Food hikes 'bad for Africa'

2008-05-11 17:57

Maputo - The African Development Bank warned on Sunday that the near doubling of prices of some staple food crops in recent months had serious implications for Africa, particularly the poorest nations.

In a report titled Africa Economic Outlook, launched on Sunday ahead of a two-day African Development Bank annual summit this week, the institution noted the urgent need for action.

"Besides the rising price of crude oil, in the last three months since January 2008, prices of some major food crops have nearly doubled," said the report.

It noted that prices of major staple crops had doubled in the three months after January 2008.

The price of rice increased from $373 dollars per ton to $760 while that of maize increased from $171 dollars per ton to $220.

"These large and sudden price increases have now started to have severe implications in many African countries," said the report.

The report noted that the situation was hitting countries with high levels of poverty the hardest because poor people were forced to spend a higher proportion of their income on food.

The African Development Bank holds its summit in Maputo from May 14 to 15.

- Fin24.com

- Finance24