Africa must prepare for inevitability of global food crisis-ADB President

Dr. Akinwumi Adesina, President of the African Development Bank Group, stated that "Africa must prepare for the inevitability of a global food crisis."

He was speaking about Africa's priorities as a guest at the Atlantic Council's Africa Center on Friday.

Responding to questions from the Council's Africa Center Chair, Ambassador Rama Yade; Senior Fellow Aubrey Hruby; and Washington/UN correspondent for Jeune Afrique and The Africa Report, Julian Pecquet, the Bank chief called for a greater sense of urgency in the face of what he described as a once-in-a-century convergence of global challenges for Africa.

According to Adesina, the continent's most vulnerable countries have been hit the hardest by conflict, climate change, and the Covid-19 pandemic, which has disrupted Africa's economic and development progress.

He claimed that the pandemic had resulted in the loss of up to 30 million jobs in Africa, which has the lowest GDP growth rates.

When asked about the impact of the Russia-Ukraine war, Adesina expressed sympathy for the Ukrainian people, calling their suffering "unimaginable."

He claimed that the war's consequences extended far beyond Ukraine to other parts of the world, including Africa.

He explained that Russia and Ukraine supply 30% of global wheat exports, and that the price of wheat has risen by nearly 50% globally, reaching levels comparable to the 2008 global food crisis.

He went on to say that fertilizer prices had tripled and energy prices had risen, all of which fueled inflation.

Adesina warned that the tripling of fertilizer costs, rising energy prices, and rising food basket costs in Africa could worsen in the coming months.

He noted that wheat accounted for 90% of Russia's $4 billion in exports to Africa in 2020, and that wheat accounted for 48% of Ukraine's near $3 billion in exports to the continent, with maize accounting for 31%.

Adesina warned that in order to avoid a food crisis, Africa must rapidly increase food production.

He said: "The African Development Bank is already working to mitigate the effects of a food crisis through the African Food Crisis Response and Emergency Facility – a dedicated facility under consideration by the Bank to provide African countries with the resources needed to increase local food production and procure food."

The African Development Bank's chief executive officer emphasized the importance of the technology sector as a driver of growth in Africa, as well as opportunities for young people on the continent.

Adesina referred to Africa's youth as one of its most valuable assets.

He praised young entrepreneurs in the fintech, digital, creative arts, and entertainment industries.

He stated that the need for innovative financing by young entrepreneurs is why the Bank is exploring the establishment of specialized youth entrepreneurship investment banks with stakeholders in order to unlock potential and economic growth.