African economies, already battling to recover from a Covid-induced recession, face major obstacles as they manage “spillover” effects from the war in Ukraine, IMF Managing Director Kristalina Georgieva told a media roundtable with global reporters on Thursday (March 10, 2022).
This is a crucial time “to find a way to buffer” these struggling economies – a message she said she heard on Wednesday during a meeting with African ministers of finance, central bank governors and representatives from the United Nations Economic Commission for Africa (UNECA) to discuss the impact of the crisis in Ukraine. She listed “four channels” hitting Africa as a result of the war:
- energy price increases
- food price rises
- debt service obligations
- loss of revenue from tourism.