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Almost 50% of Ghana’s population experiences food insecurity – GSS Survey

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Data from the 2022 Annual Household Income and Expenditure Survey has revealed that 49.1 percent of the Ghanaian population was food insecure in the first quarter of the year.

This represents 15.1 million of the 30.8 million persons in Ghana.The percentage however dropped by 7 percentage points to 42.1 percent in the second quarter; 13 million of the total Ghanaian populace. The prevalence of food insecurity is higher in rural areas than urban areas.

Regional basis.

The Greater Accra Region recorded the lowest food insecurity with a percentage of 27.2 percent, while the Upper East Region saw the highest of 73.7 percent.

In the first quarter of the year, the prevalence of food insecurity in four regions in the northern part of the country; Savannah (58.8%), Upper West (61.8%), North East (65.6%) and Upper East (73.7%) were more than twice that of Greater Accra Region (27.2%).

It is also observed that all regions experienced a reduction in food insecurity between quarters 1 and 2 except for the Upper West Region which saw an increase from 61.8 percent to 55 percent.

Meanwhile, Oti and Western North regions experienced the largest declines of 19.6 and 18.7 percentage points respectively.

Severe food insecurity

Between quarters 1 (12.3%) and 2 (6.4%), severe food insecurity reduced by almost half. The decline is higher for rural households.Prevalence of severe food insecurity is highest in North East Region (32.9%) and lowest in Eastern Region (7.3%).

Nine regions record higher severe food insecurity prevalence than the national prevalence (12.3%).

About the Survey

The Annual Household Income and Expenditure Survey is the first nationally representative high-frequency household panel survey in Ghana.

The Survey, conducted by the Ghana Statistical Service, is being conducted to obtain quarterly and annual data on household final consumption expenditure and a wide scope of demographic, economic and welfare variables including statistics on labour, food security, multi-dimensional poverty and health status for research, policy, and planning.

The maiden publication presents highlights from the first and second quarter food insecurity, multidimensional poverty, and labour statistics reports.

Definitions of concepts (According to the GSS)

Food Insecurity – A lack of available financial resources for food at the household level. It is defined as a situation of “limited or uncertain availability of nutritionally adequate and safe food or limited or uncertain ability to acquire acceptable foods in socially acceptable ways”. (United States Department of Agriculture, 2000) Moderate Food Insecurity – People experiencing moderate levels of food insecurity will typically eat low-quality diets and might have been forced, at times during the last three months, also to reduce the quantity of food they would normally eat.

Severe Food Insecurity – People facing severe food insecurity have likely run out of food, experienced hunger and, at the most extreme, gone for days without eating.

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COCOBOD’s GH¢12bn debt burden worrying – Auditor-General.

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The Auditor-General, Johnson Akuamoah Asiedu, has raised concerns about the Ghana Cocoa Board’s (COCOBOD) increasing debt burden – which stood at approximately GH¢12.30billion as of September 2020.

The debt accumulation emanates from short-term cocoa loans of about GH¢8.49 billion; BoG 10-year loan of almost GH¢1.4billion; medium-term loan in a total of GH¢1.28billion; as well as an AfDB loan of GH¢1.14billion and BADEA Loan Account of GH¢174,295. “Our examination of the COCOBOD records noted that the Board has been burdened with relatively high loan portfolios over the years.

The Board had debts totalling GH¢12.3billion in its records as at end of the 2019/2020 financial year. We also noted from our review that the Board did not provide us with any effective plans to reduce its debt burden into the future,” the Auditor-General report said.

Accordingly, the AG noted that the debt burden has resulted in an increased finance cost over the years; from GH¢1.25billion in the 2018/2019 financial year to GH¢1.57billion in the 2019/2020 financial year. “This, if not managed effectively, could lead to crippling the cocoa industry. The absence of sustainable debt plans coupled with the absence of effective long-term cost control measures resulted in this state of affairs. We urge management to deploy and implement effective plans and strategies which lead to a reduction of the Board’s debt-burden within the medium- to long-term,” he encouraged.

COCOBOD’s response.

However, management of COCOBOD indicated in a response that the institution is implementing tighter budgetary controls, to ensure debt is not accumulated but rather make savings to repay all debts in its books.

Some of the strategies include issuing a bond of up to US$3billion to refinance the relatively expensive cocoa bills. The long-term debt, which is relatively cheaper, is expected to be used for refinancing the short-term cocoa bills that are expensive.

In the case of the 10-year BoG loan, COCOBOD noted a balance of about GH¢1.39billion which is being serviced based on a repayment schedule agreed with the Bank of Ghana.

