Agricultural Development

Cocoa bean prices have been rising since the last quarter of 2023, hitting a record high of $10.97 per kilogram on April 19 (Figure 1). The price spike is due to a significant drop in bean production by major global suppliers—four key producing nations in West and Central Africa account for more than 60% of the world's supply of cocoa beans: Cote d’Ivoire (with 38% of the global production in 2022), Ghana (19%), Nigeria (5%), and Cameroon (5%).1

Parts of Southern Africa have been experiencing a severe drought since late 2023, fueled in large part by the ongoing El Niño Southern Oscillation. Falling harvests have led to disaster declarations in Malawi, Zambia, and Zimbabwe and affected countries across the region. In particular, maize yields have fallen sharply, threatening food security for millions of households depending on this key staple for a significant share of total calories consumed on a daily basis (Figure 1).

Ethiopia is in the midst of the worst drought in the past 40 years, with six consecutive failed or below-average rainy seasons in the country’s pastoral areas. At the same time, flooding in other regions has disrupted livelihoods and caused widespread damage to lands and infrastructure. Climate shocks like these have been a major contributing factor to Ethiopia’s recent economic reversals, says a new report from the World Bank Group, and strong government action is needed to prepare for and adapt to an uncertain climate future.

Since the onset of civil war in April 2023, millions of people in Sudan have suffered from loss of livelihoods, destruction of infrastructure, and disruption of essential services. With the war still underway, Sudan is facing the world's largest displacement crisis—with 6.5 million displaced people internally and another 1.7 million driven into neighboring countries—and a surge in acute food insecurity, soaring poverty levels, and extensive losses in income, employment, and productive assets.

Since the 1950s, Malawi has used a national fertilizer subsidy program as a way to spur use of inorganic fertilizers, boost domestic maize production, and ensure food security and self-sufficiency for smallholder farmers. According to new working paper from the Malawi Strategy Support Program, however, the national subsidy program may not be the most efficient investment for improving the country’s food security and domestic production goals.