Implications of the Ukraine Crisis: Food, Fuel, Fertilisers and Freight Prices in the Southern Africa Region (July 2022)

SUMMARY

• The Southern Africa Region is estimated to be one of the most affected regions by the ripple effects of the Ukraine crisis; WFP estimates the projected additional increase in regional acute food insecurity due to the crisis at approximately 10 million people in absolute terms1 .

• Despite governments attempting to curb soaring food and fuel prices through various measures (e.g. fuel subsidies, price ceilings on basic commodities, etc.), all monitored countries in the region have seen a year-on-year (y-o-y) increase in the cost of their food baskets ranging between 5 to 200%. As the region is a net importer of cooking oils, all monitored countries have also seen a high y-o-y increase in cooking oil prices (10 – 400%), and nearly all countries have seen a y-o-y increase in cereal prices.

• As of May 2022, the top 4 countries which saw the highest y-o-y price increases across the 3 main food commodities (i.e. cereals, pulses and cooking oil) and the food basket were Zimbabwe, Malawi, the Democratic Republic of Congo (DRC) and the Republic of Congo (ROC).

• High global oil prices have led to increased freight rates and high domestic pump prices; comparing pre-crisis rates to current rates, WFP’s ocean freight rates to the region from other regions have seen a 10-40% increase. Given that the impact of high freight costs slowly pass through to retail prices and peak after 12 months, the inflationary impact of high freight costs will likely continue to be felt throughout 20222 . In contrast, pass-through of high global oil prices to pump prices is much quicker and prices across the region have soared; 9 monitored countries in the region saw their domestic petrol prices increase over the past year and for 7 of them this is the 2nd consecutive year of petrol price increases.

• While the impact of high food prices are already being felt across the region, surging fertilizer costs are of major concern for the upcoming agricultural season. Various export restrictions on fertilizer are currently affecting nearly all the countries in the region, and with tight supplies, prices have soared in domestic markets (e.g. Zimbabwe, Malawi, South Africa and Tanzania have seen their prices double y-o-y). While countries such as Malawi have committed to maintaining the same budget for their agricultural input programmes this year as last year, with high international prices and a weakening currency, fertilizer accessibility could pose a significant challenge to this year’s agricultural production.

• With the exception of Angola and Zambia, most countries in the region are seeing their currencies depreciate against the USD on a y-o-y comparison, with Zimbabwe and Malawi having recently seen significant month-on-month depreciation; as a result, countries are facing higher import bills and worsening trade imbalances. As countries have been deeply scarred by the impact of the COVID-10 pandemic, they are not in a good fiscal space to absorb additional shocks, and fiscal balancing is becoming increasingly difficult for many countries.

• The impact of the Ukraine crisis is currently mainly being felt in terms of food access; however, high fertilizer prices and the possibility of food export restrictions or bans could result in this becoming a food availability issue. Much depends on this upcoming agricultural season, and close monitoring of the impact of the global food crisis on the region will be needed.

Source: World Food Programme

East and Horn of Africa, and the Great Lakes Region: Internally Displaced Persons – Regional Overview (January – June 2022)

REGIONAL OVERVIEW

The East and Horn of Africa, and the Great Lakes (EHAGL) region is host to a significant number of internally displaced persons (IDPs). As of 30 June 2022, there were approximately 12.83 million IDPs in the region – mainly in Burundi, Ethiopia, Sudan, Somalia and South Sudan. The drivers of displacements continue to remain complex, including conflict and persecution, as well as climate related natural disasters, often in situations where the different factors are interrelated or compounded.
Considering that a significant proportion of displacements in the region stem from conflicts, and many conflicts remain active in a very fluid context, the protection focus is mainly on life-saving activities informed by protection monitoring and ensuring the provision of shelters and core relief items (CRIs). At the same time, there is a strong focus in the region on the pursuit of durable solutions. While numerous IDP returns are taking place in the region, most are self-organized rather than facilitated, and difficult to quantify.
In line with the Global tri-cluster leadership approach and revised UNHCR Policy on Engagement in Situations of Internal Displacement (2019), UNHCR is leading or co-leading the Protection, Camp Coordination and Camp Management, and Shelter/NFI clusters in most countries. Durable solutions are highlighted as a core priority in the recently launched UN Action Agenda and are a critical element of the IDP response in the East, Horn of Africa and Great Lakes region. While each country in the region has different contextual factors around durable solutions, UNHCR is pursuing a more coordinated approach together with the other actors including development actors and donor to promote and realise durable solutions initiatives in the region.
On 28 June 2022, UNHCR launched the regional Drought Response Emergency Appeal for the Horn of Africa and is appealing for urgent support to help displaced people and local host communities affected by the catastrophic drought. To deliver life-saving assistance and protection to some 1.5 million refugees, internally displaced people and local host communities affected by the drought in Ethiopia, Kenya, and Somalia,
UNHCR is appealing for US$ 42.6 million, which will cover critical humanitarian needs in IDP and refugee settlements including water, sanitation facilities, nutrition, healthcare, and protection.
The appeal is targeting 943,000 IDPs along with their host communities in Ethiopia and Somalia.
Response activities will be carried out as mandated in the cluster response mechanism for IDP situations and under the Refugee Coordination Model as relevant. The drought, a stark reminder of the devastating impact of the global climate crisis, is the worst in the region in four decades and is the culmination of four consecutive failed rainy seasons. Water sources have dried up and crops and livestock have died, stripping people of their livelihoods and the ability to support themselves.

