East Africa’s Economy at 3.8% Growth — But Jobs Remain the Big Question
The World Bank projects Sub‑Saharan Africa will grow 3.8% in 2025 — Uganda and neighbours must focus on jobs and enterprise to turn growth into prosperity.
According to the World Bank’s recent “Africa’s Pulse” report, Sub‑Saharan Africa’s economy is on track to grow about 3.8% in 2025.
While the growth rate is noteworthy given the global economic headwinds, the report emphasises that the region must shift from just growth to enterprise‑led job creation and resilience.
For Uganda and the East African region, the challenge is clear: the youth population is large, but formal employment opportunities remain limited. Without scaling enterprise and inclusion, growth risks being decoupled from rising living standards.
Regional governments and development partners are calling for investments in private‑sector capacity, innovation, skills, and digital sectors — all with an eye to transforming growth into sustainable livelihoods.
Why It Matters
📌 Youth bulge: Uganda has a large young population; growth without jobs creates risk of disenfranchisement, migration or instability.
💼 Enterprise growth: SMEs and start‑ups are engines for employment and innovation; without them, growth remains top‑heavy.
🌍 Regional competitiveness: East Africa must ensure that its growth model is inclusive and forward‑looking, not just resource‑ or aid‑based.
📉 Risk of stagnation: If productivity, digital readiness and infrastructure don’t improve, the growth may be stalled or not benefit most people.
What to Watch
Whether Uganda and East African governments release or execute plans focusing on skill‑development, innovation hubs and SMEs.
The level of private‑sector investment entering Uganda in 2025‑26, especially in tech, manufacturing and services.
The role of digitalisation and connectivity in enabling new enterprises, remote work and regional markets.
Whether the growth rate improves or falls, and how the jobs‑to‑growth link evolves.
