Ebunoluwa Akinola
Russia-Ukraine Crisis will affect most businesses in Africa especially those into import and export of oil and gas, agricultural products there by causing a lot businesses to shutdown or close temporarily till the crisis is resolved and this will lead to starving, inflation as commodities, products won’t be able to go round in the economy especially those who depend solely on this as a means of survival.
It will also have serious consequences for companies also and consumers most especially businesses as this has caused businesses like the big brewers, major oil companies, auto makers and airlines grappling with the fallout from the attack
Even for businesses not operating in the region, Russia’s invasion of Ukraine heaps fresh risks on a global economy already struggling with soaring inflation. Here is how the crisis will affect most African businesses and causing some to shut down
It will result to inflation in most of the African Countries as a result of increase in oil and gas
“If there is an increase in the price of crude oil, it means inflation will grow globally and generally , the cost of most of our imports will also increase, which will result to domestic crisis.
Commodity prices have inflated in most African countries, and this makes life more challenging for millions of people and starving will start once countries fight because the global powers presented themselves to African countries as mother countries.
In 2020, African countries imported agricultural products worth $4 billion from Russia. Egypt was the largest importer, followed by Sudan, Nigeria, Tanzania, Algeria, Kenya, and South Africa. Likewise Ukraine exported agricultural products worth $2.9 billion to Africa. The ongoing war will affect supply chains and raise the price of importing and this will affect the agricultural product business
Consumer goods business will also be affected
Consumer-goods companies have factories in Ukraine, including Danish brewer Carlsberg A/S, Swiss food giant Nestlé SA and Davidoff cigarettes maker Imperial Brands PLC.
Philip Moric International Inc said it will suspend operations in Ukraine, including its factory in Kharkiv, as Russian forces attack the country.
Also Carlsberg, has eight breweries in Russia. The brewer said it generates around 10% of its overall revenue in the country. Yogurt maker Danone SA says it generates about 5% of its revenue from Russia, where it says it mostly sources, produces and sells locally, rather than sending products across borders.
