VenturesNow

Amidst growing food insecurity, Sudan’s wheat harvest risks wastage. Here’s why

Published

2 years ago

June 19, 2022

The Sudanese government’s decision to back out of promises to purchase wheat at favourable prices has put the harvest at the risk of wastage.

Sudan’s Minister of Finance and head of the Justice and Equality Movement, Jibril Ibrahim, in March declared the government’s official position in buying wheat crops from farmers at a price of SDG43,000 per 100kg sack.

Farmers had complained at the time the price structure was announced that it was not favourable to them. Wheat farmers from Sudan’s Northern State staged a protest last month outside the agricultural bank after it refused to take their harvest.

One of farmers, Farmer Modawi Ahmed who have cultivated the grain as part of Sudan’s largest agricultural scheme, named Al-Gezira says “the agricultural bank wants us to pay for our loans in wheat, according to the encouraging price which was set at 43,000 (Sudanese pound, almost 88 euros, ed.). One (a farmer, ed.) must register with the bank the quantity they will supply, and the bank will determine the quantity it will take.

“After calculating the loans, the bank will determine how much each farmer should supply, in bags or kilos, over a certain period of time. And if there is a surplus, they will shelf it, according to what we heard”, said Ahmed.

A farmer and agricultural researcher, Abdellatif Albouni, stressed that “the negative consequences will start showing in the short-term. People will refrain from using fertilizers and pesticides, or they won’t be able to prepare or buy them. There will be a problem due to the depreciation of the Sudanese pound and the fact that farmers have no money.”

According to the UN, over 18 million people, nearly half the Sudanese population, are expected to be pushed into extreme hunger by September.

VenturesNow

South Africa: Petrol, diesel prices to rise on Wednesday. Here’s why

Published

15 hours ago

November 4, 2024

Ifeoluwa Dada

Following an increase in the price of oil due to the crisis between Iran and Israel, petrol and diesel prices will be raised in South Africa on Wednesday.

The cost of unleaded petrol will go up by 25 cents per gallon for both 93 and 95. Depending on the sulphur concentration, diesel’s wholesale price will increase by either 20 or 21 cents per litre.

Illuminating paraffin’s wholesale price will increase by 21 cents per litre, and the maximum retail price of LP gas will rise by 36 cents per kilogramme.

Fuel prices dropped to their lowest points since February 2022, when Russia’s invasion of Ukraine disrupted supply chains and limited the import of Russian crude oil, sending oil prices to multi-year highs. This was at the beginning of October.

The Department of Mineral and Petroleum Resources stated on Monday that the average price of Brent Crude oil rose from $72.82 per barrel to $75.07 over the last month, following several months of pressure on the price of oil.

“The main contributing factor is the continued conflict in the Middle East and the stand-off between Iran and Israel,” the department said in a statement.

Investors are worried that an Israeli strike on Iran’s oil infrastructure will not only remove Iranian crude from the market but also incite a larger confrontation including other oil exporters in the region.

Since oil is priced in dollars, the rand exchange rate also affects fuel prices in South Africa.

According to the department, the rand averaged R17.53/$ over the previous month, down from R17.68 in September. However, this was insufficient to offset the rising price of oil.

VenturesNow

Fitch upgrades Egypt’s credit rating to ‘B’

Published

2 days ago

November 2, 2024

Ifeoluwa Dada

Fitch, a credit rating agency has upgraded Egypt’s rating from “B-” to “B” citing tighter monetary circumstances and the country’s improved financial standing thanks to a number of foreign investments and assistance.

“Egypt’s external finances have been bolstered… FX buffers have recovered, and we have somewhat greater confidence that the more flexible exchange rate policy will prove more durable than in the past,” Fitch said, as it also assigned Egypt a stable outlook.

As it attempts to recover from a protracted economic crisis that has resulted in record inflation, a growing debt load, and significant currency devaluations over the last two years, the North African country has been looking for significant investments.

In order to stabilise its economy, Egypt obtained a $8 billion loan package from the International Monetary Fund (IMF) this year, along with a $35 billion real estate investment package from Abu Dhabi and about $1 billion from the EU.

The IMF insisted that the loan amount was suitable, despite Egyptian President Abdel Fattah al-Sisi’s suggestion last month that his government should reevaluate the agreement in light of the country’s growing regional concerns.

Fitch also cautioned on Friday that Egypt faces a significant risk from a further escalation of the regional conflict.

Yemen’s Houthi attacks on Red Sea ships have caused trade to be rerouted from the Suez Canal, which has negatively impacted tourism and Egypt’s revenue stream. There are also dangers associated with the larger Middle East conflict.