Market-related

Trade plays a critical role in economic development and agricultural transformation. However, reported intra-regional trade in Africa south of the Sahara (SSA) has historically been quite low, potentially impacting poverty, livelihoods, and food security in the region. Over the past decade, policymakers have set out to change this, signing the 2014 Malabo Declaration that aims to triple intra-African trade in agricultural goods by 2025 and establishing the African Continental Free Trade Agreement to remove barriers to cross-border trade.

The COVID-19 pandemic continues to have wide-ranging impacts on living standards, poverty, food insecurity, and economic stability across the globe. For low-income regions like Africa south of the Sahara (SSA), these impacts are particularly devastating. Many countries in SSA struggled with food insecurity before the outbreak of COVID-19, and the pandemic has only exacerbated those challenges by disrupting domestic food value chains, reducing remittances and other income, and lowering populations’ purchasing power and food access.

Food security in West Africa has been deteriorating since 2015: The proportion of the population affected by undernutrition rose from 11.5% in 2015 to 18.7% in 2020, a total of 75.2 million people. Now, like the rest of the world, the region faces rapidly growing impacts from Russia’s war in Ukraine, including spiking food prices and disruptions in markets for cereals and other commodities, including fertilizers and fuels. What are some of the war’s likely effects on West Africa?

The unfolding crisis in Ukraine has roiled commodity markets and threatens global food security. Ongoing fallout from the COVID-19 pandemic and other factors have already driven up food prices. Poor harvests in South America, strong global demand, and supply chain issues have reduced grain and oilseed inventories and driven prices to their highest levels since 2011-2013.

In developing countries, rural non-farm labor is rapidly catching up with agriculture in socioeconomic importance. By engaging in non-farm labor—activities like handicrafts, small-scale manufacturing, construction, mining, quarrying, repair, transport, and petty trading—farmers can earn additional income outside of their farms. This income can in turn can be invested in household food security and in productivity-enhancing agricultural inputs. A study in Ghana published in Food Security also finds that participation in non-farm labor can also lead to greater participation in crop markets.