Connect with us

Economy

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

Published

on

Corn, Soybeans Decline As Favorable Weather May Boost U

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.

Continue Reading
Comments

Economy

DR Congo-China Deal: $324 Million Annually for Infrastructure Hinges on Copper Prices

Published

on

In a significant development for the Democratic Republic of Congo (DRC), a newly revealed contract sheds light on a revamped minerals-for-infrastructure deal with China, signaling billions of dollars in financing contingent upon the price of copper.

This pivotal agreement, signed in March as an extension to a 2008 pact, underscores the intricate interplay between commodity markets and infrastructure development in resource-rich nations.

Under the terms of the updated contract, the DRC stands to receive a substantial injection of $324 million annually for infrastructure projects from its Chinese partners through 2040.

However, there’s a catch: this funding stream is directly linked to the price of copper. As long as the price of copper remains above $8,000 per ton, the DRC is entitled to this considerable sum to bolster its infrastructure.

The latest data indicates that copper is currently trading at $9,910 per ton, well above the threshold specified in the contract.

This bodes well for the DRC’s ambitious infrastructure plans, as the nation seeks to rebuild its road network, which has suffered from decades of neglect and conflict.

However, the contract also outlines a dynamic mechanism that adjusts funding levels based on copper price fluctuations.

Should the price exceed $12,000 per ton, the DRC stands to benefit further, with 30% of the additional profit earmarked for additional infrastructure projects.

Conversely, if copper prices fall below $8,000, the funding will diminish, ceasing altogether if prices dip below $5,200 per ton.

One of the most striking aspects of the contract is the extensive tax exemptions granted to the project, providing a significant financial incentive for both parties involved.

The contract stipulates a total exemption from all indirect or direct taxes, duties, fees, customs, and royalties through the year 2040, further enhancing the attractiveness of the deal for both the DRC and its Chinese partners.

This minerals-for-infrastructure deal, centered around the joint mining venture known as Sicomines, underscores the DRC’s strategic partnership with China, a key player in global commodity markets.

With China Railway Group Ltd., Power Construction Corp. of China (PowerChina), and Zhejiang Huayou Cobalt Co. holding a majority stake in Sicomines, the project represents a significant collaboration between the DRC and Chinese entities.

According to the contract, the total value of infrastructure loans under the deal amounts to a staggering $7 billion between 2008 and 2040, with a substantial portion already disbursed.

This infusion of capital is expected to drive socio-economic development in the DRC, leveraging its vast mineral resources to fund much-needed infrastructure projects.

As the DRC navigates the intricacies of global commodity markets, particularly the volatile copper market, this minerals-for-infrastructure deal with China presents both opportunities and challenges.

While it offers a vital lifeline for infrastructure development, the nation must remain vigilant to ensure that its long-term interests are safeguarded in the face of evolving market dynamics.

Continue Reading

Economy

Fitch Ratings Raises Egypt’s Credit Outlook to Positive Amid $57 Billion Bailout

Published

on

Fitch ratings

Fitch Ratings has upgraded Egypt’s credit outlook to positive, reflecting growing confidence in the North African nation’s economic prospects following an international bailout of $57 billion.

The upgrade comes as Egypt secured a landmark bailout package to bolster its cash-strapped economy and provide much-needed relief amidst economic challenges exacerbated by geopolitical tensions and the global pandemic.

Fitch affirmed Egypt’s credit rating at B-, positioning it six notches below investment grade. However, the shift in outlook to positive shows the country’s progress in addressing external financing risks and implementing crucial economic reforms.

The positive outlook follows Egypt’s recent agreements, including a $35 billion investment deal with the United Arab Emirates as well as additional support from international financial institutions such as the International Monetary Fund and the World Bank.

According to Fitch Ratings, the reduction in near-term external financing risks can be attributed to the significant investment pledges from the UAE, coupled with Egypt’s adoption of a flexible exchange rate regime and the implementation of monetary tightening measures.

These measures have enabled Egypt to navigate its foreign exchange challenges and mitigate the impact of years of managed currency policies.

The recent jumbo interest rate hike has also facilitated the devaluation of the Egyptian pound, addressing one of the country’s most pressing economic issues.

Egypt has faced mounting economic pressures in recent years, including foreign exchange shortages exacerbated by geopolitical tensions in the region.

Challenges such as the Russia-Ukraine conflict and security threats in the Israel-Gaza region have further strained the country’s economic stability.

In response, Egyptian authorities have embarked on a series of reform efforts aimed at enhancing economic resilience and promoting private-sector growth.

These efforts include the sale of state-owned assets, curbing government spending, and reducing the influence of the military in the economy.

While Fitch Ratings’ positive outlook signals confidence in Egypt’s economic trajectory, other rating agencies have also expressed optimism.

S&P Global Ratings has assigned Egypt a B- rating with a positive outlook, while Moody’s Ratings assigns a Caa1 rating with a positive outlook.

Continue Reading

Economy

Fitch Ratings Lifts Nigeria’s Credit Outlook to Positive Amidst Reform Progress

Published

on

fitch Ratings - Investors King

Fitch Ratings has upgraded Nigeria’s credit outlook to positive, citing the country’s reform progress under President Bola Tinubu’s administration.

This decision is a turning point for Africa’s largest economy and signals growing confidence in its economic trajectory.

The announcement comes six months after Fitch Ratings acknowledged the swift pace of reforms initiated since President Tinubu assumed office in May of the previous year.

According to Fitch, the positive outlook reflects the government’s efforts to restore macroeconomic stability and enhance policy coherence and credibility.

Fitch Ratings affirmed Nigeria’s long-term foreign-currency issuer default rating at B-, underscoring its confidence in the country’s ability to navigate economic challenges and drive sustainable growth.

Previously, Fitch had expressed concerns about governance issues, security challenges, high inflation, and a heavy reliance on hydrocarbon revenues.

However, the ratings agency expressed optimism that President Tinubu’s market-friendly reforms would address these challenges, paving the way for increased investment and economic growth.

President Tinubu’s administration has implemented a series of policy changes aimed at reducing subsidies on fuel and electricity while allowing for a more flexible exchange rate regime.

These measures, coupled with a significant depreciation of the Naira and savings from subsidy reductions, have bolstered the government’s fiscal position and attracted investor confidence.

Fitch Ratings highlighted that these reforms have led to a reduction in distortions stemming from previous unconventional monetary and exchange rate policies.

As a result, sizable inflows have returned to Nigeria’s official foreign exchange market, providing further support for the economy.

Looking ahead, the Nigerian government aims to increase its tax-to-revenue ratio and reduce the ratio of revenue allocated to debt service.

Efforts to achieve these targets have been met with challenges, including a sharp increase in local interest rates to curb inflation and manage public debt.

Despite these challenges, Nigeria’s economic outlook appears promising, with Fitch Ratings’ positive credit outlook reflecting growing optimism among investors and stakeholders.

President Tinubu’s administration remains committed to implementing reforms that promote sustainable growth, foster investment, and enhance the country’s economic resilience.

As Nigeria continues on its path of reform and economic transformation, stakeholders are hopeful that the positive momentum signaled by Fitch Ratings will translate into tangible benefits for the country and its people.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending