IMF Africa Director Says Iran War Fallout Creates Difficult Moment for Region

The International Monetary Fund's Africa director said Monday that the economic fallout from the Iran war is creating a difficult moment for the region. "We are now in a difficult moment for the region, in particular after the war in the Middle East," Zeine Zeidane told reporters at the IMF's headquarters in Washington.

"Even though there is a ceasefire today, we know that the disruption will take time to be resolved," he said.

Zeidane said it would take Gulf countries six to seven months to reach full resumption of energy production and export after months of conflict. The Fund has increased its programs for African countries facing higher energy and fertilizer prices caused by the war.

Several African countries have approached the IMF for technical advice or financial assistance since the conflict. Earlier this month, the IMF said it would provide increased or accelerated access to funds for Ethiopia, The Gambia, and Burkina Faso.

The Fund is also in accelerated talks with Malawi on a new financial assistance program. On Monday, the IMF reached a staff-level agreement with Sao Tome and Principe on the third review of the island nation's $25 million program, which would allow disbursement of around $6.1 million once approved by the board.

Zeidane said the IMF could not rule out further requests for program increases or new programs in Africa by the end of the year.