Cost of Ukraine conflict on East Africa’s ballooning import bill
East Africa is staring at a ballooning import bill for petroleum products and a long spell of imported inflation from the Russia-Ukraine conflict.
Inflation rise for Uganda, with the consumer price index inflation expected to peak at 3.8 percent, from 3.5 percent, while in Tanzania annual inflation has eased to 4.0 percent. In Kenya, it is projected at 5.08 percent, and in Rwanda 2.0 percent.
The Ukraine crisis has also affected trade in the East African region as prices of wheat have increased in the past few days. The crisis has also affected the importation of farm equipment and fertilizer.
Global wheat prices have gone from $345 per tonne to $460 over the past week, according to a survey by the Kenya Association of Manufacturers.
Ugandan and Tanzanian trade with Russia and Ukraine have also suffered a setback. Ugandan coffee exports estimated at $7.0 million to Russia as well as wheat imports ($25.5m) have also been affected.
Trade between East Africa and Ukraine and Russia will be affected as trade and routes face more security scrutiny and logistics intermediation.