Addis Ababa, Apr. 4 (SANA) African leaders and international agencies are sounding the alarm over the economic fallout from the ongoing Middle East conflict, warning it could drive a sharp rise in the cost of living across the continent.
A joint report by the African Union (AU), the African Development Bank (AfDB), the UN Development Programme (UNDP), and the UN Economic Commission for Africa (UNECA) highlights Africa’s heavy trade ties with the Middle East, which accounts for nearly 16% of the continent’s imports and around 11% of its exports.
The report cautions that disruptions in trade could quickly trigger higher fuel and food prices, increased shipping and insurance costs, currency volatility, and pressure on national budgets. Economic growth, already slower than pre-COVID-19 levels, could take a further hit, with Africa’s GDP growth projected to fall by 0.2 percentage points in 2026 if the conflict continues beyond six months.
The report warns that prolonged disruptions in energy and fertilizer supplies could significantly slow economic growth, with impacts varying across countries.
Data from the African Development Bank cited in the report shows that currencies in 29 African nations have already depreciated, raising the cost of servicing external debt, inflating import prices, and depleting foreign exchange reserves.
Experts also point to Africa’s structural vulnerabilities. A statement from the Center for Applied Research in Partnership with the Orient (CARPO) emphasized that the continent’s reliance on energy imports and proximity to major maritime trade routes—between the Gulf of Aden and the Red Sea—makes it particularly exposed to the conflict’s economic ripple effects.
M.Q.R
