Russia, Ukraine conflict will impact African economies, says Mantashe
Minister of Mineral Resources and Energy Gwede Mantashe has warned that the various economies in Africa are bound to take a knock due to the ongoing Russia and Ukraine conflict.
Mantashe addressed the three-day Africa Energy Indaba at the CTICC in Cape Town on Tuesday.
The two countries met for talks on Monday - the first contact since the Russian military invaded neighbouring Ukraine.
The Ukrainian presidency demanded the ceasefire and the withdrawal of Russian troops from Ukraine.
The West has since imposed sanctions which seek to cripple the Russian financial sector.
Mantashe says the immediate impact would likely be an increase in the oil price, which is bound to affect the continent.
“Energy is a catalyst for economic growth and as players in the sector just internalise that and take pride in it. The present situation regarding Ukraine and Russia threatens our already battered economies.
" It further postpones our reach for Africa we want. I don’t know if you noticed but we are in a department that is blamed for all the ills, when the price of crude moved and reached $100 a barrel, we didn’t read that in the research, we met it in the pump because we don’t have our own oil, we import it.
"Then when it is shooting up because of the conflicts in Ukraine, we pay for the price in the pump.
"The present situation, therefore, is affecting us directly. Of immediate effect is the immediate increase in oil price,” added Mantashe.
ALSO READ