Source: UN High Commissioner for Refugees

IGAD– ILO Regional Workshop on Gender Dimension of Labour Migration

(Addis Ababa, Ethiopia): The inter-governmental Authority on Development (IGAD) in collaborated with the International Labour Organisation (ILO) organised a Regional Workshop on Gender Dimension of Labour Migration, today, in Addis Ababa, Ethiopia.

The objective of the three days’ workshop is to enhance the knowledge and capacity of experts from the relevant Ministries of IGAD Member States to understand the intersection between gender and labour migration: And, more specifically, drawing on the findings and recommendations of the study on the situation of women migrant workers in the IGAD region.

Speaking, on behalf of the IGAD Executive Secretary, Workneh Gebeyehu (PhD), Director for Health and Social Development Division, Mme Fathia Alwan disclosed that women migrant workers from the IGAD region are vulnerable to right abuses, lack of protection, earning low wage and working in poor working environment.

“Recent studies on Labour migration in our region have shown that there is rapidly growing participation of women in the labour migration industry mainly to the Middle East Countries” she added.

She stressed that IGAD has Gender Strategy that guides the overall works towards ensuring women rights, equal participation, access to economic gain and political participation and working towards the development of harmonised policy instruments in the IGAD region.

“However, the labour mobility within and beyond the region is challenged by irregular migration, inadequate Labour governance, absence of labour migration data and limited ratification and implementation of international standards, which in a nutshell contribute to right abuses and violation of migrant workers special of women at countries of transit and destinations.” The Director said.

Representative of the Republic of the Sudan, Chairs of IGAD Mr. Salah Mohamed, underscore the timeliness of discussing and agreeing on the gender dimension of labour migration. He also indicated that the Republic of the Sudan is ready to ratify the conventions and developed strategy to support women migrant workers.

In her opening remarks, State Minister for the Ministry of Women and Social Affairs of the Federal Democratic Republic Ethiopia, Ms. Ayelech Eshete highlighted the increasing number of women and young girls in labour migration industry and recognise the sizable amount of remittances sent back home by the migrant workers specially women which is playing a substantive role in improving the socio-economic conditions of families.

“We are commending the regional Bilateral Labour agreement guideline developed by IGAD member States and called for the better collaboration and coordination among labour sending countries.”  She stated

During the opening of the workshop, Kidist Chala, ILO representative, called all the Member States to ratify and implement important conventions related to labour migration and migrant workers. She also indicated that IGAD and ILO are jointly working to improve the working conditions for Labour migrant workers from the IGAD region at countries or origin and destination.

She indicated that 30% of Labour Migrants from IGAD region are constituted by women and girls and gender is mainstreamed in ILO’s work to improve the working environment for Labour migrants.

Mr. William Awira representative of Horn of Africa Confederation of Trade Union (HACTU) underscores the importance of ensuring the welfare of migrant workers beyond enjoying the remittances they sent back home.

“It is also important to work towards improving the social protection of migrant workers and undertake regular monitoring on the welfare of migrant workers abroad.”  He added.

Mr. Dawit Moges, Secretary General for the Confederation of IGAD Employers, indicated that the employers need effective and efficient work forces and conducive work environment for the employee and expressed readiness to work hand in hand with government and workers.

The workshop seeks to build the capacity of experts to analyses and understand international labour migration trends, challenges and opportunities from a gender perspective; conduct gender analysis in the field of labour migration and identify and address basic and strategic needs and decent work deficits and protection risks faced by women migrant workers throughout the migration cycle.

Experts drawn from government line ministries, trade unions and employers’ organisations from each of the IGAD Member States and IGAD secretariat are participating on the workshop.

