East Africa is holding an economic torch for the continent even as the global recession gathers momentum, the latest economic outlook by Institute of Chartered Accountants in England and Wales (ICAEW) has revealed.
According to the report, East Africa’s economy is expected to continue expanding at an average of 6.3 per cent in 2020, with that of Rwanda expected to lead at eight per cent from 7.8 per cent.
Kenya’s economy is expected to expand in the margins of six per cent while that of Uganda and Tanzania is projected at 5.9 and 5.8 per cent respectively.
Behind East Africa is the franc zone, there; GDP growth is forecasted at 4.9 per cent for 2020.
Growth in West and Central Africa is expected to increase from 3.4 per cent in 2019 to 3.7 percent next year, largely held back by a subdued economic performance by Nigeria due to some erratic and ineffective policy decisions.
Meanwhile, North Africa’s economic performance remains volatile due to instability in Libya, with regional growth picking up from 2.8 per cent this year to 4.5 per cent in 2020.
Economic growth will be slowest in Southern Africa where it is expected to expand at an average of 2.2 per cent from 1.3 per cent this year.
Speaking during the launch of the report, ICAEW regional director for the Middle East, Asia and Africa, Michael Armstrong, said that the strength of the diversified economies in the East of the continent plays a major role in cushioning them from the shocks a global slowdown in economic growth.
The report finds that, despite there being a gloomy backdrop created by slow growth in the United States, China, and Europe, Africa remains a relative bright spot with many positive economic stories.
The report further revealed that Africa would become home to half of the 10 fastest-growing economies on the planet over the next five years.
