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Ghana bans export of 2 commodities over food security. But is that enough?

Published

2 years ago

April 12, 2022

In the wake of growing concern about food security globally, Ghana’s Food and Agriculture Ministry has placed a ban on the exportation of soya bean, and maize from the country.

The Ministry said the restrictions are part of measures to ensure food security and increase local poultry and livestock production and revealed that the Plant Protection and Regulatory Services Directorate (PPRSD), has stopped issuing phytosanitary certificates for the export of both commodities.

The Ministry’s Press Secretary, Issah Alhassan explained that the West African country has had challenges meeting its food needs since the outbreak of the global pandemic, Colin-19 in 2020.

“Over the past two years, since the advent of Covid-19, we had to endure a lot of challenges so, in order to ensure that the local demand is met, there was the need to promulgate a law to ensure that any individual that wants to export soybeans from this country has to come for a permit.”

Some countries have been forced to make food policies since the beginning of the ongoing Ukraine/Russia war in February largely because the two countries are major exporters of food, particularly wheat. Recall that slamreportafrica.com reported last month that Egypt’s Prime Minister, Mostafa Madbouly, has announced that the country will diversify its sources of wheat to avoid relying on what he described as “specific sources” for this product.

In Nigeria, Ghana’s West African neighbour, the richest man in Africa and chairman of the Dangote Group, Aliko Dangote of Nigeria, also warned Nigerians to be prepared for an impending food crisis within the next two to three months.

Mr. Dangote, then advised the government to immediately stop the ongoing export of maize abroad by some Nigerians, blaming the development on the ongoing conflict between Russia and Ukraine.

Apart from recent data from the Ghana Statistical Service (GSS) indicating the increasing cost of foodstuff, there have been concerns over a possible food shortage in Ghana.

But how effective can a ban on exportation be in the push to achieve sufficiency in the world today? What if other countries also shut down the exportation of other essential commodities? Who loses?

Related Topics:Featured Ghana Maize Soya bean

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Nigeria’s Tinubu to present N27.5trn budget on Wednesday

Published

1 day ago

November 28, 2023

Ifeoluwa Dada

The Nigerian President, Bola Tinubu, will present the 2024 Appropriation Bill to a joint session of the country’s bicameral legislature, the National Assembly, on Wednesday.

The bill is an increase from the N26.01tn earlier considered by the council, according to the Minister of Budget and Economic Planning, Abubakar Bagudu, who confirmed the approval to State House correspondents after the close of FEC’s weekly meeting presided over by President Tinubu.

In addition, the minister disclosed that the government had projected N18 trillion in revenue for the fiscal year 2024. Bagudu stated that more information regarding the appropriation bill would be made public on Wednesday when the president brought it before a joint session of the National Assembly.

The minister stated that the Council was currently reviewing the Medium-Term Expenditure Framework, which was approved by the National Assembly.

Bagudu said, “Equally, the Federal Executive Council approved the 2024 Appropriation Bill and the presentation of such to the National Assembly by His Excellency, Mr. President.

“The bill has an aggregate expenditure of N27.5tn which is an increase of over N1.5tn from the previously estimated, using the old reference prices.”

He added, “The forecast revenue is now N18.32tn which is higher than the 2023 revenues, including that provided in the two supplementary budgets. Equally and commendably, the deficit is lower than that of 2023. Details of the Renewed Hope Budget will be announced by Mr. President when he makes the presentation to the National Assembly”.

With two key policy initiatives—halting the fiscal bleeding caused by petrol subsidies, and unifying the exchange rate—the Nigerian government, led by Bola Tinubu, has attempted to stabilise the economy of the nation. With its currency value declining even further and the cost of living rising sharply, the results have not been favourable.

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Nigeria’s cabinet approves $1billion AfDB loan

Published

2 days ago

November 27, 2023

Ifeoluwa Dada

Nigeria’s Finance Minister, Olawale Edun, confirmed on Monday that the Federal cabinet had approved a $1 billion concessionary loan from the African Development Bank (AfDB).

The coordinating minister of the economy said the loan would support financing the budget and improving foreign exchange supply.

“(Federal Executive Council) approved a $1 billion concessionary loan for general budget support and to be used to improve forex availability in the country,” Edun said.

“The $1 billion loan from AfDB is a budget support fund for ongoing economic reforms. It is to support government programs … in power sector, social inclusion and the fiscal policy reforms as a whole sector policy initiative.”

The Nigerian government under Bola Tinubu has sought to stabilize the country’s economy with two major policy actions: the removal of the fiscal bleeding through petrol subsidies and the unification of the exchange rate. The results have not been positive with the further fall of its currency value and sharp rise in cost of living.

Falling oil prices, large-scale crude oil theft, and the substantial amount spent on fuel subsidies are currently having an impact on Nigeria’s public finances as the country struggles with mounting debt.

The level of indebtedness in African countries is at its highest in more than a decade, largely due to the COVID-19 pandemic, Russia’s invasion of Ukraine, and skyrocketing inflation. African nations were forced to incur even more debt, and as a result, 21 low-income African nations are currently either insolvent or at great risk of experiencing debt hardship.