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Africa: AfDB Fights Food Crisis With Fresh $1bn
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Vanguard (Lagos)
5 May 2008
Posted to the web 5 May 2008
Omoh Gabriel
Lagos
African Development Bank (AfDB) said in Tunis, weekend, that it was committing an additional $1 billion to fight the current food crisis in Africa and member countries.
This brings the total sum the bank is committing to agriculture to $4.8 billion.
The bank in a statement said: "The President of the African Development Bank (AfDB) Group, Donald Kaberuka, announced on Friday, 2 May 2008, in Tunis that the Bank Group would add US$1 billion to its agriculture portfolio, raised to US$4.8 billion, as part of a short-term action to help address the food crisis in Africa in regional member countries.
"Mr. Kaberuka, the Bank Group would also restructure some of its agriculture portfolio to provide a rapid disbursement facility to the tune of US$250 million.
He urged cereals exporting countries not to suspend their exports because the practice will compromise the existence of about 150 million people in a dozen African states, especially the population of fragile countries, the sick and elderly."
Explaining the bank's position, "Mr. Kaberuka indicated that the food crisis required urgent and long-term action, stating that the bank had consistently supported the agricultural sector in its regional member countries, with a current portfolio of $3.8 billion."
He said bank would "find a way of assisting countries in difficulty by considering additional measures for budget support to these countries."
Recently, the Board of Governors approved the establishment of the African Fertilizer Financing Mechanism Special Fund with a view to mobilising resources from donors to finance in particular, fertilizer production, distribution, procurement and use in Africa.
According to the bank, "given that delegates at the African Green Revolution Summit in 2006 called on the AfDB Group to host the fertilizer fund and the strategic importance of fertilizer in achieving the African green revolution to end hunger, there is a compelling need to increase the level of fertilizer use from the current average of 8kg per hectare to an average of at least 50 kg per hectare in 2015."
In this regard, President Kaberuka "reiterated the importance of infrastructure in the resolution of the crisis, considering that current average post-harvest losses stand at a whooping 40 per cent where a reduction of 10 per cent of the losses would result in 5 million additional tones of cereals."
He emphasized the development of rural infrastructure as one of the Bank Group's priorities to open up the landlocked areas to wider markets, attract great revenue for local farmers and drastically reduce post-harvest losses.
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President Kaberuka commended the emergency support offered by rich countries, saying these efforts would go a long way in mitigating the crisis' impact on the continent's vulnerable population and elsewhere.
He said the Bank Group was working with partners to respond quickly and effectively, noting however, that the crisis also provides an opportune time for Africa to think long-term on the agenda for the continent's green revolution.
He recently set up a bank-wide task force to produce a "balance sheet" of the food situation in all regions of the continent to guide the institution's immediate and long-term actions on the phenomenon.
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