Type to search

Business

Economic Impact of the COVID-19 Pandemic on East African Economies

Peter Musila 9 months ago
Share

After many weeks of lockdowns, the tragic loss of life, and the shuttering of much of the worldwide economy, radical uncertainty is still the best way to describe this historical moment.

East African community has been dramatically affected by the pandemic. Industries and various sectors are at a standstill following measures by the government towards curbing the spread of the virus.

Currently, exports in the region have declined by more than 60 per cent in the past two months.

Africa’s had projected GDP growth of 3.2% for 2020 and is set to fall to -0.8%. The financial industry, tourism, and the hospitality sectors have been greatly affected as international flights have been suspended.

In Kenya, GDP growth in 2020 now stands at 1% from the projected 5.7% due to the gravity of the pandemic.

The economy is seeing a decline in tourism activity, export revenues, and a disruption in the supply chain.

Tanzania and Uganda have recorded a decrease in GDP growth to 2 per cent and 3 per cent respectively, declining by 3.3 per cent and 1.8 per cent points.

In Uganda, supply chain and global demand for goods have been much disrupted and reduced in the past two months.

Could you be willing to be interviewed by our team around a business opportunity you are conducting that can be beneficial to both Kenyans at home & those in the diaspora if they invested in your business or partnered with you? Please talk to us through our email: info@kenya2uhub.com or whatsapp +254 742 343908

Next Up