East Africa is a region of remarkable economic potential and diversity, characterized by its rich natural resources, strategic geographical location.
These nations are not only pivotal players within the region but also significant contributors to the broader African economy.
In this article, WoA looks at their economic structures, growth trajectories, and the factors driving their development.
1. Ethiopia – $145.031 billion nominal GDP
Ethiopia’s economy is primarily agricultural, contributing 37.6% of GDP and employing about 63% of the workforce.
Over the past decade, it has experienced rapid growth, averaging around 10% annually, driven by agriculture and services.
The industrial sector is growing but remains modest, accounting for 22.7% of GDP.
Despite challenges like inflation and external debt, Ethiopia continues to attract foreign investment and develop infrastructure projects.
2. Kenya – $116.321 billion nominal GDP
Kenya’s economy is characterized by a diverse range of sectors including agriculture, services, manufacturing, and tourism.
In 2023, real GDP growth was approximately 5.6%, rebounding from previous challenges like drought and the COVID-19 pandemic.
Agriculture remains crucial, contributing about 24.9% to GDP, with tea and horticulture as key exports.
Despite growth, issues such as high public debt, income inequality, and youth unemployment persist.
3. Tanzania – $79.867 billion nominal GDP
Tanzania’s economy has shown resilience, with GDP growth projected at 5.1% in 2023 and 5.6% in 2024, driven by sectors like agriculture, manufacturing, and tourism.
The economy is diversifying, with services contributing 30.7% of GDP and industry at 27.7%.
Agriculture remains crucial, employing two-thirds of the workforce and accounting for about 24.6% of GDP.
Despite challenges like inflation and a large informal sector, ongoing reforms aim to enhance investment and improve the business environment, supporting sustainable growth.
4. Uganda – $55.587 billion nominal GDP
Uganda’s economy is characterized as a market-based system with significant natural resources, particularly in agriculture and oil.
The GDP was approximately $49 billion in FY 2022/23, with growth rebounding to 5.3% following pandemic-related slowdowns.
Agriculture employs 68% of the workforce, while the service sector accounts for 42.6% of GDP.
The government aims to reduce poverty from 41.4% to 39% by 2025 through increased investments, especially in the oil sector, expected to commence exports by 2025.
5. Rwanda – $13.663 billion nominal GDP
Rwanda’s economy has shown remarkable resilience and growth, averaging over 7% annually since the early 2000s.
In 2022, it achieved a GDP growth rate of 8.2%, driven by strong performance in industry, services, and agriculture.
The economy is primarily rural and agriculture-dependent, but the services sector now contributes nearly half of the GDP.
Key sectors include tourism, which is the leading foreign exchange earner, and manufacturing, which is targeted for growth through initiatives like the “Made in Rwanda” policy.
