RIYADH: The International Monetary Fund said Monday (October 3rd) that up to 20 countries, many in Africa, may need emergency assistance to deal with the global food crisis.
IMF Managing Director Kristalina Georgieva, speaking at a conference in Saudi Arabia, also said that 141 million people in the Arab world are at risk of food insecurity.
The IMF on Friday approved a new food shock borrowing window as part of its existing emergency financing instruments to help vulnerable countries cope with food shortages and high costs resulting from Russia’s war in Ukraine. .
Georgieva said that 48 countries around the world are particularly exposed to the food crisis.
“Of the 48 countries, around 10 to 20 are likely to request (emergency assistance),” Georgieva said, adding that “many of them” are in sub-Saharan Africa.
“We’re here for you,” she promised the members at the event.
The IMF will add its voice to fight food trade restrictions to ease the situation and plans to fund the food shock window using last year’s Special Drawing Rights (SDR) allocations.
Countries in the Middle East region and beyond have stepped in to support states struggling with high food inflation and shortages aggravated by global geopolitical developments and the growing risk of a global recession.
Georgieva said in a statement that the Gulf Arab states “plan to make further pledges soon” following the Arab Coordination Group’s recent announcement of an initial $10 billion to alleviate the global crisis. food supply.
The IMF and Saudi Arabia on Monday signed an agreement to establish an IMF regional representative office in Riyadh.
Ensuring social stability through an adequate supply of basic foodstuffs is a priority beyond the borders of those directly affected, said Alice Gower, director of geopolitics and security at Azure Strategy, a consultancy based in London.
“Staples such as wheat, rice and lentils are likely to be inaccessible to food-poor communities in the region,” she told Reuters.
“The desire for regional stability – and therefore security – has led to increased investment from states such as Saudi Arabia and the United Arab Emirates in countries under financial pressure.”