East African Community Research Articles

Comparative Advantage of Trade in Food Products among the Selected East African Community Partner States: Implication for Policy Formulation

Despite the potential benefits of regional trade, economic disparities among East African Community (EAC) member states persist. This study investigated the relationship between trade openness, comparative advantage in food trade, and economic performance within the EAC, focusing on Tanzania, Kenya, and Uganda. The study adopted export data from the United Nations Commodity Trade Statistics Database, the World Bank, and the International Trade Centre, as well as GDP data from the Bank of Tanzania and the National Bureau of Statistics. Data were analysed through descriptive statistics, causality analysis, Revealed Comparative Advantage (RCA), and vector autoregressive model. Findings reveal a positive impact of trade openness on Tanzania’s economy but negative impacts on Kenya and Uganda, suggesting Tanzania benefits from EAC integration while Kenya and Uganda face trade challenges. The causality analysis shows that Tanzania’s economic performance drives food exports, trade openness impacts Kenya’s economic performance significantly, and Uganda sees a reciprocal link between economic growth and food exports; however, trade openness does not significantly affect Ugandan economic growth. The analysis of the Balassa index indicates Kenya’s food export advantage, a decline in Uganda’s export advantage since 1996, and Tanzania’s lack of export advantage with potential for improvement. The study recommends cautiously implementing trade openness policies within the EAC to prevent trade distortions and currency devaluation.

Multilingualism in Burundi: Languages and their Domains of Use

This study describes multilingualism in Burundi, focusing on the social contexts in which each language is used. The main instrument used was a 16-item questionnaire coupled with informal discussions, and the informants were 20 volunteer students admitted to the National School of Administration – the ENA school for short, a government institution assigned to set up and implement an English Language training programme that teaches English to all civil servants from existing ministries. The questionnaire derives from Fishman’s domains of language use, which is the frame adopted for the analysis. The findings reveal that four languages co-exist in Burundi, i.e., Kirundi, the ancestral language; Belgian French, the coloniser’s language; Kiswahili, a trade language dominant in neighbouring countries; English, the working language for various East African regional institutions, including the East African Community, and the Economic Community of the Great Lake Countries. While Kirundi is dominant in the family, religion, and friendship domains, French, a colonial language, reigns in various schools in the country, and English, dominant regionally, reigns supreme in the ENA school.

Examining the Impact of Regional Integration on Peace and Security in East African Community

Attempts at regionalization and integration are increasingly viewed as offering chances for guaranteeing peace, stability, and sustained economic growth in the face of Africa’s numerous security concerns. As a result, organizations dedicated to regional integration and cooperation, like EAC, are beginning to take on the role of conflict resolution experts in their particular areas. Therefore, this study’s primary goal was to evaluate how regional integration contributes to African peace and security. In particular, the study was conducted to determine the various missions that EAC members carried out to restore peace and security in member nations, as well as to assess the effects of various policies created by the EAC to address peace and security concerns among member states. Furthermore, this study exclusively used secondary data. From online books, articles, reports, conference papers, magazines other research papers and assess the effects of the various policies that the East Asian Community (EAC) established to address issues of peace and security among its member states. Additionally, the missions that the EAC members carried out to help member states that needed to regain peace and security and were affiliated with the East were reviewed. Furthermore, it was discovered that regional integration had the subsequent implications for security and peace: strengthened domestic peacekeeping forces by means of regional collaboration; provided members with monetary assistance to sustain peace and security; and made it simple to obtain support and assistance from non-member nations in emergency situations. East Africa is now united as a result of the EAC’s formation. But the EAC still has certain obstacles to the advancement of peace and security as well as regional integration. For instance, it was discovered that certain states are not fully dedicated to regional peace and security strategies, and it was also mentioned that a shortage of resources and training is one of the challenges to implementing peace. for these reasons I would recommend that members states pay on time their contribution, members states should be committed to the agenda of the community a finally, states should resolve conflicts between and among themselves.

