Afrieximbank Warns of Economic Growth Risks for Africa

Afrieximbank has issued a warning that Africa's economic growth is projected to decrease by 0.2 percentage points by 2026 due to ongoing conflicts in the Middle East, which are driving up energy costs and disrupting trade. This assessment was presented during the Spring Meetings of the International Monetary Fund and World Bank in Washington D.C.

The report highlights that African economies remain vulnerable to external shocks despite recovery efforts from previous global crises, including the COVID-19 pandemic and the Russia-Ukraine war. Kevin Urama, the Chief Economist and Vice President of Economic Governance and Knowledge Management at Afrieximbank, noted that around 80% of Africa's oil imports originate from the Middle East, and 50% of refined petroleum products come from the region.

The report advises governments against panic measures that could undermine fiscal stability and recommends targeted inflation management and social protection measures to maintain fiscal space. It also calls for accelerated diversification of energy and food import sources and stronger intra-African trade.