Connect with us
In a special session Monday at the World Economic Forum’s Sustainable Development Impact Meetings 2023, Kenyan President William Samoei Ruto, US Secretary of the Treasury Janet Yellen and other leaders called for strengthening value chains in Africa as key to transforming food systems and improving food security for the continent.
Ruto offered a grim assessment of the current situation on the continent: As of the end of 2022, approximately 31.8 million people in East Africa were in dire need of emergency food assistance, including 6.1 million children under the age of five. Agricultural production in Africa is currently the lowest in the world, with severe implications on nutrition and food security.
“The numerous cases of hunger constitute a humanitarian crisis, highlighting the underutilization of our continent’s immense potential for high productivity and surplus food production,” Ruto said. “In fact, it is a paradox: The account of Africa’s starvation amid plenty is parallel to the account of Africa’s poverty amid resource abundance and underdevelopment in the middle of huge potential.”
Africa’s already vulnerable food systems are straining under the combined weight of climate change, the COVID-19 pandemic and grain shortages brought on by the Ukraine War. Yet worsening food insecurity is not necessarily in Africa’s future as governments forge innovative partnerships with the private sector to deliver the type of financing that Africa’s food producers desperately need.
“The impacts of food insecurity on individuals and communities are acute,” said Yellen. “Hunger and poor nutrition undermine health and educational outcomes and well-being. Food insecurity also has economy-wide impacts, contributing to lower productivity that holds back economic growth. This means food security matters both morally, and for the global economy.”
Yellen noted how food security is inextricably linked to broader global challenges, which must be addressed in parallel. “Pandemics lower income. Conflict disrupts supply chains. Climate change poses risks to entire agricultural systems. So, combatting food insecurity also depends on broader efforts to address these global challenges and this requires evolving the multilateral development banks, which are a central pillar of our international economic system.”
Ruto, who addressed the nexus between climate change, agricultural productivity and food security at the Africa Climate Summit earlier this month, pointed to positive examples of innovative private sector-led initiatives to help Africa better realize its agricultural potential. He singled out Sanergy, a Kenyan company that converts organic waste into fuel, fertilizer and animal feed and has expanded its footprint in Kenya, creating hundreds of jobs; Nairobi-based SunCulture, which uses solar energy for radiation and has made its technology accessible to over 10,000 farmers through an innovative “pay-as-you-go” model; and Del Monte, which has recently invested $5.5 million in a new fresh fruit packing facility that sources from 2,000 Kenyan farmers.
Samantha Power, US Agency for International Development (USAID) Administrator, noted that the small and medium enterprises that comprise so much of Africa’s agricultural sector find themselves too big for microfinance and too small for bank loans. She stressed the potential to transform subsistence farmers into entrepreneurs – a change that has the potential to lead to improved livelihoods and educational opportunities for children, thus breaking the cycle of subsistence farming for the next generation.
Initiatives like USAID’s Feed the Future aim to help with this transformation by connecting small-scale farmers with global agribusinesses – “matchmaking,” as Power described by way of example, “between Rwandan growers of coffee and Starbucks – or PepsiCo could be interested in some of the chickpea farmers that we work with in rural areas, and maybe that could service some of the healthy and more nutritious snacks that they’re making.”
“Feed the Future has brought down poverty and malnutrition 25% in the areas that it’s working for,” said Power.
For Anne Beathe Tvinnereim, Minister of International Development of Norway, small-scale farmers and the food value chain hold the key to greater food sovereignty for African countries. “Too often, these businesses are considered too poor and too risky for investors, and the local market is held back not because of lack of capacity, but lack of capital,” she explained. “We want to reduce that risk. We want small-scale farmers to have increased access to inputs and markets. We want processors to be able to purchase new equipment, and distributors to reach the last mile. By de-risking private investments in the agro value chain, I believe African countries will be less dependent on expensive imports.”
Akinwumi Ayodeji Adesina, President of the African Development Bank (AfDB), noted how in response to the closing of the Black Sea ports during the Ukraine War his bank responded not by seeking foreign assistance, but by investing in African farmers. “We very quickly launched a $1.5 billion initiative to make sure that Africa can feed itself,” he said. “It’s not about begging for food, it’s about getting seeds in the ground in your bowl and actually growing your own food.”
“And it’s working extremely well,” he added. “Today, we are supporting 24 million farmers to produce 38 million metric tons of food valued at $12 billion. That is 8 million metric tons of food more than what Africa will lose from importing from either Russia or Ukraine. It’s all about Africa having the pride and the dignity of producing the food itself.”
Scott Nathan, Chief Executive Officer of the US International Development Finance Corporation (DFC), said that the DFC supports financial institutions throughout African and the world and lending to smallholder farmers who are thinking about not just helping with fertilizer, fuel (and) seeds in the ground, but also logistics. “Wastage is one of the hidden taxes on this issue that causes food insecurity,” he said. “So the extent that we can work on cold chain logistics, storage, we’re doing that in India, we’re doing that all over Africa.”
Nathan noted that the DFC has provided $20 million in funding to the One Acre Fund, a social enterprise focused on lending to smallholders. Capital allocated to such initiatives, he said, can generate “a huge amount of leverage for the private sector”.
