Public Management

African Development Bank Board approves $1.5 billion facility to avert food crisis

African Development Bank Board approves $1.5 billion facility to avert food crisis
Friday, 20 May 2022 14:56

Initiative to benefit 20 million African farmers, who will receive certified seed and technology to rapidly produce 38 million tons of food.

The African Development Bank Group's Board of Directors on Friday approved a $1.5 billion facility to help African countries avert a looming food crisis.

With the disruption of food supplies arising from the Russia-Ukraine war, Africa now faces a shortage of at least 30 million metric tons of food, especially wheat, maize, and soybeans imported from both countries.

African farmers urgently need high-quality seeds and inputs before the planting season begins in May to immediately boost food supplies. The African Development Bank's $1.5 billion African Emergency Food Production Facility is an unprecedented comprehensive initiative to support smallholder farmers in filling the food shortfall.

The African Emergency Food Production Facility will provide 20 million African smallholder farmers with certified seeds. It will increase access to agricultural fertilizers and enable them to rapidly produce 38 million tons of food. This is a $12 billion increase in food production in just two years.

African Development Bank Group President Dr. Akinwumi Adesina said: "Food aid cannot feed Africa. Africa does not need bowls in hand. Africa needs seeds in the ground, and mechanical harvesters to harvest bountiful food produced locally. Africa will feed itself with pride for there is no dignity in begging for food…”

The African Emergency Food Production Facility has benefited from stakeholder consultations, including those with fertilizer producers and separately with African Union agriculture and finance ministers earlier this month.

The ministers agreed to implement reforms to address the systemic hurdles that prevent modern input markets from performing effectively.

The price of wheat has soared in Africa by over 45% since the war in Ukraine began. Fertilizer prices have gone up by 300%, and the continent faces a fertilizer shortage of 2 million metric tons. Many African countries have already seen price hikes in bread and other food items. If this deficit is not made up, food production in Africa will decline by at least 20% and the continent could lose over $11 billion in food production value.

The African Development Bank’s $1.5 billion strategy will lead to the production of 11 million tons of wheat; 18 million tons of maize; 6 million tons of rice; and 2.5 million tons of soybeans.

The African Emergency Food Production Facility will provide 20 million farmers with certified seeds, fertilizer, and extension services. It will also support market growth and post-harvest management.

The African Development Bank will provide fertilizer to smallholder farmers across Africa over the next four farming seasons, using its convening influence with major fertilizer manufacturers, loan guarantees, and other financial instruments.

The Facility will also create a platform to advocate for critical policy reforms to solve the structural issues that impede farmers from receiving modern inputs. This includes strengthening national institutions overseeing input markets.

The Facility has a structure for working with multilateral development partners. This will ensure rapid alignment and implementation, enhanced reach, and effective impact. It will increase technical preparedness and responsiveness. In addition, it includes short, medium, and long-term measures to address both the urgent food crisis and the long-term sustainability and resilience of Africa’s food systems.

Dr. Beth Dunford, the African Development Bank's Vice President for Agriculture, Human and Social Development, said: “The Africa Emergency Food Production Facility builds on lessons learned from the African Development Bank's https://www.afdb.org/en/documents/feed-africa-response-covid-19-brief">Feed Africa Response to Covid-19 program. That program has provided a strategic roadmap to support Africa’s agriculture sector and safeguard food security against the pandemic’s impact.”

Over the past three years, the Bank’s Technologies for African Agricultural Transformation initiative has delivered heat-tolerant wheat varieties to 1.8 million farmers in seven countries, increasing wheat production by 2.7 million metric tons, worth $840 million.

Long-term sustainability to wean Africa off wheat and other food imports

A five-year ramp-up phase will follow the two-year African Emergency Food Production Facility. This will build on previous gains and strengthen self-sufficiency in wheat, maize, and other staple crops, as well as expand access to agricultural fertilizers.

The five-year phase will deliver seeds and inputs to 40 million farmers under the Technologies for African Agricultural Transformation program.

Click https://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/african-emergency-food-production-facility">here to learn more about the African Emergency Food Production Facility.

1 africandev copy

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Biovac, the South African biopharmaceutical company that supplies 80% of the country's routine childhood vaccines, secured more than $175 million in...
Côte d’Ivoire establishes sovereign fund to manage public assets Fund to finance infrastructure, stabilize economy, build long-term...
Evidence shows mobile money taxes reduce usage and revenue Most countries exceed the 0.2% threshold that triggers cash fallback Policies...
CAR minister meets COBAC on FNGI operational rollout Talks seek framework, technical support, compliance with regional rules $18M fund...
Most Read
01

Driven by above-average growth and rapidly expanding demographics, Francophone Africa is emerging as...

Francophone Africa: A Rising Economic Giant With Weak Internal Trade
02

Algeria launches bid for two NGSO satellite telecom licenses Move aims to expand broadband ac...

Algeria Opens Satellite Market to Competition, Inviting Global Operators
03

EBID aims to allocate nearly 41% of its commitments to environmentally and socially impactful projec...

EBID Charts Green Shift to Finance West Africa’s Growth
04

Coca-Cola unit trains 260+ SMEs in Namibia business skills Program targets women, youth, disabled...

Over 260 Namibian SME Owners Trained as Sector Faces Mounting Losses
05

Four major operators—Mauritel, Mattel, Rimatel, and Chinguitel—submitted a combined bid of ...

Mauritanian Telecom Operators Submit $27 Million Combined Bid for 5G Licenses
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.