Keypoints:
- Ramaphosa warns Middle East conflict raising Africa energy prices
- Oil markets shaken by strikes involving Iran
- Import-dependent African economies face renewed risk
SOUTH African President Cyril Ramaphosa has warned that the escalating conflict in the Middle East is already beginning to drive up energy costs and strain supply chains across Africa.
Speaking on Wednesday at the Africa Energy Indaba conference in Cape Town, Ramaphosa said the growing instability in global energy markets was once again exposing the vulnerability of many African economies to geopolitical shocks beyond the continent.
The conference brings together government officials, investors and industry leaders at a moment of heightened volatility in oil and gas markets, following a rapid escalation in tensions in the Middle East.
‘Africa is already experiencing the impact of the escalating conflict in the Middle East, with strains on supply chains and higher energy prices,’ Ramaphosa told delegates.
Oil markets rattled by Iran tensions
Energy prices have surged in recent weeks after Israeli and United States strikes on Iranian targets prompted retaliatory actions by Tehran, escalating tensions across one of the world’s most important oil-producing regions.
According to Reuters, the hostilities have forced the shutdown of several oil and gas facilities and heightened risks to shipping routes across the region.
Particular concern has centred on the Strait of Hormuz, a narrow waterway through which a large share of the world’s crude oil exports pass.
Disruptions or security threats in the strait can quickly reverberate through global markets, pushing up prices for crude oil, refined fuels and natural gas.
For African countries that depend heavily on imported fuel and refined petroleum products, these global price shocks often translate directly into higher domestic energy costs.
Import dependence exposes African economies
Ramaphosa said the unfolding crisis highlighted structural weaknesses in Africa’s economic systems, particularly the continent’s dependence on imported energy.
‘As we have seen with Russia-Ukraine and during the Covid-19 pandemic, shifting geopolitical sands underscore the vulnerabilities of import-dependent economies across Africa,’ he said.
Both events previously sent energy and commodity prices soaring worldwide, triggering inflationary pressures and economic disruption in many African countries.
Economists warn that the latest surge in oil prices could again raise transport costs, electricity tariffs and food prices across several African economies already grappling with fiscal pressures.
Calls for stronger energy resilience
Ramaphosa used the platform to emphasise the need for Africa to accelerate efforts to strengthen its energy security.
He urged governments and investors to expand local energy production, improve refining capacity and diversify energy sources across the continent.
Energy analysts attending the conference said the latest geopolitical shock once again demonstrates the urgency of building more resilient and self-sufficient energy systems in Africa.
Despite abundant natural resources, many African countries remain reliant on imported refined fuels and external supply chains, leaving them vulnerable to disruptions triggered by conflicts elsewhere in the world.
With tensions in the Middle East continuing to evolve, policymakers and industry leaders at the conference warned that global energy volatility could persist for months, placing further pressure on African economies already navigating a fragile global recovery.
