Yemen Conflict Escalating, Endangering African Economies, Regional Stability

Fears are mounting over Africa's economic stability, maritime trade and humanitarian situation due to the conflict involving Iran-backed Houthi rebels in Yemen. Fears of further disruption to world trade have been raised by the alleged seizure of Yemen's Perim Island by the Houthis. The island lies near the Bab el-Mandeb Strait, a key shipping route linking the Red Sea to the Gulf of Aden. If the strait becomes impassable, shipping companies may be forced to divert vessels around the southern tip of Africa, increasing transport costs, insurance premiums and consumer prices. African economies are already grappling with fuel and fertiliser shortages linked to disruptions around the Strait of Hormuz. The conflict has also triggered a humanitarian crisis, with at least 3,700 refugees reportedly crossing from Yemen into Djibouti since September 10, mostly women and children. Djibouti faces additional pressure because of limited water resources, while neighbouring Ethiopia is particularly vulnerable because it relies on Djibouti's ports for about 95% of its imports and exports. Renewed fighting in Ethiopia's Tigray region and escalating tensions between Ethiopia and Eritrea could further destabilise the Horn of Africa and threaten shipping through the strait. African countries have called for a United Nations-led diplomatic solution. Ports in Kenya and Tanzania could benefit from increased shipping activity if vessels continue to avoid the Red Sea.