A landmark ceasefire agreement signed yesterday (13 Oct) at the Sharm el-Sheikh summit — led by U.S. President Donald Trump — has raised cautious optimism across Africa, where economies are already feeling early relief from the war’s end in Gaza.
The deal, backed by Egypt, Qatar, and Turkey, halts the recent Israel–Hamas conflict and pledges renewed regional stability. Trump hailed the agreement as “a new beginning for an entire, beautiful Middle East,” promising a future “united in rejecting the path of terror once and for all.” For African nations, especially those bordering the Red Sea, the deal holds economic promise. Shipping through the Suez Canal had plummeted amid heightened security risks, forcing costly diversions around the Cape of Good Hope. With improved safety, analysts expect a 5–6% boost in regional trade as vessels return to Red Sea routes.
The truce has already nudged global oil and wheat prices downward, easing import bills for many African countries grappling with inflation and food insecurity. Egypt, in particular, is seeing early gains with rising tourism revenue and Suez Canal traffic. African exporters of construction materials also stand to benefit from Gaza’s expected reconstruction drive, with Egypt and North African states positioned to supply steel, cement, and logistics support. However, experts caution that benefits hinge on the ceasefire’s durability. Insurance premiums remain elevated, and risks from Red Sea militancy persist. Still, the Sharm el-Sheikh declaration is being hailed as a rare diplomatic opening — one that could reshape trade flows if stability holds.