Published on: 2026-04-02
Source: United Nations – United Nations –
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The war in the Middle East and the practical complete cessation of shipping in the Hormuz Strait have exacerbated the energy crisis in developing countries in Africa and South Asia, dependent on imports of liquefied gas, food, and fertilizers.
Since oil prices remain above $100 per barrel, many households around the world are switching to cheaper types of fuel, which are largely more environmentally polluting, primarily coal.
A month after the start of the Israeli-American bombings of Iran, which provoked a wide regional conflict, a disruption in tanker traffic along a key waterway in the Persian Gulf led to a reduction in global oil supplies, as well as disruptions in the supply of natural gas, coal, food, and fertilizers.
“Only a small group of the Least Developed Countries (LDCs) are pure energy exporters: South Sudan, Angola, Chad, Mozambique, the Lao People’s Democratic Republic, Myanmar, and Yemen,” said Junior Davis, head of the policy analysis and research division of the United Nations Conference on Trade and Development (UNCTAD). “The majority of countries in this group are pure importers, including Niger, Zambia, Rwanda, Ethiopia, Tanzania, Madagascar, Togo, Sudan, Uganda, Nepal, Eritrea, Benin, Bangladesh, Cambodia, and Senegal.”
Even oil exporters face difficulties
Speaking about the situation in Angola, Davis noted that developing oil-exporting countries can only obtain a “limited benefit,” since “many of them do not have their own processing capacities and are forced to import petroleum products at higher prices.”
Neighboring Zambia also faces even greater difficulties, as it depends on imported fuel from the Middle East, particularly from the UAE, that has been processed. Furthermore, NRL significantly depends on fertilizers produced abroad, since its production largely relies on natural gas (methane), explained economist YUNKTAD.
According to data from the United Nations Food and Agriculture Organization (FAO), 17 of the poorest countries in the world are forced to import more than 30 percent of their grain needs. Even more worryingly, the same amount in the least developed countries spends more than half of their export earnings solely on purchasing food. “This means that rising energy prices will quickly lead to increases in food prices and heighten the risk of hunger for households,” Davis noted.
Limited maneuvering capabilities
Quickly resolving the energy crisis will not be easy, considering the high level of debt obligations hanging over many of the poorest countries in the world. The Secretary-General of the UN has repeatedly drawn attention to this problem, calling for reform of the financial sector in the interests of justice, competitiveness, and growth.
“Considering how heavily many developing countries owe foreign creditors and what reductions in government expenditures they have already had to carry out for many years, it is quite likely that households will have to pay more for energy, food, and fertilizers, while consuming less. The situation will be extremely difficult,” Davis said.
UNCTAD also reminds that 15 of the least developed countries in the world have still not recovered after the difficult years of the pandemic.COVID-19, and the economies will be in worse condition than in 2019.
Anti-crisis measures
Energy consumption restriction measures have already been introduced in a number of countries. In particular, fuel rationing and related restrictions are applied in Bangladesh, Myanmar, and Laos, where restrictions on transportation and the use of electricity are also being introduced.
Measures to reduce energy consumption in the public sector include transitioning to remote work and online meetings, limiting business trips, and controlling temperature regimes. Such steps are being taken, in particular, in Cambodia and Laos, and in Myanmar, remote work has become mandatory for public servants.
In a number of countries, the focus is on changing consumer behavior. For example, in Ethiopia, authorities are calling for the economical use of fuel, while in Senegal, households and businesses are being urged to reduce consumption. Finally, fiscal measures such as lowering fuel taxes and providing subsidies are applied, for example, in Cambodia and Laos to mitigate the consequences of the crisis.
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