EAC economic growth projected to reach 5.8 pc

ARUSHA: THE East African Community (EAC) region is projected to record an average economic growth rate of 5.8 per cent in the 2025/2026 Financial Year, buoyed by strong performance in agriculture, construction and services sectors, underpinned by sound policy frameworks and macroeconomic stability.

Chairperson of the EAC Council of Ministers and Kenya’s Cabinet Secretary for East African Community, Arid and Semi-Arid Lands and Regional Development, Ms Beatrice Askul Moe revealed this while presenting the EAC budget estimates for the 2025/2026 fiscal year before the East African Legislative Assembly (EALA).

The total budget for the region in 2025/2026 stands at 109,338,151 US dollars (about 288bn/-).

Presenting the budget speech, Ms Moe commended the region’s resilience in the face of persistent global challenges including geopolitical tensions, climate change and shifts in international aid patterns.

“Despite these headwinds, the region recorded an average growth rate of 5.5 per cent in 2024, outpacing the global average of 3.3 per cent and Sub-Saharan Africa’s rate of 4 per cent,” she noted.

Ms Moe added that the outlook for 2025 is even more promising, with a projected 5.8 per cent growth, driven by strong sectoral performance and policy consistency across member states.

She also revealed that the EAC’s total trade with the rest of the world rose by 14.7 per cent to 124.9 billion US dollars in 2024, up from 109.4 billion US dollars in 2023. Exports grew by 24.72 per cent to 56 billion US dollars, while imports increased by 6.83 per cent to 68.9 billion US dollars.

Intra-EAC trade also expanded by 9.35 per cent to 15.2 billion US dollars.

The 2025/2026 budget is themed “Inclusive Economic Transformation through Domestic Resource Mobilisation and Resilient Strategic Investment for Job Creation and Improved Livelihoods.”

Ms Moe outlined six priority areas for the financial year-enhancing regional peace, security and political stability through emergency response mechanisms, advancing the EAC Customs Union to boost regional trade and streamline supply chains and strengthening implementation of regional commitments under the EAC Common Market Protocol.

Other include accelerating harmonisation of fiscal and monetary policies toward the East African Monetary Union, investing in strategic infrastructure and digitalisation to promote trade and integration and building institutional capacity across EAC Organs and Institutions to support integration and stakeholder engagement.

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Breaking down budget allocations for EAC Organs and Institutions Ms Moe said EAC Secretariat is allocated 55,209,392 US dollars, East African Court of Justice: (5,056,413 US dollars), East African Legislative Assembly (EALA) which will receive (20,495,264 US dollars), Lake Victoria Basin Commission (7,606,052 US dollars) and Inter-University Council for East Africa, which is allocated with 10,802,434 US dollars.

Lake Victoria Fisheries Organisation is entitled with 2,436,924 US dollars, East African Science and Technology Commission (2,210,511 US dollars), East African Kiswahili Commission (1,641,445 US dollars), East African Health Research Commission (2,354,504 US dollars) and East African Competition Authority with 1,525,212 US dollars.

On customs, the minister noted the ongoing efforts to enhance system interconnectivity and streamline cross border trade.

“The enhanced Centralised Information Sharing Platform now enables digital exchange of electronic Certificates of Origin among partner states, reducing clearance times and boosting regional integration,” she said.

In 2025/2026, Customs efforts will focus on deepening the Customs Union through a comprehensive reform blueprint.

This will involve harmonising legal frameworks, improving compliance and reducing trade costs. The minister also noted progress in resolving NonTariff Barriers (NTBs), with 16 out of 47 addressed during 2024/2025.

“The EAC is committed to eliminating these barriers to unlock regional trade potential,” she added.

To promote quality and competitiveness, the EAC awarded 12 enterprises across the region with the 2024 EAC Quality Award. Ms Moe noted significant progress under the Common Market Protocol.

Burundi, Kenya, Rwanda and Uganda have waived work/residence permit fees for EAC citizens—an important step toward facilitating labour mobility.

During 2024/2025, the EAC adopted a framework to coordinate monetary and fiscal policies, advancing the East African Monetary Union (EAMU) roadmap.

A Cross-Border Payment System Master Plan was also approved, aimed at modernising payment infrastructure.

The region is also supporting partner states’ central banks through the EAC Payment and Settlement System Integration Project (EACPSSIP) to ensure secure and efficient transactions.

During its session in Uganda, the Assembly hosted President Yoweri Museveni, who urged political integration, rooted in patriotism, socioeconomic transformation and democracy.

For FY 2025/2026, EALA will focus on passing key legislation, including three bills essential to establishing the East African Monetary Union.

The East African Court of Justice saw a rise in its case backlog from 265 in FY 2022/2023 to 328 in FY 2024/2025, with 79 new matters filed in the past year.

The Court will prioritise backlog reduction, skills development for judges and staff and stronger collaboration with regional and international judicial bodies.