Economy of East Africa

Economy of East Africa Economy

Nairobi City, Main financial hub in East Africa
Currency	Kenyan Shilling, Ethiopian birr
Statistics
Population	404,263,089
GDP	$503.57B (nominal) $1.589T (PPP)
GDP growth	4.8%
GDP per capita	$1,153 (Nominal) $3,930 (PPP)
Inflation (CPI)	▲ 27.07% (Average)
Public finances
Government debt	▲ 27.07% (Average) $341.68B
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. 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. Ethiopia and Kenya account for 55% of East Africa's GDP. East Africa accounts for 18% of Africa's GDP.

GDP PPP

GDP Purchasing Power Parity

Ethiopia and Kenya boast the highest GDP PPP in East Africa and boasts 46% of East African economy.

No.	Country	GDP (PPP)
1	Ethiopia	434.44
2	Kenya	375.36
3	Tanzania	269.67
4	Uganda	170.61
5	Sudan	123.48
6	Madagascar	60.88
7	Rwanda	51.92
8	Mauritius	40.43
9	Somalia	30.43
10	Burundi	13.17
11	South Sudan	11.79
12	Seychelles	4.14
13	Comoros	3.44
14	Total	1,589.86
15	Eritrea	No data

Gross domestic product

Ethiopia and Kenya boasts the highest GDP in East Africa while the Seychelles and Mauritius has the highest GDP per capita. The total combined GDP of East Africa is $603 billion.

East Africa Countries by GDP

No.	Country	GDP (PPP) (USD 'billions)
1	Ethiopia	145.03
2	Kenya	116.32
3	Tanzania	79.87
4	Uganda	55.59
5	Sudan	29.79
6	Madagascar	17.21
7	Mauritius	15.89
8	Rwanda	13.66
9	Somalia	12.73
10	South Sudan	5.27
11	Djibouti	4.33
12	Burundi	4.29
13	Seychelles	2.14
14	Comoros	1.45
15	Total	503B
16	Eritrea	No 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.

East African Countries by Real GDP Growth

No.	Country and Flag	Real GDP Growth (in billions USD)
1	Rwanda	6.9
2	Djibouti	6.5
3	Ethiopia	6.2
4	South Sudan	5.6
5	Uganda	5.6
6	Tanzania	5.5
7	Kenya	5.0
8	Mauritius	4.9
9	Burundi	4.3
10	Somalia	3.7
11	Comoros	3.5
12	Seychelles	3.2
13	Eritrea	No data
14	Sudan	-4.2

Per Capita PPP

GDP per Capita (Nominal) by Country

No.	Country	Per Capita (USD)
1	Seychelles	41,080
2	Mauritius	32,060
3	Djibouti	8,600
4	Kenya	7,160
5	Tanzania	4,130
6	Ethiopia	4,050
7	Comoros	3,860
8	Rwanda	3,750
9	Uganda	3,640
10	Sudan	2,510
11	Madagascar	1,990
12	Somalia	1,840
13	Burundi	986
14	South Sudan Republic of	763
15	Average	3,930

GDP per Capita

Seychelles and Mauritius are the richest countries in East Africa by per capita, followed by Djibouti and Kenya respectively. Burundi and South Sudan are the poorest in East Africa and in the world also. Only 6 of the 14 countries have a GDP per Capita less than $1,000.

GDP (PPP) by Country

No.	Country	GDP Per Capita (in USD)
1	Seychelles	21,290.00
2	Mauritius	12,600.00
3	Djibouti	4,150.00
4	Kenya	2,220.00
5	Comoros	1,630.00
6	Ethiopia	1,350.00
7	Tanzania	1,220.00
8	Uganda	1,190.00
9	Rwanda	985.99
10	Somalia	771.45
11	Sudan	606.29
12	Madagascar	562.59
13	South Sudan	340.99
14	Burundi	320.64
Total		1,157

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.

Debt to GDP of Selected African Countries

No.	Country	Debt to GDP (%)
1	Sudan	344.4
2	Mauritius	80.1
3	Kenya	69.9
4	Burundi	86.8
5	Rwanda	71.4
6	Seychelles	58.4
7	Djibouti	32.7
8	Madagascar	55.5
9	Uganda	51.4
10	South Sudan, Republic of	56.9
11	Tanzania	47.3
12	Comoros	34.9
13	Ethiopia	33.6
14	Eritrea	no data
15	Somalia	no data
15	East Africa	69.00

Current Account Balance

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

Account Data for East African Countries

#	Country	Account Balance
1	Djibouti	0.344
2	South Sudan, Republic of	0.259
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
15	Eritrea	no data

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 centers in East Africa:

Nairobi, Kenya

Nairobi Skyline

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 CBD skyline

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, Tanzania Skyline

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

A view of Mombasa from the Tusks

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.

Population

#	Country	Population (Millions)
1	Ethiopia	107.4
2	Tanzania	65.23
3	Kenya	52.44
4	Sudan	49.14
5	Uganda	46.85
6	Madagascar	30.59
7	Somalia	16.5
8	South Sudan	15.45
9	Rwanda	13.86
10	Burundi	13.37
11	Mauritius	1.26
12	Djibouti	1.04
13	Comoros	1.03
14	Seychelles	0.1
#	East Africa	424.26

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.

Inflation Data Table

No.	Country	Oct Inflation Data	April Inflation Data
1	Sudan	▲ 200.1	145.5
2	South Sudan, Republic of	▲ 120.6	54.8
3	Ethiopia	▼ 23.9	25.6
4	Burundi	▼ 20	22
5	Madagascar	▼ 7.4	7.8
6	Kenya	▼ 5.1	6.6
7	Rwanda	▼ 4.9	5.8
8	Mauritius	▼ 3.5	4.9
9	Somalia	▲ 5	4.8
10	Tanzania	▼ 3.2	4
11	Uganda	▼ 3.5	3.8
12	Comoros	▲ 4	2
13	Djibouti	▼ 1.4	1.8
14	Seychelles	▲ 0.8	-0.2
15	Average	▲ 27.07	20.66

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.
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.