Uganda: Fast Growing Country in East Africa

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Uganda also strengthened its trade ties with Kenya, remaining the top export destination in Africa for Kenyan goods, accounting for KSh 125.9 billion in exports, far exceeding Tanzania’s KSh 67.2 billion.

Uganda emerged as a standout performer in East Africa’s economic landscape in 2024, achieving a robust 5.7% real GDP growth rate, according to the 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS).

The growth surpassed Kenya’s 4.7% and South Sudan’s 4.2%, solidifying Uganda’s position among the region’s fastest-growing economies.

While Rwanda and Tanzania led the region with 7.0% and 6.1% growth rates, respectively, Uganda’s performance highlighted its resilience and progress. Burundi, with a 6.0% growth rate, further demonstrated the region’s economic momentum.

Kenya’s slower growth was attributed to mixed sectoral performance, with financial and insurance activities growing by 7.6%, while construction and manufacturing lagged due to inflationary pressures and a high Central Bank Rate averaging 11.3%. Kenya’s per capita GDP stood at USD 2,296, with a trade deficit of KSh 1.59 trillion, adding pressure on its macroeconomic stability.

Uganda also strengthened its trade ties with Kenya, remaining the top export destination in Africa for Kenyan goods, accounting for KSh 125.9 billion in exports, far exceeding Tanzania’s KSh 67.2 billion. This underscores Uganda’s strategic importance as both a growing economy and a key market within the East African Community (EAC).

The EAC bloc as a whole recorded a 5.4% average growth rate, surpassing the global average of 3.2% and Sub-Saharan Africa’s 3.8%. This resilience was evident despite global challenges like inflation, tight monetary policies, and geopolitical uncertainties.

Analysts point to Uganda’s post-COVID recovery in services, infrastructure and energy investments, and growth in agriculture and manufacturing as key drivers of its success. Ongoing developments in the oil sector and increased cross-border trade further bolstered its economic performance.

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As East Africa continues to navigate global economic headwinds, Uganda’s strong performance and the region’s overall growth signal a promising outlook for the EAC bloc.