Kenya’s macroeconomic policies and trade efficiency within the East African Community: A stochastic frontier analysis

Despite Kenya dominating trade volumes in the East African Community (EAC), it has been trading below its potential within the region. This is also in spite of the increased scope of the country’s trade opportunities resulting from the region’s increased market integration. Empirical evidence has shown that macroeconomic policies influence international trade flows. However, there is limited empirical evidence on the effect of macroeconomic policies on trade efficiency. The few existing studies on this topic have also used estimation techniques that depict efficiency as being drawn from an average level of trade and not the optimal level of trade, as well as also not separating the effects of inefficiencies from the statistical noises. This, therefore, creates a knowledge gap that this study aims at investigating by using the stochastic frontier gravity model (SFGM), to determine the effect of Kenya’s macroeconomic policies on its trade efficiency within the EAC. The study used annual panel secondary data for the period 2000 to 2021. This study finds that the GDP of Kenya and that of its EAC trading partners, the geographical distance and border significantly affects trade volume. It also finds that globalization plays a significant role in influencing Kenya’s trade. For the inefficiency model variables, exchange rate depreciation was found to significantly increase trade efficiency, while increase in tariff rate had an adverse and significant effect. Further, the study included corruption as a control variable and found that it significantly increases trade inefficiency. Kenya, though trading at an average efficiency level of 86.91 percent, was found to have high unexploited trade potentials within the region especially with Tanzania and Uganda. The study recommends that Kenya’s policymakers deliberately advance the macroeconomic policies that promote trade efficiency while at the same time closely monitor the ones that hinder efficiency.

Six Decades of African Integration: Successes and Failures

The African Union (AU), with antecedent Organisation of African Unity (OAU), is now six decades old, and its sub-regional affiliates, such as the Economic Community of West African States (ECOWAS), the Southern African Development Community (SADC), and the East African Community (EAC), up to four decades old. There is a need to inquire into why their problems have been so persistent. This exploration is based on desktop research into some of the scholarly literature, the media, and the findings and recommendations of AU commissions. It is informed by constructivism and Pan-Africanism. The AU and its affiliates are nonetheless arguably more successful than their comparative peers in the Global South. Yet it is usually criticized in the literature, and organs such as the Pan-African Parliament meet with media derision. The AU’s notable successes include establishing its agency in global governance. It has coordinated African states’ voting on the UN Security Council and established an embryonic diplomatic corps with representation on major regional and global organisations and at the two world powers, the USA and PRC. Scholars should also note the continental and multi-lateral activities strengthening African integration that occur outside the AU, through a variety of NGOs, QUANGOs, and business sectoral organisations. This article finds that only the European Union has been more successful, in part because it has a supranational dimension, plus two orders of magnitude more staff, and a budget two orders of magnitude larger. Further, many of the persistent problems of the AU and the RECs are problems of their member state governments, extraverted upwards into the continental and sub-regional structures.

Impacts of Regional Integration and Market Liberalization on Bilateral Trade Balances of Selected East African Countries: Potential Implications of the African Continental Free Trade Area

This study examined the effect of free trade on intra-African bilateral trade balances for Kenya, Rwanda, Uganda, and Tanzania to assess the potential implications of the African Continental Free Trade area. The four countries have experienced persistent trade deficits. Whether free trade within Africa can improve the national trade balances, and the drivers of bilateral trade balances are important questions for policy and strategic programmes for the countries to make the most gains from free trade area. The econometric model estimated for each country is an extension of the standard Keynesian model of trade balance to include determinants of bilateral trade flows from the gravity model. Quantitative analysis using panel regression was augmented with qualitative data from interviews with trade policy experts and trade officials from various African countries and focus group discussions with small-scale cross-border traders at the Busia and Namanga border posts in East Africa. Findings show that complete tariff elimination on intra–African trade may not impact the bilateral trade balances of Kenya, Rwanda, and Tanzania but could improve bilateral trade balances for Uganda by 6 percent. Within the free trade areas, Uganda’s bilateral trade balances were higher within the Common Market for Eastern and Southern Africa but lower within the East African Community, than outside these areas. Kenya’s trade balances were lower in the Common Market for Eastern and Southern Africa, than otherwise. On the contrary, no significant difference in trade balances is established for the membership of Kenya, Rwanda, and Tanzania in the East African Community; Rwanda in the Common Market for Eastern and Southern Africa; and Tanzania in the Southern African Development Community, when compared to trade balances with non-members. The importance of macroeconomic factors is demonstrated by the increase in bilateral trade balances with higher relative price levels of trade partners; the reduction with increase in relative production and expenditure capacities of trade partners; and improvements following a depreciation of home currency for Tanzania and Uganda, yet a worsening of trade balances in Kenya. A lack of harmony in documents required for cross-border movements within the free trade areas is reported as counterproductive. All African countries should therefore fully implement protocols and cooperate in the harmonization of trade procedures for the free movement of people and goods across borders. Country policies and trade programmes should pursue increased productivity in the leading intra-African export sectors and diversify exports via foreign direct investment in strategic sectors to substitute imports from outside Africa; reduce costs of production; increase the quality of products; and improve transport infrastructure.

