World
Can Africa Prioritise and Solve its Food Security Challenges?
By Kestér Kenn Klomegâh
Global food security, especially in Africa, has been in the media publications these past few months. While a few outspoken African leaders shifted blame to the Russia-Ukraine crisis, others focused on spending the state budget to import food to calm rising discontent among the population. Some experts and international organizations have also expressed the fact that African leaders have to adopt import substitution mechanisms and use their financial resources to strengthen agricultural production systems.
At the G7 Summit in June, President Biden and G7 leaders announced over $4.5 billion to address global food security, over half of which will come from the United States. This $2.76 billion in U.S. government funding will help protect the world’s most vulnerable populations and mitigate the impacts of growing food insecurity and malnutrition, including from Russia’s war in Ukraine, by building production capacity and more resilient agriculture and food systems around the world and responding to immediate emergency food needs.
U.S. Congress allocated $336.5 million to bilateral programs for Sub-Saharan African countries, including Burkina Faso, the Democratic Republic of the Congo, Ethiopia, Ghana, Guinea, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Somalia, South Sudan, Tanzania, Uganda, Zambia, and Zimbabwe and regional programs in southern Africa, west Africa, and the Sahel.
Also, of this $2.76 billion, USAID is programming $2 billion in emergency food security assistance over the next three months. As of August 8, 2022, the U.S. has provided nearly $1 billion specifically for countries in Africa toward this $2 billion commitment, including the Central African Republic, the Democratic Republic of the Congo, Ethiopia, Kenya, Mali, Mozambique, Nigeria, Somalia, South Sudan, and Uganda.
That compared, Russia plans to earn (revenue) $33 billion by the end 0f 2022 through massive export of grains and meat poultry to Africa. The plan aims to marginalise local production, cut out foreign contributions to support livelihoods through local production and make African leaders spend their hard-earned revenue on food imports instead of supporting agricultural production.
Primarily, Russia needs to export an estimated 50-60 million tonnes of grain this agricultural year from July 2022 to June 2023. Agriculture Minister Dmitry Patrushev and Algerian Agriculture and Rural Development Minister Mohamed Abdelhafid Henni, co-chairing the Russian-Algerian Intergovernmental Commission in late September, agreed on increased wheat exports from Krasnodar Territory and Siberia regions to Algeria.
The Agriculture Ministry’s Agroexport Center said in a report that Russia has to increase exports to Angola. The estimated potential for Russian agribusiness exports to Angola is $100 million per year, including grains, foremost wheat, soybean oil, beef, poultry, edible pork by-products, yeast and other agribusiness products.
Agroexport Federal Center for Development of Agribusiness Exports, in close partnership collaboration with Trust Technologies and the business expert community, drew up a concept for the development of exports of principal agricultural products (grain, dairy, butter, meat and confectionery products) to promising markets of African countries. It is estimated to build on the total volume of exports to African countries, which in 2021 amounted to $33 billion.
“The African continent is an interesting and promising area for developing Russian food exports. However, when working in this market, it is important to take into account a number of factors: strong differences in the level of welfare of the population, political instability in some countries, state regulation of prices for a number of goods, et cetera,” Agroexport head Dmitry Krasnov was quoted as saying in the statement and reported by Russian media including the Interfax News Agency.
By increasing grain exports to countries in Africa, Russia aims to enhance the competitiveness of Russian agricultural goods in the African market. According to the business concept report, five African countries have been identified and chosen as target markets for the delivery of agricultural products. These are Angola, Cameroon, Ethiopia, Ghana, Kenya, Mauritius, Nigeria, Tunisia and South Africa.
In sharp contrast to food-importing African countries, Zimbabwe has increased wheat production, especially during this crucial time of the current Russia-Ukraine crisis. This achievement was attributed to efforts in mobilizing local scientists to improve the crop’s production. Zimbabwe is an African country that has been under Western sanctions for 25 years, hindering imports of much-needed machinery and other inputs from driving agriculture.
