Economy
Drought Pushing Food Prices up Sharply in East Africa
By Dipo Olowookere
Drought throughout East Africa has sharply curbed harvests and pushed the prices of cereals and other staple foods to unusually high levels, posing a heavy burden to households and special risks for pastoralists in the region.
Local prices of maize, sorghum and other cereals are near or at record levels in swathes of Ethiopia, Kenya, Somalia, South Sudan, Uganda and the United Republic of Tanzania, according to the latest Food Price Monitoring and Analysis Bulletin (FPMA).
Inadequate rainfall in most areas of the sub-region has put enormous strain on livestock and their keepers. Poor livestock body conditions due to pasture and water shortages and forcible culls mean animals command lower prices, leaving pastoralists with even less income to purchase basic foodstuffs.
“Sharply increasing prices are severely constraining food access for large numbers of households with alarming consequences in terms of food insecurity,” said Mario Zappacosta, FAO senior economist and coordinator of the Global Information and Early Warning System.
The trends in East Africa, where prices of staple cereals have doubled in some town markets, stand in marked contrast to the stable trend of FAO’s Food Price Index, which measures the monthly change in international prices of a basket of traded food commodities.
The difference is due to the drought that is hammering the sub-region, where food stocks were already depleted by the strong El Niño weather event that ended only last year. Poor and erratic rainfall in recent months, crucial for local growing seasons, are denting farm output.
Somalia’s maize and sorghum harvests are estimated to be 75 percent down from their usual level, and some 6.2 million people, more than half of the country’s total population, now face acute food insecurity, with the majority of those most affected living in rural areas.
Soaring prices
The FPMA Bulletin tracks food price trends on a granular level and in local terms, with an eye to flagging instances where the prices of essential food commodities increase sharply or are abnormally high.
In Mogadishu, prices of maize increased by 23 percent in January, and. the increase was even sharper in the main maize producing region of Lower Shabelle. Overall, in key market towns of central and southern Somalia, coarse grain prices in January have doubled from a year earlier.With an earlier than usual depletion of household stocks during the coming lean season and preliminary weather forecasts raising concerns for the performance of the next rainy season, prices are likely to further escalate in the coming months.
Maize prices in Arusha, United Republic of Tanzania, have almost doubled since early 2016, while they are 25 percent higher than 12 months earlier in the country’s largest city, Dar Es Salaam.
In South Sudan, food prices are now two to four times above their levels of a year earlier, exacerbated by ongoing insecurity and the significant depreciation of the local currency.
In Kenya, where eastern and coastal lowlands as well as some western areas of the Rift Valley all suffered below-average rainfall, maize prices are up by around 30 percent, with the increase somewhat contained somewhat thanks to sustained imports from Uganda.
Cereal prices aren’t the only ones rising. Beans now cost 40 percent more in Kenya than a year earlier, while in Uganda – where maize prices are now up to 75 percent higher than a year earlier – and increasing around the key border trading hub of Busia, the prices of beans and cassava flour are both about 25 percent higher than a year ago in the capital city, Kampala.
Double jeopardy for pastoralists
Drought-affected pastoral areas in the region face even harsher conditions.
In Somalia, goat prices are up to 60 percent lower than a year ago, while in pastoralist areas of Kenya the prices of goats declined by up to 30 percent over the last twelve months.
Shortages of pasture and water caused livestock deaths and reduced body mass, prompting herders to sell animals while they can, as is also occurring in drought-wracked southern Ethiopia. This also pushes up the prices of milk, which is, for instance, up 40 percent on the year in Somalia’s Gedo region.
Lower income from livestock collides with higher prices for cereals and other staple foods in a wrenching shock to terms of trade for pastoralist households. A medium-sized goat in Somalia’s Buale market was worth 114 kilograms of maize in January 2016, but at today’s prices can be traded for only 30 kilograms of the grain.
