"Household Impacts of Tariffs, a survey, indicates, in 29 African countries, households spent on average 36.3 percent of their income on food items," the report reads in part.
A similarly high burden is registered in the case of energy prices amidst supply cuts due to the Russia-Ukraine war.
"Crude oil prices increased by about 20 percent, from $93.50 per barrel to $112.40 and averaged $102.80 between March and October 2022," the report reveals.
Amidst these challenges, the report calls for robust monetary and fiscal measures backed by structural policies to address potential risks.
With inflationary pressures anticipated to heighten between 2023 and 2024, the report recommends various measures depending on the degree of impact and vulnerability in individual countries.
In countries where inflation is most acute, timely and aggressive monetary policies are advised.
"Countries with lower inflation will need to undertake cautious tightening of monetary policy so as not to undermine growth efforts while keeping inflation in check."
However, the report underscores the continent's outstanding opportunities, mainly focusing on the need for countries to accelerate the implementation of the African Continental Free Trade Area (AfCFTA).
According to the report, the AfCFTA has the potential to create a competitive continental market that will cushion the continent from multiple shocks.
The World Economic Forum projects a growth of 28 percent in intra-African freight demand thanks to Afcta, which will open up a need for nearly 2 million trucks, 100 000 rail wagons, 250 aircraft and more than 100 vessels by 2030.
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