The Alliance for a Green Revolution in Africa (AGRA) released its Food Security Monitor (FSM) for September 2024, providing a comprehensive overview of food commodity prices across different African regions.
Eastern Africa Commodity Prices
In Eastern Africa, the national average price of maize has dropped significantly compared to a year ago in most countries except South Sudan, where maize prices remain 46-196% higher. Tanzania reports the lowest maize price in the region at USD 220/MT, while Kenya has the highest prices for maize, rice, wheat, and beans. In Kenya, maize prices are driven up by retailer margins of up to 82% due to the high demand for the staple crop. Uganda saw stable and low maize prices over the last 1-12 months, and Ethiopia experienced a continued drop in maize prices, thanks to the Meher season cereal harvests.
Southern Africa Commodity Prices
In Southern Africa, Malawi and Zambia experienced declines in national maize prices, while Zimbabwe saw a slight increase. Price trends were influenced by imports from Tanzania and food assistance programs by the World Food Programme (WFP). However, maize prices remain above the levels seen 6-12 months ago due to economic challenges, Cyclone Freddy’s aftermath, and the El Niño-induced drought. Looking forward, Malawi is expected to experience a La Niña phenomenon, potentially leading to average national harvests.
West Africa Commodity Prices
West Africa continues to experience rising maize prices due to high transport costs and strong domestic demand driven by a below-average cereal output in 2023. Nigeria saw the most significant price hikes, with maize increasing by 200-250% and rice by 92-161% compared to the previous year. Prices for rice, millet, and sorghum also remain high across the region. While the completion of main-season cereal harvests is expected to bring price relief, regions like northern Ghana remain affected by drought conditions and ongoing conflicts. The region is also facing a cost-of-living crisis exacerbated by high inflation, currency depreciation, and elevated fuel prices. AGRA recommends lifting restrictive trade policies to allow for the free flow of grains and calls for increased food production support from development partners.
Food Trade Updates
In Kenya, the government has imposed levies on imported and exported cereals, legumes, pulses, roots, and tubers. These levies, which took effect on July 1, 2024, include a 2% levy on imports and 0.3% levy on exports. Additionally, Kenya has banned sugar imports from outside the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) due to increased local production.
Finally, the EAC and Intergovernmental Authority on Development (IGAD) are set to implement the Eastern Africa Regional Digital Integration Project (EARDIP), a transformative initiative aimed at enhancing digital connectivity and integration across Eastern Africa.
