Economy of East Africa

Economy of East Africa Economy

Currency	Kenyan Shilling, Ethiopian birr, Somaliland shilling, Somali shilling Tanzanian shilling.
Statistics
Population	404,263,089
GDP	$1.72 T (PPP) $511.96B (nominal) [1]
GDP growth	4.8%
GDP per capita	$4,060 (PPP) $1,205 (nominal)[2]
Inflation (CPI)	▲ 27.07% (Average)
Public finances
Government debt	▲ 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.

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]

Rank	Country	Nominal GDP (USD billion)	GDP (PPP) (USD billion)	GDP per Capita (nominal USD)	GDP per Capita (PPP USD)
East Africa		511.96	1,724.30	1,205.52	4,060.23
1	Kenya	131.67	401.97	2,470	7,530
2	Ethiopia	117.46	484.41	1,070	4,400
3	Tanzania	85.98	293.59	1,280	4,370
4	Uganda	64.28	187.11	1,340	3,900
5	Sudan	31.51	117.77	625	2,340
6	Madagascar	18.71	64.24	595	2,040
7	Mauritius	15.50	41.35	12,330	32,910
8	Rwanda	14.77	58.12	1,040	4,100
9	Somalia	12.99	32.50	766	1,920
10	Burundi	6.75	13.98	490	1,020
11	Djibouti	4.59	9.94	4,340	9,410
12	South Sudan	4.00	11.39	251	716
13	Seychelles	2.20	4.27	21,630	42,010
14	Comoros	1.55	3.66	1,700	4,020
15	Eritrea	No data	No data	No data	No data

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 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

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.	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

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

#	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

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.

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 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 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 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 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 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 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

Rank	Country	Population (millions)[10]
East Africa		424.68
1	Ethiopia	110.15
2	Tanzania	67.18
3	Kenya	53.35
4	Sudan	50.42
5	Uganda	48.02
6	Madagascar	31.44
7	Somalia	16.96
8	South Sudan	15.90
9	Rwanda	14.16
10	Burundi	13.77
11	Mauritius	1.26
12	Djibouti	1.06
13	Comoros	0.91
14	Seychelles	0.10
15	Eritrea	no data

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.	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

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]

• List of East African Community sub regions by Human Development Index