How the IMF and World Bank Can Support African Economies Hit Hard by Russia’s Invasion of Ukraine

DAVID MCNAIR

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Russian President Vladimir Putin’s invasion of Ukraine is a watershed moment that has devastated Ukraine, created a European refugee crisis, and united NATO allies in taking unprecedented steps to counter Russian aggression. For African countries, the conflict’s second-order effects compound a series of existing economic and debt challenges already heightened by the coronavirus pandemic. The IMF and World Bank should respond decisively with an economic package that averts the worst impacts of these crises in Africa.

In the wake of the invasion, the prices of staple commodities such as wheat, barley, and vegetable oils have skyrocketed. In March, the UN’s Food Price Index hit record highs. With a monthly increase of 12.6 percent in March from February, food prices are now 33.6 percent higher than they were a year ago (see figure 1). This is, in part, because Russia and Ukraine are the breadbasket of the world, exporting a third of the world’s wheat, a quarter of the world’s barley, and 69 percent of the world’s sunflower oil.