Germany will provide an additional €250 million (US$293 million) to support vulnerable countries in Africa and Asia grappling with the fallout from the prolonged blockade of the Strait of Hormuz, the country’s development ministry said on Monday.
The funding will be directed towards improving food security, strengthening the resilience of local communities and supporting smallholder farmers affected by supply disruptions and rising costs linked to the crisis.
Development Minister Reem Alabali Radovan said the package would help countries facing growing pressure from higher energy and food prices triggered by the disruption of one of the world’s most important oil and shipping routes.
“The additional funds will be used to improve acute food security, strengthen local resilience and assist small farmers,” Alabali Radovan said at the Hamburg Sustainability Conference, according to a ministry statement.
The Strait of Hormuz, through which about a fifth of the world’s oil and a significant share of liquefied natural gas exports normally pass, has faced prolonged disruption following the regional conflict involving Iran, pushing up global energy prices and increasing transport costs.
The resulting rise in fuel and fertiliser prices has placed added strain on developing economies, particularly in Africa and Asia, where many countries rely heavily on imported food, fuel and agricultural inputs.
Germany said the new funding forms part of its broader effort to cushion the humanitarian and economic consequences of the crisis while helping vulnerable countries build longer-term resilience against future shocks.
