Businesses and investors have grappled with significant challenges and uncertainty amidst the recent military coups in sub-Saharan Africa. From the conflicts in Sudan, Libya, and Ethiopia to terrorism in Somalia and other parts of the Sahel region, the instability in certain areas of West Africa has become nerve-wracking for corporations in the continent.
And no matter how we look at it, this has far-reaching consequences, potentially causing broader conflicts or spillover effects that impact regional stability. Regional conflicts negatively affect African industries, creating difficulties for successfully implementing the AFCFTA, a proposed initiative to establish an integrated single market in Africa.
This has necessitated that organisations operating in Africa must now acknowledge and mitigate the potential impact of political instability on productivity and business growth. As a result, they are compelled to stay informed to monitor and reduce the political risks and instability effectively.
For instance, the conflict in northern Ethiopia resulted in infrastructure damage totaling $22.7 billion and productivity losses of $6 billion…