At the African Green Revolution Forum (AGRF) summit held in September in Rwanda, President Emmerson Mnangagwa told the gathering that “we used to depend on importation of wheat from Ukraine in the past, but we have been able to produce our own. So, the crisis in that country has not affected us. There is an urgent need to adopt a progressive approach and re-purpose food policies to address the emerging challenges affecting our entire food systems.”
There are various local efforts to attain food security on the continent. For instance, the African Development Bank’s (AfDB) African Emergency Food Production Facility (AEFPF) to increase the production of climate-adapted wheat, corn, rice, and soybeans over the next four growing seasons in Africa. The International Fund for Agricultural Development’s (IFAD) Crisis Response Initiative (CRI) helps protect livelihoods and build resilience in rural communities. The Africa Adaptation Initiative (AAI) to develop a pipeline of bankable projects in Africa to leverage private equity.
The Africa Risk Capacity (ARC) Africa Disaster Risk Financing Programme (ADRiFi) helps African governments to respond to food system shocks by increasing access to risk insurance products. A fertilizer efficiency and innovation program to enhance fertiliser use efficiency in countries where fertilizer tends to be over-applied. Support for the UN Food and Agriculture Organization (FAO) will fund soil mapping spanning multiple countries to provide information allowing for wiser water usage, greater fertilizer conservation, and improved climate resilience impacts.
Significant to note that during the business conference held at the Atlantic Council’s Africa Center on April 22, African Development Bank Group President Dr Akinwumi Adesina, speaking as a guest of the Washington, DC, US-based think tank, called for an increased sense of urgency amid what he described as a once-in-a-century convergence of global challenges for Africa, including a looming food crisis. The continent’s most vulnerable countries have been hit hardest by conflict, climate change and the pandemic, which upended economic and development progress in Africa.
Adesina said the ramifications of Russia’s invasion of Ukraine on Feb. 24 spread far beyond the conflict to other parts of the world, including Africa. Russia and Ukraine supply almost 30% of global wheat exports, and the price has surged nearly 50% globally, reaching levels reminiscent of the 2008 global food crisis.
Adesina said the tripling of fertilizer costs, rising energy prices and rising costs of food baskets, could worsen in Africa in the coming months. He noted that wheat made up 90% of Russia’s $4 billion in exports to Africa in 2020, and of Ukraine’s nearly $3 billion exports to the continent, 48% was wheat and 31% was maize.
Adesina said Africa must rapidly expand its production to meet food security challenges. “The African Development Bank is already active in mitigating the effects of a food crisis through the African Food Crisis Response and Emergency Facility, a dedicated facility being considered by the bank to provide African countries with the resources needed to raise local food production and procure fertilizer,” Adesina said. “My basic principle is that Africa should not be begging. We must solve our own challenges ourselves without depending on others…”
The bank chief spoke about early successes through the African Development Bank’s innovative flagship initiative, the Technologies for African Agricultural Transformation (TAAT) program, which operates across nine food commodities in more than 30 African countries. TAAT has helped to rapidly boost food production at scale on the continent, including the production of wheat, rice and other cereal crops.
“We are putting our money where our mouth is,” Adesina said. “We are producing more and more of our food. Our Africa Emergency Food Production Plan will produce 38 million metric tons of food.” He said TAAT already delivered heat-tolerant wheat varieties to 1.8 million farmers in seven countries, increasing wheat production by over 1.4 million metric tons and a value of $291 million. He added that during the drought in southern Africa in 2018 and 2019, TATT was able to help deploy heat-tolerant maize varieties, which were cultivated by 5.2 million households on 841,000 hectares.
In a similar argument and direction, the World Bank has also expressed worry over sub-Saharan African countries’ high expenditure on food imports that could be produced locally using their vast uncultivated lands and the devastating impact on budgets due to rising external borrowing. According to the bank, it is crucial to increase the effectiveness of current resources to expand and support local production, especially in agriculture and industry sectors during this crucial period of the Russia-Ukraine crisis.
In a press release titled – African Governments Urgently Need to Restore Macro-Economic Stability and Protect the Poor in a Context of Slow Growth, – High Inflation, the global lender said African governments spent 16.5 per cent of their revenues servicing external debt in 2021, up from less than 5 per cent in 2010. Eight out of 38 IDA-eligible countries in the region are in debt distress, and 14 are at high risk of joining them.
