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.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, acc...
The Trump administration pressured U.S. space companies not to attend a high-profile space summit in Paris orga...
Two people have been rescued alive from a tunnel in Nepal, nine days after catastrophic floods devastated the country, as rescuers continue se...
Russian President Vladimir Putin has said that he thinks there is a chance of a peace being reached with Ukraine. He told the Eastern Economic Forum in Vladivostok, Russia that he believed there was "a chance of finding a solution," to the conflict.
The U.S. has launched a fresh wave of strikes on Iran, targeting Islamic Revolutionary Guard Corps (IRGC) sites as Tehran retaliated against U.S. positions across the region, while Iranian officials said at least five people were killed and dozens wounded at a wedding near Sirik.
The Iranian Health Ministry said at least 18 people were killed and 142 others injured in U.S. airstrikes carried out between 30 August and 2 September.
The European Union's foreign policy chief Kaia Kallas says the bloc will tighten enforcement of sanctions against Russia over its war in Ukraine. EU foreign ministers were meeting in Ireland following renewed Russian strikes on cities across Ukraine.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 3rd of September, covering the latest developments.
Ukrainian President Volodymir Zelenskyy says envoys from the United States will be visiting Moscow and Kyiv to negotiate an end to the conflict.
The Trump administration pressured U.S. space companies not to attend a high-profile space summit in Paris organised by French President Emmanuel Macron, prompting a last-minute reshuffle and the cancellation of some planned announcements, according to sources familiar with the matter.
A Russian court on Thursday imposed restrictions on Lida Moniava, the founder of a children’s hospice, who is accused of spreading false information about the Russian military’s actions in Ukraine.
China’s state-owned shipping giant COSCO has used concealed equipment aboard some of its vessels to collect intelligence on military communications near the coastlines of countries including the U.S., according to two senior Trump administration officials.
The U.S. House of Representatives has passed legislation that would block federal funding for universities that boycott Israel, as Republicans push ahead with pro-Israel measures despite growing criticism of the Israeli government over the war in Gaza.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment