Ethiopia, Kenya, Tanzania and Uganda are set to experience sustained economic growth, according to a team of researchers from Ecobank, a leading Pan-African lender with a presence in 36 countries across the continent.
According to Ecobank experts, the four nations are the regions’ economic powerhouses and are enjoying a period of significant economic growth. In fact, their Gross Domestic Products (GDPs) are forecast to grow by between 5.2% and 8.5% this year, supported by ongoing reforms and the improvement in commodity prices which has driven up export revenues.
“The East African nations look set for continued and sustained economic growth, assisted by commodity prices and the prospect of significant oil production,” said Samuel Adjei, Ecobank Kenya Managing Director and Regional Executive of Central, Eastern and Southern African (CESA) countries at Ecobank.
“The region is a world leader in disruptive Fintech, illustrated by the resounding success of mobile money and Kenya, together with Rwanda, Tanzania and Uganda, represent a regional powerhouse for global commercial services,” he added.
“Much of the region is reliant on agricultural crops and commodities for export earnings, but continued economic optimism looks assured,” Ecobank said in a recent statement.
The lender’s researchers explained that the combined effects of further export diversification, improvements in infrastructure, industrialisation, major oil discoveries, and the potential for significant growth in commercial services, look set to speed up the growth of their economies.
East Africa is a well-integrated Anglophone trade hub, but the Africa Continental Free Trade Area (AfCFTA) – a regional bloc uniting several countries – could pave the way for the entire African continent to capitalise on its enormous growth potential. Ever-closer economic co-operation and integration will provide the bedrock for the continent’s increased competitiveness globally.
“The countries in East Africa, most of them members of the East African Community (EAC), make up one of the most dynamic commercial and economic regions in Africa,” said Dr. Edward George, Ecobank’s Head of Group Research.
“East Africa is a leading exporter of tea, coffee, cut flowers and minerals to world markets, is a financial, logistics and services hub, and has some of the most diverse intra-regional trade flows in Africa. Consumers in countries like Kenya have been transacting by mobile for more than a decade and we are now seeing East African tech hubs in Nairobi, Kigali and Kampala take a leadership role in developing innovations to address long-standing African challenges. It’s an exciting time for East Africa,” he explained.