- Minister of International Relations and Co-operation Ronald Lamola made the warning at a Sadc ministers’ meeting on Thursday, saying the US-Iran war is already hitting global markets.
- Rising oil and fertiliser prices will push up food costs, squeeze state budgets and could reduce Gulf investment in Africa.
Minister of International Relations and Co-operation Ronald Lamola has warned that the US-Iran war could push up fuel and food prices across Southern Africa.
He made the warning at a Southern African Development Community (Sadc) council of ministers meeting on Thursday. The US-Iran conflict began on 28 February.
“The current geopolitical climate, including the US and Iran’s war and Iran’s retaliation within the GCC [Gulf Co-operation Council] countries, is already sending shock waves through our societies, threatening supply chains and energy shocks,” Lamola said.
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Southern African countries import much of their oil and fertiliser. Any rise in global prices hits hard and fast. Transport costs go up and grocery bills quickly follow.
Lamola warned that rising oil prices would quickly spill into food markets and squeeze government budgets across the region.
“Beyond the immediate impact of rising global oil prices, a spike in fertiliser costs is set to drive food prices up and further compromise food security across many of our countries,” he said.
He also raised concerns about how the conflict would affect investment in Africa from Gulf states.
“There is a growing concern that Gulf states may reassess overseas investment in infrastructure, critical minerals, energy and technology as their priorities shift towards internal defence and security considerations,” Lamola said.
He was direct about who would suffer.
“We will not emerge unscathed from this. Our public finances are likely to come under even greater strain and it’s our people who will bear the cost,” he said.
