The combined economic growth for East African countries is expected to rise to 5.1 percent in the course of 2024 and then climb up again to 5.7 percent by the year 2025.
This is derived from the latest outlook from the International Network of Assurance Tax and Consulting experts (RSM) Eastern Africa and the Arusha-based East African Business Council (EABC).
From the recent Chief Executive Officer’s Roundtable Meeting on East African Integration and Economic Outlook 2024 experts reveal that Kenya’s real Gross Domestic Product growth is projected to remain strong at 5.2 percent.
Organized by the East African Business Council in partnership with Kenya Private Sector Alliance (KEPSA), Kenya Association of Manufacturers, (KAM) and RSM Eastern Africa the roundtable meeting revealed Kenya’s tax to GDP is at 14.3 percent, and Saving to GDP at 10.2 percent.
The Executive Chairman of RSM Eastern Africa Ashif Kassam revealed that Kenya recorded a positive trade balance with EAC Partner States.
John Bosco Kalisa, EABC Executive Director said the Share of Intra-EAC trade was at 15 percent in 2022, and major intra-EAC trade block is costs of non-tariff barriers, urging Partner States to fully implement commitments of the Single Customs Territory to offer Green lane for EAC originating goods.
Jas Bedi, the Chairperson KEPSA stated that the Stay of Application to the EAC Common External Tariff creates an unlevel playing field to manufacturers in the region distorting the market making imports outside the EAC bloc cheaper.
Annette Mutaawe Ssemuwemba, EAC Deputy Secretary-General: Customs, Trade, and Monetary Affairs stated that full admission of the Federal Republic of Somalia into the EAC creates new opportunities for business.
Ssemuwemba stated that EAC’s total trade with the African continent continued to increase with the value of trade worth USD 5.2 billion in the third quarter of 2023 representing 24.8 percent of total trade.
Trade with Africa grew by eight percent on a quarter-to-quarter basis. The intra-EAC trade was valued at USD 3.3 billion, accounting for 15.7 percent in 2023 having increased from 12.9 percent in 2022.
The panel session shared invaluable insights into the economic trajectory of the region, continent, and beyond.
Mr. Anonty Mwangi, CEO Kenya Association of Manufacturers called for the need to strengthen regional value chain integration, harmonization of standards and joint initiatives to maximize natural resources such as hydropower and Liquid Natural Gas in Tanzania.
“We must make the EAC a center of green manufacturing in the globe.”
On his part Mr. Charles Omusana, Principal Economist (Investment and Private Sector Promotion) East African Community Secretariat stated that investment policies in Kenya should offer preferential treatment to East Africans.
Illicit trade – counterfeit, Sub standards, High cost of doing business- electricity and transport and Currency depreciation are among the issues raised by the 50 business leaders during the CEO Roundtable.
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