Africa-Press – Ghana. President Nana Akufo-Addo has told the African Development Bank (AfDB) that the consequences of the Russian invasion of Ukraine, are compounding the emerging socio-economic vulnerabilities, which have been heightened by COVID-19.
Speaking duieng the Annual General Meeting (AGM) of the AfDB in Accra, Mr Akufo-Addo said Africa is now confronted with the consequences of the Russian invasion of Ukraine, which are compounding the emerging socio-economic vulnerabilities, which have been heightened by COVID-19.
“Since February,” he said, “prices of staple food commodities have surged drastically. Africa faces a fertilizer shortage of some 2 million metric tons this year, estimated at 2 billion dollars, according to the International Fund for Agricultural Development, potentially creating a productivity deficit of twenty to fifty percent (20-50%) in agriculture.”
Rising food prices disproportionately affect African families, as food consumes some forty percent (40%) of household income, compared to less than twenty percent (20%) in advanced economies, Mr Akufo-Addo added.
He further indicated that “Energy markets have been significantly volatile, with dire consequences for households and public finances. According to the IMF, a five dollar ($5) per barrel increase in oil prices reduces global output by around 0.25 percent, but, for non-oil exporting economies in Africa, that figure increases to 0.6 percent.
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