• 29 African currencies weaken amid Middle East war, oil surge

• Rising import costs, debt pressures fuel inflation, food risks

• Institutions urge reforms, energy security, stronger intra-African trade

Twenty-nine African currencies are depreciating, weakened by the war that broke out in the Middle East in late February and the resulting surge in oil prices, according to a joint study by the African Development Bank (AfDB), the African Union (AU) and the United Nations Development Programme (UNDP).

The report was presented on April 2 at the 58th session of the Economic Commission for Africa.

The currencies were not specified, and neither was the benchmark currency used for the assessment, such as the U.S. dollar or the euro. However, the effects are already being felt. The report says the situation is driving up the cost of external debt, while essential imports, particularly fuel, food and fertilizers, are becoming more expensive.

Oil price surge adds pressure

Global oil prices rose by more than 50% at the end of March, increasing pressure on already fragile economies. This is partly due to Africa’s dependence on energy supplies passing through the Gulf. According to aviation sector data, nearly 70% of aviation fuel imported into Africa transits through the Strait of Hormuz.

The rise in prices is fuelling inflation and hitting lower-income households the hardest. In agriculture, supply disruptions affecting key inputs such as ammonia and urea are occurring during the planting season. The report warns that this could threaten future harvests and food security across the continent.

In response, African institutions are calling for swift action to stabilize access to essential goods and protect vulnerable populations. They also recommend strengthening energy security and boosting intra-African trade under the African Continental Free Trade Area (AfCFTA), alongside long-term reforms to increase domestic resource mobilization.

“African institutions and development partners must act quickly and together, leveraging their comparative advantages to cushion short-term shocks while laying the foundations for long-term resilience,” said AfDB Group President Sidi Ould Tah.

SG