"Daniel Silke, head of the Cape Town-based Political Futures Consultancy, noted that while some developing countries had reduced inflation post-pandemic, rising global prices threaten to reverse this progress. He emphasized that the increase in costs for oil, fertilizer, and liquefied natural gas will particularly impact households that allocate a large portion of their income to energy and transportation."
"In South Africa, the government announced historic fuel price increments, despite securing a deal for vessels to pass through the Strait of Hormuz. Residents expressed concern that the worst economic impacts are yet to come, as rising prices continue to strain household budgets and affect overall demand in the region."
Countries in sub-Saharan Africa are cautiously relieved by a ceasefire involving the US, Israel, and Iran, along with the reopening of the Strait of Hormuz. However, economists warn that a broader economic recovery will take time due to rising global prices affecting essential goods like oil and fertilizer. Households, particularly in South Africa, are vulnerable as they spend a significant portion of their income on energy and transportation, which could depress demand across the continent.
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