In late May 2022, the IMF and World Bank considered 16 low-income African countries at high risk of debt distress, while 7 countries – Chad, Republic of the Congo, Mozambique, São Tomé and Príncipe, Somalia, Sudan and Zimbabwe – were already in debt distress. Bright spots, such as Côte d’Ivoire and Rwanda, are expected to exhibit rapid growth in 2022, the report said. However, 33 African countries need external assistance for food, and acute food insecurity is likely to worsen in 18 of these economies in the next months.
With the above facts, African leaders have to demonstrate a higher level of commitment to tackling post-pandemic challenges and the Russia-Ukraine crisis that has created global economic instability and other related severe consequences. And this requires collaborative action and a much stronger pace of transformation to cater for the needs of the population of over 1.3 billion in Africa.
Máximo Torero, the chief economist of the Food and Agriculture Organization, has observed that African policies have relatively failed to alleviate food security problems. It has emphasised the fragility of over-dependence on a globalised agricultural system. To achieve a more integrated and regionalized agricultural system, coordinated public policy responses are needed to support agribusiness. These responses must ensure small and medium-sized farmers are included.
Action can be taken at a regional level too. And it would help identify issues relating to market access, border and transport-related problems, and possible anticompetitive behaviour. The integration of regional economies is one vehicle for alleviating pervasive food security issues. But regional integration can’t be achieved without the appropriate support for investment in production, infrastructure and capabilities.
An estimate suggests that rich Africans were holding a massive $500 billion in tax havens. Africa’s people are effectively robbed of wealth by an economy that enables a tiny minority of Africans to get rich by allowing wealth to flow out of Africa.
According to our basic research, Africa is not poor, as foreign players are stealing its wealth. But, there is $203 billion leaving the continent. Based on a set of new figures, sub-Saharan Africa is a net creditor to the rest of the world to the tune of more than $41 billion. Then there’s the $30 billion that these corporations repatriate – profits they make in Africa but send back to their home country or elsewhere to enjoy their wealth.
In an opinion article published in September by Foreign Policy in Focus, Imani Countess wrote that every year nearly $90 billion of African resources are lost to the global north in Illicit Financial Flows or IFFs. It isn’t just the Russians, but also U.S.-based corporations and others throughout the global north. Russians are flying an unprecedented huge quantity of gold out of Sudan and precious resources from the extractive industry out of the Central African Republic and Guinea.
According to him, “the financial mechanisms that facilitate illicit financial flows are complex, most often through opaque deals and contracts involving government officials. People in these plundered communities do not have a voice. They face harm to local biodiversity, loss of their livelihoods, and a lack of meaningful benefits, especially in providing sustainable development. The losses are breathtaking and heartbreaking, representing revenue that should be invested in sustainable development in Africa.”
Dr Richard Munang is UNEP’s Africa Regional Climate Change Programme Coordinator, and Ms Zhen Han is a doctoral student at Cornell University, wrote in a joint article that people living in extreme poverty in sub-Saharan Africa increased from 290 million in 1990 to 414 million in 2010. The region currently spends more than $35 billion on food imports annually.
Of the challenges currently facing the continent, climate change has greatly slowed down Africa’s progress towards MDGs, especially those related to eliminating hunger and poverty, improving human health and ensuring environmental sustainability. This is because climate change disproportionately affects the livelihoods of the most vulnerable population by increasing the occurrence of natural disasters, affecting the continuity of ecosystem functioning and the ecosystem services it provides. Climate change also damages the critical natural resources that vulnerable communities depend on.
Establishing food security is important for millions of people facing hunger in Africa and is crucial for sustainable economic development and the long-term prosperity of the continent. Therefore, addressing food security in a changing climate is key for a rising Africa in the 21st century. From the discussions above and various perspectives, African leaders have to focus and redirect both human and financial resources toward increasing local production, the surest approach to attain sustainable food security for the over 1.3 billion population in Africa, and this falls within the framework of the Agenda 2063 of the African Union.
