East African economies are set to enjoy sustained economic growth with a rise in the gross domestic product (GDP) and export revenues, analysts at Ecobank have predicted.
Ecobank Kenya Managing Director and Regional Executive of Central, Eastern and Southern African (Cesa) Samuel Adjei said the region looks set for continued and sustained economic growth, assisted by commodity prices and the prospect of significant oil production.
Ethiopia, Kenya, Tanzania and Uganda are enjoying a period of significant economic growth with their GDPs forecast to grow between 5.2 per cent and 8.5 per cent this year.
The region’s tech hubs are also spurring the next generation of disruptors.
“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,” said Mr Adjei.
Ecobank head of group research Edward George said the countries in East Africa make up one of the most dynamic commercial and economic regions in Africa.
“Consumers in countries such as 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 said Mr George.
This is supported by ongoing reforms and the improvement in commodity prices which has driven up export revenues.
Much of the region is reliant on agricultural crops and commodities for export earnings, but continued economic optimism looks assured.
They said 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 turbocharge their economies.