FOOD CRISIS IN UP TO 20 COUNTRIES COULD REQUIRE EMERGENCY ASSISTANCE- IMF

Tue 04 October 2022:

Up to 20 countries, many of which are in Africa, may require emergency assistance to deal with the world food crisis, according to a report released on Monday by the International Monetary Fund.

Speaking at a conference in Saudi Arabia, IMF Managing Director Kristalina Georgieva added that 141 million people in the Arab world are at risk of food insecurity.

In order to assist vulnerable nations deal with food shortages and high costs brought on by Russia’s war in Ukraine, the IMF on Friday approved a new food shock borrowing window under its current emergency financing instruments.

48 countries are particularly vulnerable to the food crisis, according to Georgieva.

“Of the 48 countries, about 10-20 are likely to be asking (for emergency assistance),” Georgieva said, adding that “quite a lot of them” are in sub Sahran Africa.

“We are here for you,” she promised members at the event.

The IMF will add its voice to fight food trade restrictions in order to ease the situation and plans to fund the food shock window using last year’s Special Drawing Rights (SDR) allocations.

Countries across the Middle East region and beyond have stepped in to support states battling high food inflation and shortages made more acute by global geopolitical developments and the growing risk of a global recession.

Georgieva said in a statement that Gulf Arab states “are planning to make further pledges soon” following the Arab Coordination Group‘s recent announcement of an initial $10 billion to alleviate the global food supply crisis.

The IMF and Saudi Arabia signed an agreement on Monday to set up an IMF regional representative office in Riyadh.

Ensuring social stability through adequate provision of basic foodstuff is a priority beyond the borders of those directly affected, said Alice Gower, director of geopolitics and security at London-based advisory Azure Strategy.

“Staples such as wheat, rice and lentils are at risk of being inaccessible to food-poor communities across the region,” she told Reuters.

“A desire for regional stability – and therefore security – has seen increased investment from states such as Saudi Arabia and the UAE in countries under financial strain.”

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

___________________________________________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent