The West African Economic and Monetary Union (WAEMU) is expected to continue leading the pack in the Sub-Saharan African region in terms of projected growth.
According to the latest economic survey by the Kenya National Bureau of Statistics (KNBS), WAEMU’s real GDP is projected to grow at 6.6 per cent, as East Africa’s EAC-5 follows close behind with a projected growth of 5.9 per cent.
Both regions are also expected to see an increase compared to their growths in 2024, whereby WAEMU saw its real GDP grow by 6.2 per cent while EAC-5, which is comprised of Kenya, Uganda, Tanzania, Rwanda, and Burundi, grew by 5.2 per cent. Even though WAEMU has been able to come out on top since last year, in 2023, EAC-5 recorded a higher growth compared to the region.
The survey highlights WAEMU’s consistent economic strength, driven by stable inflation, which is projected at just 2.5 per cent in 2025, and a solid current account balance. Meanwhile, the EAC-5 continues to show resilience despite external pressures.
Kenya, the region’s largest economy, is projected to grow by 5.0 per cent in 2025, slightly better than its 2024 performance, while Uganda and Rwanda are expecting to grow by 7.5 per cent and 6.5 per cent respectively. Tanzania, another key player, is forecast to reach 6.0 per cent growth in 2025, signaling gradual recovery.
However, inflation for EAC-5 is expected to increase, projected at 4.9% in 2025 compared to 4.4% in 2024. This will be largely driven by Burundi’s economy, which, despite improvement, continues to struggle with high inflation, projected at 25 per cent in 2025 and a widening current account deficit.
While WAEMU’s lower inflation and healthier fiscal metrics give it an edge in attracting investment and make it the immediate frontrunner in Sub-Saharan Africa’s growth race, East Africa’s potential should not be underestimated.
Its digital innovation, infrastructure projects, and intra-regional trade integration position it for long-term gains. In fact, it has the potential to reshape the continental balance in the years ahead.
