The International Monetary Fund’s Africa director, Zeine Zeidane, has warned that the economic fallout of the Iran war is creating a difficult moment for the region, saying that even though there is a ceasefire today, the disruption will take time to be resolved. The Fund has, in recent weeks, ramped up its programmes for African countries hit by high energy and fertiliser prices caused by the war.
Zeidane lauded government reform programmes undertaken in sub-Saharan Africa in recent years, saying that they had given regional economies more resilience to the current energy supply shock. Nevertheless, several African countries have approached the IMF for technical advice or financial assistance in the wake of the conflict.
Earlier this month, IMF spokesperson Julie Kozack said the multilateral lender would provide increased or accelerated access to funds to Ethiopia, The Gambia, and Burkina Faso. The Fund was also in accelerated talks with Malawi on a new IMF financial assistance programme.
Zeidane said the IMF could not rule out that there would be further requests for augmentation or new programmes in Africa by the end of the year. The conflict in the Middle East has disrupted global energy markets and supply chains, with African countries particularly vulnerable due to their reliance on imports and limited fiscal buffers. The IMF remains concerned about the impact of the war on food security and inflation across the continent.
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