Africa

Francis Ngannou says he wants to "prove anything is possible" as he looks to become the UFC's first African-born heavyweight champion in Stipe Miocic rematch.

A day in the life of a coffee grower during harvest season. Credit: Those Coffee People

By Jennifer Poole*
MEDELLIN, Colombia, Mar 26 2021 (IPS)

It’s been just over a year since the Colombian government launched its landmark price stabilization fund. With a budget of $64 million, the fund was designed to provide a hedge against low prices by subsidizing farmers during periods when prices dropped below production costs.

The reason for its introduction was due to the torrid times the nation’s producers had been through during the latter half of the last decade, where wholesale prices regularly dropped below the cost of production. So the fact the fund launched just as COVID-19 was beginning its stranglehold on the global economy was pure luck. But as luck goes, a government underwriting your industry just as the economy comes to a grinding halt is pretty fortunate.

However, far from the stabilization fund needing to be triggered almost as soon as it was launched, in order to mitigate the fallout of COVID-19 – the last 12 months have been a bumper year for Colombian coffee producers. The reasons for this are paradoxically partly due to COVID and partly due to other unforeseen circumstances.

The Coffee Price Stabilization Fund in Context

Although Colombia is the world’s third-biggest coffee producer, production is extremely fragmented. The traditional family-owned smallholdings, known as fincas, have remained virtually intact since the birth of the industry. This has resulted in more than half a million privately owned coffee-producing fincas in the country, with approximately four million Colombians relying on these for their livelihoods.

Most of these fincas don’t produce enough to sell directly to buyers, so they instead sell their beans to the growers-union, the Federacion Nacional de Cafereros de Colombia (FNC). The FNC offer growers a floating internal buy-rate, determined by global wholesale prices, and then sell the produce on international markets.

The problem has been that the floating buy rate offered by the FNC dropped below the cost of production numerous times between 2016 and 2019, with prices falling to their lowest in nearly a decade in the 2018-19 harvest. This meant growers were selling at a loss, with many abandoning the industry altogether.

The Internal Buy Rate Since the Onset of the Pandemic

The FNC floating buy rate had been trending upwards since the middle of 2019 as price recovery took hold after the nadir of the 2018-19 harvest. However, as the below graph shows, the buy rate exploded in March 2020, just as the pandemic took hold, with the price increasing to COP 1,143,193 (USD $319), a 29% increase versus January 2020. And while the price has fluctuated since then, it’s remained extremely buoyant.

To put this into a broader context, the value of coffee production in 2020 was USD $2.52 billion, which equates to a 25% increase on the 2019 figure of USD $2.01 billion.

Graph data courtesy of the FNC’s “coffee prices, area and production” report

The price spike was partly due to the complete collapse in demand for oil in March 2020. With Colombia being an oil-producing nation, the Colombian peso suffered a near 20% drop in value versus the dollar. And with the FNC collecting payments from buyers in dollars, it was able to arbitrage this difference and pass on much of the increased value to growers.

To add to this, Colombia also gained an advantage against its nearby coffee-producing competitors, such as Brazil, which suffered from excessive rain and little solar light in the first trimester of 2020, meaning the country’s coffee harvest was badly affected. There were also fewer coffee exports from Central America due to low manual labor availability. All of these factors created a supply squeeze, both real and feared, which helped to sustain higher prices.

Production and Export Volumes

Colombia wasn’t completely spared some of the inclement weather suffered by its neighbors over the last 12 months. Delayed starts to the rainy seasons as well as the ever-present danger of the broca bettle made a bit of a dent in total production, being 4% down YoY.

Graph data courtesy of the FNC’s “coffee prices, area and production” report

However, a more noticeable impact has been the reduction in export volume over the last 12 months, as global demand reduced slightly during the pandemic. According to the FNC, Colombian coffee exports fell by 8% last year, dropping from 13.7 million 60kg bags in 2019 to 12.5 million 60kg bags in 2020.

Within this context, the fact the value of coffee production grew by 25% YoY in 2020, in spite of the fact export volume fell by 8%, shows just how significant this price rally has been for the nation’s smallholders.

Looking Ahead

Despite the historically high FNC buy rate, this is no reason for producers to become complacent. A unique once-in-a-generation set of circumstances conspired to push prices up to new highs, and for the time being, at least, keep them there.

A worry is that this unexpected bonanza being enjoyed by growers could disincentivize many from making the switch to higher-value specialty crops, which is a key development objective of the FNC. Switching from commercial grade to specialty comes with plenty of risks, which are compounded during a pandemic. And all the while, the FNC is offering record prices for regular commercial-grade crops.

