Ratings agency S&P Global has warned that the ongoing Middle East conflict could negatively impact African economies if it is not resolved in the near future. This is largely because many African countries are net importers of fuel and fertilizers, making them especially susceptible to the disruptions caused by the conflict. S&P stated that rising fertilizer and fuel costs will increase inflation and strain African economies. This could result in ratings pressure, leading to downgrades. However, for the continent’s oil-exporting economies, the war’s impact will likely be mixed. While these countries are expected to benefit from the higher oil prices, their reliance on imported fuel could limit their gains.
Business Day
