UNDP report 2022: The war in Ukraine and the new crisis looming in Africa
The United Nations Development Programme (UNDP) has issued a new report, The Impact of the War in Ukraine on Sustainable Development in Africa, warning that the impacts of the war in Ukraine on the African continent in the sectors of the economy, food security and geopolitics could further stall the continent’s development trajectory already jeopardised by the COVID-19 crisis.
According to the report, African countries are particularly affected due to their heavy reliance on imports from Russia and Ukraine. Some of the direct impacts of the crisis in Africa include trade disruption, food and fuel price spikes, macroeconomic instability, and security challenges. The current rise in prices for food and fuel directly affects the entire continent, including the biggest economies. There are also indirect impacts of the crisis to consider, which include imported inflation, difficult energy transitions, and a potential geopolitical realignment. Moreover, the impact of the war could push Africa into serious debt distress, making countries less likely to meet their debt obligations. It could also increase inequality because high food and fuel prices typically hit the most vulnerable households hardest. In addition, there appears to be a threat to multilateralism, which could hamper the ability of development partners to provide consistent support that would put African countries back on track to attain shared global development aspirations.
The report proposes three main areas of action that could mitigate the impact of the war in Ukraine on Africa. First, prioritising immediate efforts to expand the fiscal space in African countries and stabilise African economies via enhanced development assistance, innovative multilateral initiatives and support for programmes that enhance domestic resource mobilisation. Second, strengthening Africa's resilience to global shocks via reducing dependency, accelerating a just energy transition, and promoting innovative approaches to entrepreneurship, particularly for women and youth. Third, fostering structural economic transformation in Africa by harnessing digital technologies, and intensifying support for economic diversification.
To access the full report, please visit the UNDP website.