In a meticulous analysis driven by economic data, the 2024 African Outlook Report by Stears identifies East Africa as an emerging leader and regional powerhouse. Renowned for its nuanced insights into the continent’s economic landscape, Stears sheds light on diverse growth trajectories across Africa.
Stears, accessible at https://www.Stears.co/home/, underscores the imperative for strategic interventions aimed at enhancing liquidity and stabilizing exchange rates. The report emphasizes the pivotal role of collaborative initiatives involving government bodies, regulatory entities, and the private sector to foster sustained economic growth.
The forecast for Africa’s overall growth in 2024 stands at 4.0%, a noteworthy increase from 3.3% in 2023, positioning the continent as the second-highest globally, trailing only Asia with a growth rate of 4.8%. East Africa plays a central role in this narrative, consistently exhibiting higher growth rates than the rest of the continent. Key drivers of this growth include Rwanda, Tanzania, Uganda, and Kenya, collectively contributing significantly to the region’s economic resurgence.
Delving deeper into the analysis, Stears focuses on key African countries such as Kenya and Nigeria, revealing persistent economic challenges in both nations. Specifically, the report highlights Kenya’s anticipation of ongoing currency depreciation and inflationary pressures. In 2023, inflation averaged 7.8%, with a nuanced forecast ranging between 6% and 7.4% for 2024, aligning with the Central Bank of Kenya’s (CBK) target range of 5±2.5%, reflecting a global trend aimed at enhancing price stability.
Fadekemi Abiru, Head of Insights at Stears, attributes East Africa’s growth to dynamic sectors, including natural resources, transportation, tourism, and agriculture. The region’s potential for further acceleration is underscored by increased investment from Gulf countries, positioning East Africa as a model region for economic resilience and diversification.
However, Kenya’s GDP per capita stands 30% above the Sub-Saharan Africa average, signaling increased consumer spending and positioning the country as a significant market. The report, nonetheless, highlights the potential for further GDP per capita growth, particularly through improved job creation in high-value sectors like manufacturing and services.
Yvette Dimiri, Director at Stears, articulates the vision behind the report, stating, “Our 2024 African Outlook Report reflects Stears’ commitment to providing data-driven insights that transcend conventional narratives. As Africa navigates its course in the global economic landscape, understanding distinctive growth trajectories and leveraging regional strengths will be key.”
