Economy
Madagascar Loses $1.5b Annually
**Seeks Support, Investment to Fight Chronic Malnutrition
By Modupe Gbadeyanka
The results of a new Cost of Hunger in Africa (COHA) study indicate that Madagascar’s economy loses $1.5 billion per year – the equivalent of 14.5 percent of the country’s Gross Domestic Product (GDP) – to the effects of malnutrition.
The COHA study is a project led by the African Union Commission and the New Partnership for Africa’s Development (NEPAD), developed with the support of the United Nations Economic Commission for Africa (UNECA) and the World Food Programme (WFP). The findings highlight the extent of social and economic losses caused by child malnutrition in a given country.
Mrs Hawa Ahmed Youssouf, the African Union Commission Representative in Madagascar, today officially presented the study report to the Prime Minister and Head of Government of Madagascar, Olivier Mahafaly Solonandrasana.
During the ceremony held in Antananarivo, the Prime Minister expressed his concern about the alarming levels of chronic malnutrition in the country. In Madagascar, 47 percent of children under the age of five are affected by stunting (low growth for age).
“Madagascar has the fifth highest rate of stunting in the world,” said the Prime Minister. “The results of the Cost of Hunger study confirm the urgency of mobilizing more resources and investment to reduce the level of malnutrition and its impact. This is one of the priorities of the National Development Plan. I call on our multi-sectoral partners to join us in this endeavor.”
Under the leadership of the Prime Minister, the COHA study in Madagascar was conducted by the National Implementation Team (composed of 14 agencies and ministries) with the support of the United Nations and financial partners.
“The study aims to enhance African governments’ awareness of child malnutrition and of the fact that this is not only a health and social issue, but one of major economic concern,” said Mrs Youssouf. “The African Union supports this initiative in Madagascar because we know that the government is committed to fighting malnutrition.”
Madagascar is the tenth country in Africa to have conducted the COHA study, after Burkina Faso, Chad, Ghana, Ethiopia, Lesotho, Malawi, Uganda, Rwanda and Swaziland. The process has revealed that African economies are losing between 1.9 and 16.5% of GDP to child malnutrition.
The official launch of the Madagascar report was followed by a presentation of the ‘MIARO’ integrated project on nutrition and maternal and child health, which aims to prevent chronic malnutrition among children aged 6 to 23 months and pregnant and nursing women, while improving women’s access to reproductive health services in the south of the country.
The COHA launch comes as the south of Madagascar suffers the effects of drought, exacerbated this year by the El Niño weather event.
In November, WFP assisted one million people through general food distributions, cash transfers and nutritional support for the prevention and treatment of moderate acute malnutrition.
WFP’s ability to maintain this level of assistance over coming months will depend on the availability of funding for its operations.
Malnutrition is a condition resulting from nutrient deficiencies often associated with food insecurity, poor health, poor hygiene and sanitation, and poverty.
It should be noted that in Madagascar, in spite of the climactic challenges, particularly in the south, food is available in the markets.
However, access to it is often an issue because of the high levels of poverty among more vulnerable households.
Another factor is that good nutritional practices are not yet sufficiently established among the population.
In Madagascar, 47 percent of children under 5 suffer from chronic malnutrition (or stunting).
About 9 percent of children under 5 years of age across the country suffer from acute malnutrition (or wasting), although the southern part of the country is more severely affected with frequent spikes in malnutrition rates.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
