|
|
|
|
| Business |
| IMF awaits food crisis assessment |
|
by
Tadala Makata Kakwesa, 10 May 2005
-
16:23:52
|
The International Monetary Fund (IMF) said on Monday it is still waiting for the Malawi Government to indicate how much food aid should come from donors.
The IMF delegation from Washington was in the country from April 19 to 29 and said during a press briefing that the Fund does not know the quantity of food aid required and how many people will be affected by the current food shortage.
“Government is still working on the details on how much will be needed and they indicated that the details will be out very soon,” said Thomas Baunsgaard, IMF resident representative in Malawi.
Baunsgaard said the IMF does not have its own food policy expertise to assist in quantifying the problem to speed up relief aid.
“Due to the complexity of the situation, we need more time from donors and government and we know government is taking the matter seriously. We just hope as the budget is being finalized, this issue will be taken into account,” he said.
The IMF said Malawi requested financial aid from the international community to address the maize shortfall. It added that currently it is working with the government, international donors and the World Bank to identify these resources.
Malawi is facing a maize shortfall of 800,000 metric tonnes on its national requirement of 2.4 million metric tonnes, according to National Statistical Office records, due to a prolonged dry spell.
In its April 2005 economic newsletter, National Bank of Malawi said that the food shortage could lead to a further rise in inflation owing to the fact that food, which is dominated by maize, controls nearly 60 percent of the Consumer Price Index—a measure of price changes which determines inflation.
Malawi will have to import maize to fill the shortfall, a development that will also affect the country’s foreign reserves position currently standing at 1.24 months of import cover against the desired target of three months cover, according to the bank.
NBM’s Secretary for Agriculture Andrew Daudi said in an interview that all donors, including the IMF, are aware of how much is needed for them to come in assist.
Daudi said 29,000 metric tonnes of maize under the support of the European Union and Britain’s Department for International Development for Strategic Grains Reserves (SGR) will be bought.
“The food shortage issue has been included in the budget and we have already submitted the figures to Treasury. We are just waiting for a response on how much they will be able to fund,” said Daudi.
During its last visit in February, IMF asked government to include anticipated food shortage in its budget to avoid panicked preparations.
|
| |
|
|
|
|
|
