East Africa is the fastest growing region and is projected to reach a growth of 5.9 percent in 2019 and 6.1 percent in 2020. During 2010 and 2018, growth was almost 6 percent, with Djibouti, Ethiopia, Rwanda, and Tanzania recording above-average rates.
In several countries, growth remains weak due to political uncertainty. Where inflationary pressures have abated and exchange rates have stabilized—Ghana, Morocco, South Africa, Tanzania, and Uganda —central banks have gradually eased monetary policy.
Countries with rising urbanization and industrialization rates include several export diversification success stories: from 2012 to 2016, Cabo Verde’s urbanization rate went up 11 percentage points, to 66 percent, and Tanzania’s went up 9.
East Africa benefited from the largest FDI growth among African regions during 2011–17 (with Ethiopia accounting for 60 percent of the increase after Chinese and Turkish firms announced additional FDI in manufacturing). East Africa is the most integrated in terms of market access, and the region has made considerable progress in soft infrastructure, notably in transport infrastructure.
East Africa is witnessing most rapidly GDP with 5.7 percent, followed by North Africa at 4.9 percent, West Africa at 3.3 percent, Central Africa at 2.2 percent, and Southern Africa at 1.2 percent. This year is full of profits from regional public goods, better financial governance frameworks, pooling power, opening skies to competition, there by opening borders to free movements of people, goods, and services.