World
United States Congress Pursuing AGOA Extension
By Kestér Kenn Klomegâh
After the expiration of bilateral agreement on trade, the US Congress as well as African leaders, highly recognizing its significance, has been pursuing the extension of the African Growth and Opportunity Act (AGOA). The agreement, which allows duty-free access to American markets for African exporters, expired on September 30, 2025.
The US Congress is advancing a bill to revive and extend AGOA, but South Africa’s continued inclusion remains uncertain. The trade pact still has strong bipartisan support, with the House Ways and Means Committee approving it 37-3. However, US Trade Representative, Jamieson Greer, raised concerns about South Africa, citing tariffs and non-tariff barriers, and said the administration could consider excluding the country.
This threat puts at risk the duty-free access that has significantly benefited South African automotive, agricultural, and wine exports. The debate highlights how trade policy is becoming entangled with broader diplomatic tensions, casting uncertainty over a key pillar of US-Africa economic relations.
Nevertheless, South Africa continues to lobby for inclusion. South Africa trade summary records show that the US goods and services trade with South Africa estimated at $26.2 billion in 2024. The US and South Africa signed a Trade and Investment Framework Agreement (TIFA) as far back as in 2012.
The duty-free access for nearly 40 African countries has boosted development and fostered more equitable and sustainable growth in Africa. By design AGOA is a useful mechanism for improving accessibility to trade competitiveness, connectivity, and productivity. During these past 25 years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa.
Key features and benefits of AGOA:
It’s worth reiterating here that during these past several years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa. In this case, as AGOA is closely working with the African Continental Free Trade Area (AfCFTA) Secretariat and with the African Union (AU), trade professionals could primarily leverage various economic sectors and unwaveringly act as bridges between the United States and Africa.
* Duty-free Access: AGOA allows eligible products from sub-Saharan African countries to enter the US market without paying tariffs.
* Promotion of Economic Growth: The program encourages economic growth by providing incentives for African countries to open their economies and build free markets.
* Encouraging Economic Reforms: AGOA encourages economic and political reforms in eligible countries, including the rule of law and market-oriented policies.
* Increased Trade and Investment: The program aims to strengthen trade and investment ties between the United States and sub-Saharan Africa.
With the changing times, Africa is also building its muscles towards a new direction since the introduction of the African Continental Free Trade Area (AfCFTA), which was officially launched in July 2019.
In practical terms, trading under the AfCFTA commenced in January 2021. And the United States has prioritized the AfCFTA as one mechanism through which to strengthen its long-term relations with the continent. In the context of the crucial geopolitical changes, African leaders, corporate executives, and the entire business community are optimistic over the extension of AGOA, for mutually beneficial trade partnerships with the United States.
Worthy to say that AGOA, to a considerable degree, as a significant trade policy has played a crucial role in promoting economic growth and development in sub-Saharan Africa.
World
Accelerating Intra-Africa Trade and Sustainable Development
By Kestér Kenn Klomegâh
Africa stands at the cusp of a transformative digital revolution. With the expansion of mobile connectivity, internet penetration, digital platforms, and financial technology, the continent’s digital economy is poised to become a significant driver of sustainable development, intra-Africa trade, job creation, and economic inclusion.
The African Union’s Agenda 2063, particularly Aspiration 1 (a prosperous Africa based on inclusive growth and sustainable development), highlights the importance of leveraging technology and innovation. The implementation of the African Continental Free Trade Area (AfCFTA) has opened a new chapter in market integration, creating opportunities to unlock the full potential of the digital economy across all sectors.
Despite remarkable progress, challenges persist. These include limited digital infrastructure, disparities in digital literacy, fragmented regulatory frameworks, inadequate access to financing for tech-based enterprises, and gender gaps in digital participation. Moreover, Africa must assert its digital sovereignty, build local data ecosystems, and secure cyber-infrastructure to thrive in a rapidly changing global digital landscape.
Against this backdrop, the 16th African Union Private Sector Forum provides a timely platform to explore and shape actionable strategies for harnessing Africa’s digital economy to accelerate intra-Africa trade and sustainable development.
