A new platform that will allow African countries to jointly procure bulk commodities aims to help the continent stave off the food, fuel and fertiliser crisis triggered by Russia’s war on Ukraine.
Afreximbank, the African Continental Free Trade Area (AfCFTA) Secretariat and the UN Economic Commission for Africa (UNECA) have joined forces to launch the Africa Trade Exchange (ATEX).
The platform has been set up to help countries pool-procure bulk basic commodities and ensure continuity of supply.
It will also complement the existing digital ecosystem set up to support the implementation of the AfCFTA agreement, said the Economic Commission for Africa (ECA).
ATEX will help facilitate access for SMEs to the wider African market, according to the ECA.
The platform will digitally enable pooled procurement of the main agricultural commodities and inputs usually imported by the continent from Russia and Ukraine.
Analysts and international institutions have expressed fears over price rises and potential shortages of food commodities, including cereals such as wheat, maize, and grains.
They also fear shortages of other key exports from the two warring nations, including fertiliser and its principal ingredients, oils and oilseed.
“The platform will facilitate pooled procurement by African buyers of these commodities from African suppliers where possible, as in the case of fertilisers; and from outside the continent where necessary, as in the case of cereals and grains,” said the ECA statement.
The institutions hope this will lead to the creation of new African supply chains and help insulate Africans from volatility.
“Aggregating its demand for these commodities will allow the continent to negotiate for competitive prices, especially for cereals and grains, assuring net food importers of the access and affordability of commodities like wheat and maize,” said the ECA.
“At the same time, aggregating fertiliser demand from importing countries can deliver African producers of inputs such as fertilisers, ensuring timeliness and affordability, and thereby reducing the risk of food shortages.”
The ECA said Africa’s experience with Covid-19 had showed that organised pooling of demand can overcome supply chain challenges and deliver much needed goods at competitive prices.
Some African countries depend heavily on Russia and Ukraine for wheat imports, such as Egypt and Tunisia, which source 80% and 60% of their supply respectively in this way.
The World Bank and other international organisations have warned that rising food prices could lead to riots and other forms of unrest in these countries.
