llWRSDAl , NO\'DoI BER:u.. 2012
Feature
Africa can avert food crises via regional trade - Report HE belief that Africa has the potential to prosper has been rekindled through Di!"o<o· world Bank report which indicates that the continent's farmers can grow enough food to feed the continent and pN!".ent future food crises. The report adds that il is possible if ,.o\fri~ countries remo\'~ cross-bord~r restrictions on the food trade within the-region. Ac:rording to the rqx>rt, th~ conunent will also generate an extra $:!Obn y~arl) if its leaders can agree to do .....-ay with trade barriers that hinder more regional \italit)·_ The report taggecL'\frioo Con fldp Feed
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Africo.: Rcmouing barriers to regional trade infood staples, ....015 released on the organisatlon's .....'ebsil~on October 24. It says, MWith as many as 19 million people li\ing with the threat of hunger and malnutrition in West Africa's Sahel region, the Bank report urges AfriC:l:n leaders to imp,"",'e trade so that food C:l:n mo\'{' more freely between countries and from fertile areas to those where commumties are suffering food shortages. TIle World Bank expects demand for food in Africa to double by the year 2020 as people mcreasmgly leave the countryside and mO\e to the continent's cities." The report further says with rapid urbanisation, Africa will challenge th~ abilit)· of farm~" to transport their cereals and other foods to consumers when th~ nearest lrad~ market is close to a national bord~r. It notes that countries located in th~ South of the Saharn.. for e:.umpli!, can consIderably boost their food tradt> within th~ next several ~'t'ars to llUlIla&e the fatal effed of aggr:a\'aling drought. risinR food
A new World Bank report suggests that Africa can earn billions and avoid food crises by r e moving the constraints onfood trade within the r egion, writes GBENGAADENIJI
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prices, rapid population growth, and volatile weather conditions. Besides. the report indicates that with many African fanners successfully alienated from the fertile seeds and the affordable fertilisers and pesticides needed to expand their crop production, the continent has sought solace in foreign imports to meet its growing needs in staple foods. Th~ report quoted the World Bank Vice President for Africa aid. Makhtar Diop, as saying, Africa has th~ ability to grow and deliver good quality food to put on the dinner tables o£th~ continent's families. Howl!I.-er, this potential is nOl being realised because farmers face more trade barriers In getting their food to market than an\'....·here else in the world. Too often borde~get in thewayofgMting food to homes and communities which are struggling .....ith too little to eat.According to the report. if African leaders can encourage more \ibr.mt interregional trade, th~ continent's farmers. th~ majoril) of whom 3re women. can potentially meet its increasing demand and benefit from a major growth opportunil)-. Mit will also create man-jobs in ser.ices such as distn'bution. while reducing po... ~rty and cutting back on expensi\-e food impons. Africa's production of M
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foods is worth at least S50 billion a year," the report nOles. The report ho .....ever adds that only five per cent of all cereals imported b) African countries come from other African countries whil~ hug~ areas of fertil~ land, around 400 million hectares, remain uncuhwated and \ie1ds a portion of those acquired by farm~rs from other parts in the world Bad roads, high transport costs hin der progress Th~ report observes tha t transport c:a.rt.els are still common across Africa and the moth-ation to im'est in modem trucks and logistics are .....eak. Il also adds that countries in W~t Africa in particular could di\'ide their transpo rt costs ....;thin 10 years if they adopted policy refonns capabl~ of triggering more competition withm th~ region Erratic trade policies a liability Also, the report identifies oth~ r problems to greater African trade in staple food to include export and import bans. variable import tariffs and quotas. restricti\-e rules of origin and price controls. II says as the issues are oflen feebh' examined, these policies are then . poorly communic:a.ted 10 traders and officials. ..... hile the process in turn promotes confusion at border cros.c:ing.", limits greater regional trade,
creates uncertain market cond.bons. and contributes 10 food price volatilit)·. lmpact of competitive market The report sho.....s that oompe1:iti\'e food market .....mlargeh support poor people. For instance. il says poor peopl~ in the slums of Nairobi pal more for their maize. rice and other staple food than wealth~ peopl~ pay for the same products in local supennark~ts. Th~ report also stresses the significance of food distribution networks ..... hich in many countnes {ail to profit poor farmers and poor consumers The World Bank's Lead Economist for Africa and principal author of the report. Paul Brenton, says in th~ report. tn~ k~y chall~nge for th~ continent is hov. to create a rompetiti\'e en\1ronment in ..... hich go\-emmenl!; embrace credible and suble policies that encourage pri,-at~ iD\'estors and businesses to boost food production across th~ region, so thai fann(>r5 get the capital. the seeds. and th~ machinery they nE't'd to becom~ more efficient. and families get enough good food at the right price_Th~ institution's agriculture support for Africa has grown appreciabh' O\"t'r the pasI decade. Since 2008, th~ lending of th~ World Bank Group to agriculture and relatf'd sectors in sub-Saharan Africa has reportedh totalled $s.-tbn