Kenya and Rwanda are the only East African countries expected to reach middle-income status by 2025, financial consulting firm Ernst & Young predicted, according to a report in Business Daily.
By World Bank definition, countries qualify for middle income status if their citizens have a income of at least $1,026 per person per year, the report says.
Twenty-two Sub-Saharan Africa countries, 45 per cent of the total, and five North African countries have middle income status. At current growth rates, 13 more countries including Kenya could reach middle income status by 2025, according to the Africa Attractiveness Survey.
The Ernst & Young projection is based on Kenya’s high foreign direct investment inflows, infrastructure development and a diversified economy, the Business Daily report says.
In 2011, Kenya’s per capita income was $906 and in 2012 it was $991. Kenya’s economy is likely to grow by at least 4 percent per year until 2017.
Uganda’s economy will grow at 5.8 percent, Tanzania’s at 6 percent and Rwanda’s at 6.5 percent, Ernst & Young predicts. Only Burundi’s economy is expected to grow at less than 4 percent during the five-year period.