May 27, 2022

Mawazo Writing Africa

Writing about the main

Africa unveils new platform to cushion countries from Ukraine crisis shocks

African countries will be able to trade staples whose supplies have been disrupted by the Ukraine crisis after the launch of the African Trade Exchange (ATEX), a platform created to stave off the effects of war in Eastern Europe jointly procured Africa.

You can purchase the goods at reasonable prices.

The platform was developed by the African Export-Import Bank (Afreximbank) and the African Development Bank (AfDB). . , in collaboration with the Secretariat of the African Continental Free Trade Area (AfCFTA) and the United Nations Economic Commission for Africa (UNECA).

It aims to help already financially strained African economies cope with the supply shortages caused by of the Ukraine war, UNECA said in a statement on Wednesday.

“The Russia-Ukraine crisis has increased the strain on critical supply chains in commodity markets, with current and expected price increases in agricultural products and inputs such as grain and Fertilizers,” read s statement.

“The larger impacts are the downstream effects of potential supply chain constraints, which raise prices, increase vulnerability and food insecurity, and put unsustainable pressure on already tight fiscal environments can.”

The crisis in Ukraine has led to bottlenecks b ei Wheat, corn and other grains as well as fertilizers in several African countries, mainly net food importers who source over 80 percent of their wheat and corn from Russia and Ukraine.

This has caused prices for food and oil have skyrocketed and currencies in African countries have been sharply devalued.

In Kenya, prices rose 6.47 percent in April alone, while the shilling hit a record low of 117 Ksh a Dollar fell US Dollar.

Uganda had an inflation rate of 1.4 percent in April and its currency fluctuated against the US Dollar. In Tanzania, prices rose 3.8%, while in Rwanda they rose 3.5% in April alone.

According to UNECA, ATEX will ensure supply chain resilience in Africa by “enabling trade in key agricultural commodities and inputs imported by the continent from Russia and Ukraine” to improve the price stability of these commodities.

“The platform will facilitate the pooled sourcing of these commodities by African buyers from African suppliers , where possible, and from outside the continent where necessary, helping to create new, continental supply chains that insulate Africans from the volatility of recent years,” said UNECA.

Prior to launching the Platform, the AfDB had announced an amount of USD 1.5 billion Africa Emergency Food Production Plan, which should help African countries produce about 38 million tons of food, including wheat, corn , rice and soybeans to mitigate the impact of the Ukraine war on food prices.

UNECA said both interventions are critical to helping Africa improve food security and price competitiveness negotiate the international market.