Kigali, Rwanda, 27 July 2026 (ECA) – The UN Economic Commission for Africa (ECA) Office for Eastern Africa, in collaboration with the United Nations Resident Coordinator's Office in Rwanda, convened African Ambassadors, High Commissioners, and officials from the Ministry of Finance and Economic Planning to discuss the subregion's economic performance. The dialogue focused on the findings of ECA’s 2026 Macroeconomic and Social Overview report, titled "Eastern Africa's Balancing Act: High Growth, Tight Budgets, and Rising Uncertainty."
Opening the meeting, Ms. Fatmata Lovetta Sesay, United Nations Resident Coordinator a.i. in Rwanda noted that the region continues to demonstrate strong economic fundamentals despite a complex global environment.
"The report we discuss today highlights a region that is demonstrating remarkable resilience. Economic growth has generally remained robust, inflation has moderated in many countries, and foreign direct investment has shown encouraging signs of strength," she said.
According to the report, Eastern Africa remains Africa's fastest-growing subregion, recording an estimated growth rate of 5.4 per cent in 2025, compared with 4.0 per cent for Africa as a whole, and is projected to grow by 5.8 per cent in 2026.
Presenting the report's findings, Andrew Mold, Director of ECA for Eastern Africa emphasized that while growth remains strong, governments are increasingly constrained by shrinking fiscal space and growing debt obligations.
"Growth is positive across much of Eastern Africa, but growth alone is not enough. The key question is whether this growth is creating jobs, driving structural transformation and advancing sustainable development," he said.
The report shows that services continue to be the principal engine of economic growth across the region. In Kenya, services accounted for approximately 66 per cent of total growth, while they contributed nearly 47 per cent in Rwanda, 42 per cent in Uganda, and more than 40 per cent in Tanzania. Rwanda was highlighted for recording some of the region's strongest manufacturing performance, with several manufacturing subsectors registering double-digit growth, indicating encouraging signs of economic transformation.
Participants also discussed fiscal pressures facing governments across the region. Interest payments alone consumed approximately 24 per cent of government revenue in Kenya, 21 per cent in Uganda, 13 per cent in Tanzania, and nearly 8 per cent in Rwanda in 2024, reflecting the growing burden of public debt service on national budgets.
The report also points to changing patterns in global trade and investment. Despite concerns about global trade disruptions and new tariff measures, Eastern Africa's exports to the United States grew significantly in 2025, while regional exports benefited from strong international prices for commodities such as coffee and gold. Uganda's coffee exports, for example, exceeded US$3 billion during the year.
However, ECA expressed concern over the region's growing dependence on mineral exports. Minerals accounted for more than 50 per cent of Eastern Africa's exports in 2024, up from about 20 per cent fifteen years ago, exposing economies to greater volatility from external commodity price shocks.
On a positive note, foreign direct investment (FDI) into Eastern Africa increased from approximately US$13 billion in 2024 to US$15 billion in 2025, making the region one of Africa's strongest-performing destinations for investment. Rwanda attracted nearly US$1 billion in FDI in 2025, representing about 6 per cent of GDP, while Ethiopia, Uganda and Kenya each received more than US$3 billion in investment inflows.
The report presents a sobering assessment of SDG performance, showing that Eastern Africa is on track for only 7 of 234 measurable SDG indicators, while progress on many goals remains too slow to meet 2030 targets.
Participants also received a briefing on the forthcoming joint session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Eastern and Southern Africa, which will focus on strengthening regional connectivity, trade, energy cooperation and investment as drivers of economic integration.
Ambassadors reaffirmed the importance of evidence-based policymaking, regional cooperation and economic diversification to sustain growth, create jobs and build resilience amid an increasingly uncertain global environment.
The full report, Eastern Africa's Balancing Act: High Growth, Tight Budgets and Rising Uncertainty, can be downloaded here:
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