18.1 per cent in 2024, from 16.9 per cent in 2023, driven by elevated food and energy prices, and currency depreciation in several countries in the bloc.

The current account deficit as a percentage of GDP widened to 2.6 percent in 2024, from 2.3 per cent in 2023.

The West African Economic and Monetary Union experienced a robust economic performance in 2024, with real GDP growth accelerating to 6.2 percent from 5.1 percent growth in 2023.

The region’s inflation figures eased to 3.2 percent from 3.8 percent, largely due to the restrictive monetary policies implemented by the Central Bank of West African States (BCEAO), which effectively curbed inflationary pressures.

The current account deficit as a percentage of GDP narrowed to 6.3 percent from 9.7 percent recorded in 2023.“This positive trend was attributed to favourable developments in terms of trade, including a decline in the prices of imported energy products and an increase in prices of key exported commodities such as gold, cocoa, cotton, and rubber,” the report says.

The Economic and Monetary Community of Central Africa (Cemac) experienced a modest economic recovery, with real GDP growth estimated at 3.7 percent in 2024 compared to 2.3 percent growth in 2023, primarily driven by a rebound in oil production and higher global commodity prices, which bolstered the economies of Cameroon and Chad.

Inflation in the region eased to 4 percent from 5.4 percent in 2023, amid tightening of monetary policy by Bank of Central African States’ (BEAC) , which helped stabilise prices. The current account deficit as a percentage of GDP widened slightly from 0.4 percent in 2023 to 0.6 percent in 2024.

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