By Abdullahi Lukman
African countries are facing rising fuel and fertiliser costs as the conflict involving the United States, Israel and Iran disrupts shipping through the Strait of Hormuz, raising concerns about food production, supply chains and consumer prices, according to African trade officials and the United Nations trade agency.
Luz Maria de la Mora, director of the Division on International Trade and Commodities at UN Trade and Development (UNCTAD), warned that high fertiliser prices could reduce agricultural yields in the coming year as farmers cut usage. She called for a swift resolution to the crisis, saying prolonged disruptions could affect food availability and prices.
The Strait of Hormuz is a strategic shipping route through which about one-fifth of global oil and liquefied natural gas trade previously passed. Disruptions have increased pressure on energy supplies and contributed to rising costs across African economies.
Uganda has experienced a sharp increase in fuel prices, which have more than doubled, according to Trade, Industry and Cooperatives Minister Sanjay Tanna.
The country’s currency has also lost about 10 per cent of its value against the US dollar, although domestic food production has helped cushion some of the effects of international market volatility.
Zimbabwe is also concerned about rising fuel and fertiliser costs because more than 70 per cent of its population depends on agriculture, said Monica Mutsvangwa, the country’s minister of women affairs, community and small and medium enterprise development.
Speaking at UNCTAD’s World Investment Forum in Doha on October 25 and 26, officials from African countries also highlighted the need to attract investment, strengthen infrastructure and build more resilient economies amid global economic uncertainty.
Mutsvangwa said Zimbabwe remained open to investors from different countries, including the United States and China, provided they complied with national laws and regulations. She cited the country’s deposits of more than 60 critical minerals, including lithium and graphite, alongside its tourism potential, as opportunities for investment.
Meanwhile, de la Mora said developing countries faced challenges in attracting foreign capital because investors prioritised predictable returns and reduced risks. She stressed the importance of transparent institutions, the rule of law, reliable electricity, energy supplies and digital connectivity in improving investment prospects.
Tanna acknowledged that the international trading system did not offer equal opportunities to all countries but said Uganda’s domestic food production provided an advantage amid global supply disruptions.
The Republic of Congo’s Deputy Prime Minister for Coordination, Development Infrastructure and Land Planning, Jean-Jacques Bouya, called for greater local processing of Africa’s natural resources to retain more economic value on the continent.
He said Congo’s Vision 2063 development plan prioritised electricity, digital infrastructure and physical connectivity, alongside efforts to expand domestic industries and reduce reliance on exporting raw materials for processing abroad.
The developments underscore the vulnerability of African economies to external shocks and the need to strengthen food production, infrastructure and local industries to reduce dependence on volatile global markets.