FAO uses its proprietary FPMA Tool, accessible to the public online, to monitor local markets and gather data for more than 1350 domestic price series in 91 countries around the globe in order to produce its Indicator of Food Price Anomalies.
By Aduragbemi Omiyale
President Bola Tinubu has called on investors to collaborate with his administration on the issuance of the third Sovereign Green Bond later this year.
Speaking on Wednesday in the United Arab Emirates (UAE), Mr Tinubu said his government was ready to work with other nations to build a resilient, equitable, and sustainable world for all.
“Our energy transition plans, like many nations, are aimed at diversifying energy sources and reducing dependency on fossil fuels, prioritising the transition to cleaner energy sources as a cornerstone of our national development strategy,” the President said on the second day of the 2025 Abu Dhabi Sustainability Week themed From Climate Imperatives into Economic Prosperity: Bridging Africa with the Global Energy Future.
He called on partner countries to collaborate in mobilising resources to tackle these challenges and embrace innovation and technology.
“To promote a Green Economy in Africa, we must focus on integrating sustainable practices in all sectors of our economy.
“These investments are capital intensive and require international support from partner countries, including multinational organisations, development partners and individuals who share our vision of a sustainable, prosperous and equitable future,” he stated.
President Tinubu said, “Nigeria became the first country in Africa to initiate funding of green projects through Sovereign Green Bond proceeds, the third issuance of which is in progress.
“We urge investors to partner with us in this regard. Our administration remains committed to providing an enabling environment for businesses to thrive in Nigeria.
“By partnering with global leaders and harnessing the power of technology, we are finding new and innovative ways to address our environmental challenges. We have arable agricultural lands for advanced technological farming, including a bright future for Artificial Intelligence.”
He declared that no single nation can walk the road to sustainability alone, stressing that global interconnectedness demands collective action, knowledge sharing, and mutual support.
“The fight against climate change is not merely an environmental necessity but a global economic opportunity to reshape the trajectory of our continent and the global energy landscape.
“As leaders, stakeholders and citizens of our planet, we stand at a critical juncture in human history. To succeed, we must innovate, collaborate and act decisively as one global community,” the Nigerian leader disclosed.
Reiterating his administration’s commitment to reducing carbon emissions, President Tinubu assured the audience that the Nigerian government had developed actionable programmes in line with global expectations, bearing in mind Nigeria’s economic and political expectations.
“We have embraced a vision of sustainability that aligns with global aspirations while addressing local realities. Our efforts are anchored on three pillars: Energy Transition, Climate Resilience, and Sustainable Development.
“My administration recognises the importance of reducing carbon emissions and a just transition to clean and renewable energy, promoting environmental sustainability and economic growth,” he noted.
Mr Tinubu added that Nigeria is developing infrastructure for the widespread use of Compressed Natural Gas and electric vehicles and harnessing the potential in solid minerals to support the green energy transition.
He stressed that his country is also implementing climate-smart agricultural practices to enhance food security and lessen its destructive environmental impact.
These include the introduction of the National Clean Cooking Policy, which aims to promote clean energy, environmental and health benefits, and socio-economic development in the African region.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.04 per cent appreciation on Tuesday, January 14 after the share prices of six stocks on the platform recorded movements.
Business Post reports that the bourse ended with four price gainers and two price losers during the session trading session of the week.
FrieslandCampina Wamco Nigeria Plc lost N2.50 yesterday to finish at N39.50 per share versus the previous day’s N42.00 per share and Central Securities Clearing System (CSCS) Plc dropped N1.15 to wrap up the day at N22.05 per unit compared to Monday’s N23.20 per unit.
On the flip side, 11 Plc gained N25.53 to close at N280.84 per share versus N255.31 per share, UBN Property Plc increased by 20 Kobo to N2.20 per unit from N2.00 per unit, Industrial and General Insurance (IGI) Plc added 10 Kobo to close at N16.20 per share compared with the previous day’s N16.30 per share, and Geo-Fluids Plc gained 10 Kobo to settle at N4.66 per unit versus N4.56 per unit.
