(Juba) – South Sudan is expected to be one of the leading contributors to East Africa’s fast economic growth in 2025, according to a new report from the African Development Bank Group (AfDB). The country’s gross domestic product (GDP) is forecasted to increase by 4.0 percent, marking a notable recovery from economic challenges in recent years.
In its latest analysis, the AfDB projects East Africa to remain the fastest-growing region on the African continent. GDP in the region is predicted to grow from 4.4 percent in 2024 to 5.3 percent in 2025, and further to 6.1 percent by 2026. This growth is expected to be driven by a mix of resumed oil production, infrastructure development, and increased investment across multiple sectors.
South Sudan stands out in the report for its expected economic rebound. The country is forecasted to record the world’s fastest-growing economy in 2025, expanding by 27.2 percent after experiencing a sharp contraction of 26.4 percent in 2024. The main factor behind this turnaround is the anticipated recovery of oil production, which remains central to the country’s economy.
Neighbouring countries also play a significant role in this regional growth. Uganda’s economy is expected to grow due to major public investment in oil and infrastructure. Rwanda, Ethiopia, Tanzania, and Kenya are projected to benefit from rising private investments, particularly in the energy and mining sectors. These developments are seen as part of a broader trend of structural reforms and diversification efforts across East Africa.
However, not all countries in the region are performing equally. The report highlights Sudan’s ongoing economic difficulties due to prolonged internal conflict. Inflation in Sudan has reached 176.6 percent in 2024, and the economy continues to contract. Despite regional efforts, instability and insecurity continue to pose major risks to sustainable economic development in the Horn of Africa.
Inflation across East Africa, while showing signs of decline, remains relatively high. The AfDB advises regional governments to focus on boosting foreign reserves, adding value to raw mineral exports, and taking advantage of the African Continental Free Trade Area (AfCFTA) to expand trade and attract diversified investments.
Albert Muchanga, the African Union’s Trade Commissioner, has called on the private sector to invest more in logistics and manufacturing. He stressed that this would be key to fully implementing the AfCFTA and achieving long-term economic stability across the continent.
For South Sudan, these developments offer an opportunity to align with wider regional strategies aimed at economic integration and growth. The country’s expected recovery in oil output, alongside regional cooperation through initiatives like AfCFTA, could help improve investor confidence and support long-term development goals.
