THE African Development Bank (AfDB) has raised concerns over the escalating expenses of energy, food, and other essential commodities in numerous African countries, including Angola, Ethiopia, and Kenya, warning of potential social unrest. The latest biannual Africa Macroeconomic Performance outlook publication by the AfDB, released last week, highlighted the looming threats posed by soaring prices.
In its 2024 forecast, the AfDB highlighted that the surge in energy and food prices, coupled with currency depreciation in Angola, Ethiopia, Kenya, and Nigeria, could ignite internal conflicts despite the continent’s overall economic growth.
‘The three basic needs of life, food, shelter, and clothing, are becoming increasingly unaffordable for many people,’ remarked security analyst Senator Iroegbu. ‘Nobody can survive without food, and that is the level Nigerians are heading to, so people are becoming restless.’
While some African countries like Cote d’Ivoire, Libya, Niger, Rwanda, and Senegal are experiencing rapid economic growth, the AfDB emphasised that performance varies depending on each country’s economic policies.
In Nigeria, President Bola Tinubu’s bold economic reforms, including the removal of fuel subsidies and the floating of the national currency, have faced scrutiny amid immediate economic shocks.
‘Nigeria is feeling the heat, but it’s not alone,’ said Major General Christopher Musa, Nigeria’s chief of defence staff. ‘The entire world is grappling with similar challenges. Measures are being put in place to bring relief all over the country.’
Despite assurances from authorities that these policies will yield long-term benefits, immediate shocks are evident in the economy. Nigeria’s inflation reached a staggering 29.9 percent, the highest since mid-1996. In response, the government released 102,000 metric tons of grain, including rice and maize, in a bid to alleviate food prices.
‘We’ve had a few riots here and there. Why I’m happy is that the government too is not sleeping, it’s stepping up to ensuring that they address these challenges,’ stressed Musa. ‘You’ve seen that grains have been released, measures are being put in place to bring succour all over the country.’
The AfDB projects that Africa’s economic growth will surpass global averages, with expected averages of 3.8 percent and 4.2 percent in 2024 and 2025, respectively. However, protesters maintain that unless the cost of living becomes more manageable, demonstrations will persist on the streets.