When trading activities ended for the day, the market capitalisation went up by N410 million to remain relatively unchanged at N1.061 trillion as the NASD Unlisted Security Index (NSI) inflated by 1.19 points to 3,096.19 points from 3,095.00 points.
The volume of securities traded in the session was up by 28.4 per cent during the session to 3.97 million units from 3.1 million units, the value of shares jumped by 161.8 per cent to N8.3 million from N3.2 million, and the number of deals declined by 16.7 per cent to 25 deals from 30 deals.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, Geo-Fluids Plc occupied the second spot with 8.9 million units valued at N43.0 million, and the third position claimed by Afriland Properties Plc with 690,825 units sold for N11.1 million.
IGI Plc ended the session as the most active stock by volume (year-to-date) with a turnover of 23.5 million units valued at N5.3 million, followed by Geo-Fluids Plc with 8.9 million units sold for N43.0 million, and FrieslandCampina Wamco Nigeria Plc with 3.4 million units worth N134.9 million.
By Aduragbemi Omiyale
A pioneering agricultural solutions provider based in Kaduna, Nigeria, NaFarm Foods, has been named as the winner of the food category of the 2025 Zayed Sustainability Prize for its Hybrid Solar Food Dryer.
The company clinched the accolade for its groundbreaking innovation in reducing post-harvest losses, improving food security, and promoting sustainable agricultural practices across Nigeria.
Hybrid Solar Food Dryer was designed by NaFarm Foods to address the critical issue of food spoilage by combining solar heat and electricity generated from solar panels for efficient, all-weather drying of food, even during rainy or cloudy days.
With a capacity of 500kg per unit and the ability to retain the nutritional quality of food while minimising energy costs, the technology has already benefited over 80 communities across six Nigerian states.
By reducing post-harvest losses for over 65,000 farmers, the dryers contribute significantly to food security and rural economic empowerment.
The Hybrid Solar Food Dryer is transforming food preservation by reducing spoilage rates, decreasing greenhouse gas emissions from decomposing food, and lowering reliance on fossil fuels.
With a whole-of-life cost of less than 1 cent per 100 litres, the dryers are accessible and economically viable for smallholder farmers and food processors.
By 2030, NaFarm Foods aims to empower two million farmers and reduce carbon emissions by 50,000 metric tonnes annually.
Business Post reports that NaFarms Foods has won $1 million from Zayed to scale its operations by manufacturing and distributing 100,000 dryers across Nigeria and West Africa.
“We are deeply honoured to be recognised as a winner of the Zayed Sustainability Prize. It signifies global recognition of our efforts to tackle food insecurity and promote equitable and sustainable agriculture in Nigeria and beyond.
“This opportunity inspires us to continue pushing boundaries, knowing that our work is not only transforming lives locally but also contributing to a more sustainable and equitable world. For us, this is more than an achievement; it’s a call to action to drive greater impact,” the chief executive of NaFarms Foods, Ms Fatima Jimoh, said.
The Director of the Zayed Sustainability Prize, Dr Lamya Fawwaz, said, “NaFarm Foods’ innovative approach to sustainable food preservation not only improves food security but also empowers rural communities, particularly women and youth, by creating income-generating opportunities. This aligns with the Prize’s mission to drive progress and improve livelihoods.”
NaFarm Foods plans to expand training programmes to empower an additional 25,000 women and youth, fostering entrepreneurship and sustainable economic growth.
Additionally, it intends to establish distribution hubs and implement advanced cluster mapping systems to ensure technology accessibility and improved marketability of produce.
Each year, the Zayed Sustainability Prize rewards organisations and high schools for their groundbreaking solutions, fostering innovation on global challenges. Over the past 17 years, through its 128 winners, the prize has positively impacted 407 million lives worldwide.
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