Afreximbank, Africa’s main multilateral trade-finance lender, rolled out a $10 billion emergency program for countries scrambling to pay for fuel, fertilizer, and medicines after the Middle East conflict disrupted shipping and pushed up prices.
The move was announced hours before the US and Iran agreed a two-week ceasefire conditioned on the reopening of the Strait of Hormuz.
The lender’s package is designed to give governments enough foreign currency, and quickly enough, to keep essential purchases from stalling, offering a lifeline for some of the world’s most import-dependent nations. The program, which is also open to the 15 members of Caribbean economic bloc CARICOM, comes as governments across the continent activate emergency committees, pulling in policymakers to map out supply risks.
Several African nations have already pushed through emergency interventions, ranging from direct subsidies to mandatory rationing, to blunt the impact of soaring global energy prices. South Africa has announced a temporary cut in fuel tax, Ethiopia has expanded fuel subsidies, and Senegal has cracked down on foreign travel for government ministers.