The East African region is poised for an intense economic race, as projections suggest that Tanzania may overtake Kenya in terms of economic supremacy in the next 10 years.
The International Monetary Fund (IMF) estimates that Tanzania’s economy, currently valued at $85.4 billion (Sh200 trillion), is expected to grow to $136 billion by 2028. In comparison, Kenya’s economy, the largest in East Africa at $118.1 billion, is forecasted to reach $151 billion by 2028.
However, IMF’s economic outlook and GDP growth trends suggest that Tanzania may surpass Kenya’s growth rate, making it the larger economy in the next decade. Sub-Saharan Africa consists of 46 countries, excluding giants like Morocco and Egypt. Currently, Nigeria is the largest economy in the region with a GDP of $506.6 billion, followed by South Africa ($399 billion), and Ethiopia ($156.1 billion).
The GDP growth projections for Tanzania and Kenya over the next few years are noteworthy. While both nations are expected to witness growth, Tanzania’s economy is expected to expand at a higher rate, leading to its economic dominance over Kenya.
However, it is essential to note that GDP growth rates are not the only determinants of a country’s economic prowess. Other factors, including inflation, unemployment, foreign investment, and government policies, play an equally important role in shaping an economy.
It is also critical to ensure that the economic growth of Tanzania and Kenya is inclusive and sustainable, benefiting all sections of society, rather than just a few. These countries’ economic rise should be a catalyst for poverty reduction, job creation, and improved living standards for all citizens.