East Africa’s economy is expected to reach 5.1 percent and 5.7 percent in 2024 and 2025, respectively – according to the latest Africa Macroeconomic Performance and Outlook (MEO) report.
The report attributes this positive outlook to several key factors, including deeper regional integration efforts and strategic public spending aimed at enhancing infrastructure investment.
Notably, investments in infrastructure have emerged as a significant driver of economic growth across Africa.
It’s being supported by a robust rebound in tourism following the disruptions caused by the COVID-19 pandemic, as well as the dividends of economic diversification initiatives.
Seven countries will lead in the growth accelerations of 1.6 percentage point in 2024, led by Rwanda which is poised to grow at 7.2 percent, followed by Ethiopia.
The African Development Bank Group (AfDB) says Africa will account for eleven of the world’s 20 fastest-growing economies in 2024.
Dr. Akinwumi Adesina, President of the Bank Group, has called for the urgent need for larger pools of financing and policy interventions to further bolster Africa’s growth momentum.
“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5 percent,” Dr Adesina said.
But this could be hampered by rising geopolitical tension coupled by regional conflics and political instability on the continent.
Released bi-annually, the MEO report complements the existing African Economic Outlook (AEO), focusing on emerging policy issues crucial for Africa’s development agenda.