The 16th High-Level AU Private Sector forum is set to take place in Djibouti, from the 14 to 16 December 2025, under the theme “Harnessing Africa’s Digital Economy and Innovation for Accelerating Intra-Africa Trade and Sustainable Development”
The three-day Forum will feature high-level plenaries, expert panels, breakout sessions, and networking opportunities. Each day will spotlight a core pillar of Africa’s digital transformation journey.
Day 1: Digital Economy and Trade Integration in Africa
Focus: Leveraging digital platforms and technologies to enhance trade integration and competitiveness under AfCFTA.
Day 2: Innovation, Fintech, and the Future of African Economies
Focus: Driving economic inclusion through fintech, innovation ecosystems, and youth entrepreneurship.
Day 3: Building Policy, Regulatory Frameworks, and Partnerships for Digital Growth
Focus: Creating an enabling environment for digital innovation and infrastructure through effective policy, governance, and partnerships.
To foster strategic dialogue and action-oriented collaboration among key stakeholders in Africa’s digital ecosystem, with the goal of leveraging digital economy and innovation to boost intra-Africa trade, accelerate economic transformation, and support inclusive, sustainable development.
* Promote Digital Trade: Identify mechanisms and policy actions to enable seamless cross-border digital commerce and integration under AfCFTA.
* Foster Innovation and Fintech: Advance inclusive fintech ecosystems and support innovation-driven entrepreneurship, especially among youth and women.
* Policy and Regulatory Harmonization: Build consensus on regional and continental digital regulatory frameworks to foster trust, security, and interoperability.
* Encourage Investment and Public-Private Partnerships: Strengthen collaboration between governments, private sector, and development partners to invest in digital infrastructure, R&D, and skills development.
* Advance Digital Inclusion and Sustainability: Ensure that digital transformation contributes to environmental sustainability and the empowerment of marginalized communities.
The AU Private Sector Forum has held several forums, with key recommendations. These recommendations provide valuable insights into the challenges and opportunities facing the African private sector and offer guidance for policymakers on how to support its growth and development.
World
Russia’s Lukoil Losses Strategic Influence Across Africa
By Kestér Kenn Klomegâh
Lukoil, Russia’s energy giant, has seriously lost its grounds across Africa, due to United States sanctions. Sanctions have complicated the company’s potential continuity in operating its largest oil field projects, grappling its investment particularly in Republic of Ghana, Democratic Republic of Congo, and Federal Republic of Nigeria.
Reports indicated the sanctions are further dismantling most of Lukoil’s operations, causing significant staff layoffs in its offices worldwide. For instance, Lukoil’s significant upstream operations in the Middle East include a 75% stake in Iraq’s West Qurna 2 oilfield and a 60% stake in Iraq’s Block 10 development. In Egypt, the company holds stakes in various oilfields alongside local partners.
Lukoil has until December 13, 2025, to negotiate the sale of most of its international assets, including those in Asia, Africa and Latin America. It has already terminated several important agreements that were signed with international partners due to difficulties in circumventing the sanctions.
Reports said calculated efforts to diversify exploration business relations is turning extremely complex, and current at the cross-roads, Lukoil will have to ultimately give up existing contracts and agreements it had signed with external countries.
Lukoil’s website reports also pointed to reasons for abandoning oil and gas exploration and drilling project that it began in Sierra Leone. According to those reports, Lukoil could withdraw from almost all of the projects in West Africa.
In addition to geopolitical sanctions, technical and geographical hitches, Lukoil noted on its website, an additional obstacles that “the African leadership and government policies always pose serious problems to operations in the region.” Similarly, the Kremlin-controlled Rosneft abandoned its interest in the southern Africa oil pipeline construction, negatively impacted on Angola, Mozambique, South Africa and Zimbabwe.
United States sanctions has hit Lukoil, one of the Russia’s biggest oil companies, like many other Russian companies, that has had a long history shuttling forth and back with declaration of business intentions or mere interests in tapping into oil and gas resources in Africa.
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