London, 26 March 2024 (TDI): On Monday, British International Investment announced that it had reached an agreement with the Eastern and Southern African Trade and Development Bank (TDB) for a $100 million finance facility.
This initiative aims to enhance trade finance, agricultural activities, and food security in the region.
The increase in the capital to support trade finance in the region is crucial. It has caused numerous international lenders to reduce their offerings in this area. According to research conducted by the African Development Bank, this reduction has resulted in a finance gap of approximately $120 billion annually.
This funding will support trade activities within a continent. It will encompass both import and exports activities. This funding will benefit numerous debt-burdened African economies which are grappling with several challenges. However, these challenges involve currency depreciation, escalating debt, inflation, and the added complexities of climate change.
Andrew Mitchell, Britain’s Minister for Development and Africa, stated that this investment demonstrates the UK government’s dedication to fostering economic and agricultural progress throughout Africa.
BII announced that between 2022 and 2026, at least 30% of its new commitments by value will be allocated to climate finance initiatives. Moreover, it has investments in more than 1,470 businesses in emerging economies across 65 countries.
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Africa Food Security
According to the report launched by the World Food Program (WFP), and the Food and Agriculture Organization of the United Nations (FAO), Africa is facing an unprecedented food crisis.
Significantly, the report highlighted the alarming statistics on food insecurity and malnutrition in the region. Africa remains off-track to meet the food security and nutrition targets of the Sustainable Development Goals by 2030.
In Africa, nearly 282 million individuals, constituting approximately 20% of the population, suffer from undernourishment. This has marked an increase of 57 million people since the onset of the COVID-19 pandemic.
Additionally, over a billion people cannot afford a nutritious diet. Furthermore, approximately 30% of children experience stunted growth due to malnutrition.
