The global economic environment has become increasingly volatile with rising frequency of major shocks worldwide. Amid spikes in energy, food and fertilizer prices caused by the ongoing conflict in the Middle East, the African Development Bank (AfDB) (www.AfDB.org), the African Union Commission (AUC) the United Nations Development Programme (UNDP), and the UN Economic Commission for Africa (UNECA) outline practical recommendations for crisis responses and resilience building in African countries.
On the margins of the 58th Session of the Economic Commission for Africa in Tangier, the principals of the four institutions discussed the implications of the conflict on African economies and highlighted the key findings and recommendations of the forthcoming report.
“Continued escalation of the conflict worsens global instability, with serious implications for energy markets, food security, and economic resilience, particularly in Africa where economic pressures remain acute” H.E. Mahmoud Ali Youssouf, Chairperson of the African Union Commission.
The report highlights that the current shocks are transmitting faster and through more concentrated channels than past global disruptions, leaving African economies with little time to adjust. Its effects are already affecting African economies and households, requiring rapid effective policy action.
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Global oil prices have already surged by more than 50 percent as of late March. Twenty-nine currencies in Africa have weakened, raising the cost of servicing external debt and importing food, fuel, and fertilizer. Disruptions linked to Gulf energy supplies limit access to ammonia and urea during the critical March-May planting season. This will affect agricultural production, compounding risks of crisis and emergency levels of food insecurity, especially for low-income households and import-dependent economies.
A Test and a Turning Point
“Africa has been hit by too many external shocks not of its making,” said Claver Gatete, UN Under-Secretary-General and Executive Secretary of the United Nations Economic Commission for Africa “This moment calls for decisive action, to protect people now, but also to accelerate Africa’s long-term push towards energy security, food sovereignty, and financial self-reliance. Crises like this reinforce why Africa must finance more of its own future and strengthen regional solutions that build resilience before the next shock hits.”
“This moment demands leadership, within Africa and from its partners,” stressed Ahunna Eziakonwa, UN Assistant Secretary-General and Director of UNDP’s Regional Bureau for Africa. “With the right mix of policy choices, financing tools, and political resolve, Africa can weather this shock and emerge more resilient, more self-reliant, and better positioned to shape its own economic future.”
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The Brief calls for coordinated action across three horizons:
- Immediate crisis response measures to cushion households and stabilize fuel, food, and fertilizer supply by African governments and supported by development partners and the private sector.
- Medium-term reforms to strengthen energy security, targeted social protection, and regional trade under the AfCFTA
- Long-term structural reforms towards stronger domestic resource mobilization and African financial safety nets, including accelerated implementation of the African Financing Stability Mechanism
“As global crises multiply, Africa’s response must evolve from managing shocks to fostering resilience,” emphasized Sidi Ould Tah, President of the African Development Bank Group. “African institutions and development partners need to act swiftly and in concert, leveraging their comparative advantages to cushion short-term shocks while laying the foundations for long-term resilience.”
By strengthening regional integration, accelerating African-led financial solutions, and investing decisively in energy, food, and trade resilience, the continent can move from vulnerability to preparedness.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).