The latest trends in food prices and policy in Africa

In the wake of a global recession and the ongoing conflict between Russia and Ukraine, the inflation of food prices has become a pressing issue in Africa. CNBC Africa's Ridhima Shukla recently interviewed Daniel Giuwa, the Head of Regional Food Trade at AGRA, to discuss the latest trends in food prices and the necessary policies to address the impact and strengthen food systems on the continent. The continent, particularly sub-Saharan Africa, has been grappling with numerous challenges, ranging from the COVID-19 pandemic, climate shocks, insecurity, and a prolonged climate crisis that has severely impacted food production. The current global scenario has only exacerbated these challenges, pushing more people into food insecurity. In East Africa alone, over 50 million people are facing food insufficiency, with the number steadily increasing. Countries such as Kenya, Uganda, South Africa, Malawi, Mozambique, and West Africa have witnessed a surge in food prices, affecting staple commodities like maize, rice, sorghum, millet, and pulses. This escalation in food prices is placing a significant strain on the population, especially those already vulnerable due to conflicts and environmental disasters. The disruption in global supply chains due to the economic downturn, conflict, and pandemic has further worsened the situation in African countries. The interview highlighted the importance of intra-regional trade in Africa, which currently stands at under 20%, lagging behind other continental regions. The need for regional integration, infrastructure development, and policy improvements to bolster trade within Africa was emphasized. Despite the challenges, some countries in East Africa have demonstrated a positive trade policy stance by keeping their borders open for goods. This move not only aids in mitigating the impact of global shocks but also fosters regional market stability and resilience. The implementation of the African Continental Free Trade Area (AFCFTA) is seen as a crucial step towards deepening regional integration and strengthening local supply chains. Additionally, the Malabo declaration aimed at tripling intra-Africa trade by 2025 underscores the commitment of governments to enhance trade dynamics on the continent. However, concerted efforts and actions are necessary to translate these commitments into tangible results. Governments, development partners, and the private sector are called upon to prioritize sustainable investments that bolster food production and trade within Africa. Social assistance programs, tariff liberalization, and innovative measures such as tax waivers, credit facilities, and incentives for local production are essential in supporting traders and mitigating food insecurity. The engagement of the private sector in agricultural markets presents an opportunity to enhance food security and strengthen the resilience of African economies. Despite the challenges posed by soaring food prices and global disruptions, the collaborative efforts of stakeholders, supported by favorable policies and investments, can pave the way for a more sustainable and secure food system in Africa.