Electricity consumption and economic growth: Evidence from the East African community

This study investigates the dynamic causal relationship between electricity consumption and economic growth in the East African Community (1990–2021). It seeks to interrogate the nature of relationship between electricity consumption and economic growth. The hypothesis used in this study is four folded including growth, conservation, feedback and neutral hypothesis.It uses panel data estimation techniques, particularly the panel dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and non-linear autoregressive distributed lag (NARDL). The panel augmented Dickey Fuller (ADF)-fisher and Levin, Lin & Chu (LLC), 2003, was used to test the unit root process. Dumitreschu-Hurlin (2012) and pairwise Granger tests were used to test for the direction of causality.The findings indicate growth hypothesis with a unidirectional relationship running from electricity consumption to economic growth. Regional governments must increase their investments in electricity market trading to boost economic growth. Greater benefits from regional cooperation can be realized with increased investment in electricity consumption.This is a novel study of the dynamic causal relationship between electricity consumption and economic growth in the East African Community. It is a ground-breaking inquiry into the possibility of integrating electricity markets and their role in promoting economic growth.

Assessment of the pathogen genomics landscape highlights disparities and challenges for effective AMR Surveillance and outbreak response in the East African community

The East African Community (EAC) grapples with many challenges in tackling infectious disease threats and antimicrobial resistance (AMR), underscoring the importance of regional and robust pathogen genomics capacities. However, a significant disparity exists among EAC Partner States in harnessing bacterial pathogen sequencing and data analysis capabilities for effective AMR surveillance and outbreak response. This study assesses the current landscape and challenges associated with pathogen next-generation sequencing (NGS) within EAC, explicitly focusing on World Health Organization (WHO) AMR-priority pathogens. The assessment adopts a comprehensive approach, integrating a questionnaire-based survey amongst National Public Health Laboratories (NPHLs) with an analysis of publicly available metadata on bacterial pathogens isolated in the EAC countries. In addition to the heavy reliance on third-party organizations for bacterial NGS, the findings reveal a significant disparity among EAC member States in leveraging bacterial pathogen sequencing and data analysis. Approximately 97% (n = 4,462) of publicly available high-quality bacterial genome assemblies of samples collected in the EAC were processed and analyzed by external organizations, mainly in Europe and North America. Tanzania led in-country sequencing efforts, followed by Kenya and Uganda. The other EAC countries had no publicly available samples or had all their samples sequenced and analyzed outside the region. Insufficient local NGS sequencing facilities, limited bioinformatics expertise, lack of adequate computing resources, and inadequate data-sharing mechanisms are among the most pressing challenges that hinder the EAC’s NPHLs from effectively leveraging pathogen genomics data. These insights emphasized the need to strengthen microbial pathogen sequencing and data analysis capabilities within the EAC to empower these laboratories to conduct pathogen sequencing and data analysis independently. Substantial investments in equipment, technology, and capacity-building initiatives are crucial for supporting regional preparedness against infectious disease outbreaks and mitigating the impact of AMR burden. In addition, collaborative efforts should be developed to narrow the gap, remedy regional imbalances, and harmonize NGS data standards. Supporting regional collaboration, strengthening in-country genomics capabilities, and investing in long-term training programs will ultimately improve pathogen data generation and foster a robust NGS-driven AMR surveillance and outbreak response in the EAC, thereby supporting global health initiatives.

Marginal propensity to import and terms of trade: Panel granger causality evidence from the East African Community (EAC)

Abstract Subject and purpose of work The nexus between the terms of trade and marginal propensity to import and the consequent policy options arising from it among economic blocs is an area that has not been given due attention in the literature. The focus of the current paper is to examine the link between the marginal propensity to import and the terms of trade in the East African Community (EAC). Material and methods The authors discuss and test a panel Granger causality model which is complemented with the test of impulse response function and variance decomposition using data from five EAC countries (Uganda, Tanzania, Rwanda, Kenya and Burundi). Results The long-run result of the study indicated that causality runs from all the variables to the terms of trade. In the short-run, results reveal that both the marginal propensity to import and the export of manufactures Grangercaused terms of trade without a feedback. The results of the impulse response function revealed that the terms of trade responded positively to shocks in the marginal propensity to import only in the first period, but afterwards the response turned negative in all the other periods. The terms of trade were equally found to respond positively to shocks in inflation rate in all the periods. The variance decomposition results indicated that apart from shocks to itself which was 100% in the first period, marginal propensity to import contributed about 0.0458% of shocks to the terms of trade, and this rose continuously in all the periods. Conclusions The analysis shows that both in the long-run and the short-run, marginal propensity to import determines the terms of trade among the EAC countries.

