Multiple international organizations say that the US-Israel-Iran conflict poses significant risks to the African economy
According to Golden Ten Data on April 6, the African Union, United Nations Economic Commission for Africa, African Development Bank, and United Nations Development Programme have jointly released a policy brief stating that the ongoing tensions in the Middle East are continually impacting key international transport routes, as well as energy and fertilizer supply chains, which will result in a significant slowdown of Africa’s economic growth and pose serious risks to African economies. The brief specifically notes that due to disruptions in the transportation of liquefied natural gas produced in the Persian Gulf, the supply of ammonia and urea fertilizers has become restricted, which will significantly raise fertilizer prices during the planting season from March to May this year and further pass these costs on to end consumer sectors such as food. The African Union and other organizations emphasize that the current situation has severely impacted trade and driven up fuel and food prices, and may soon lead to a “cost-of-living crisis.” The brief states that rising shipping and insurance costs, exchange rate pressures, and tighter financial conditions will further intensify the crisis, placing the heaviest burden on the poorest families.
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