The hijackings, missile strikes and drone attacks on ships by Yemen’s Houthi rebels have forced the world’s biggest shipping and logistics companies to suspend shipments through the Red Sea.
The news has prompted trepidation in Africa whose maritime trade transits through the Red sea.
An estimated 12% of global trade flows through Bal al-Mandeb, a narrow strait between Africa and the Arabian peninsula that has become a no-go zone for commercial ships fearing attacks by Houthi rebels.The waterway is also a crucial passage for energy shipments.
As the threat of escalation looms, worries about damage to global supply chains, already stressed by the pandemic and the war in Ukraine have grown.
Christof Rühl is an internationally renowned economist, specialising in macroeconomics and energy economics. He joins the show to discuss the implications of instability in the Red Sea for global trade
Business Africa
