What the Russia-Ukraine conflict means for African economies [Business Africa]
Russia and Ukraine are major wheat, sunflower, aluminum or nickel producers. Both countries play key roles in the world’s supply of raw materials destined for industrial and food sectors. This episode of Business Africa focuses on the long and the short-term consequences the crisis may have on African economies.
Russia-Ukraine conflict, how will it affect African economies?
Since the crisis between Russia and Ukraine erupted, the global prices of wheat, sunflower or oil crude have reached unprecedented levels. African nations, which have been trading with Russia for years, could be left short of supplies. It is particularly the case for Maghreb countries which rely on Russian and Ukrainian wheat. With imports accounting for more than 50%.
In the sub-Saharan region, coffee, tea or citrus fruits exports to Russia, may also be significantly reduced. However, this crisis may also benefit some African countries. It could be the case for Algeria, which is Europe’s third gas supplier.
Rwanda: State coffers filled with record agricultural exports earnings
Between January and December 2021 the agricultural exports earnings of Rwanda have spiked. The country earned more than 543 million $ according to the latest figures issued by the National agricultural export development Council. The country saw a 39% growth in the exports of its main products namely tea, coffee, dairy and roses. A reason that can explain the rise is the post-covid economic recovery.
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