Economy of East Africa

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Population404,263,089
GDPIncrease $1.72 T (PPP)

Decrease $511.96B (nominal)

[1]
GDP growth
4.8%
Economy of East Africa Economy
CurrencyKenyan Shilling, Ethiopian birr, Somaliland shilling, Somali shilling Tanzanian shilling.
Statistics
Population404,263,089
GDPIncrease $1.72 T (PPP)

Decrease $511.96B (nominal)

[1]
GDP growth
4.8%
GDP per capita
Increase $4,060 (PPP)
Increase $1,205 (nominal)[2]
27.07% (average)
Public finances
27.07% (average) $341.68B[3]
All values, unless otherwise stated, are in US dollars.

The Economy of East Africa is characterized by diverse sectors, with agriculture playing a pivotal role, employing the majority of the population and contributing significantly to GDP. Key crops include coffee, tea, and horticultural products. East Africa is the fastest growing region in Africa.[4] The region has also seen rapid growth in tourism with Tanzania and Kenya pioneering tourism due to safari parks. Nairobi and Addis Ababa are the main financial hubs in East Africa.[5] East Africa has a total GDP of $511.96 billion, contributing to around 18% of Africa's GDP. Kenya and Ethiopia lead in GDP, contributing 25% and 22% respectively to regional GDP, while Seychelles and Mauritius lead in GDP per capita.

Nairobi City, Kenya
Addis Ababa, Ethiopia
Dar es Salaam, Tanzania

As of 2025, Kenya is the largest economy in East Africa with a nominal GDP of $131.67 billion, followed closely by Ethiopia at $117.46 billion. Seychelles leads in GDP per capita at $21,630, with Mauritius second at $12,330. At the bottom, South Sudan and Burundi have the lowest GDP per capita, at $251 and $490 respectively, reflecting significant income disparities across the region. East Africa has a total GDP of $511 billion at nominal and $1.7 trillion at PPP; Kenya and Ethiopia account for close to half of the GDP, contributing 25% and 23% respectively.[6]

Rank Country Nominal GDP (USD billion) GDP (PPP) (USD billion) GDP per capita (nominal USD) GDP per capita (PPP USD)
East Africa511.961,724.301,205.524,060.23
1 Kenya131.67401.972,4707,530
2 Ethiopia117.46484.411,0704,400
3 Tanzania85.98293.591,2804,370
4 Uganda64.28187.111,3403,900
5 Sudan31.51117.776252,340
6 Madagascar18.7164.245952,040
7 Mauritius15.5041.3512,33032,910
8 Rwanda14.7758.121,0404,100
9 Somalia12.9932.507661,920
10 Burundi6.7513.984901,020
11 Djibouti4.599.944,3409,410
12 South Sudan4.0011.39251716
13 Seychelles2.204.2721,63042,010
14 Comoros1.553.661,7004,020
15 EritreaNo dataNo dataNo dataNo data

Real GDP growth

East Africa is the fastest growing region in Africa. Rwanda, Ethiopia, and Djibouti boast some of the fastest economic growth in the region.[7]

East African countries by real GDP growth
No.Country and flagReal GDP growth (in billions USD)
1 Rwanda6.9
2 Djibouti6.5
3 Ethiopia6.2
4 South Sudan5.6
5 Uganda5.6
6 Tanzania5.5
7 Kenya5.0
8 Mauritius4.9
9 Burundi4.3
10 Somalia3.7
11 Comoros3.5
12 Seychelles3.2
13 EritreaNo data
14 Sudan-4.2

Government debt

Nearly all East African countries have government debt to a GDP percentage of more than 50%. Sudan has the highest (344%), four times larger than the following country. This is due to the ongoing civil war.[3]

Debt to GDP of Selected African countries
No.CountryDebt to GDP (%)
1 Sudan344.4
2 Mauritius80.1
3 Kenya69.9
4 Burundi86.8
5 Rwanda71.4
6 Seychelles58.4
7 Djibouti32.7
8 Madagascar55.5
9 Uganda51.4
10 South Sudan, Republic of56.9
11 Tanzania47.3
12 Comoros34.9
13 Ethiopia33.6
14 Eritreano data
15 Somaliano data
15East Africa69.00

