[EAST AFRICA] Continental Engine: Region Grows at 6.4% with 6B in Intra-EAC Trade in Q1 2026

East Africa grows at 6.4% with 6.3B in intra-EAC trade in Q1 2026. Ethiopia (+9.8%), Rwanda (+7.3%), Tanzania (+6.1%) lead the continent. A challenge and opportunity for Indian Ocean players.

Afrique de l'Est — Business.OI
Photo : Ken Mwaura / Pexels

East Africa confirms its status as the continent growth engine. The region is expanding at 6.4% in 2025-2026, making the East African Community (EAC) Africa fastest-growing zone. Intra-regional trade reached 6.3 billion in Q1 2026.

Ethiopia, Rwanda, Tanzania: the three engines

Ethiopia is posting the strongest growth at a projected 9.8% for 2026, driven by economic reforms and the opening of the Ethiopian Securities Exchange. Rwanda maintains its pace at 7.3%, supported by premium tourism and financial services. Tanzania records 6.1% growth, driven by investments in Dar es Salaam port and the blue economy.

Kenyan companies conquering the region

One of the most striking phenomena is the regional expansion of Kenyan companies. Nairobi-based banks, retailers, and technology players are actively investing in Tanzania, Uganda, and Rwanda, now treating the region as an integrated market.

The two major port hubs — Mombasa and Dar es Salaam — play a strategic role for landlocked nations. Capital from the Gulf, China, and major Western economies is competing for infrastructure and financial services opportunities.

Why it matters

For economic players across the Indian Ocean — particularly in Mauritius and Seychelles — East Africa dynamism represents both a market opportunity and a positioning signal. The region financial hubs (Nairobi, Kigali) are increasingly competitive with Port Louis. The time has come to strengthen economic bridges between the islands and the continent.

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