https://en.sputniknews.africa/20240204/east-africa-faces-rising-food--energy-prices-due-to-instability-in-red-sea-business-council-warns-1064927417.html
East Africa Faces Rising Food & Energy Prices Due to Instability in Red Sea, Business Council Warns
East Africa Faces Rising Food & Energy Prices Due to Instability in Red Sea, Business Council Warns
Sputnik Africa
The Suez Canal, a waterway in Egypt that connects the Mediterranean Sea to the Red Sea, is vital to global commerce, accounting for up to 15% of global trade... 04.02.2024, Sputnik Africa
2024-02-04T17:35+0100
2024-02-04T17:35+0100
2024-02-04T17:46+0100
sub-saharan africa
east africa
red sea
russia-africa cooperation
suez canal
israel
united nations (un)
houthis
yemen
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The economic impact of the conflict between Israel and Palestine, which has increased insecurity in the Red Sea, will be "substantial" for East African countries, leading to an increase in food and energy prices, the East African Business Council said.He added that policymakers need to develop alternative transportation routes to mitigate the potential impact on businesses.According to media estimates, hundreds of giant container ships are now taking a long detour around the African continent instead of traveling up the Red Sea, adding over 6,000 km to the journey.The security situation in the Red Sea has also affected the global wheat trade. According to the World Trade Organization's Wheat Dashboard, an increasing number of ships were diverted to bypass the Suez Canal in January amid heightened security risks, resulting in a nearly 40% year-on-year decline in wheat shipments through the canal, or about 500,000 metric tonnes.Yemen's Houthi rebels said in November that they would attack any Israeli-linked or Israeli-bound ships passing through the Red Sea in retaliation for the Israeli invasion of the Gaza Strip, leading the US to announce the creation of a multinational operation to secure navigation in the area.According to the latest figures, the Houthis have attacked more than 30 civilian vessels in the Red Sea and Gulf of Aden since mid-November last year.The US and the UK have launched multiple strikes against Houthi positions to degrade their ability to target commercial vessels.
https://en.sputniknews.africa/20240204/suez-canal-monthly-revenue-halved-yoy-in-january-2024-official-says-1064920931.html
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east africa, red sea, russia-africa cooperation, suez canal, israel, united nations (un), houthis, yemen, trade, economy
east africa, red sea, russia-africa cooperation, suez canal, israel, united nations (un), houthis, yemen, trade, economy
East Africa Faces Rising Food & Energy Prices Due to Instability in Red Sea, Business Council Warns
17:35 04.02.2024 (Updated: 17:46 04.02.2024) The Suez Canal, a waterway in Egypt that connects the Mediterranean Sea to the Red Sea, is vital to global commerce, accounting for up to 15% of global trade and 30% of global consumer goods and container shipping, according to the United Nations.
The economic impact of the conflict between Israel and Palestine, which has increased insecurity in the Red Sea, will be "substantial" for East African countries, leading to an increase in food and energy prices, the East African Business Council said.
"We depend on Suez Canal as our viable and shorter route. It means the transport and logistics cost will be high and will also fuel the cost of imported food and energy prices which are even now extremely high," John Bosco Kalisa, chief executive of the council told the media.
He added that policymakers need to develop alternative
transportation routes to mitigate the potential impact on businesses.
According to media estimates, hundreds of giant container ships are now taking a long detour around the African continent instead of traveling up the Red Sea, adding over 6,000 km to the journey.
The security situation in the Red Sea has also affected the global wheat trade. According to the World Trade Organization's Wheat Dashboard, an increasing number of ships were diverted to bypass the Suez Canal in January amid heightened security risks, resulting in a nearly 40% year-on-year decline in wheat shipments through the canal, or about 500,000 metric tonnes.
Yemen's Houthi rebels said in November that they
would attack any Israeli-linked or Israeli-bound ships passing through the Red Sea in retaliation for the Israeli invasion of the Gaza Strip, leading the US to announce the creation of a multinational operation to secure navigation in the area.
According to the latest figures, the Houthis have attacked more than 30 civilian vessels in the Red Sea and Gulf of Aden since mid-November last year.
The US and the UK have
launched multiple strikes against Houthi positions to degrade their ability to target commercial vessels.
