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East Africa is projected to be the fastest-growing sub-region in Africa in 2026, with gross domestic product (GDP) expansion of 5.8 percent, well above the continent’s average of 4.0 percent, according to the United Nations World Economic Situation and Prospects 2026 report.

The robust outlook reflects stronger macroeconomic performance in key East African economies, particularly Ethiopia and Kenya, whose growth momentum is expected to anchor the sub-region’s expansion. Economic forecasts indicate that growth in East Africa will accelerate from 5.4 percent in 2025 to 5.8 percent in 2026, driven in part by efforts to deepen regional integration and expand renewable energy investments.

By comparison, other sub-regions are expected to grow more modestly: North Africa’s growth may ease slightly, West Africa is forecast to slow, and Central and Southern Africa are likely to lag behind the continental average.

The report underscores that while East Africa’s performance stands out, structural risks remain, including high debt levels, limited fiscal space, and global headwinds such as trade tensions and slower external demand. Continued progress will depend on sustained policy reforms, deeper regional cooperation, and investments in infrastructure and human capital.

Despite these challenges, the strong growth projection positions East Africa as a critical economic engine for the continent in 2026—offering opportunities for investors, businesses, and policymakers focused on sustainable development, job creation, and inclusive prosperity.

Credit: United Nations — World Economic Situation and Prospects 2026.

28. January 2026/ Urge- DeveWire

East Africa Set to Lead Africa’s Growth in 2026, UN Report Shows

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