Which country is the biggest loser from the energy shock?

Published on March 25, 2026

The recent energy shock resulting from geopolitical tensions, supply chain disruptions, and the rapid transition to renewable energy has brought forth significant challenges for countries around the globe. Among those facing the most severe repercussions are nations characterized dependency, limited financial resources, and fragile economies.

In this context, countries in sub-Saharan Africa, such as Malawi and Mozambique, have emerged as the biggest losers. With minimal access to affordable energy sources, these nations struggle to cope with soaring fuel prices, which have been exacerbated fluctuations. As energy costs rise, the burden on households and businesses becomes increasingly unsustainable, leading to heightened food insecurity and inflationary pressures.

The International Monetary Fund (IMF) has projected that many developing nations will experience slower growth rates due to the energy crisis. The high dependence on imported fossil fuels makes these countries particularly vulnerable. For nations like Malawi, where over 90% of energy needs are met , the energy shock translates directly to economic instability. Public sector services, including healthcare and education, are already feeling the strain as budget allocations are diverted to cover rising energy bills.

Conversely, some wealthier nations have managed to buffer the effects of the energy shock through strategic reserves and diversified energy portfolios. Countries like Russia and Saudi Arabia, despite facing their own challenges, possess substantial financial resources and energy assets that allow them to weather the storm more effectively. These nations can leverage their energy exports to maintain economic stability even amidst rising global prices.

The landscape is not uniform, and each country’s ability to cope with the crisis varies significantly based on structural factors. Countries that have invested in renewable energy solutions and energy efficiency measures, such as Kenya and Ghana, have shown greater resilience. energy sources, they are less susceptible to the stark price volatility that has plagued others.

International aid and investment in energy infrastructure will be crucial for the most affected nations. There is a pressing need for collaboration among global actors to develop strategies that can help these countries rebuild and bolster their energy sectors. It is imperative to shift the narrative from mere survival to sustainable development, ensuring access to affordable energy while fostering economic growth and resilience.

As the energy crisis continues to unfold, the spotlight is now firmly placed on the world’s most vulnerable nations. The challenge remains clear: addressing systemic issues while nurturing a more inclusive, resilient, and sustainable energy future for all countries. Without swift action, the gap between the energy haves and have-nots is likely to widen, posing significant risks not only to economic stability but also to social cohesion.