Attachments
Key highlights from this edition include:
Global Market Update
Globally, the FAO Food Price Index dipped 1% in January, driven by decreases in cereal and meat prices. Nonetheless, rice prices continue to rise due to a rise in prices of higher quality Indica rice from a strong pace of Thai and Pakistani shipments and additional purchases by Indonesia. For instance, the IGC GOI sub-index for rice rose 31.9% compared to the past one year. Due to attacks in the Red Sea and the return of piracy cases off the coast of Somalia and the Gulf of Guinea, commodity prices in Africa are expected to increase as shipping costs are passed onto consumers.
Regional Food Security Updates
Food insecurity persists across the monitored regions although with some improvements. In East Africa, 32.6 million people lacked sufficient food in January, down 4.2% from November 2023. Food security improved in Kenya and Uganda but remains dire in Ethiopia and South Sudan due to rising conflicts in the region. In Southern Africa, 21.6 million people lacked sufficient food in January, a 2.3% drop from November 2023. West Africa saw food insecurity rise, with 158.6 million food insecure people in January; this is an increment of 10.1 million people from what was recorded in November 2023, driven by conflict and macroeconomic woes.
Food Trade Updates
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In East Africa, the governments of Malawi and Tanzania reversed their bans on maize and maize seed trade, citing sanitary concerns, respectively, in December 2023.
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In Southern Africa, Zambia plans to build a new rail connection to link a Lake Tanganyika harbour to an existing line that runs to neighbouring Tanzania, boosting trade with three other nations that share borders with the world's longest freshwater lake.
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In West Africa, the Government of Ghana plans to roll out a lending scheme at a subsidised interest rate of 10% to support Women-led businesses interested in exporting under the Africa Continental Free Trade Area (AfCFTA). Meanwhile, the governments of Burkina Faso, Mali, and Niger have withdrawn their respective countries from the Economic Community of West Africa States (ECOWAS).
Food Commodity Prices Updates
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Except for Ethiopia, food crop prices in the East African region are generally lower than they were 1-12 months due to increased supplies from ongoing harvests. In South Sudan, the national average prices of all monitored food crops remain higher than the same period a year ago, with cassava and groundnuts increasing the most by 65% and 72% respectively.
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In Southern Africa, the prices of food commodities remain mostly elevated above their previous levels as the region is at the peak of its lean season. Malawi and Zambia have had significant increases in prices, with for instance, national average prices of maize being 62% and 66% higher than a year ago, respectively.
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In West Africa, mixed trends are observed, with Burkina Faso, Ghana, and Niger mainly having lower prices, while Mali and Togo show stable prices. In Nigeria and Cote d'Ivoire, changes in prices are mixed.