Removing barriers could boost African food trade: World Bank

28/11/2012 12:00 - 435 Views

GENEVA, Nov. 21 — Africa has an enormous potential for regional food trade if the barriers to trade and competition along the value chain can be removed, said a World Bank report issued here Wednesday.

Both the growing demand for staple food in Africa and rising prices in the global market have led to ever mounting food import bills for the region, according to “Africa Can Help Feed Africa” report.

The report said the problem can be resolved within Africa, since farmers have the potential through regional trade to satisfy much of the rising demand and to substitute for more expensive imports from the global market.

It pointed out that just 5 percent of Africa’s cereal imports are now provided by local farmers.

But the potential is not being exploited because of the barriers along the value chain that constrain the regional trade, which includes limited access to inputs, high transport and crossing border cost, unpredictable trade policies and inefficient distribution services, according to the report.

The World Bank said effective enforcement of regulation is essential for regional trade and there is need to support institutions that foster efficient and stable local food market.

It also highlighted the policy reform in implementing a set of measures that will lift barriers and in defining a program of enhanced dialogue on regional food trade.

22/11/2012 5:35 PM

By Thomas Whittle

Source: nzweek.com