Browsing: Iganda

Recession to hit Africa hard, as fragile economies feel the COVID-19 heat

The East African economies were looking forward to 2020 with a lot of optimism. While there were issues with inflation and money circulation in Kenya, projections still showed the country would comfortably manage a growth range of above 5 percent. All the other eastern African countries were projected to do even much better with Rwanda leading in terms of growth averaging 7 percent. Then, Coronavirus happened. This has reversed the projections with fear that the region with the highest growth rate in Africa will stagnate. This has already been felt with stock markets across the region registering massive capital loss and foreign investors shying away from the market. The region is also looking at ways of sustaining their economies amid lockdowns in Uganda and Rwanda, partial lockdown in Kenya and a non-restrained movement approach in Tanzania.

The International Monetary Fund’s (IMF) latest World Economic Outlook projections for 2020 pegs Kenya