Warning over hunger crisis gets louder in East Africa

East Africa is facing a looming food insecurity crisis as economic shocks and the lingering effects of the COVID-19 pandemic exacerbate the situation. According to the East Africa Food Security Outlook from June to January 2022, published by the Relief Web, food assistance needs in many East African countries are expected to remain high and above average. The severity of acute food insecurity is projected to worsen in parts of the region, particularly in Ethiopia, South Sudan, and Sudan. The impact of the pandemic continues to affect food security, especially among urban households in countries like Kenya, Uganda, and Rwanda, as well as refugees in Uganda. Nick Kwolek, Founder of Kwolco, shed light on the pressing issue in an interview with CNBC Africa, highlighting the challenges and potential solutions to mitigate the crisis. Kwolek emphasized the need for a collaborative effort and government support to strengthen food systems across the region. While some areas like central Kenya and Rwanda have seen robust food production, regions such as northern Kenya, Somalia, and Ethiopia have been grappling with food shortages caused by factors like dry weather and crop destruction from past locust infestations. The interview delved into the impact of rising freight prices on food imports and the subsequent surge in food prices. Kwolek highlighted the challenges faced by traders in moving commodities across the region due to the freight market's instability, leading to increased costs and potential supply chain disruptions. He noted that the surge in food prices, coupled with failing subsistence crops, has created a dire situation for many vulnerable populations who are struggling to afford basic food items. The interview also touched on the long-term sustainability of these high food prices, with Kwolek expressing concern about the continuity of the current upward trend in commodity prices. He warned that the industry was experiencing one of the hardest times in the past 15 years in terms of moving goods and keeping food prices stable. The conversation then shifted towards the need for resilient food systems and the various investments being made to bolster food infrastructure in Eastern Africa. Kwolek praised the governments of Kenya, Rwanda, Tanzania, and Uganda for their efforts in driving investments in the food sector, emphasizing the importance of confidence in the value chain for sustainable development. He highlighted the significant amount of local investment in key areas like sugar production, showcasing a positive trend towards homegrown solutions to food security challenges. In a discussion about Ethiopia's currency devaluation and its impact on the commodity market, Kwolek explained the complexities of the situation, pointing out the challenges faced by consumers due to the fluctuating exchange rates and tight availability of dollars. The informal currency market in Ethiopia has led to a sharp increase in food prices, making essential items more expensive for the average consumer. Kwolek underscored the urgent need for monetary stabilization and increased dollar liquidity to address the growing food insecurity in the country. The interview concluded with a somber assessment of the current situation in East Africa, highlighting the need for immediate action and sustained support from all stakeholders to avert a full-blown food crisis in the region.