THE African Development Bank (AfDB) has made substantial progress in its efforts to enhance food security across the African continent. AfDB President Akinwumi Adesina announced on Friday that the bank’s programmes, spanning over 30 African countries, have collectively contributed to the production of approximately $12bn worth of food. Adesina further emphasised that the bank’s ambitious $25bn food security objective is ‘well on track.’
Addressing the issue of food security in Africa, Adesina expressed his optimism about the region’s future. He stated, ‘As far as I’m concerned, we shouldn’t be talking about food security in Africa more than five years from now. There’s no reason for it.’ Adesina highlighted the availability of technology and financing at a scale that can effectively address food security challenges on the continent.
Global grain markets faced a period of uncertainty and volatility following Russia’s invasion of Ukraine in February 2022. As one of the world’s leading grain exporters, the disruption in Ukraine had ripple effects on food supplies, particularly impacting vulnerable nations, including several in Africa. Additionally, factors such as the emergence of the El Niño weather pattern and the breakdown of agreements for transporting Ukrainian food through the Black Sea added to global concerns surrounding food security.
Adesina pointed to the successful implementation of special agro-industrial processing zones as a significant contributor to achieving food security goals. These zones, designed for infrastructure investment in rural areas, create opportunities for food and agribusiness companies to operate effectively. In Nigeria, for instance, there has been a substantial demand to expand these zones from covering eight states to as many as 35, following a recent request. Adesina revealed that an additional 27 states in Nigeria have expressed interest in receiving support for similar initiatives.
The AfDB has identified the critical issue of under-nutrition and stunting, affecting 216 million children in Africa, with poor nutrition being linked to nearly half of child deaths on the continent. The economic cost of inadequate nutrition is estimated at 11 percent of Africa’s gross domestic product.
Looking ahead, Adesina expressed expectations for the IMF board to advance plans for channelling $100bn in lending to vulnerable countries through multilateral development banks. He sees this as a vital step to secure more resources at a significant scale, which can be instrumental in addressing various challenges, including food security.
Regarding the AfDB’s financial outlook, Adesina mentioned ongoing discussions about recapitalising the bank, with aspirations to ultimately become a $100bn lender. The bank’s lending portfolio reached $27.5bn by the end of 2022, reflecting its commitment to supporting development initiatives across the African continent.
While Adesina did not provide specific details regarding the status of a hybrid note, he noted that investor calls had commenced earlier in the month, receiving a ‘very optimistic response.’ S&P Global, which assigned a rating of AA-minus to the notes compared to the bank’s AAA rating, anticipates the issuance to range between $250 million and $1bn, contingent on market conditions. Adesina indicated that pricing for the note would be determined in the near future.
The African Development Bank remains dedicated to its mission of promoting economic and social development in Africa, addressing critical challenges, and contributing to the continent’s growth and prosperity.