Moody’s Sees East African Economies Expanding Fastest Globally

NAIROBI (Capital Markets in Africa) – East African economies will be among the fastest growing globally over the next two years with rates of 5.5 percent to 7 percent, driven by public spending on infrastructure, according to Moody’s Investors Service.

Rwanda and Tanzania are expected to grow at 6.5 percent to 7.5 percent annually, while Uganda and Kenya could see rates of 5 percent – 6 percent. The services sector, which makes up the largest share of gross domestic product in all four countries, at around 40 percent – 55 percent, will continue to dominate.

Household consumption, which makes up over 60 percent of GDP in the four countries, will remain a key growth driver, according to the report.

“A continuation of growth at these rates is unlikely to materially affect the rating agency’s assessment of their overall economic strength or credit quality,” Moody’s said, adding that a shift to more manufacturing would improve economic resilience and credit quality over time.