The World Bank has predicted that Nigeria and other African countries will experience higher inflation due to Russia’s invasion of Ukraine, which has triggered supply disruptions.
In a statement, the bank disclosed that the Sub-Saharan African economy was still struggling to recover from the effects of the COVID-19 pandemic.
According to the Washington-based lender, the region’s economic struggle has been adversely affected by the Russian invasion of Ukraine.
The statement read in part, “As top world exporters of food staples, Russia—the world’s largest exporter of fertilizers—and Ukraine account for a substantial share of wheat, corn, and seed oil imports, all of which may be halted if the conflict persists.
“While Sub-Saharan economies are also likely to be impacted by tightening of global conditions and reduced foreign financial flows into the region, the analysis notes that the high fuel and food prices will translate into higher inflation across African countries, hurting poor and vulnerable citizens, especially those living in urban areas.
“One point of concern is the increased likelihood of civil strife as a result of food and energy-fueled inflation, particularly in this current environment of heightened political instability.”
The World Bank Chief Economist for Africa, Albert Zeufack, was quoted as saying, “As African countries face continued uncertainty, supply disruptions and soaring food and fertilizer prices, trade policy can potentially play a key role by ensuring the free flow of food across borders throughout the region. Amid limited fiscal space, policymakers must look to innovative solutions such as reducing or waiving import duties on staple foods temporarily to provide relief to their citizens.”
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