World Bank says food crisis can be opportunity for Africa
The current food crisis may be an opportunity to revive Africa's farming industry, which is doubling agricultural lending to the continent to boost production.
By Agencies |
CAPE TOWN: The current food crisis may be an opportunity to revive Africa's farming industry, a senior official at the World Bank, which is doubling agricultural lending to the continent to boost production, said on Thursday.
Vice-President for Africa Obiageli Ezekwesili said the World Bank aimed to help countries implement policy and institutional reforms to boost food production, and to help farmers access research and information and adopt new technologies.
"This is an awakening for Africa to prioritise agriculture, which used to be a competitive advantage in the past," she told Reuters on the sidelines of the World Economic Forum for Africa. "Agriculture is back on the agenda and with the right kind of public investment ... Africa stands a chance (of increasing productivity)." The World Bank announced in March a huge increase in the amount it earmarks for agricultural loans to Africa, where sub-Saharan states account for 20 of the 36 countries seen as most vulnerable to soaring world food prices.
"We are doubling lending for Africa from $450 million to $800 million starting with financial year 2010 and beyond," said Ezekwesili. "We definitely are not going back to low food prices but with concerted action we can reverse the trend of the increasing escalation of prices."
The cost of major food commodities has doubled over the last couple of years, with rice, corn and wheat at record highs. The Organisation for Economic Cooperation and Development (OECD) has said it sees prices retreating from their peaks but still up to 50 per cent higher in the coming decade.
CHALLENGES
Ezekwesili said African countries in the "most vulnerable" group should have food support grants for their people but that intervention had to be targeted so it reached those in need. "Because of the challenges we sometimes have, some food subsidies can be ineffective, so we should mark the target group," she said, adding that the multilateral lender was working with the African Union and the New Partnership for African Development (NEPAD), aimed at reducing poverty and promoting good governance on the continent.
"We will use our expertise to support institutions in the agricultural sector, because a lot of challenges of making agriculture work in Africa have been about institutional drawbacks and deficiencies," Ezekwesili said. Higher food prices have sparked violent protests across Africa and the International Monetary Fund has said the crisis could lead to social instability.
Ezekwesili said governments could quell potential unrest by communicating with the people. "We are in a period of structural shifts. This is a time that governments must communicate in a very transparent and honest way about the adjustments citizens have to make," she said.
Vice-President for Africa Obiageli Ezekwesili said the World Bank aimed to help countries implement policy and institutional reforms to boost food production, and to help farmers access research and information and adopt new technologies.
"This is an awakening for Africa to prioritise agriculture, which used to be a competitive advantage in the past," she told Reuters on the sidelines of the World Economic Forum for Africa. "Agriculture is back on the agenda and with the right kind of public investment ... Africa stands a chance (of increasing productivity)." The World Bank announced in March a huge increase in the amount it earmarks for agricultural loans to Africa, where sub-Saharan states account for 20 of the 36 countries seen as most vulnerable to soaring world food prices.
"We are doubling lending for Africa from $450 million to $800 million starting with financial year 2010 and beyond," said Ezekwesili. "We definitely are not going back to low food prices but with concerted action we can reverse the trend of the increasing escalation of prices."
The cost of major food commodities has doubled over the last couple of years, with rice, corn and wheat at record highs. The Organisation for Economic Cooperation and Development (OECD) has said it sees prices retreating from their peaks but still up to 50 per cent higher in the coming decade.
CHALLENGES
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Ezekwesili said African countries in the "most vulnerable" group should have food support grants for their people but that intervention had to be targeted so it reached those in need. "Because of the challenges we sometimes have, some food subsidies can be ineffective, so we should mark the target group," she said, adding that the multilateral lender was working with the African Union and the New Partnership for African Development (NEPAD), aimed at reducing poverty and promoting good governance on the continent.
"We will use our expertise to support institutions in the agricultural sector, because a lot of challenges of making agriculture work in Africa have been about institutional drawbacks and deficiencies," Ezekwesili said. Higher food prices have sparked violent protests across Africa and the International Monetary Fund has said the crisis could lead to social instability.
Ezekwesili said governments could quell potential unrest by communicating with the people. "We are in a period of structural shifts. This is a time that governments must communicate in a very transparent and honest way about the adjustments citizens have to make," she said.
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