Economy of East Africa

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Economy of East Africa Economy
Currency Kenyan Shilling, Ethiopian birr, Somaliland shilling, Somali shilling Tanzanian shilling.
Statistics
Population404,263,089
GDP Increase2.svg $1.72 T (PPP)

Decrease2.svg $511.96B (nominal)

[1]
GDP growth
4.8%
GDP per capita
Increase2.svg $4,060 (PPP)
Increase2.svg $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.

Contents

Nairobi City, Kenya Nairobi City centre including Basilica.jpg
Nairobi City, Kenya
Addis Ababa , Ethiopia Addis in night.jpg
Addis Ababa , Ethiopia
Dar es Salaam, Tanzania Dar es salaam City.jpg
Dar es Salaam, Tanzania

GDP

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 accounts for close to half of the GDP each contributing 25% and 23% respectively. [6]

RankCountryNominal 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 Flag of Kenya.svg Kenya 131.67401.972,4707,530
2 Flag of Ethiopia.svg Ethiopia 117.46484.411,0704,400
3 Flag of Tanzania.svg Tanzania 85.98293.591,2804,370
4 Flag of Uganda.svg Uganda 64.28187.111,3403,900
5 Flag of Sudan.svg Sudan 31.51117.776252,340
6 Flag of Madagascar.svg Madagascar 18.7164.245952,040
7 Flag of Mauritius.svg Mauritius 15.5041.3512,33032,910
8 Flag of Rwanda.svg Rwanda 14.7758.121,0404,100
9 Flag of Somalia.svg Somalia 12.9932.507661,920
10 Flag of Burundi.svg Burundi 6.7513.984901,020
11 Flag of Djibouti.svg Djibouti 4.599.944,3409,410
12 Flag of South Sudan.svg South Sudan 4.0011.39251716
13 Flag of Seychelles.svg Seychelles 2.204.2721,63042,010
14 Flag of Comoros.svg Comoros 1.553.661,7004,020
15 Flag of Eritrea.svg Eritrea No dataNo dataNo dataNo data

Real GDP growth

East Africa is the fastest growing region in Africa. Rwanda, Ethiopia, 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 Flag of Rwanda.svg Rwanda 6.9
2 Flag of Djibouti.svg Djibouti 6.5
3 Flag of Ethiopia.svg Ethiopia 6.2
4 Flag of South Sudan.svg South Sudan 5.6
5 Flag of Uganda.svg Uganda 5.6
6 Flag of Tanzania.svg Tanzania 5.5
7 Flag of Kenya.svg Kenya 5.0
8 Flag of Mauritius.svg Mauritius 4.9
9 Flag of Burundi.svg Burundi 4.3
10 Flag of Somalia.svg Somalia 3.7
11 Flag of Comoros.svg Comoros 3.5
12 Flag of Seychelles.svg Seychelles 3.2
13 Flag of Eritrea.svg Eritrea No data
14 Flag of Sudan.svg Sudan -4.2

Government debt

Nearly all East African countries have government debt to GDP percentage of more than 50%. Sudan has the highest (344%), 4 times larger than the following second country. This is due to the ongoing civil war. [3]

Debt to GDP of Selected African Countries
No.CountryDebt to GDP (%)
1 Flag of Sudan.svg Sudan344.4
2 Flag of Mauritius.svg Mauritius80.1
3 Flag of Kenya.svg Kenya69.9
4 Flag of Burundi.svg Burundi86.8
5 Flag of Rwanda.svg Rwanda71.4
6 Flag of Seychelles.svg Seychelles58.4
7 Flag of Djibouti.svg Djibouti32.7
8 Flag of Madagascar.svg Madagascar55.5
9 Flag of Uganda.svg Uganda51.4
10 Flag of South Sudan.svg South Sudan, Republic of56.9
11 Flag of Tanzania.svg Tanzania47.3
12 Flag of Comoros.svg Comoros34.9
13 Flag of Ethiopia.svg Ethiopia33.6
14 Flag of Eritrea.svg Eritreano data
15 Flag of Somalia.svg Somaliano data
15East Africa69.00

Current account balance

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

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

Oil and gas in East Africa

East Africa untapped crude oil is seen as considerable and giant with Tanzania gas production with Norway's Equinor with exports of natural gas in sea basin regions, Mozambique with TotalEnergies in gas fields with pipeline towards southern Africa country's 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 refinery's planned in Berbera port regions . Uganda and major crude oil pipeline towards Tanzania ports with concession company TotalEnergies.

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

Population

RankCountryPopulation (millions) [10]
East Africa424.68
1 Flag of Ethiopia.svg Ethiopia 110.15
2 Flag of Tanzania.svg Tanzania 67.18
3 Flag of Kenya.svg Kenya 53.35
4 Flag of Sudan.svg Sudan 50.42
5 Flag of Uganda.svg Uganda 48.02
6 Flag of Madagascar.svg Madagascar 31.44
7 Flag of Somalia.svg Somalia 16.96
8 Flag of South Sudan.svg South Sudan 15.90
9 Flag of Rwanda.svg Rwanda 14.16
10 Flag of Burundi.svg Burundi 13.77
11 Flag of Mauritius.svg Mauritius 1.26
12 Flag of Djibouti.svg Djibouti 1.06
13 Flag of the Comoros.svg Comoros 0.91
14 Flag of Seychelles.svg Seychelles 0.10
15 Flag of Eritrea.svg Eritrea no data

Inflation rate

Sudan has the worst inflation due to ongoing civil war, while South Sudan is due 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 Flag of Sudan.svg Sudan 200.1145.5
2 Flag of South Sudan.svg South Sudan, Republic of 120.654.8
3 Flag of Ethiopia.svg Ethiopia 23.925.6
4 Flag of Burundi.svg Burundi 2022
5 Flag of Madagascar.svg Madagascar 7.47.8
6 Flag of Kenya.svg Kenya 5.16.6
7 Flag of Rwanda.svg Rwanda 4.95.8
8 Flag of Mauritius.svg Mauritius 3.54.9
9 Flag of Somalia.svg Somalia 54.8
10 Flag of Tanzania.svg Tanzania 3.24
11 Flag of Uganda.svg Uganda 3.53.8
12 Flag of Comoros.svg Comoros 42
13 Flag of Djibouti.svg Djibouti 1.41.8
14 Flag of Seychelles.svg Seychelles 0.8-0.2
15Average 27.0720.66

Inter-country trade unions in East Africa

  1. Common Market for Eastern and Southern Africa (COMESA) - COMESA is primarily an economic organization that facilitates cooperation among member states, including initiatives that address labor and trade issues. [12]
  2. East African Trade Union Confederation (EATUC) - EATUC represents trade unions from East African countries, advocating for workers' rights and promoting regional cooperation.
  3. International Trade Union Confederation (ITUC) - ITUC is a global organization that includes many member unions from East Africa and addresses cross-border labor issues. [12]

See also

References

  1. "Gdp PPP". 2025.
  2. "Per Capita PPP". 2025.
  3. 1 2 "government debt". 2025.
  4. "Fastest growing region in africa". 2024.
  5. "Financial hub". 2024. Archived from the original on 2024-09-15. Retrieved 2024-10-18.
  6. "East Africa region by GDP". IMF. 2025. Retrieved 27 July 2025.
  7. "Real gdp growth". 2024.
  8. "Account Balance". 2024.
  9. "Mombasa port". 2024.
  10. "East Africa Population". 2025.
  11. "EA inflation rate".
  12. 1 2 "Comesa". 2024.