The ongoing hostilities in the Middle East will have serious consequences for African countries already burdened by high external debt, the continent's richest man, Nigerian billionaire Aliko Dangote, has said.
“We are part of a global village and unfortunately, this kind of development (continued hostilities in the Middle East) will affect us even if we are not directly involved,“ said Dangote, who controls Africa's cement production and owns the largest oil refinery. “If the situation does not improve, we will pay a high price, especially given the current challenges facing our economies. Africa is already burdened with high external debt and further economic shocks could only exacerbate the problems for governments and people. Everyone will feel the consequences if energy prices continue to rise. In Africa, in Nigeria for example, many people depend on their daily wages. There is no work, no food“, the billionaire was quoted as saying by Nigerian TV channel Arise News.
According to Dangote, African governments should prepare for challenges in fulfilling budget obligations, reduced revenues due to instability in the global oil market and increased external debt. In some countries, authorities have already begun to shorten the working week, set limits on energy consumption and move their employees to remote work.