Doha, Qatar – African countries are facing economic challenges due to the ongoing conflict in the Middle East, particularly the war involving the United States and Israel against Iran. Trade ministers and a senior United Nations official have warned that increasing fuel and fertilizer prices could significantly disrupt food security across the region.
Luz Maria de la Mora, director of the Division on International Trade and Commodities at the United Nations Conference on Trade and Development (UNCTAD), called for a swift resolution to the crisis surrounding the Strait of Hormuz. Speaking at the World Investment Forum on October 25, she noted that skyrocketing fertilizer prices threaten next year’s crop yields. “Prices of fertilizers have risen dramatically, and many countries have decided to reduce the use of fertilizers, which will have an effect next year in terms of crops,” she said.
The ongoing conflict has also highlighted the global economy’s reliance on the Strait of Hormuz, through which a significant portion of the world’s oil and gas trade passes. The crisis has already impacted African economies, particularly in Zimbabwe, where rising fuel and fertilizer costs are major concerns for a population heavily dependent on agriculture. Zimbabwe’s Minister of Women Affairs, Community, Small and Medium Enterprises Development, Monica Mutsvangwa, acknowledged the urgent need for investment to address these economic pressures.
Uganda has similarly been affected, facing fuel price increases of more than 100%, as reported by Sanjay Tanna, the country’s Minister of Trade, Industry and Cooperatives. The rising oil prices have disrupted supply chains, with de la Mora indicating that the effects could persist longer than anticipated.
While Uganda’s focus on subsistence farming has offered some protection against international market fluctuations, Tanna noted that the Ugandan shilling has lost 10% of its value against the US dollar since mid-2026, adding financial strain to the economy.
For Zimbabwe, the crisis underlines the importance of attracting diverse foreign investment. Mutsvangwa emphasized Harare’s openness to partnerships with investors from various backgrounds, stating, “We are a friend to all and an enemy to none.” She cited the country’s rich deposits of critical minerals, including lithium and graphite, and its tourism potential as attractive factors for foreign investment.
Trade officials are aware of the uneven landscape of global investment, with capital often concentrated in a few favored countries. De la Mora explained, “Capital is risk averse. Capital needs to have certainty that its investment is going to yield returns.” She urged governments to focus on creating transparent institutions, robust legal frameworks, and necessary infrastructure to bolster investor confidence.
In a candid assessment, Uganda’s trade minister noted that the international trading system does not afford equal treatment to all nations. Tanna stated, “The world cannot be equal … It’s unfair, but we believe that, within the space that we are in, we are in a good space.”
Addressing the future economic landscape, Jean-Jacques Bouya, the Republic of Congo’s Deputy Prime Minister, stressed the need for local processing of natural resources and investment in youth development. He described a vision of an Africa that no longer solely exports raw materials, advocating for more value to be retained within the continent.
The World Investment Forum concluded with discussions aimed at fostering growth and sustainability in response to these pressing economic challenges.