Financial technology and economic growth nexus in the East African community states

PurposeThis paper aims to examine the causation linking financial technology to economic growth in the East African Community states from 1997 to 2019.Design/methodology/approachAutoregressive distributed lag is used. Gross domestic product per capita proxies economic growth, automated teller machines, point of sale, debit card ownership and mobile banking measure financial technology.FindingsThe results unveil a significant relationship between financial technology and economic growth. The findings show bidirectional causality between automated teller machine and economic growth, with unidirectional causation from economic growth to point of sales and internet banking, mobile banking and government effectiveness to economic growth. The error correction term is negatively significant, demonstrating a long-term convergence between Fintech measures and economic growth.Research limitations/implicationsThe governments should effectively enact and implement policies that protect investments in financial technologies to boost economic growth in the East African Community countries. The government should reduce taxes on financial technology equipment and related services. The use of automated teller machine, debit card ownership and internet banking should be encouraged through cashless transactions. Financial institutions should adopt cashless operation policies to encourage the use of financial technologies.Originality/valueResearch results on the bond between financial technology and economic growth are not conclusive. These studies demonstrate that technological innovations are double edged-swords, with both positive and negative sides. The results are conflicting; some reveal positive relationships, while others show negative links. Hence, research is required to fill the lacuna.

The Role of the East African Community in Resolving the Ethnic Divisions in Burundi, 1993-2021

The Role of the East African Community in Resolving the Ethnic Divisions in Burundi, 1993-2021

Infant Weight Faltering and Feeding Patterns at 6 Weeks Post Delivery in a Rural East African Community: Comparing Incremental Versus Static Weight Assessments

Infant Weight Faltering and Feeding Patterns at 6 Weeks Post Delivery in a Rural East African Community: Comparing Incremental Versus Static Weight Assessments

The Role of Macroeconomic Variables in Forecasting Equity Market Volatility in the East African Community Using Garch-Midas Model

This study delves into the dynamic relationship between macroeconomic variables and equity market volatility in the East African Community. The research employs the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model coupled with the Mixed Data Sampling (MIDAS) approach. Through a comparative process, it is found that the different macroeconomic variables exhibit heterogeneous effects on the different countries in the East African community that is macroeconomic factors significantly explain the variation in stock market volatility in Uganda and including these factors in the GARCH-MIDAS model improved its forecasting ability, however, in Kenya it was found that majority of the macroeconomic variables had insignificant effects on stock market volatility and didn’t improve the forecasting ability of the GARCH-MIDAS model.

Cooperation and Defection in the East African Community

Abstract This paper looks at the role of regime types and political leadership in influencing regional integration in the East African Community (EAC). Although the EAC is one of the most highly integrated Regional Economic Communities in Africa, and there are many instances where member states cooperate with decisions made at the EAC level to strengthen integration, in other instances members choose to defect from regional commitments. The study used secondary data sources to determine why this is so and employed game theory to understand the game of cooperation and defection among the players, who are the member states of the EAC. Kenya, Uganda and Tanzania were selected as case studies because they are the founding members of the EAC and are assumed to be most invested in deeper cooperation within the EAC. The study found that member states make conscious, calculated decisions to cooperate or defect on specific issues after gauging the costs and payouts associated with each action.

