Lead

A new report by the African Union and the African Development Bank (AfDB) warns that the ongoing Middle East conflict "presents a serious risk to Africa," threatening to raise living costs and curb economic growth across the continent. The report, compiled with the UN Development Programme and the UN Economic Commission for Africa, was seen by AFP on Saturday.

Coverage Comparison

The report's findings were carried by two news outlets—Africa News and RFI—both of which presented the information with a neutral tone and focused on the economic implications for Africa. Neither outlet introduced sensationalist language, and both attributed the report's conclusions to the African Union and AfDB.

Key Claims

According to the report, the Middle East accounts for 15.8% of Africa's imports and 10.9% of its exports. It warns that the conflict, which has already triggered a trade shock, could escalate into a continent-wide cost-of-living crisis through higher fuel and food prices, rising shipping and insurance costs, exchange rate pressures, and tighter fiscal conditions.

The report notes that most African countries are still growing more slowly than before the Covid-19 pandemic. It projects that if the conflict lasts more than six months, Africa's GDP could lose 0.2 percentage points of output growth in 2026. "The longer the conflict lasts and the more severe the disruption to shipping routes and energy and fertilizer supplies, the greater the risk of a significant growth slowdown across the continent," the report states.

Reduced deliveries of liquefied natural gas (LNG) from the Gulf are expected to hit fertilizer production, potentially limiting availability during the crucial planting period up to May.

The report also highlights currency pressures, citing AfDB data showing that the currencies of 29 African countries have already depreciated. This increases the cost of servicing external debt, makes imports more expensive, and reduces foreign exchange reserves.

Despite the overall negative outlook, the report identifies potential short-term gains for some countries, such as Nigeria through its oil exports and Mozambique through its LNG. It also suggests that rerouting ships around the Cape of Good Hope could benefit ports in Mozambique, South Africa, Namibia, and Mauritius. Additionally, Kenya is positioning itself as a logistics hub in East Africa, while Ethiopian Airlines is serving as an emergency air bridge between the continent, Asia, and Europe.

Perspectives

The African Union and AfDB's joint report takes a primarily cautionary stance, emphasizing the continent's vulnerability to external shocks. The United Nations agencies involved add a developmental perspective, focusing on the humanitarian and economic fallout. The mention of potential winners—Nigeria, Mozambique, and several port nations—introduces a more nuanced view, suggesting that the crisis could create opportunities for certain African economies.