Africa-Press – Mauritius. The repercussions of disruptions in global supply chains and the closure of vital maritime corridors, alongside rising security and health threats, dominated the discussions at the semi-annual meeting of the African Union held in the Ethiopian capital, Addis Ababa. There were warnings regarding the implications of these crises on the economies and stability of countries across the continent.
The meeting primarily focused on the impact of the disturbances in the Middle East due to the conflict involving Iran, particularly the closure of the Hormuz Strait, and the direct consequences this has had on the economies of African nations.
Participants discussed the effects of supply chain disruptions on the continent, given that most African countries rely on importing petroleum products from outside Africa. This reliance has led to increased energy costs and rising inflation rates in several countries.
These developments have affected the prices of essential goods, food items, and grains, as well as disrupted the supply of many products, thereby increasing economic pressures on governments and citizens.
The Chairperson of the African Union Commission, Mahmoud Ali Yusuf, warned that the global supply chain disruptions caused by the conflict between the United States and Iran threaten economic and food security in Africa.
This comes at a time when African nations are facing increasing economic repercussions due to supply chain disruptions and rising energy prices.
In Sudan, the rise in fuel prices has led to increased transportation and agricultural operating costs as the summer season begins. The significant increase in the prices of fertilizers and pesticides has also reduced the benefits from vast agricultural lands, alongside a decline in the competitiveness of Sudanese exports—such as gum arabic, sesame, cotton, and beans—due to rising shipping costs.
In Ethiopia, the crisis has impacted trade and supply chains, leading to higher prices for imported goods and a decrease in consumers’ purchasing power.
In Somalia, which relies on imports to meet about 80% of its basic needs, the doubling of fuel prices has caused widespread inflation and increased transportation costs, resulting in a decline in purchasing power.
Living pressures are exacerbated as over 6 million people suffer from food insecurity, amid the government’s limited capacity to address rising inflation rates.
As tensions continue, observers believe that the responsibility lies with major economies, particularly the G20 nations, to take coordinated actions to ensure the continued flow of fertilizers and food, especially to poorer countries, by avoiding export restrictions.