The workshop is organised with the financial support received from the European Union under Free Movement of Persons and Transhumance (FMPT) project.

The expected outcome of the workshop includes improved knowledge and understanding of the participants about the gender dimension of labour migration and basic knowledge and skills to conduct gender analysis on labour migration acquired and also better understanding about basic and strategic needs of women migrant workers as well as policy and practical options to address them as well as study on the situation of women migrant workers in the IGAD region validated.

In recognition of the importance of promoting regular Labour migration and effective governance, IGAD Member States have adopted a Declaration on Labour, Employment and Labour Migration in October 2021, which is a very bold political step to realise effective labour migration in the region.  In this Declaration, Promotion of Gender equity and equality in the Labour migration is one of the seven Pillars.

Apart from the declaration, IGAD Protocol on Free Movement of Persons adopted in February 2020 has also provisions to promote Labour migration in the region including Right to Self-Employment and Economic Activity, Right to Work and harmonisation of qualifications and skills.

Source: Intergovernmental Authority on Development

Secretary-General Appoints Amir Mahmoud Abdulla of Sudan United Nations Coordinator for Black Sea Grain Initiative

United Nations Secretary-General António Guterres announced today the appointment of Amir Mahmoud Abdulla of Sudan as United Nations Coordinator for the Black Sea Grain Initiative.

The Initiative was launched by Ukraine, Türkiye, Russian Federation and the United Nations on 22 July to enable the resumption of exports from Ukraine of grain, foodstuffs and fertilizer, including ammonia, through a safe maritime humanitarian corridor.

Mr. Abdulla succeeds Frederick Kenney of the United States who was on loan by the International Maritime Organization (IMO) as interim Coordinator for the United Nations at the Joint Coordination Centre.  The Secretary-General is grateful for Mr. Kenney’s dedication, expertise, commitment and excellent leadership in implementing the Initiative.

Mr. Abdulla brings over 30 years of experience in the areas of humanitarian response and management with the World Food Programme (WFP), as well as specialized expertise in emergency operations, supply chain and security.  From 2009 until June 2022, he served as the Deputy Executive Director and Chief Operating Officer of WFP, overseeing its humanitarian operations around the world.

Prior to that, and starting from 1991, Mr. Abdulla served in various capacities in WFP both in the field and headquarters.  From 2008 to 2009, he was the WFP Chief Financial Officer and Director of Legal Division, managing WFP’s budget in response to fluctuating food and fuel prices and implementing accountability standards.  Prior appointments with WFP included:  Regional Director for Southern Africa (2006-2007); Regional Director for Middle East, Central Asia and Eastern Europe (2004-2006); Director of Budget (2001-2004); and Project Manager for WPF’s corporate information management system (2000-2001).

Prior to joining WFP, Mr. Abdulla was a Branch Manager in Juba and Port Sudan for the shipping and forwarding company Transintra and Assistant Area Manager for the Burmeister and Wain Scandinavian Contractor engineering company in the Sudan.  He also taught at the American School and Comboni College in Khartoum.

Mr. Abdulla holds a Bachelor of Science honours degree from Imperial College, London University.  He speaks English and Arabic.

Source: United Nations

Interview: From Food Shortages To Geopolitical Shifts, The Ripple Effects Of Ukraine War Take Hold

Russia’s invasion of Ukraine has disrupted global food chains and is contributing to a crisis exacerbated by already-rising food prices and deepening poverty across much of the Middle East and parts of Africa.

Both Kyiv and Moscow are leading exporters of agricultural products to those regions, and the deepening ripple effects from the war are worrying governments and international organizations. The World Economic Forum has warned that crises in food, fuel, and finance worsened by the war could stoke unrest in poorer countries and push others into default.

A July deal struck by Turkey with Russia and Ukraine broke a monthslong Russian blockade of Ukraine’s Black Sea ports and provided some hope for relief, although United Nations officials have said the shipments are not reaching those most in need and are unlikely to stave off a growing international food crisis.

To find out more about the growing fallout from the war, RFE/RL spoke with Daniel Speckhard, a former U.S. official who is currently president of Corus International, a global aid organization. Speckhard previously served as U.S. ambassador to Belarus and Greece and was NATO’s deputy assistant secretary-general for political affairs, among other roles.

RFE/RL: You spent a large chunk of your career dealing with Russia, either directly or tangentially. How has the war in Ukraine changed the way that policymakers in Washington are seeing Moscow now compared to previous years? The last six months have changed many assumptions about Russian power. Where are things headed for how Washington sees the Kremlin and its foreign policy?

