Finance ministers across East Africa unveiled their 2026/27 budgets on Thursday, as investors assessed how governments plan to protect their economies from shocks linked to the ongoing Iran war while managing rising debt levels.
Kenya’s finance minister warned that global geopolitical tensions could limit efforts to reduce the fiscal deficit, while Uganda’s minister projected a return to double-digit growth, buoyed by the expected start of oil production.
The region is highly exposed to trade disruptions caused by the conflict, given its reliance on imported fuel and fertilisers. This prompted the African Development Bank to lower the regional growth forecast for 2026 from 5.3% to 5%.
Kenya set a budget deficit target of 5.5% for the current fiscal year, aiming to reduce it gradually to 3% by 2028/29. Finance Minister John Mbadi noted that both domestic and external risks could undermine these targets: climate shocks affecting agriculture and infrastructure, commodity price volatility, weaker global growth, and tighter financial conditions.
Recent protests over high fuel prices and repeated underperformance against budget targets have heightened investor scrutiny. Andrew Matheny, senior economist at Goldman Sachs, said investors will seek evidence of credible fiscal measures, such as spending cuts or realistic revenue plans.
Uganda raised its budget by 3.5%, with Finance Minister Henry Musasizi forecasting 10.2% growth in the new fiscal year, driven by the start of commercial oil production. He said the expansion would create jobs, raise household incomes, and generate resources to invest in education, healthcare, infrastructure, security and other public services.
Tanzania plans to prioritise domestic revenue collection, following a decline in aid from wealthier nations and rising debt pressures. Finance Minister Mussa Omar said this required accelerating efforts toward economic self-reliance.
The government expects growth to rise to 6.3% this year, up from 5.9% last year, with potential opportunities arising from the Iran war. Planning Minister Kitila Mkumbo highlighted prospects for transhipment services and investment in gas production, as investors seek alternatives to the Gulf region.
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Iranian President Masoud Pezeshkian arrived in New Delhi on Friday to attend the weekend BRICS summit, amid the ongoing U.S.-Iran conflict, joining a host of foreign dignitaries.
Maritime trackers received new reports of an attack on a ship in the Strait of Hormuz on Sunday, according to the UK Maritime Trade Operations (UKMTO), adding to concerns about energy supplies after Saudi Arabia shut down a vital oil pipeline on Saturday.
A Kyiv-Warsaw train was struck near the Polish border, Ukraine's state railway firm said on Sunday. No passengers were injured. Ukrainian Railways said that the country's railways were facing systematic attacks for a second day and warned of widespread delays.
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad saying the strike originated from Iraq.
Dubai’s property market has spent years climbing. Now, for the first time since 2021, prices are moving in the opposite direction.
A Kyiv-Warsaw train was struck near the Polish border, Ukraine's state railway firm said on Sunday. No passengers were injured. Ukrainian Railways said that the country's railways were facing systematic attacks for a second day and warned of widespread delays.
Indonesian rescuers are searching for 130 people after a passenger ship carrying 243 people sank in the Java Sea following bad weather, while 113 people have been evacuated and six have died, the country’s search and rescue agency said on Sunday.
China will lead the creation of an open source platform among BRICS members to promote cooperation on large language models, Chinese President Xi Jinping said on Sunday.
Swedes vote in an election on Sunday (13 September) that could see the far-right enter government for the first time if the country's right-wing parties can form a majority.
Philippine rescuers recovered 41 more charred remains from a ferry fire on Saturday (12 September), taking the death toll to 76, while 13 people remained unaccounted for as forensic teams worked to identify the victims.
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