World Bank Calls on G5 Sahel Countries to Diversify Economies, Scale Up Reforms

The World Bank called on the five West African countries to diversify their economies to adapt to climate change. (Reuters)
The World Bank called on the five West African countries to diversify their economies to adapt to climate change. (Reuters)
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World Bank Calls on G5 Sahel Countries to Diversify Economies, Scale Up Reforms

The World Bank called on the five West African countries to diversify their economies to adapt to climate change. (Reuters)
The World Bank called on the five West African countries to diversify their economies to adapt to climate change. (Reuters)

The World Bank on Monday urged five West African countries to diversify their economies to adapt to climate change, warning they are extremely vulnerable to extreme weather patterns.

A report said Burkina Faso, Chad, Mali, Mauritania, and Niger -- all in the arid Sahel region -- are among the world’s least developed countries and therefore the most vulnerable to extreme droughts, floods and heatwaves.

According to its Country Climate and Development Report (CCDR) for the G5 Sahel region, annual GDP could fall by as much as 11.9% in Niger and by 6.8% in Burkina Faso by 2050 under pessimistic climate scenarios.

The Nationally Determined Contributions (NDCs) under the Paris Agreement and the additional estimates in the CCDR show that over $30 billion are needed across the G5 Sahel countries for climate actions.

The report also showed that damage from climate change can be significantly reduced.

“There are significant opportunities for more resilient development in the Sahel,” said Clara de Sousa, World Bank Country Director for Burkina Faso, Chad, Mali and Niger.

“This diagnostic provides a roadmap to help countries scale up reforms and investments to diversify their economies in more resilient and inclusive ways.”

Social protection programs and agricultural landscape initiatives to adopt effective resource management practices and increase use of adaptive technologies could be scaled up to mitigate the impact of the food security crisis and help the agriculture sector become more climate resilient in the medium term, the report noted.

It pointed out that the five countries are developing Adaptive Social Protection systems to provide regular cash transfers and services to the poorest and most vulnerable households, allowing them to cope with, and adapt to future climate-related shocks.



Iran-Israel Tensions Threaten Global Trade, Energy Security

An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
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Iran-Israel Tensions Threaten Global Trade, Energy Security

An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 
An aerial view of Haifa Port in northern Israel before the onset of military tensions with Iran (Reuters). 

The intensifying conflict between Iran and Israel is raising serious concerns over the safety of global trade routes and energy supplies. As the situation escalates, analysts warn of severe repercussions for the global economy, particularly if strategic maritime passages like the Strait of Hormuz and Bab el-Mandeb are compromised.

Experts highlight that any disruption to these chokepoints - through which a significant portion of the world’s oil and gas flows - could send shockwaves through international markets.

Rising insurance premiums, increased shipping costs, and a potential surge in energy prices are among the immediate risks. Such instability could accelerate global inflation and weaken already fragile economic growth, especially as major economies face tariff-related pressures and slowing demand.

According to Dr. Fawaz Al-Alamy, a specialist in international trade, the continuing geopolitical unrest is likely to slow global trade growth by over 7% in 2025 and 2026. Sea freight, which carries about 90% of global trade, is particularly vulnerable. Dr. Al-Alamy also points to revised forecasts from major institutions, with trade growth now expected to drop to 2.9% in 2025 and possibly lower in 2026.

The Gulf region, which last year ranked sixth globally in merchandise trade, faces specific challenges. The Strait of Hormuz alone handled over 25% of global seaborne oil and 20% of LNG shipments in 2024 and early 2025. A disruption here would hit Asian markets hardest, as China, India, Japan, and South Korea together receive nearly 70% of Gulf crude exports.

The United States also imports around 500,000 barrels per day from the Gulf via Hormuz, about 7% of its total crude imports. A supply interruption could double oil prices and drive maritime shipping costs up by 60%, leading to slower global growth, reminiscent of post-COVID economic conditions.

Still, Al-Alamy sees potential for regional cooperation. Gulf states could invest in alternative export routes through the Arabian Sea and Red Sea, and strengthen trade ties with Asia, Africa, and Europe. Logistics and tech investments may also help the region emerge as a global trade hub.