In terms of real GDP, East Africa is the continent's third-largest region.
With approximately 456 million people, Africa's most populous area is developing rapidly economically, demonstrating that it cannot be overlooked.
According to a new analysis published by the Dubai Chamber of Commerce and Industry, East Africa was the continent's fastest-growing area between 2015 and 2020, with a CAGR of roughly 4.3 percent.
The research is the recent instalment of the Chamber's 'Why Africa?' programme, which focuses on East Africa and investigates major economic indicators and their analysis.
According to H.E. Hamad Buamim, President and CEO of the Dubai Chamber, Dubai has achieved significant success in expanding commercial, economic, and cultural relations with Africa. This is governed by the directions of the emirate's leadership, which not only build on the continent's traditional ties but also bet on Africa's future as one of the world's most promising areas.
East Africa is made up of 18 nations. Kenya, Ethiopia, Burundi, Comoros, Djibouti, Eritrea, Madagascar, Rwanda, Malawi, Mauritius, Mozambique, Zimbabwe, Seychelles, South Sudan, Tanzania, Uganda, Zambia, and Somalia are among the countries in this group.
With an annual GDP of USD 355.1 billion, the area contributes for 15% of Africa's GDP. Ethiopia is the largest economy in the area, accounting for 22.7 percent of total real GDP in 2020. Kenya is in second place with a share of 20.5 percent, followed by Tanzania with 17.5 percent.
Ethiopia and Tanzania are also the region's fastest-growing economy in terms of real GDP, with a 6.9% CAGR last year.
In addition, East Africa's inward FDI stocks increased by 9.1%, indicating the region's continued appeal to global investors.
According to the survey, the region's part of Dubai's total commerce has increased significantly over time. It was the emirate's third-largest commercial partner in Africa last year, with total commerce of USS 12.2 billion. Dubai's commerce with Africa accounted for 24.4 percent of the total.
The business between East Africa and Dubai is fairly balanced.
The previous year, Dubai's entire re-exports to East Africa will be worth USS 3.9 billion. Electrical machinery, cars, mineral fuels, and digital automated data processing equipment were the most popular items. Kenya (24.2%), Tanzania (14.2%), and Djibouti (14.2%) received the majority of these (13.1 per cent).
Dubai's previous year exports to the region estimated at USD1.97 billion and included manufactured tobacco, pearls and precious stones, mineral fuels, and plastics.
Somalia (36.8%), Kenya (23.6%), and Djibouti were the emirate's top export markets in Eastern Africa (8.9 per cent).