By KPC Reporter
The East African Community (EAC) recorded robust growth in international merchandise trade in the fourth quarter of 2025, signaling a resilient regional economy driven by strong export performance and expanding intra-African trade.
According to the latest EAC Quarterly Statistics Bulletin (October–December 2025), total trade rose to US$42.4 billion, underpinned by growth in both imports and exports.
Imports increased by 15.4 percent to US$79.6 billion, while exports surged by 37.7 percent to US$77.0 billion, significantly narrowing the trade deficit to US$2.5 billion from US$13.0 billion in 2024.
Trade within Africa remained a key driver, growing by 40.1 percent to US$39.0 billion and accounting for 25.2 percent of total trade.
Intra-EAC trade also expanded by 28.0 percent to US$19.3 billion, reflecting deepening regional integration and improved trade facilitation.
Exports continued to be dominated by mineral commodities, particularly copper, alongside precious metals and stones, while agricultural products such as coffee, tea, and spices remained vital.
China retained its position as the region’s largest trading partner, followed by United Arab Emirates, South Africa, India, Japan and the United States.
Imports were largely driven by energy products, machinery, and manufactured goods supporting industrial and infrastructure growth.
Inflationary pressures eased toward the end of the year, with annual headline inflation dropping to 13.3 percent in December 2025 from 15.2 percent in November, and significantly lower than 27.1 percent in December 2024.
However, the annual average inflation for 2025 rose to 22.9 percent, largely due to elevated rates in South Sudan and Burundi.
Core inflation declined to 9.6 percent in December, while food inflation eased to 18.5 percent. Energy, fuel, and utilities inflation remained relatively stable at 9.5 percent.
On monetary developments, most Partner States recorded a decline in 91-day Treasury bill rates, except Rwanda and Uganda.
Lending rates generally fell, while deposit rates rose across much of the region.
Broad money supply growth moderated to 14.7 percent year-on-year, supported by a 12.6 percent increase in private sector credit and a 20.4 percent rise in net foreign assets.
The EAC Secretariat said the improved trade performance, easing inflation, and steady credit growth point to a positive trajectory for the region, as it continues to promote value addition, investment, and inclusive economic growth across Partner States.