04/16/2019 | News release | Distributed by Public on 04/16/2019 08:57
The manufacturing sector will hold the key to future growth in East Africa,the African Development Bank's lead Economist for the Bank's East Africa Regional Office has emphasised.
Speaking during the launch ceremony of the East Africa Regional Economic Outlook report held 4 April 2019 in Nairobi, Kenya, Dr Marcellin Ndong-Ntah said the manufacturing sector's potential to accelerate regional economic growth and ultimately reduce poverty was significant.
'In order to achieve this objective, countries must continue to look for alternative sectors of economic growth, emphasise regional trade and continue to process goods for export rather than selling raw commodities,' Ndong-Ntah said.
Economic growth across East Africa will remain robust at 5.9 percent in 2019, higher than the continental average annual growth rate of 4% and making it a promising investment and manufacturing destination, according to the 2019 East Africa Economic Outlook Report
The report puts Ethiopia in the lead as the fastest growing economy in the region with an average annual growth rate of 8.2% followed by Rwanda next at 7.8%; Others are Tanzania at 6.6%; Kenya 6%, Djibouti 5.9% and Uganda 5.3%.
Overall, most of the economies in East Africa are expected to continue on higher growth trajectories, with an expected average annual economic growth of 6.1% in 2020. This will be driven by the high investment rate, robust private consumption from the demand side; and agriculture recovery, and expansion of industry and services from the supply side, the report noted.
Dr. Abraham Mwenda, Lead Economist at the Bank's East Africa Regional Office noted that despite rising debt levels across the continent, there is no systemic risk of debt crisis yet. He also noted that even though many African countries are recording robust growth rates, the growth is still insufficient to address the employment challenge across the continent.
On regional integration, the regional report noted that there are numerous opportunities for fostering monetary unions, cross-border transportation, and regulatory bonds to increase the ease of movement of goods, services and people. The region's 5 landlocked countries and presence of small island states such as the Comoros and Seychelles also offer opportunities for integration.
Present at the launch, Prof. Njuguna Ndung'u, Executive Director of African Economic Research Consortium (AERC) and former Governor of Central Bank of Kenya,, praised the high quality of the report and highlighted its utilization as a key tool for policymakers, academics, investors, development and financial industry professionals and the press for engagement on policy issues and solutions across the region.
The ceremony was attended by eminent economists and representatives of the development agencies, private sector and industry drawn from across East Africa.
Access the East Africa and Continental reports here