“We’re helping smallholder farmers in the world’s most vulnerable communities access equipment, training and inputs so they can produce more food, while also strengthening their ability to store and distribute it,” he concluded. “Our goals must be ambitious as we work with the private sector to bring more produce to market and bolster food security.”
World Trade Report 2023: “re-globalization” amid early signs of fragmentation
Why the West’s sanctions on Russia miss the mark
Newsroom 
Continue Reading
Finance
Transforming Africa’s Transport and Energy Sectors in landmark Zanzibar Declaration 
Published
4 hours ago
on
September 21, 2023
By
A special meeting of African ministers in charge of transport and energy held from 12-15 September on the theme, “Accelerating Infrastructure to Deliver on the AU Agenda 2063 Aspirations” has concluded with an action-oriented Zanzibar Declaration aimed at spurring the Continent’s transport and energy sectors.
Convened under the auspices of the African Union’s Fourth Ordinary Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure and Energy, the meeting was organized by the African Union Commission (AUC) in collaboration with the African Union Development Agency (AUDA-NEPAD), the African Development Bank (AfDB) and the United Nations Economic Commission for Africa (ECA).
Speaking at the Ministerial segment of the meeting, Robert Lisinge, Acting Director of the Private Sector Development and Finance Division at the ECA called on member states to address the barriers limiting private sector investments in infrastructure and energy, urging them to facilitate investments by creating conducive policy and regulatory environments. “The requirements of continental infrastructure development and the aspirations of Agenda 2063 and Agenda 2030 far exceed current levels of public sector investment,” he said.
He stressed that over the next ten years, there is a need for concerted action to address energy transition and security issues, in order to open up opportunities for the transformation of the continent. He cited ECA’s analytical work on the AfCFTA, which demonstrates there are investment opportunities for infrastructure development in the area of transport and energy and added that digitization and artificial intelligence offer great opportunities for the efficient operation of infrastructure.
According to the Zanzibar Declaration, the Ministers adopted the AUC and ECA continental regulatory framework for crowding-in private sector investment in Africa’s electricity markets. This framework will be used as an instrument for fast-tracking private sector investment participation in Africa’s electricity markets. The Declaration also called on ECA and partners to develop a continental energy security policy framework as called for by the 41st Ordinary Session of the Executive Council and an Energy Security Index and Dashboard to track advancements in achieving Africa’s energy security.
The meeting acknowledged the efforts by ECA to support Member States in coordinating Public-Private Partnerships (PPP) with development partners and the establishment of the African School of Regulation (ASR) as a pan-African centre of excellence to enhance the capacity of Member States on energy regulation.
The Declaration requested the ECA and partner institutions to further act in the following areas:
The AUC, in collaboration with AUDA-NEPAD, ECA, AfDB, RECs, Africa Transport Policy Programme (SSATP), and the African Continental Free Trade Area (AfCFTA) Secretariat to implement the roadmap on the comprehensive and integrated regulatory framework on road transport in Africa.
ECA, in collaboration with AUC, to identify innovative practices and initiatives that emerged in the aviation industry in Africa during the COVID-19 pandemic and propose ways of sustaining such practices, including the development of smart airports with digital solutions for improved aviation security facilitation and environmental protection.
ECA, in collaboration with AUC, to establish mechanisms for systematic implementation, monitoring and evaluation of continental strategies for a sustainable recovery of the aviation industry.
The AUC, AUDA-NEPAD, AfDB and UNECA to engage with development partners and Development Finance Institutions (DFIs) to mobilize resources for projects preparation and implementation of PIDA-PAP 2 projects.
ECA and AUC, in collaboration with partners, to coordinate PPP initiatives to avoid duplication of efforts and strengthen complementarity.
The AUC and ECA to work with continental, regional and specialized institutions to support the design and implementation of programmes, courses, and capacity development initiatives of the African School of Regulation (ASR) to support the implementation of the African Single Electricity Market and Continental Power System Master Plan.
The AUC to work with AUDA-NEPAD, AfDB, ECA and RECs, respective power pools, regional regulatory bodies, and relevant stakeholders to design continental mechanisms for regulating and coordinating electricity trade across power pools.
AUDA-NEPAD, AUC, AFREC, ECA, AfDB, Power pools and development partners to comprehensively assess local manufacturing of renewable energy technologies and beneficiation of critical minerals for battery manufacturing.
ECA and AFREC to accelerate the implementation of the Energy4Sahel Project to improve the deployment of off-grid technologies and clean cooking in the affected Member States.
Finance
World Trade Report 2023: “re-globalization” amid early signs of fragmentation
Published
10 hours ago
on
September 20, 2023
By
The 2023 edition of the WTO’s World Trade Report presents new evidence of the benefits of broader, more inclusive economic integration as early indications of trade fragmentation threaten to unwind growth and development.
“The post-1945 international economic order was built on the idea that interdependence among nations through increased trade and economic ties would foster peace and shared prosperity. For most of the past 75 years, this idea guided policymakers, and helped lay the foundation for an unprecedented era of growth, higher living standards and poverty reduction,” WTO Director-General Ngozi Okonjo-Iweala says in her foreword to the report. “Today this vision is under threat, as is the future of an open and predictable global economy.”
