The African Development Bank (AfDB) has warned that rising commodity and fuel prices could cause social unrest, especially in response to government policies like removing subsidies.
The bank’s report on the economic performance and outlook for 2024 highlighted possible challenges for the continent, predicting higher economic growth compared to the 3.2% seen in 2023.
The report pointed out Africa’s susceptibility to global supply chain disruptions, mentioning geopolitical tensions in Eastern Europe and the Middle East, as well as the El Nino phenomenon.
It stated that these disruptions might worsen energy and food inflation, potentially impacting social stability.
The AfDB warned that conflicts within regions and political instability, caused by disruptions in constitutional governments, may shift resources away from development and social services towards security and defense.
The report also highlighted the adverse economic effects of an unconstitutional seizure of power by the government, resulting in sanctions.
It stated, “Internal conflicts and violence could also result from rising prices for fuel and other commodities due to weaker domestic currencies and reforms.
“For instance, the removal of fuel subsidies in Angola, Ethiopia, Kenya, and Nigeria and the resulting social costs have led to social unrest driven by.