The moratorium on repayment of the principal amount expired in January 2022; however, it expects to fully extinguish the loan by November 2023.

The total balance of non-current and current liabilities on the medium-term Loan of GH¢1.2billion has been settled, according to COCOBOD. “As a result of the prudent financial management being implemented, the MTL has been fully repaid 1 year ahead of schedule.”

On the BADEA loan, COCOBOD notes a possible write-off for the debt, following an agreement with the Ministry of Finance and subject to Parliamentary approval.

2020 financial year performance.

In the 2020 financial year, COCOBOD recorded a loss of GH¢426million as compared with a loss of GH¢320million registered in 2019. This represents a 33 percent decrease in the Board’s financial performance over the period. Revenue increased by 5.2 percent, from GH¢9.76billion in 2019 to GH¢10.27billion in 2020.

Even though COCOBOD recorded a 4.41 percent fall in cocoa production over the previous year, the rise in revenue was largely attributed to a higher export price per tonne of US$2,477 in 2020 compared with an average export price of US$2,236 for 2019.

The Board’s liquidity ratio (Current ratio) improved from 0.75:1 in 2019 to 0.82:1 in 2020. The increase notwithstanding, the Board will not be able to meet its short-term obligations as and when they fall due.

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Auditor General directs COCOBOD to recover ¢2.25bn government debt.

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The 2021 Auditor General’s Report has charged Ghana Cocoa Board (COCOBOD) to engage the Ministry of Finance to recover ¢2.25 billion that the government owed the cocoa regulator as of September 30, 2022.

This was because of the supply of cocoa beans to Genetec International Corporation (GIC), the government’s revenue support on the producer price of cocoa, and excess export duties paid by the COCOBOD for GIC on cocoa beans exported.

The report also noted that COCOBOD has a relatively huge loan portfolio totaling ¢12.301 billion as of the end of the 2019/2020 financial year.

“We urged management to deploy and implement effective plans and strategies that would lead to the reduction of the Board’s [COCOBOD] indebtedness within the medium to long term”.

It further said “we noted during our review of 2019/2020 approved a budget statement that COCOBOD expended an amount of ¢230.70 million on the principal repayment amount of a 10-year loan with Bank of Ghana (BoG) which was not included in the approved budget for 2019/2020 financial year. We advised Management to ensure that all the Board’s activities are adequately provided for in its estimates and ensure that it operates within its approved budget”.

It also said its review of the recovery of seed funds from Licence Buying Companies (LBCs) revealed that management could not recover seed funds and accrued interest totaling ¢47.024 million from LBCs for more than four cocoa seasons contrary to the provisions in the law.

“We urged management to recover the amount from the banks that guaranteed these facilities for the companies failing which the Board should pray the court to lift the veils of incorporation of these defaulting companies to demand the total indebtedness from the Directors and personalities behind these companies”.

Cocoa Marketing Company
The report identified that the company’s receivable aging report revealed that a total of $179.572 million in debt was overdue as of 30th September 2020.

“To effectively manage the recovery of the debts, we recommended to Management to institute innovative measures to collect the debt”.

Quality Control Company Limited (QCC)
The report noted that QCC invested an amount of¢500,000 in a vehicle loan investment account at the UMB Investment Holdings Limited (UMB IHL) contrary to the investment policy of the Cocoa Board.

It is further recommended to Management to avoid placing the Company funds in similar investment houses.

Cocoa Research Institute of Ghana (CRIG)
The report said the lack of effective control over the utilisation and accountability of monies lead to unretired imprest totaling ¢878,586 by November 30, 2020.

It, therefore, recommended that the amount be converted into advances against the officers and recovered from their salaries.

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PFJ fertiliser supply drops by 150%.

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As part of efforts to address the shortage of agrochemicals, the Ministry of Food and Agriculture (MoFA) has announced that the government is proactively working with local fertiliser producers to produce quality organic fertiliser on a large scale for farmers across the country.

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Govt bans export of wheat flour, maida, and semolina to curb rising prices.

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Notifying a decision of the Union Cabinet, the Directorate General of Foreign Trade (DGFT), however, said that exports of these items would be allowed subject to permission of the government of India in certain cases.

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Food and Beverages Association to publish the number of taxes paid by their members.

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The Food and Beverages Association will soon publish the number of taxes its members have been paying, saying, the taxes are overburdening their businesses which could force some of them out of business.

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Government eulogizes Yara Ghana for donating 20,000mt fertilizers to smallholder farmers to safeguard food security in Ghana.

