Analysis and Studies - Products analysis
Ukraine and Africa trade: the wheat crisis
June 6th 2022
It has been nearly 5 months since the invasion of Ukraine by the Russian Federation. Along with terrible human suffering and losses, the war has brought great uncertainty to global markets. Food prices have right now reached an all-time high. Some of the industries most affected by the events are energy, oil, and the wheat market.
The war has seriously jeopardized the import and export of wheat. The Ukraine, often called the granary of Europe, is the world's fifth exporter of wheat. Since the Russian invasion, all major Black Sea ports in Ukraine have been closed to wheat and other grain exports. Particularly those in the Odessa region in the west, where almost all the grain produced in the country passes through.
Ukraine exports wheat worth more than 4 billion US dollars. Africa is one of the main markets for Ukraine's grain and wheat, a market worth $1.91 billion dollars in 2020.
The countries that import the most Ukrainian wheat in Africa are:
- Egypt (63% of total exports in the continent; a value of 1.22 billion)
- Morocco (10,3% of total exports in the continent; a value of 196 million)
- Tunisia (10,2% of total exports in the continent; a value of 194 million)
- Libya (5.7% of total exports in the continent; a value of 109 million)
- Ethiopia (2.08% of total exports in the continent; a value of 39.6 million)
- Mauritania (1.35% of total exports in the continent; a value of 25.7 million)
The African Union has warned that, the blockade of Ukraine's ports, may lead to a "catastrophic scenario" of food shortages and price increases. About 346 million people in Africa are facing severe food insecurity. The war in Ukraine could be a potential disaster for a continent that is already threatened by climate change and local conflicts. Currently, the EU’s leaders are trying to mediate with the Russian government to detach the situation and let the silos full of wheat leave the port of Odessa, which is occupied by its army.