Africa Warned: Middle East War is Devastating African Economy

African institutions warn that the Middle East war is rapidly transmitting economic shocks across the continent, exposing structural vulnerabilities in energy, food, and financial systems.

A joint report by the African Union Commission, African Development Bank, UNDP, and UNECA highlights how current shocks are spreading faster and through more concentrated channels than previous crises.

Global oil prices have surged by more than 50 percent as of late March, while 29 African currencies have weakened, increasing the cost of imports and external debt servicing.

The report warns that African economies have limited time to adjust, with immediate impacts already visible at household level.

Disruptions in Gulf energy supplies are constraining access to key agricultural inputs such as ammonia and urea during the March-May planting season.

This risks reducing agricultural output and worsening food insecurity, particularly in import-dependent economies and low-income households.

“Continued escalation of the conflict worsens global instability,” said Mahmoud Ali Youssouf, adding it has “serious implications for energy markets, food security, and economic resilience.”

Officials framed the crisis as both immediate threat and structural wake-up call.

Executive Secretary of the UN Economic Commission for Africa Claver Gatete said: “Africa has been hit by too many external shocks not of its making,” urging action to strengthen energy security, food sovereignty, and financial independence.

UN Assistant Secretary General Ahunna Eziakonwa emphasized that “this moment demands leadership,” highlighting the need for coordinated policy and financing responses.

The report outlines a three-phase response: immediate measures to stabilize fuel, food, and fertilizer supply; medium-term reforms to strengthen energy security and regional trade under AfCFTA; and long-term structural changes including domestic resource mobilization and financial safety nets.

President of the African Development Bank Sidi Ould Tah stressed the need to move “from managing shocks to fostering resilience,” calling for coordinated action among African institutions and development partners.

The findings underscore how external conflicts continue to disproportionately impact African economies, reinforcing calls for regional integration and African-led financial mechanisms.

By accelerating reforms and investing in resilience across energy, food, and trade systems, policymakers aim to reduce exposure to future global disruptions.