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The International Monetary Fund (IMF) has warned that the economic consequences of the war in Iran are creating a difficult period for African economies, with disruptions to energy supplies expected to take months to resolve.
The IMF’s Africa Director, Zeine Zeidane, said on Monday that although a ceasefire had been reached, the impact of the conflict on energy markets and supply chains would not disappear immediately.
“We are now in a difficult moment for the region, in particular after the war in the Middle East,” Zeine Zeidane told reporters at the IMF’s headquarters in Washington.
“Even though there is a ceasefire today, we know that the disruption will take time to be resolved,” he said.
He said the Middle East conflict had put the region in a challenging situation, adding that restoring normal energy production would take time, adding that Gulf countries could require between six and seven months to fully resume oil and gas production and exports following months of disruption.
“Most of them will tell you that you’ll take six, seven months before going to full resumption of production and export,” he said.
The IMF has increased support programmes for African countries affected by rising energy and fertiliser costs linked to the conflict, as several governments have sought financial assistance or technical support from the fund.
Zeidane, a former IMF deputy director for the Middle East and Central Asia department, said recent economic reforms across sub-Saharan Africa had helped strengthen countries’ resilience against external shocks, including the latest energy crisis.
However, he noted that some countries had already approached the IMF for additional support, with the fund providing increased or accelerated access to financing for Ethiopia, The Gambia and Burkina Faso.
The IMF is also holding accelerated discussions with Malawi over a possible new assistance programme, while it recently reached a staff-level agreement with São Tomé and Príncipe on the third review of its $25 million programme.
The agreement, subject to approval by the IMF board, would allow the island nation to access about $6.1 million in funding.
Zeidane added that the IMF could receive more requests from African countries seeking additional financing or new programmes before the end of the year.
