EAC nations to bolster their economies with bigger budgets for 2023/2024

EAC nations to bolster their economies with bigger budgets for 2023/2024

East African Community (EAC) countries expect overall national government spending to rise in the upcoming financial year that starts on 1 July 2023 and ends on 30 June 2024.

Finance ministers from Kenya, Rwanda, Tanzania, and Uganda are to present their annual 2023/2024 budgets under a common theme before their respective parliaments on Thursday June 22 — this is in line with the EAC Treaty.

The exemptions are Burundi, South Sudan and latest entrant the Democratic Republic of Congo (DRC). These four EAC member states are to provide details of their spending priorities and how they expect to fund them. Most of the East African countries have already signaled that they will increase expenditure to shore up their economies against the fallout of Russia’s invasion of Ukraine and the continued aftermath of the coronavirus pandemic.

“Finance ministries in East Africa have little choice but to raise their spending as inflation means costs have continued to climb,” said Ben Hunter, an Africa analyst at risk advisory firm Verisk Maplecroft. “East African states sorely need more assistance from the global financial institutions now that access to capital markets has been curtailed for many. An expansion of concessionary lending will be crucial for achieving sustainable growth over the coming decade.” Kenya will present a $25.75 billion budget for 2023/24, a 6.5% increase from the $24.18 billion the previous year. Tanzania’s annual budget of $19.23 billion will be up 7% from $18 billion. Ugandan government has increased its spending plan to $13.9 billion from $13 billion in 2022/2023. Rwanda will present a $4.4 billion budget, with the spending plan increased by 5.6% from $4.1 billion the previous fiscal year.

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