Emergency Meeting of African Ministers of Finance and Ministers of Agriculture on the Looming Food Security Crisis in Africa
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Unexpected emergency Meeting of African Ministers of Finance and Ministers of Agriculture on the Looming Food stuff Security Disaster in Africa




Remarks by Controlling Director Kristalina Georgieva




May perhaps 19, 2022















As organized for shipping and delivery
Thank you, President Sall, President Adesina, and Chairperson Faki, for bringing us jointly these days.
Allow me commence by reiterating what we all see, and what you in the region are enduring: that the war in Ukraine is gravely impacting Africa—and vulnerable individuals will undergo the most. The primary transmission channels are very well-identified:
- Sharply bigger food items and fertilizer selling prices are putting considerable stress on households—especially the poorest, for whom food stuff accounts for 40 percent of intake. And this is exacerbating the sizeable foodstuff security worries that several countries in the area by now experience.
- Bigger fuel rates will improve the import monthly bill for oil importers. And this will make an now fragile fiscal balancing act even additional difficult.
- With each other, these shocks will worsen exterior and fiscal balances—already strained by the pandemic—across quite a few African international locations.
Our projections present that the impact of the war in Ukraine on foods and gas costs threatens development made by African economies in recovering from the pandemic. We assume progress in sub-Saharan Africa’s to gradual to 3.8 percent in 2022 from 4.5 % very last calendar year.
Inflation is predicted to continue being elevated, with a regional average of 12.2 percent this 12 months and 9.6 percent next—the greatest degree because the previous foodstuff crisis in 2007/08.
North Africa is also set to reduce momentum, with GDP established to increase only marginally from 3.7 percent in 2021 to 4 percent in 2022. Inflation would remain elevated at 17.8 p.c in 2022 [8.8 percent excluding Sudan], generally thanks to increased foods and vitality costs. Quite a few nations around the world will face disruptions in wheat provide.
This predicament exacerbates risks to balance and advancement, and can unleash social unrest. Dwindling policy house coupled with mounting inflation makes it difficult to stand up to tightly coupled dangers related to fragility, conflict, and weather adjust. These challenges reinforce a person a different, necessitating urgent responses and more support, and also lengthy-term reforms.
My 2nd stage is that you can depend on the IMF to do its aspect. We acquired from former crises that quickly and well‑coordinated actions are necessary to sustain open trade, aid vulnerable homes, be certain enough agricultural supply, and handle funding pressures. Way too normally, issues can go in the incorrect course, devoid of coordinated action. For instance, given that February at the very least 23nations have imposed 35 limits on foodstuff and fertilizer exports.
Previous month, I joined the heads of the Earth Financial institution, WFP, and WTO to connect with for an urgent, coordinated reaction to help international locations most impacted. As introduced yesterday, we are also contributing to the joint Action System of the International Fiscal Establishments to tackle food stuff insecurity. So, what does this imply in apply?
First, the IMF will proceed to observe the impression of better food items selling prices on external balances to detect nations around the world with the most urgent financing pressures. We will also operate with regional policymakers on macroeconomic frameworks and policy priorities—importantly, encouraging to structure social security nets to safeguard vulnerable homes.
Second, this disaster adds to the by now significant financing pressures the location faces. We are performing accordingly to support international locations near funding gaps, exacerbated by the spike in foodstuff and electricity selling prices. In Mozambique, our Board permitted previously this month a new [US$456 million] software. In Senegal, we are speaking about with the authorities the possibility to augment the existing system. And we are actively participating other international locations.
Third, with each other with the World Lender and many others, we assist attempts to help handle unsustainable debt situations. Considering that 2015 the share of low‑income countries at or close to credit card debt distress has doubled to 60 percent. For quite a few, debt restructuring is a urgent priority. We urgently will need to improve the G20 Common Framework to deliver for the international locations that convert to it for help—and we urgently require huge lenders, and the private sector, to stage up their participation.
Enable me conclusion by stating: we know starvation is the world’s best solvable problem. Africa has incredible potential to be a part of the answer. This demands development on reforms that could promptly and sustainably strengthen food stuff output, including wheat, rice, and other cereal crops. These reforms would noticeably support African economies grow to be extra resilient to shocks, a lot more peaceful, and a lot more prosperous—our popular goals.
Thank you.


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