This archive report was first published on 12 May 2020.
As the COVID-19 pandemic continues to ravage the world, East Africa's economies are facing unprecedented challenges. According to a report by Deloitte, published on May 12, 2020, Kenya's economy is expected to suffer the worst in the region, with a projected GDP growth rate of 1% in 2020, down from 5.7% earlier projections.
The drastic decline in economic growth is attributed to the pandemic's impact on tourism, export revenues, and supply chains. Kenya's economy has been severely affected, with a decline in these key sectors.
Other East African countries, including Ethiopia, Tanzania, and Uganda, are also expected to experience significant economic setbacks. Ethiopia's GDP growth rate has been revised down to 3.2% from 6.2%, while Tanzania and Uganda's growth rates have been revised to 2% and 3.5% respectively.
The report highlights the challenges faced by these countries, including high unemployment in Ethiopia and weakened global demand for goods in Uganda. Tanzania's economy is also struggling, with waning demand for mineral exports due to global supply chain interruptions.
As the region grapples with the economic impact of COVID-19, international organizations such as the African Development Bank (AfDB) are providing support to combat the effects of the pandemic. In a related development, the AfDB has provided $1.5 million to fight East Africa's locusts invasion.
