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New Report Finds Fruit, Vegetables, Protein Remain Out of Reach for Most Africans

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Africa’s agri-food systems must be transformed to make healthy diets more affordable for Africans. That is the central message of a new report launched today by the Food and Agriculture Organization of the United Nations (FAO), the UN Economic Commission for Africa (UNECA) and the African Union Commission (AUC).

According to the latest Africa Regional Overview of Food Security and Nutrition, Africans face some of the highest food costs when compared to other regions of a similar level of development. Nutritious foods, such as fruits, vegetables and animal proteins, are relatively expensive when compared to staples such as cereals and starchy roots, and, the report argues, some of the reasons for this are systemic.

Evidence presented in the report shows that nearly three-quarters of the African population cannot afford a healthy diet of fruits, vegetable and animal proteins, and more than half cannot afford a nutrient-adequate diet, which provides a mix of carbohydrates, protein, fats, and essential vitamins and minerals to maintain basic health. Even an energy-sufficient diet, which supplies a bare minimum of energy and little else, is out of reach for over 10 percent of the continent’s population.

“The picture that emerges is that the agri-food systems in Africa do not provide food at a cost that makes healthy diets affordable to the majority of the population, and this is reflected in the high disease burden associated with maternal and child malnutrition, high body-mass, micronutrient deficiencies and dietary risk factors,” FAO Assistant Director-General and Regional Representative for Africa Abebe Haile-Gabriel said with William Lugemwa UNECA’s Director of the Private Sector Development and Finance Division, and Josefa Sacko, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment in the report’s joint foreword.

“A common vision, strong political leadership and effective cross-sectoral collaboration, including the private sector, are essential to agree on trade-offs and identify and implement sustainable solutions to transform agri-food systems for healthy, affordable diets,” they said.

‘Unacceptably slow’ progress on ending malnutrition

Overall progress in meeting global nutrition targets remains unacceptably slow in Africa, according to the report. Sub-Saharan Africa is the only region in the world where the number of stunted children continues to rise. Although the prevalence of stunting is declining, it is falling only very slowly and despite progress, nearly a third of the children in sub-Saharan Africa are stunted.

Only three countries, Eswatini, Kenya and Sao Tome and Principe, are on course to meet four of the five World Health Assembly nutrition targets. Three other countries, Ghana, Lesotho and Rwanda, are on track to meet three of the targets.

The report also states that current food consumption patterns in Africa impose high health and environmental costs which are not reflected in food prices. Including these costs would add US$0.35 to each dollar spent on food in sub-Saharan Africa.

Rebalancing diets to include more plant-based foods would reduce the cost of diets and lower health and environmental costs. Compared to current average diets, diets that are more plant-based would reduce the full cost of diets, including health and environmental costs, by 11-21 percent in low-income countries.

Transforming agri-food systems for affordable, healthy diets

The findings highlight the importance of prioritizing the transformation of agri-food systems to ensure access to affordable and healthy diets for all, produced in a sustainable manner. Smart policies and interventions throughout agri-food systems are needed to raise yields, lower costs, promote nutritious foods, and reduce health and environmental costs.

Within the African context, essential interventions include increased investment in research and extension to improve yields, especially of nutritious foods, and greater efforts to adopt modern farming technologies. Production must be intensified in a sustainable manner, the report argues, along with interventions to improve land governance, empower women farmers, reduce post-harvest losses and improve market access.

Other efforts required include micronutrient fortification of staple foods, better food safety, improved maternal and child nutrition and care, nutrition education, and government policies that promote access to nutritious food through social protection, poverty reduction and income inequality.

Key facts and figures

• Nearly three-quarters of Africans cannot afford a healthy diet

• Over half of all Africans (51%) cannot afford a nutrient-adequate diet

• An energy-sufficient diet is beyond the means of one in every 10 (11.3%) Africans

• Of the 185.5 million people globally who cannot afford an energy-sufficient diet, the vast majority (80%) live in Africa

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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Gas-Pipeline

The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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Economy

IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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