Nairobi, March 14 (SANA) The CEO of the Regional Association of Energy Regulators in East and Southern Africa, Geoffrey Aori, warned that continued fuel shortages caused by the US-Israeli war on Iran could reduce economic growth in Africa by up to three percentage points.
AFP reported Aori as saying today, Friday, that “most African countries expect a decline in GDP growth ranging from one to three percentage points compared to previous forecasts for this year if the war continues for an additional two months,” noting that the African Development Bank had projected 4.3% growth before the current crisis erupted.
Aori urged investment in alternative energy sources, increased refining capacity, and larger reserves in the continent, describing the current crisis as a “wake-up call” for Africa to reduce over-reliance on imported oil amid heavy debt burdens and mounting economic challenges.
He also noted that time is running out for Africa, as fuel reserves in most countries last no more than 25 days, far below international standards, emphasizing the need for governments to immediately ration consumption and provide support to curb inflation as an emergency measure.
With escalating tensions in the Middle East and disrupted shipping through the Strait of Hormuz, European institutions warned that the continent faces a new phase of uncertainty, as the war in Iran revives the specter of an energy crisis and drives gas prices to alarming levels, according to recent economic reports.
M.Q.R
