Global food and energy insecurity risks

International financial and agricultural organizations have issued warnings regarding escalating food and energy insecurity. The IMF has highlighted vulnerabilities in Sub-Saharan Africa, where growth is tied to fragile agricultural and energy supply chains. In nations such as Nigeria, Ethiopia, and Angola, high food inflation persists due to currency depreciation and rising logistics costs, while climate-driven droughts affect Zimbabwe, Zambia, and Malawi.

To address electricity shortages, the World Bank and African Development Bank are implementing the ‘Mission 300’ program to connect 300 million people to electricity by 2030. This includes a $250 million initiative in Madagascar to expand access and modern cooking solutions.

Concurrently, the International Fund for Agricultural Development (IFAD) has warned of a potential global food crisis triggered by energy shocks. Rising hydrocarbon costs, linked to Middle East conflicts, have increased the price of fuel and fertilizers. IFAD President Alvaro Lario noted that global agricultural prices rose by 13% in the third quarter, predicting that food inflation will heavily impact vulnerable populations within the next six to nine months. Approximately 260 million people currently face food insecurity, with small-scale farmers facing significant risks due to the rising cost of essential inputs.