Bank disburses $1bn to curb food crisis

  1. Posted on Monday 16 June 2008 - 11:27
    Sam Banda Junior
    Image of Sam Banda Junior
    Sam Banda Junior, AfricaNews reporter in Blantyre, Malawi, photo: Olivier Nyirubugara
    African countries which are facing several challenges among them the global rise in food prices are expected to receive a boost as the African Development Bank (AfDB) plans to spend US$ 1 billion to help in food production and agricultural research.
    O_Nyirubugara_working_fish_.jpg
    The bank’s senior official said AfDB will spend $1 billion to help African nations boost food production and agricultural research in response to rising global food prices.

    The bank said it will mainly focus on accelerating food output by among others facilitating the purchase of fertilizers and farming inputs and developing infrastructure to help counter a food crisis.

    AfDB is already supporting several projects in African countries among them in Malawi where it is constructing dams and schemes for small-holder farmers to practice irrigation farming.

    "We will be committing another $1 billion in support of agriculture, rural infrastructure and in support of research and extension services," AfDB vice president Arunma Oteh said.

    Oteh, who was in Zambia’s capital of Lusaka to attend a Euro money investment conference, said the bank has yet to make plans on disbursing the money, and gave no timeline for the financing.

    It was also unclear if the funds would be disbursed as loans or grants, which the bank has traditionally provided to African countries.

    A Reuters report Friday said Oteh noted that the global food crisis was threatening to worsen the plight of the continent's poor, amid already crippling challenges including the HIV/Aids and civil wars.

    Many developing countries, especially net importers in Africa, have been hit by a surge in commodity prices in recent months, with foodstuffs such as wheat and rice rising to record highs.

    The world's poorest continent has been unable to feed itself for decades, leaving many people dependent on food aid.

    The AfDB, in partnership with the International Fund for Agricultural Development (IFAD), has supported agricultural development in Africa with investments of around $3.8 billion.

    If the money is disbursed several African countries mostly those which depend on Agriculture are expected to boost yields in their gardens.

    The development of infrastructure is another important aspect as many African countries have poor infrastructures including the road network which has made it difficult for farmers to connect to markets.

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