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The shortage of inorganic fertilizers coupled with the price hikes in both international and Ghana drove out a lot of smallholder farmers from production causing fear and panic of food insecurity in Ghana.

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Climate change is to cause more death of African children from the hot weather.

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Photo credit: the United Nations

Climate change has already increased global temperatures, greatly increasing extremes. This will continue unless greenhouse gas emissions are reduced to “net-zero”. The 1.5°C target of the Paris Agreement requires emissions reductions of around 50% in the next 10 years.

Newborn babies are particularly vulnerable to high temperatures. They have a limited ability to thermoregulate – or control their body temperature – and can easily become dangerously hot or cold.

Older babies and toddlers can thermoregulate better. But they are often unable to communicate their temperature discomfort. They rely on caregivers to help them adjust clothing and change their environment – like opening a window or seeking shade.

Africa has some of the poorest and hottest countries in the world. This means that young African children are at particular risk of heat stress impacts.

However, estimates of heat-related deaths in African children are limited, primarily due to the lack of available mortality data over the continent.

There has been little research into the impact of climate change on child heat-related deaths in any region of the world.

To address this knowledge gap, we estimated present-day and future heat-related mortality due to climate change in African children under five years. We did this using a range of different global heating scenarios and information from a small number of existing studies relating temperatures to heat-related child deaths in Africa.

We also considered population growth and recent declines in the total child mortality rates in African countries due to developmental improvements such as better healthcare and infrastructure.

We estimated that between 2011 and 2020 there were between 12,000 and 19,000 heat-related child deaths per year in Africa.

Climate change accounts for approximately half of these deaths. The additional deaths due to climate change cancel out the recent reduction in heat-related deaths that was achieved through developmental improvements.

Our research underscores the urgent need to reduce emissions and take adaptation measures to reduce the impact of heat on babies and children.

Future deaths
The number of child deaths per year due to heat is currently small compared to the number of deaths from diseases such as malaria. Malaria causes approximately 400,000 deaths per year in African children under five.

However, the future growth in heat-related deaths depends on future greenhouse gas emissions and subsequent global warming.

Even assuming declining overall child mortality and a rapid reduction in emissions, temperatures and heat deaths will continue to increase until the middle of this century. From 2040 onwards, the benefits of limiting global warming to 1.5°C are stark.

In a “business-as-usual” future scenario, where emissions continue to increase, heat-related deaths in Africa could double by 2050.

If we are able to limit global warming to the Paris Agreement target of 1.5°C, almost half of these deaths could be prevented.

What happens after 2050?
Under future scenarios with high greenhouse gas emissions and significant global warming, by 2100 many parts of Africa will experience a climate like no other current climate on Earth. Therefore, we cannot assume that present-day relationships between temperature and heat deaths in children will hold in the future.

Heat-related mortality is dependent on social and demographic factors, as well as climate. Without climate change, heat deaths would most likely decrease over time due to ongoing improvements in the socio-economic situation in African countries, such as better healthcare.

We chose not to estimate heat deaths beyond 2050. We considered the uncertainties in future population growth, socio-economic development, and greenhouse gas emissions too large to make meaningful estimates.

However, considering temperature increases alone, if emissions are reduced in line with the Paris Agreement, the number of days per year above the deadly heat threshold over Africa will be only slightly greater in 2100 than in the present day.

If the Paris Agreement is not met, 200-300 days per year could be above the deadly threshold by 2100.

Our estimates do not take into account future adaptation to temperature increases. With sufficient resources, some adaptation to future heat extremes – such as air conditioning and changes to caregiving practices – will be possible.

However, since young children – especially newborns – don’t thermoregulate, they cannot acclimatise physiologically in the same way as adults.

Implications
Our research shows that climate change is already negatively affecting the health of children in Africa. A similar situation is likely to be occurring in other developing nations in the tropics and sub-tropics.

Currently, no country is on track to reduce emissions enough to comply with the Paris Agreement and keep global warming to 1.5°C.

Without urgent action, upper limits of human survivability – such as a wet bulb temperature of 35°C – may be regularly reached in the tropics by 2100, with devastating consequences for people in Africa and elsewhere.

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Parliamentary C’tee turns away Deputy Fisheries Minister for Hawa Koomson to rather appear.

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A Deputy Minister of Fisheries and Aquaculture Development was on Wednesday, August 24 turned away from the public hearing of Parliament’s Assurances Committee for the substantive minister to rather appear on.

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Ghana records 249% growth in coconut export in 2021; bags $21.9m.

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Ghana’s exports of Desiccated Coconut to the world recorded a significant jump of 249% in value in 2021 compared to the previous year.

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