Event report

East Africa's Economic Outlook 2025 with French Embassy

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Exploring Economic Trends Shaping East Africa in 2025

During our breakfast meeting in partnership with the Service Économique Régional de Nairobi, we explored key economic trends shaping East Africa in 2025.

The session, kicked off by our Executive Director Laure Paugam and led by Deputy Head of the French Treasury, Paul Mainguet, Juliette Mouden, and Clémence Goullet, featured insights from in-depth analysis of the region’s economic landscape, growth drivers, and investment opportunities.

Key Takeaways:
Economic Growth: East Africa’s rapid demographic expansion—particularly in Tanzania and Ethiopia—could fuel long-term growth if resources are well managed. Agriculture still contributes 30% of GDP, while sectors like digital services, tourism, and ports are becoming key economic drivers.

Inflation & Debt: Inflation levels vary across the region, with Kenya maintaining a relatively low rate of 3.4%, while Ethiopia and Burundi experience significantly higher inflation. Debt servicing remains a challenge in Kenya, Uganda, and Ethiopia due to high local-currency debt burdens.

Trade & Aid Dependence: Kenya and Ethiopia export 6% and 10% of their goods to the US, primarily coffee and textiles. Meanwhile, recent USAID funding cuts pose challenges for economies heavily reliant on aid. This shift could impact critical sectors and long-term economic stability.

Climate Risks: Kenya is set to experience La Niña in 2025, bringing extreme weather conditions, including rising temperatures, floods, and heat waves.
The French Embassy’s Regional Economic Department remains committed to strengthening France-East Africa business ties, fostering investment, and supporting economic development .

We extend our sincere appreciation to our Members and Partners for their engagement and invaluable contributions to today’s discussion. Your involvement is critical to shaping a more prosperous future for East Africa.