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The Red Sea Crisis Could Push Food and Fuel Prices Even Higher

ADDIS ABABA, Ethiopia — The African Union (AU) has warned that growing insecurity in the Red Sea could have far-reaching economic consequences, threatening trade, driving up the cost of essential goods and slowing Africa’s development.

In a statement, the Chairperson of the African Union Commission expressed deep concern over the deteriorating security situation and called on all parties to exercise restraint, pursue dialogue and respect international law. The AU cautioned that continued instability could disrupt one of the world’s most important maritime trade routes, with ripple effects felt across Africa and beyond.

The Red Sea serves as a vital gateway for international commerce, carrying a significant share of global shipping between Africa, Europe, Asia and the Middle East. For many African countries, it is a critical route for imports of fuel, food, machinery and other essential goods.

The African Union warned that any prolonged disruption could increase shipping and insurance costs, delay supply chains and place additional pressure on already strained economies. Those added costs are often passed on to consumers, resulting in higher prices for food, fuel and other basic necessities.

Beyond its immediate economic impact, the AU said continued insecurity could weaken investor confidence and slow progress towards the goals of the African Continental Free Trade Area (AfCFTA). Secure transport corridors remain essential for expanding intra-African trade, attracting investment and supporting industrialisation across the continent.

The Commission Chairperson also reaffirmed the AU’s commitment to peace and stability, urging all parties to avoid actions that could further escalate tensions. The statement emphasised the importance of protecting freedom of navigation and maintaining maritime security in accordance with international law.

For the African Union, the Red Sea crisis is not simply a foreign policy issue—it is a development challenge with direct implications for the continent’s economic future. Stable shipping routes are essential for trade, food security and sustainable growth.

The AU’s message is clear: safeguarding peace in the Red Sea is critical to protecting Africa’s economies and the livelihoods of millions of people. Through dialogue and diplomacy, the Union believes the region can avoid further escalation and preserve a trade lifeline that is vital to the continent’s prosperity.