Washington DC, 2 August 2022 (TDI): According to World Bank’s Global Director, Macroeconomics, Trade & Investment, Marcello Estevão, the poor economies of Africa and Asia could soon go through Food and Debt crisis due to the war in Ukraine.
The poorest economies—particularly in Africa—happen to be exceptionally dependent on food imports from Russia and Ukraine. Many of these countries have also struggled with high debt levels in recent years. They now face a simultaneous food and debt crisis. https://t.co/0wXnamqHec
— World Bank (@WorldBank) August 2, 2022
The world’s poorest nations, especially those in Africa- and Asia, are notoriously reliant on food imports from Ukraine and Russia.
According to Estevão, many of these nations have also suffered significant debt loads in recent years. They currently experience a food and debt crisis at once.
According to the World Bank, seven nations are at high risk of or currently experiencing debt distress in particular. These countries include Afghanistan, Eritrea, Mauritania, Somalia, Sudan, Tajikistan, and Yemen. These countries are most at risk of food and debt crises.
African Countries Dependency on Russia and Ukraine
The Research by World Bank shows that up to 25 African economies, some of which are among the poorest, import at least one-third of their wheat from Russia and Ukraine; for 15 of them, the amount is higher than 50%.
For Africa, finding the alternate source is barely sufficient, and the supply to the continent is very low. The transportation and storage facilities are insufficient as well.
Furthermore, according to Estevão, debt has been a growing issue for these economies since the COVID-19 epidemic. These nations weren’t prepared for the COVID-19 shock, which plunged several of them into financial trouble.
To deal with the problem, the World Bank Group will make up to $30 billion accessible over the next 15 months to enhance food security in poor nations. In addition, the G7 leaders have committed $4.5 billion to the same cause.
