Africa’s vast economic potential is no secret. But tapping it will be possible only if major developed countries and emerging economies work together to design a more inclusive and effective global financial system that meets the continent’s liquidity and debt-sustainability needs.
ADDIS ABABA – For African economies that have yet to recover from the COVID-19 pandemic, Russia’s war in Ukraine could not have come at a worse time. The economic wounds of the previous crisis had been stitched up, but more time was needed for them to heal, let alone for the scars to fade. Now, commodity-price spikes and supply-chain disruptions are compounding inflationary pressures, causing currencies to depreciate and food and fuel costs to skyrocket. Since the war began, oil prices have reached their highest levels since 2008, wheat prices have soared to 14-year highs, and fertilizer prices have surged by nearly 30%.
ADDIS ABABA – For African economies that have yet to recover from the COVID-19 pandemic, Russia’s war in Ukraine could not have come at a worse time. The economic wounds of the previous crisis had been stitched up, but more time was needed for them to heal, let alone for the scars to fade. Now, commodity-price spikes and supply-chain disruptions are compounding inflationary pressures, causing currencies to depreciate and food and fuel costs to skyrocket. Since the war began, oil prices have reached their highest levels since 2008, wheat prices have soared to 14-year highs, and fertilizer prices have surged by nearly 30%.