Daniel Speckhard: Because of Russia’s nuclear status, the power that they still wield in the world is significant. While its conventional war capabilities have perhaps been shown to be weaker than one might have thought, I think the fundamentals are still the same: You have a nuclear power that wants to play on the global stage as an equal to the United States and China — and they’re going to act as if they are.

That makes it more dangerous. So, I think the concerns in Washington and [other] Western capitals — and even in Beijing — is that this is actually a more dangerous situation because things can escalate more quickly. Also, Russia by no means sees their weakness in the way that we do.

For how it has changed, I think relations have been going downhill for some time, especially after Russia’s intervention in U.S. elections [in 2015 and 2016]. But the Ukraine situation has made it interesting in the context that the United States was very divided over Russian interference in the elections because there was a [domestic] political overlay that divided the country. The war in Ukraine has seen that mostly evaporate and, with the exception of a small group in the United States, there’s overwhelming support for [Kyiv].

Anti-Russian feeling in Washington has also risen in some ways [and] that has also boxed in what’s available on the foreign policy side for the foreseeable future. As a result, the part that I’m worried about is there are a lot of global issues that need to be addressed that do require Russian support and involvement, whether it’s the environment, terrorism, organized crime, or cybersecurity. All of these issues require international cooperation — and the fallout from the war could worsen many of those issues and make reaching the broad global consensus required difficult.

RFE/RL: Both Ukraine and Russia provide a lot of the world’s wheat, especially to countries that are on the margins with their food security. We’ve already seen grain shortages affect the world, but what are some of the wider knock-on effects that this war is triggering?

Speckhard: It starts with the humanitarian crisis that is currently playing out. Nearly 48 million people, according to the United Nations, are facing emergency levels of hunger and that is leading to acute malnutrition, starvation, and even death.

But even more importantly, there’s another 70 million people that have been pushed into poverty just since March because of what’s happening in Ukraine in terms of the shortages of food [and] the disruptions of supplies for these countries.

©In Lebanon, for instance, the price of a gallon of cooking oil can cost one month’s salary. It’s having an impact across many places, and what’s interesting — and concerning — about this from the foreign policy perspective is this isn’t going to stay as a humanitarian crisis. This is also going to lead to political crises and potentially security crises because when people get hungry, when economies get stressed to the brink — especially these countries, which are already suffering from economic and environmental disruptions — you get populations that are at the very end of survival and becoming desperate.

This leads to political upheaval and insecurity. Then that insecurity creates and feeds terrorism and violence across the world and interethnic and intertribal conflicts. So, I think we have to be very aware that there’s roughly 200 million people in 53 countries that are facing acute food insecurity. When we watch how this plays out across the Middle East and the Sahel in Africa, we are going to see knock-on effects that aren’t just humanitarian but are also political and security related.

So the challenge for the world’s leaders is not to be so focused just on the Russia and Ukraine situation — but that they also pay close attention to the very deep and desperate needs of many of these countries and help them stabilize and get through this difficult situation.

RFE/RL: There have been accusations by analysts and some Ukrainian officials that some of this is a deliberate strategy on Moscow’s part. How do you see it?

Speckhard: What I would say is, it’s a tertiary strategy, in the sense that the fundamental, central strategic objective here for Russia is Ukraine, but they are going to use all of this disruption as a target for their huge propaganda machine to blame the West for this.

You can already see that happening. There is a big public relations push being prepared, and I’d expect that to be accompanied by Russia sending aid and then having its propaganda networks talking about how weak and inefficient the UN response is in comparison.

Another angle is these strains that we’ve discussed will weaken governments and there will be lots of hungry people looking for answers — and they may start looking to authoritarian leaders that say they can protect them. Moscow has already been deepening its links with authoritarian regimes, especially in Africa, and has been providing security and economic assistance. They’ve been playing this game for decades, and I’d expect it to accelerate as new opportunities open up.

RFE/RL: What are some of the cards that can be played by the international community to help deal with this crisis? Apart from ending the war, what options exist?

Speckhard: What I think needs to happen is enough attention needs to be drawn to this at the international level.

It’s not enough for the United States to say this is happening or draw attention to it, but it needs broad international recognition at the UN, World Bank, G20, and other organizations. There also needs to be a broader push to put pressure on Russia.

I think there is an opportunity here for other countries to get involved, like we saw with Turkey being able to open up the Black Sea ports to allow food to flow again. So there is a chance for countries to step up and shine by focusing on the humanitarian needs of the rest of the world.