Geospatial Analysis of Wind Energy Siting Suitability in the East African Community

Site investigation is essential for developing and constructing a dependable and effective wind engineering project. Also, the kinetic energy of moving air, used to drive a wind turbine, produces electricity. Having seen the shortage of previous studies on wind energy sites’ suitability across Africa and having read about the abundance of untapped wind energy resources in the East African region, this paper used Geographical Information System (GIS), multi-criteria, and Analytic Hierarchy techniques to provide a geospatial analysis of wind energy technology siting suitability in Eastern African Community Countries. Different data were acquired and processed from numerous open-access databases (Global Wind atlas, Regional Center for Mapping of Resources for Development (RCMRD), African Geoportal, East African community website, and Energy data Info.org). The results reveal Kenya has large parts of its land areas highly appropriate for wind energy siting (15.26%) and 1.55% of its land classified as unsuitable for wind energy generation. The rates of suitability and unsuitability were respectively 26.57% and 4.87% for Burundi, 20.6% and 10.21% for Rwanda, 20.39% and 10.44% for Tanzania, and 4.65% and 27.15% for South Sudan. The findings also show that East Africa exhibits moderate levels of wind energy siting suitability, with an estimated average of around 37.27% of its land area moderately suitable for wind energy technology installation, covering thousands of square kilometers. The study is advantageous to academia and industry-related personnel engaged in renewable energy-related activities in other African countries with similar topographies.

Aflatoxin contamination of household stored grains for smallholder farmers in Dodoma, Tanzania

Abstract Aflatoxins are toxic and carcinogenic secondary metabolites, produced by Aspergillus flavus and Aspergillus parasiticus, which contaminate stored grains including maize, groundnuts and sunflower seeds and cause negative health effects to both humans and animals. The aim of this study was to determine the level of aflatoxins contamination of household stored grains (maize, groundnuts and sunflower seeds) in Dodoma, Tanzania. Immuno-affinity high performance liquid chromatography with post column derivatization was used to analyse AFB1, AFB2, AFG1, AFG2 and total aflatoxins in 45 samples. Out of 45 samples, 38% were contaminated with aflatoxins; the highest mean levels of total aflatoxins were observed in groundnuts (269 μg/kg) followed by maize (74.9 μg/kg) and lastly sunflower (0.2 μg/kg). About 27% of maize and 67% of groundnut samples had higher levels of AFB1 and total aflatoxins beyond the East African Community limits of 5 and 10 μg/kg, respectively. The mean moisture contents were 9.6% for maize, 4.1% for groundnuts and 5.7% for sunflower seeds. These moisture levels were far below the recommended safe storage moisture levels of 13.5% for maize, 8% for groundnuts and 10% for sunflower seeds. Such moisture levels would not allow mould growth and subsequent aflatoxins contamination. It suggests that contamination could have occurred in the field or during the drying stages before reaching the observed moisture levels. Therefore, there is a need to conduct further study to assess aflatoxin contamination in the field, during drying operations and storage to identify the critical stage for intervention. Moreover, farmers should be trained on best management and handling practices to prevent contamination.

Somalia's New Horizon: Joining the East African Community (EAC)

Somalia's recent participation in the EAC brings forth transformative opportunities and challenges across various sectors. This report delves into EAC integration, focusing on Somalia's opportunities and challenges, along with policy implications. It emphasizes the importance of comprehending Somalia's dynamic integration into the EAC for informed decision-making and strategic planning. As a member of the EAC Customs Union, Somalia gains access to a larger market, stimulating economic growth and fostering cross-border collaborations. The removal of trade barriers and participation in collaborative ventures offer resilience and connectivity to the global economy. The EAC Common Market reinforces fairness, equity, and cooperation, ensuring Somalia's equal treatment, transparency, and active engagement. Participation in the EAC Monetary Union addresses economic challenges, including dollarization and counterfeit currencies, and will promote economic stability. Somalia's involvement in the Political Federation provides support for lasting peace and recovery from years of conflict. Despite these advantages, challenges arise, including aligning regulations, adapting to increased competition, and navigating the complexities of regional cooperation. The economic landscape of Somalia is rapidly evolving, with notable achievements such as the UN Security Council's decision to end the arms embargo after three decades. Moreover, the International Monetary Fund (IMF) recognizes Somalia's strong implementation of wide-ranging reforms, strengthening key economic and financial policy institutions. This progress positions Somalia for potential debt relief at the Heavily Indebted Poor Countries (HIPC) Completion Point in December 2023. These milestones underscore Somalia's commitment to economic development, international trade, and the defeat of terrorism. The Political Federation in EAC brings both opportunities and challenges, requiring Somalia to balance national priorities with regional integration efforts, harmonize governance practices, and ensure political stability

The Role of Macroeconomic Variables in Forecasting Equity Market Volatility in the East Aftican Community

This study delves into the dynamic relationship between macroeconomic variables and equity market volatility in the East African Community. The research employs the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model coupled with the Mixed Data Sampling (MIDAS) approach. Through a comparative process, it is found that the different macroeconomic variables exhibit heterogeneous effects on the different countries in the East African community that is macroeconomic factors significantly explain the variation in stock market volatility in Uganda and including these factors in the GARCH MIDAS model improved its forecasting ability, however, for Kenya it was found that majority of the macroeconomic variables had insignificant effects on stock market volatility and didn’t improve the forecasting ability of the GARCHMIDAS model.

