27 countries seek access to World Bank emergency funds since Iran war
World Bank data shows that 27 countries have formally requested emergency funding since the Iran-Israel war began, and more than half of those applicants are in Sub-Saharan Africa. Brent at $99 a barrel has hit fuel-importing economies including Kenya, Egypt and Ethiopia particularly hard.
According to a briefing by World Bank president Ajay Banga in Washington, 27 countries have formally requested emergency financing since the Iran-Israel war began on 19 February, of which 16 are in Sub-Saharan Africa. Banga said 'energy shocks and food-price pressures are moving in parallel; even middle-income economies are now requesting external support'.
Kenya's Finance Minister John Mbadi said his country's $1.2 billion Development Policy Operation request is under review, with fuel-subsidy spending reaching 4.8 percent of the budget at the start of the month. Ethiopia is requesting an additional $850 million, while Egypt is negotiating a $700 million World Bank operation alongside its active $8 billion IMF programme. Brent crude closed Friday at $99.28 a barrel, and Reuters Africa economics editor Estelle Shirbon said the 27 applications represent 2.3 times the ten-year average.
World Bank Africa vice-president Victoria Kwakwa said the bank is ready to mobilise $9 billion through its regional emergency window. IMF managing director Kristalina Georgieva, in parallel, has written to G7 finance ministers proposing a dedicated support package at the 28 June summit. Goldman Sachs Africa economist Andrew Matheny estimates that pressure could ease in part if average Brent falls back to $92 a barrel by year-end.
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