Conflict in Middle East sends over 20 African currencies tumbling, UN warns

The currencies of at least 29 African countries have weakened sharply due to the war involving the United States and Israel against Iran, a policy brief presented at the 58th session of the United Nations Economic Commission for Africa (UNECA) in Morocco has revealed.

The briefing was prepared by the African Development Bank, the African Union Commission, the UN Development Program, and UNECA, Caliber.Az reports, citing Russian media.

According to the document, the currency depreciations have raised the local cost of servicing external debt, increased the price of imports, and eroded foreign exchange reserves.

“These pressures could combine to exacerbate a fiscal squeeze, especially in countries with high debt service, large fuel and food import bills, and weak reserves, such as Senegal, Sudan, Cabo Verde, South Sudan, and The Gambia,” the brief notes.

The situation is further aggravated by disruptions in energy supplies from the Persian Gulf and shortages of critical agricultural inputs, including ammonia and urea, during the vital March-to-May planting season. Analysts warn that reduced availability of these inputs could undermine food production and exacerbate insecurity, particularly in import-dependent countries and among low-income populations.

“Continued escalation of the conflict worsens global instability, with serious implications for energy markets, food security, and economic resilience, particularly in Africa where economic pressures remain acute,” African Union Commission Chairperson Mahmoud Ali Youssouf said.

UN Undersecretary-General and UNECA Executive Secretary Claver Gatete emphasized the need for both immediate and long-term action. “This moment calls for decisive action, to protect people now, but also to accelerate Africa’s long-term push towards energy security, food sovereignty, and financial self-reliance. Crises like this reinforce why Africa must finance more of its own future and strengthen regional solutions that build resilience before the next shock hits,” he said.

The briefing also outlined a comprehensive response strategy, including short-term measures to stabilize prices and protect households, medium-term reforms to strengthen energy systems and regional trade under the African Continental Free Trade Area, and longer-term structural changes to mobilize domestic resources and build financial safety nets across the continent.

By Vafa Guliyeva