China’s Belt and Road Initiative (BRI) and its role in developing Africa’s economies. Case study: Kenya’s Standard Gauge Railway (SGR), Kenya

The main purpose of this paper is to study the potential economic benefits of China’s Belt and Road Initiative (BRI) to Africa’s economies with case study of Standard Gauge Railway (SGR) project in Kenya. China has become an important factor in African development. Through the Belt and Road Initiative (BRI), it is reorganizing the geographical and political space in the Africa, first, by heavily investing in regional connectivity projects, and second, by promoting alternative ideas and concepts of development favourable to a Chinese-centric order in the region. The paper also argues that the BRI is actively shaping a new spatial order in Africa by influencing key stakeholders’ perspectives and preferences. China’s particular visions of global and regional development through the BRI are gaining traction in Africa, making it an indispensable actor with considerable political and economic influence – and thereby challenging the role of traditional development partners in the global south region. China’s engagement with Kenya is a good example of how Beijing approaches economic diplomacy in Africa. Moreover, it’s a revealing case study of how BRI works on the continent. Kenya needs better infrastructure to meet its development needs, and China has been willing to help. The project to upgrade the Standard Gauge Railway (SGR) is China’s flagship investment project in Kenya. The SGR connects Mombasa, the largest port city in Kenya, to its capital, Nairobi. The Export-Import Bank of China financed 90 percent of the SGR project, while the Kenyan Government contributed the other 10 percent. The China Road and Bridge Corporation led the SGR installation process. This was supposed to signal a contribution to Kenya’s developmental goals and directly spur growth in the construction sector. The Standard Gauge Railway (SGR) is a mega project that the Kenyan Government has invested in after freedom from the colonial rule. The SGR created around 30,000 new jobs for locals and, in the first year, transported 5.4 million passengers and 1.3 million twenty-foot equivalent units (known as TEUs) of shipments across Kenya. If this performance had continued African exports would have increased significantly. The chief economist in the State Department of Infrastructure in the Kenyan Ministry of Transportation and Infrastructure claimed that the SGR would increase trade and investment and further employment opportunities to enhance the people’s livelihoods in the East African Community. The paper will analyze how the BRI through SGR has enhanced economy and trade for Africa with a case study of Kenya, how the SGR has reduced unemployment, how the SGR has enhanced both the social aspects and environmental conservation in Kenya. This paper will also reveal that the Standard Gauge Railway (SGR) and BRI have massive economic value to Africa and beyond and are crucial to development. The study recommends the completion of the remaining SGR phases in Kenya in the projected time frame for the railway industry to play a positive role in national and continental development.

The Causal Relationship between External Debts and Economic Growth in East African Community

Abstract The interest in the causal relationship between external debt and economic growth has increased in the world due to its importance in whether a country is experiencing debt overhang or not. This study attempts to examine the causal relationship between external debt and economic growth in EAC’s founding partner states. The study employs Xtabond2 using a secondary panel data set for the period 1988 to 2020. The study conducted all required econometric tests such as panel data unit root set and overidentification test using Arellano Bond test, Sargan test and Hansen test respectively before proceeding with further regression. The findings reveal the negative impact of external debt on economic growth running from external debt to economic growth with no feedback indicating the debt overhang in these countries. Other moderating variables have shown different impacts on economic growth where the negative impact is revealed from inflation while positive impacts are revealed from gross capital formation, lagged dependent variable, and the square of total external debt. Other variables such as population size have no significant impact which might have been caused by the presence of a square of total external debt while the exchange rate has a short-run impact on economic growth. Therefore it is suggested that the policymaker should ensure that the loan secured is located on the project with a positive net profit to avoid further demand for external assistance on loan repayment. Also, all tax potentials available in these countries should be optimally exhausted to avoid reliance on external financing assistance. Moreover, these countries should ensure that all external debt secured is sustainable and solvency in relation to their economy.