Solutions being sought for the food crisis in Africa

The following Bloomberg article highlights the impacts of the Russia/Ukraine conflict on the food crisis issue across Africa.

Read the full article here.

Key takeaways:

• 49 million people in 43 countries are facing famine, according to the head of the United Nations World Food Program, David Beasley.
  
• Global food prices surged to a record after Russia’s invasion of Ukraine disrupted grain and vegetable oil exports.
  
• Grains shortages have driven up prices, with global benchmarks for wheat and corn rising 22% and 12% respectively this year.
  
• Food costs account for 40% of consumer spending in sub-Saharan Africa, compared with 17% in advanced economies.
  
• In 2020, Africa imported $4 billion of agricultural products from Russia - 90% of that was wheat. Another $2.9 billion of wheat, corn, sunflower oil, barley and soy came from Ukraine, according to Sihlobo.
  
• Data also shows that Eritrea and Somalia were almost entirely dependent on Russia and Ukraine for their wheat supplies last year, while Tanzania, Namibia and Madagascar relied on them for more than 60% of supplies.

The article discusses the political viewpoint on the food crisis and brings home just how big of an issue is facing Africa when it comes to food security.

This is where our Portfolio company Minbos Resources (ASX: MNB) fits in.

With its shovel ready phosphate (a key ingredient in producing the fertilisers) project in Angola, MNB could bring into production a project that helps build out an agricultural industry that can alleviate the reliance on agricultural imports across Africa.

MNB is currently working towards a final Investment decision on its project, with the aim of having the project operational in 2023.

To see all of the key reasons we are Invested in MNB, what we want to see the company achieve in 2022, and the key risks to our Investment thesis, check out our 2022 MNB Investment Memo here.