Sharp Daily
No Result
View All Result
Wednesday, October 29, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Emerging Strength: East African Service Sector Boosting Economic Growth

Joel Mugonyi by Joel Mugonyi
August 4, 2023
in News
Reading Time: 2 mins read
Kenya-Tourism

Kenya -Tourism .Photo/[Courtesy]

The service sector in East African countries is proving to be a robust contributor to the region’s economic growth, potentially surpassing traditional industries such as agriculture. In 2022, the sector accounted for 2.0 percentage points of the region’s GDP growth, which stood at 4.4 per cent, but slightly lower than the 4.7 per cent growth recorded in 2021. Nonetheless, the East African region’s natural beauty and rich cultural attractions continue to attract tourists worldwide, fueling demand for services such as accommodation, food, and entertainment. Additionally, the ongoing urbanization trend has led to an increased need for transportation, communication, and retail services.

Read more: East Africa Predicted to Lead Continent’s Economic Growth in 2023-2024, Despite Risks

A significant factor in the sector’s expansion is the rise of the middle class in the region, which has spurred higher demand for services like banking, insurance, and healthcare. The East Africa Economic Outlook, as reported by the African Development Bank (AfDB), highlights the region’s economic recovery and growth, outperforming the continental average. Despite facing challenges such as the global economic slowdown, rising consumer prices, adverse weather conditions, and mounting public debt, East Africa managed to achieve 4.4 per cent GDP growth, surpassing Central Africa’s 5.0 per cent growth.

Looking ahead, East Africa is expected to sustain its economic momentum, outpacing other regions of the continent. Forecasts suggest that economic growth in the region will accelerate to 5.1 per cent in 2023 and 5.8 per cent in 2024. Uganda, Ethiopia, Kenya, Djibouti, and Tanzania are projected to be the key drivers of this growth. However, a potential threat to the region’s stability and growth lies in the ongoing conflict between Sudan’s military and its main paramilitary force.

RELATEDPOSTS

No Content Available

Read more: Kenya’s trade with the East African region improved in Q1’2023

Overall, the service sector presents promising opportunities for East Africa, offering greater potential for expansion and innovation compared to traditional income sources like agriculture and mining. As the region continues to develop, leveraging its natural and cultural assets alongside a growing middle class, the service sector is set to play a pivotal role in the region’s economic prosperity.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

NSE Bond Investors Record Losses in Q2’2023 Secondary Market

Next Post

Kenya Revenue Authority’s Backdating of New Taxes Creates Compliance Challenge for Employers and Tax Agents

Joel Mugonyi

Joel Mugonyi

Related Posts

News

Who Should Invest in a Money Market Fund

October 29, 2025
News

Eastern Africa’s unified spectrum strategy to boost broadband

October 27, 2025
News

Start Q4 strong with the Cytonn Money Market Fund

October 9, 2025
News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025

LATEST STORIES

How Kenya’s bond market boom could benefit everyday investors

October 29, 2025

Kenya Inflation 2025: What Steady Prices Mean for Your Savings and Best Investment Options

October 29, 2025

CIC insurance and Equity bank fined KES 1.2 bn for holding unclaimed assets in Kenya

October 29, 2025

Building trust and convenience in modern finance

October 29, 2025

Global or local? Why Kenyan professionals should consider domestic investments

October 29, 2025

Who Should Invest in a Money Market Fund

October 29, 2025

EABL to redeem KES 11.0 bn bond early to cut financing costs

October 28, 2025

Money Market Funds Explained: A Beginner’s Guide (Kenya Edition)

October 29, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024