The war between Russia and Ukraine has highlighted how much of the world’s wheat supply relies on these two countries. For instance, a recently released UN report shows a sample of 25 African countries that rely on wheat imports from Russia or Ukraine. Of this group, 21 import most of their wheat from Russia.
Between 2018 and 2020, Africa imported US$3.7 billion in wheat (32% of the continent’s total wheat imports) from Russia and another US$1.4 billion from Ukraine (12% of the continent’s wheat imports).
Ghana must speed up renewable energy programs to further diversify its energy mix, improve energy security, and urban mobility initiatives to improve efficiency. This will help reduce fiscal shocks due to expensive oil product imports for power generation and transportation.
Russia’s invasion of the Ukraine has led to massive sanctions and resulted in heavy blows to its economy. It has also led to unprecedented condemnation of Russia’s leadership, as well as growing international isolation.
Regardless of the military outcome of the invasion, its aftermath will severely shake Russian diplomatic, trade and business initiatives with potential global partners.
Wheat and other grains are back at the heart of geopolitics following Russia’s invasion of Ukraine. Both countries play a major role in the global agricultural market. African leaders must pay attention.
There is significant agricultural trade between countries on the continent and Russia and Ukraine. African countries imported agricultural products worth US$4 billion from Russia in 2020.
Disruption in trade, because of the invasion, in the significant producing region of the Black Sea would add to elevated global agricultural commodity prices – with potential knock on effects for global food prices.