Economic Pulse

Uganda Is Growing Fast. East Africa's Quiet Performers Deserve Attention.

The Peoples Economy

13 Apr 2026 — 1 min read

Photo by Roman Derrick Okello / Unsplash

While media attention has concentrated on the Middle East crisis and its consequences for large economies, East Africa has been quietly generating some of the strongest growth numbers on the continent and in some cases in the world.

Uganda's economy expanded 8.5% year on year in the fourth quarter of 2025, its fastest pace since 2022, driven by strong consumer demand and a construction boom. Kenya grew 4.9% in the third quarter of 2025, though the World Bank trimmed its full year 2026 forecast to 4.4% from 4.9%, citing high debt service costs and the indirect impact of elevated global energy prices. Ethiopia continues to attract attention through its industrial park expansion and manufacturing ambitions, even as around 750,000 Ethiopian workers in Saudi Arabia face uncertainty from Gulf economic disruption. Zambia has successfully completed its sovereign debt restructuring under the G20 Common Framework, one of the few African countries to have done so, and is gradually rebuilding fiscal space.

The World Bank's April 2026 Africa Economic Update, titled Making Industrial Policy Work in Africa, highlighted the power of targeted industrial strategy in the region. Côte d'Ivoire and Rwanda are cited as countries that have managed consistent growth through infrastructure investment and policy stability. The continent's combined economic output is now projected at approximately $3.3 trillion in 2026, more than four times its 1990 level. The challenge remains translating aggregate growth into jobs: 1.2 billion young people will reach working age in emerging markets by 2035, and Africa needs to create the conditions to absorb them.

Key Figures: • Uganda GDP growth (Q4 2025): 8.5%, fastest since 2022 • Kenya 2026 growth forecast (revised): 4.4%, down from 4.9% • Africa combined GDP (2026 projection): approximately $3.3 trillion • Sub Saharan Africa sovereign debt repayments (2026): more than $90 billion

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