Things like that might not end the war — which would have the biggest impact — but they can certainly make a difference.

Copyright (c) 2015. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036.

Welcome remarks by President Cyril Ramaphosa at the Presentation of Letters of Credence of New Heads of Mission accredited to South Africa, Sefako M Makgatho Presidential Guest House, Tshwane

Ambassadors and High Commissioners,
Directors-General in the Presidency and the Department of International Relations and Cooperation,
Distinguished Guests,
Ladies and Gentlemen,
 
Good afternoon.
 
It is my great pleasure to welcome you as the incoming Heads of Mission to South Africa.

Since achieving democracy in 1994, South Africa has built strong and meaningful relationships with nations across the world.

Many of these relationships have their roots in the bonds of solidarity and friendship that were forged during the struggle against apartheid.

We remain grateful to all those countries, many of which are represented here today, that gave our leaders and fighters refuge, that provided material and moral support, and that mobilised for the isolation of the apartheid regime.

Just as we value your presence here, we are greatly encouraged by the value your respective governments place in maintaining and deepening relations with South Africa.
 
Three years ago, the world was confronted with an unprecedented global public health emergency.

As much as the COVID-19 pandemic has had a devastating impact on health, livelihoods and national economies, it also brought about new forms of collaboration between countries and strengthened existing partnerships.
 
It also exposed some of the imbalances in global relations.
 
Many lower-income countries had to look on while wealthy nations hoarded most of the world’s COVID-19 vaccine doses.

Several African countries suffered from the imposition of arbitrary travel bans after new variants were detected in their countries.
 
From this pandemic, we have learned a number of lessons on how we engage with each other as countries and on the importance of mutual respect.
 
It is pleasing that all the continents of the world are represented here this afternoon since South Africa has always endeavoured to maintain friendly relations with all countries regardless of location, size or alignment.
 
We share a belief in the indivisible unity of humankind and in the centrality of international diplomacy as an instrument of progress, world peace and mutual prosperity.
 
With the pandemic in abeyance throughout much of the world, our most pressing priority is a swift and equitable economic recovery that leaves no-one behind.
 
Since 2020, South Africa has been implementing an Economic Reconstruction and Recovery Plan to lift our economy out of a prolonged period of slow growth, to create jobs and to undertake far-reaching economic reform.
 
At the same time, we are implementing programmes to alleviate poverty and inequality, to advance gender equality and to contribute our fair share towards addressing climate change and its impact.
 
Like most developing economies around the world, the pandemic has set back our national effort to meet the Sustainable Development Goals.
 
We are nonetheless forging ahead.
  
We are also pressing ahead with our ambitious investment drive to significantly increase the productive capacity of our economy.
  
We are working to clamp down on corruption and to restore the integrity and credibility of key public institutions.
 
Central to this effort is restoring good governance and improving the financial and operational performance of strategic state-owned enterprises.
 
We are making progress in stabilising public finances, improving financial controls at all levels of government and rooting out graft and mismanagement.
 
We have instituted a number of key policy reforms centred on the network industries, including energy, ports and rail, telecommunications and water infrastructure.
 
All of these are part of the broader effort to make South Africa a country in which it is easier to invest and to do business.
 
Our expectation of diplomacy in the post-COVID era is that it should deepen bilateral trade and investment between South Africa and the countries with which we have diplomatic ties.
 
This is no doubt an expectation your respective governments hold in turn.
  
We anticipate that the African Continental Free Trade Area will not only benefit countries on the continent, but will also create conditions for greater flows of trade and investment between Africa and the rest of the world.
 
We share a responsibility to strive to settle differences within and between countries peacefully.
  
South Africa promotes the centrality of multilateral institutions in managing global affairs and we will continue to urge respect for international law and agreements.
 
We seek to work with our partners across the world to build a more democratic, just and equitable world order, one which prioritises the needs and interests of the poor and vulnerable.
 
As the peoples of the world, we have a shared interest in ending poverty and in ending disparities of wealth, skills, resources, and access to education, health and social support.
 
South Africa stands ready to work with all governments and peoples towards achieving these objectives.
 
We trust that your presence in South Africa will further aid our efforts to build a better world that is more egalitarian, that is free of war and conflict, where the rights of women and girls are respected, and where we all play our part to adapt to and mitigate the impacts of climate change.
 
In the words of our Freedom Charter, the forerunner to the South African Constitution, let there be peace and friendship.
 
We look forward to working with you to strengthen relations between our respective countries and to advance a global economic recovery that leaves no-one behind.
 
I thank you.

Source: The Presidency Republic of South Africa