Middle East Conflict Threatens African Economies: Trade and Energy Disruptions Loom

The ongoing conflict in the Middle East poses a substantial risk to African economies, according to a report released by two U.N. agencies, the African Union, and the African Development Bank. The report outlines potential disruptions to trade, energy, and fertiliser supplies, which could lead to a sharper economic slowdown.

Presented at the U.N.'s Economic Commission meeting in Tangier, the report highlights that prolonged turmoil could result in a 0.2 percentage point GDP loss in 2026. This situation is further compounded by the threat of rising inflation and a cost-of-living crisis due to increased fuel and food prices.

Certain African countries, like Nigeria and Mozambique, might experience benefits from higher oil and gas prices. However, the broader impact involves logistic shifts and increased geopolitical competition. The report advises strengthening domestic revenue collection and implementing urgent economic measures to mitigate the crisis's effects.