Ghana is currently facing a severe food inflation crisis, as it ranks among the top 10 countries globally with the highest increase in food prices, according to a recent report from the World Bank.
The report, titled “Food Security Update: World Bank Response to Rising Food Insecurity,” reveals that Ghana’s nominal food inflation (year-on-year) reached 54% as of May 2023, placing it eighth globally. Its real food inflation (year-on-year), accounting for overall inflation rates, was 12%, ranking it ninth.
The report attributes the high food inflation in Ghana, as well as in other low- and middle-income countries, to various factors including disruptions in supply chains, currency depreciation, fuel price hikes, weather shocks, and the impacts of the COVID-19 pandemic.
The report highlights the potential negative consequences of high food inflation, including worsening poverty, hunger, and malnutrition among vulnerable populations.
Global food commodity prices have notably increased since January 2021. Maize and wheat prices, for instance, rose by 12% and 14% respectively in July 2023, while rice prices remained stable. On a year-on-year basis, maize and wheat prices were 15% and 17% lower, while rice prices were 16% higher.
The report also touches upon global hunger and food insecurity, citing the State of Food Insecurity and Nutrition in the World report by the Food and Agriculture Organization (FAO) and other UN agencies. It estimates that approximately 811 million people suffered from chronic hunger in 2020, an increase of 118 million from 2019. The report projects that around 660 million people will still face hunger by 2030, even if current trends are reversed.
The report further discusses the challenges and opportunities presented by urbanization for food systems, particularly in Africa and Asia. It underscores the potential of urbanization to create new markets and jobs for rural producers and processors, as well as improve access to diverse and nutritious foods for urban consumers. However, urbanization also poses risks to food security and nutrition, including increased dependence on food imports and exposure to price shocks.
Additionally, the report expresses concern about the recent disruption of the Black Sea Grain Initiative (BSGI), an agreement involving Russia, Ukraine, Turkey, and the UN aimed at facilitating the safe transportation of grain and foodstuffs from Ukrainian ports amid the ongoing conflict. The report warns of potential impacts on global food markets and prices due to Russia’s withdrawal from the initiative.
In conclusion, the report outlines the World Bank’s response to rising food insecurity, including financial and technical support to address both immediate and long-term challenges. It calls for coordinated and inclusive actions from all stakeholders to transform food systems and achieve the Sustainable Development Goals.
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