The East African Community (EAC) recorded strong growth in international merchandise trade in the third quarter of 2025, with total trade increasing by 21.9 percent to $40.3 billion, according to the latest EAC Quarterly Statistics Bulletin.
The rise was largely driven by exports, which jumped by 32.3 percent to $19.6 billion. Imports also grew by 13.3 percent to $20.6 billion. As a result, the region’s trade deficit narrowed sharply to $1.0 billion from $3.4 billion in the same period of 2024.
Trade with African countries remained significant. It accounted for 32.2 percent of total trade, valued at $10.1 billion. Trade among EAC member states expanded by 15 percent to $4.8 billion, signalling steady progress in regional integration. Continued contributions from the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) highlighted stronger economic ties with neighbouring blocs.
The bulletin identified base metals, precious stones, mineral fuels, and major agricultural goods as the region’s leading exports. China, the United Arab Emirates, South Africa, Hong Kong, and Singapore received 58 percent of these exports.
On the import side, petroleum products, machinery, vehicles, and cereals dominated. These imports supported infrastructure development, industrial activity, and food supply across the region.
Despite the positive trade outlook, inflation remained a major challenge. Year-on-year inflation in the EAC rose to 28.3 percent in September 2025, up from 24.2 percent in August and 14.8 percent in September 2024.
Average headline inflation for the 2024/2025 financial year climbed to 23.0 percent, compared to 6.6 percent the previous year. The surge was mainly driven by high inflation in South Sudan, recorded at 179.4 percent, and Burundi at 34.1 percent.
Underlying inflation, which excludes food and energy prices, eased slightly to 18.3 percent in September 2025 from 21.1 percent in August. However, the annual average underlying rate rose to 24.4 percent, again pushed up by South Sudan and Burundi.
Monetary conditions across partner states were largely aligned during the quarter. Most countries registered declines in 91-day Treasury bill rates, although Rwanda recorded a rise of 90 basis points.
Lending rates remained relatively stable, while deposit rates increased in most countries. Interest rate spreads varied widely, with South Sudan posting the highest at 13.7 percent and Tanzania the lowest at 6.7 percent.
Meanwhile, growth in broad money supply slowed to 15 percent year-on-year, supported mainly by private sector credit, which expanded by 13.2 percent. Net foreign assets rose by 21.9 percent, pointing to improving external positions across the region.