Current account balance

Djibouti and South Sudan have the highest account balance, while Kenya and Ethiopia have the lowest.[8]

Account data for East African countries
#CountryAccount balance
1 Djibouti0.344
2 South Sudan, Republic of0.259
3 Comoros-0.082
4 Seychelles-0.815
5 Mauritius-0.96
6 Burundi-0.539
7 Madagascar-1.046
8 Rwanda-1.443
9 Somalia-1.828
10 Tanzania-2.74
11 Sudan-3.125
12 Uganda-3.616
13 Kenya-5.584
14 Ethiopia-5.247
15Eritreano data

Oil and gas in East Africa

East Africa's untapped crude oil is considerable, with Tanzania gas production with Norway's Equinor with exports of natural gas in sea basin regions, Mozambique with TotalEnergies in gas fields with a pipeline towards southern Africa countries such as south Africa, Somaliland SL10/SL13 near Exploration /Production in Qishn fault regions with Genel Energy Somaliland estimates of crude around 30 Bn barrels with recent oil discovery in southern Somaliland, new oil installations such as refineries planned in Berbera port regions . Uganda and major crude oil pipeline towards Tanzania ports with concession company TotalEnergies.[clarification needed]

Economic hubs of East Africa

East Africa is home to several key economic hubs that significantly contribute to the region's overall economic landscape. Below are five major economic centres in East Africa.

Nairobi, Kenya

Nairobi is the economic powerhouse of East Africa, serving as the region's primary financial center and hosting major corporations and banks. Its robust infrastructure and growing technology sector significantly contribute to economic activities and innovations across the region.

Addis Ababa, Ethiopia

Addis Ababa plays a vital role in East Africa's economy as a hub for trade and commerce. Its central location and development initiatives make it a key player in fostering economic integration and facilitating investments within the region.

Dar es Salaam, Tanzania

Dar es Salaam is crucial to East Africa's economy due to its status as the largest port city in Tanzania. It serves as a primary transit point for goods entering and leaving the region, supporting trade and boosting economic growth.

Kampala, Uganda

Kampala contributes to East Africa's economy through its vibrant market activities and diverse industries. Its growth in sectors like agriculture, manufacturing, and service industries enhances regional trade and investment opportunities.

Mombasa, Kenya

Mombasa is essential to East Africa's economic landscape as a major port city facilitating maritime trade. Its economy is driven by shipping, tourism, and agriculture, significantly impacting trade flows within the East African community. It has the largest port in East Africa.[9]

Berbera, Somaliland

Berbera is set to serve eastern Africa country's such as Ethiopia and Djibouti in Somaliland with major DP World redevelopment of Berbera port, and creation of Berbera Economic Zone (BEZ) New silk refinery construction of 30,000 barrel per day refinery opening in 2028 in Berbera, Berbera opened data centre By Wingu Africa linked to submarine cables of Africa and Asia that would serve the region.[clarification needed]

Population

Rank Country Population (millions)[10]
East Africa424.68
1 Ethiopia110.15
2 Tanzania67.18
3 Kenya53.35
4 Sudan50.42
5 Uganda48.02
6 Madagascar31.44
7 Somalia16.96
8 South Sudan15.90
9 Rwanda14.16
10 Burundi13.77
11 Mauritius1.26
12 Djibouti1.06
13 Comoros0.91
14 Seychelles0.10
15 Eritreano data

Inflation rate

Sudan has the worst inflation due to the ongoing civil war, while South Sudan is expected to decline in oil revenues due to factors such as currency depreciation. Although most countries in East Africa are recovering from inflation, Sudan and South Sudan are having hyperinflation.[11]

Inflation data table
No.CountryOct. inflation dataApril inflation data
1 Sudan 200.1145.5
2 South Sudan, Republic of 120.654.8
3 Ethiopia 23.925.6
4 Burundi 2022
5 Madagascar 7.47.8
6 Kenya 5.16.6
7 Rwanda 4.95.8
8 Mauritius 3.54.9
9 Somalia 54.8
10 Tanzania 3.24
11 Uganda 3.53.8
12 Comoros 42
13 Djibouti 1.41.8
14 Seychelles 0.8-0.2
15Average 27.0720.66

Inter-country trade unions in East Africa

See also

References

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