Economics
Africa’s Fastest-Growing Region Banks on More Spending for Growth
- East Africa’s plans mean more borrowing, bigger deficits
- Kenya, Tanzania, Uganda, Rwanda and Burundi to unveil budgets
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East African countries plan to increase spending dramatically on infrastructure projects in budgets to be released Thursday. It’s not clear they can afford it.
Kenya, Tanzania, Uganda, Rwanda and Burundi will unveil plans to fund the building of more roads, railways and power plants, as well as expand services such as health care and education, for the year starting July 1. In most cases, this will raise budget gaps as a percentage of gross domestic product, and increase borrowing requirements.