In introducing the report at the opening of the WTO’s annual Public Forum on 12 September, WTO Chief Economist Ralph Ossa said: “In particular, the report makes the case for extending trade integration to more economies, people, and issues, which is a process that we call “re-globalization.”
Starting with an analysis of the current state of globalization, the report confirms that geopolitical tensions are beginning to affect trade flows, including in ways that point towards fragmentation of trading relationships. WTO Secretariat calculations find, for example, that goods trade flows between two hypothetical geopolitical blocs — based on voting patterns at the UN General Assembly — have grown 4-6 per cent more slowly than trade within these blocs.
However, the report contends that, despite these findings, international trade continues to thrive, implying that talk of de-globalization is on balance still not supported by the data. The publication points to the expansion of digital services trade, environmental goods trade, and global value chains in addition to the resilience of trade to recent global crises.
The report goes on to examine the relationship between economic integration and three major challenges facing today’s global economic order: security and resilience, poverty and inclusiveness, and environmental sustainability — areas in which arguments have gained ground that globalization has not delivered as expected or exposes countries to excessive risks.
Looking at the evidence, the report makes the case that “re-globalization,” which is the renewed drive towards integrating more people, economies and pressing issues into world trade, is a more promising solution to these issues than fragmentation.
The report shows that trade openness is strongly linked with a reduced likelihood of conflict and has led to sharp declines in poverty for over four decades. Also, technology improvements enabled by trade have had a strong impact in reducing carbon emissions.
WTO trade monitoring data shows, for instance, how the onset of the war in Ukraine was followed by an increase in export restrictions, a trend also observed during the COVID-19 pandemic. Export restrictions on critical raw materials have increased more than five-fold in the last decade.
Figure C.3 displays the share of trade affected by sanctions using the Global Sanction Database (GSD) which includes data on trade sanctions from one economy to another by year.
Finance
Why the West’s sanctions on Russia miss the mark
Published
2 days ago
on
September 19, 2023
By
Has the West’s reliance on sanctions, especially against Russia, been effective? The current data points to a resounding ‘no,’ notes Brazilian ‘Rio Times Online’.
The International Monetary Fund recently IMF increased Russia’s growth forecast to 1.5% for 2023, a rate that matches expected growth in Western countries.
In sectors like defense and retail, we even see over-average growth. Simply put, Russia is bouncing back.
While Germany and the EU have tried to minimize their direct energy dependencies on Russia, they’ve seen a surge in oil imports from India.
Here’s the kicker: much of this oil is likely sourced from Russia.
Not only does this render the attempts to sidestep Russia ineffective, but it also raises the cost for the consumer.
The only clear winner in this equation is the Indian business sector, which profits from the markup.
Simultaneously, the EU continues to import Russia’s high-priced liquefied natural gas. The irony here is inescapable.
Despite a policy aim of reducing dependency on Russian energy, Europe is buying one of the most expensive forms of it.
As if to add insult to injury, Russia has not been idle; it has expanded its trade horizons. A pivot towards Asia has led to a 41% rise in Russian-Chinese trade.
On the flip side, Russian-German trade plummeted by 75%. This suggests that Russia finds new doors opening in the East while the West turns its back.
Finally, the attempt to cap the price of Russian oil at US$60 per barrel ended in failure. Russia’s Urals oil market prices have surged to US$74 per barrel.
This further underscores the inefficacy of policy measures aimed at curbing Russia’s economy.
The objective of sanctions is to bring a country to the negotiating table. But what happens when that country learns to thrive under those very sanctions?
It’s time to question the effectiveness of such policies. We need to look beyond sanctions as a catch-all strategy and invest in more nuanced diplomatic measures.
Because as it stands, the only thing these sanctions seem to be disrupting is the Western fantasy of having control over Russia’s actions.
Publications
-
Putin's African Dream -part 2 -
Humanity Amidst Insanity: Hope during and after the Indo-Pak Partition -
Warriors after War. Indian and Pakistani Retired Military Leaders Rated 5.00 out of 5 -
Armenia's Existential Threats and Strategic Issues Rated 5.00 out of 5
Trending
-
Economy4 days ago
Silk Road vs Spice Route: IMEC and its Implications
-
World News4 days ago
CNN Poll: Majority of Americans oppose more US aid for Ukraine in war with Russia
-
Finance4 days ago
Russia already spent over US$167 billion on war against Ukraine – Forbes
-
Economy4 days ago
Development vs. Profit: Exploring the Controversial Realm of Investor-State Dispute Settlement
-
Americas4 days ago
Confusion and uncertainty shape debate about U.S. Gulf policy
-
Americas4 days ago
US Diplomacy in Asia: Navigating a New Era of Cooperation
-
Russia3 days ago
XV Congress of the International Association of Teachers of Russian Language
-
Defense3 days ago
Depleting Water Resources and Growing Risks of Water Wars
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read MorePrivacy & Cookies Policy Close
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
