- Spiralling global energy prices, after the Russian invasion of Ukraine, say analysts have fuelled inflation across Africa.
- Experts have urged governments and regional bodies like the African Union to build defences to cushion consumers in times of such economic uncertainty.
Spiralling global energy prices, after the Russian invasion of Ukraine, say analysts have fuelled inflation across Africa. For instance in Ghana, according to its Statistical Service, overall consumer price inflation was pegged at 15.7% year-on-year in February compared with 13.9% in January. In Zimbabwe too prices are rising sharply for daily consumer items like, eggs, bread, meat, gasoline etc. even overnight. In Egypt, sharp hike in food prices drove consumer inflation to 8.8% in February – the highest increase in nearly three years, according to the state statistics agency, CAPMAS.
Read More :
https://trendsnafrica.com/annual-inflation-in-egypt-touches-10/
https://trendsnafrica.com/russia-ukraine-war-and-its-fallout-on-africa/
Experts have urged governments and regional bodies like the African Union to build defences to cushion consumers in times of such economic uncertainty. Food security has become a critical area where government should intervene. Without a clear strategy to deal with the issues millions of people and businesses will continue to suffer
Though Oil prices have gone up, it has not contributed to the revenue even for oil producing African countries as the continent lacks refining capability. As a result, countries have to pay high prices to import gasoline and other petroleum products from Asia and Europe. Africa is also affected by increasing costs for natural gas, a key component of nitrogen-based fertilizers used in food production. Nigeria, Africa’s biggest oil producer struggles to meet its energy needs. Small businesses in Nigeria are severely hit by weeks of scarce fuel coupled with a failing national electricity grid affecting the overall economy. Authorities blame the fuel scarcity on the 170 million liters of tainted fuel imported from Europe. Nigeria’s Statistics Bureau said the country’s annual inflation rate has increased to 15.7 percent.