So while it’s impossible to predict when prices may fall to below production costs, recent history tells us we shouldn’t write this off at any point. Add to that the unpredictability of climate change and the longtail impact of COVID which will impact markets in ways not yet foreseen.

And when it comes to the growers themselves, there are still barriers to their economic security in rural areas of Colombia to take into account — such as a lack of connectivity and food insecurity — which mean that if the market situation changes in the near future, they have very little to fall back on, and the price stabilization fund will be needed. But with this novel mechanism remaining untested, its ability to provide a much-needed safety need remains unproven.

*Based in Medellin, Colombia, Jennifer Poole spends her time traveling to remote towns and villages in search of the best specialty coffee the country has to offer. She is an international economist with work experience in North America, South America, East Africa, Southeast Asia, Europe and the Middle East. She received her MBA from IDRAC Ecole Superieure de Commerce in Lyon, France and is heading Those Coffee People’s international business development.

 

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The post A Look at Colombian Coffee Prices One Year on From the Stabilization Fund appeared first on Inter Press Service.

Excerpt:

The writer is the co-founder of Colombian specialty green coffee supplier Those Coffee People.

The post A Look at Colombian Coffee Prices One Year on From the Stabilization Fund appeared first on Inter Press Service.

The Gambia qualify for their first Africa Cup of Nations when beating Angola 1-0, joining Comoros, Gabon, Ghana, Egypt, Zimbabwe and Equatorial Guinea in qualifying on Thursday.

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World Food Programme Deputy Executive Director Amir Abdullah says that no matter how much improvement is made in food production, it will all be futile unless the issue of water security is addressed. He said humanitarian and food aid can never be enough to manage cascading climate shocks. Credit: Isaiah Esipisu/IPS

By Samira Sadeque
UNITED NATIONS, Mar 25 2021 (IPS)

The intersection of crisis, climate change and COVID-19 has resulted in a “rapid rise in hunger”, according to United Nations World Food Programme (WFP) Deputy Executive Director Amir Abdullah.

He was speaking at the “Building Food and Water Security in an Era of Climate Shocks” event organised by the UN Department of Economic and Social Affairs (UN DESA). The meeting featured representatives from other UN bodies, farmers’ associations and startups working on water security and agriculture around the world.

Abdullah highlighted the numerous disasters that hit globally last year while the world was in the middle of the pandemic: destructive heat waves, wildfires, floods, storms, and locust outbreaks.

“Humanitarian aid can never be enough to manage these cascading shocks that keep breaking down food systems and pushing people into food and water crises,” he said.

He added that no matter how much improvement is made in food production, it will all be futile unless the issue of water security is addressed.

“We can deliver food assistance but if farmers don’t have adequate access to water resources for food production, people will just continue being hungry,” he said. “And if people don’t have access to clean water, they can’t retain the nutrition they need even if we provide them with food assistance.”

Betty Chinyamunyamu, CEO of the National Smallholder Farmers’ Association of Malawi, said the past decade has witnessed an “onset of weather crises” which have made it extremely difficult for farmers to plan their sales.

“Increased incidences of new pests, diseases and unpredictable weather patterns make it more difficult for farmers to plan their farm enterprises. So when they’re not sure whether they are going to have a flood or whether they are going to have drought, it becomes very difficult to engage in initiatives that would otherwise be very rewarding for them,” Chinyamunyamu said. 

“That unpredictability of weather is really making agriculture less profitable for the farmers,” she added.

Cherrie Atilano, CEO and President of AGREA, which works to ensure fair trade in sustainable agriculture in the Philippines, brought up the importance of collaboration between the private and public sector. She pointed to an example that worked in the Philippines at the beginning of the pandemic.

Just a few days after the first lockdown, many farmers were left wondering where to take their produce, as their mobility had suddenly been restricted, she said. At the same time, in Manila, the country’s capital with a population of more than 12 million, people scrambled for groceries as supermarkets shelves were empty.

Her team addressed this by contacting the agriculture ministry asking for farmers’ access to work to be restored so long as they maintained COVID-19 protocols.

Meanwhile, Chinyamunyamu shared the role that digital platforms and innovative technology played during the crisis, especially in giving access to marginalised groups.

The lockdown was especially disruptive for the farmers in Malawi, because it came at a time which was the “only marketing season” for them, she said. Chinyamunyamu explained that farmers were able to address this challenge through innovative approaches, including using digital technology such as mobile phones

Farmers were able to share information with each other on markets, as well as developments about COVID-19 by communicating via mobile phone. This was especially important for marginalised groups because it established an important way to reach vulnerable communities.

“Even though women still have less access than men to mobile phones, if a woman has a mobile phone, it’s theirs — they have control over the usage,” she said. “So if you pass on information to women through mobile phones, that’s information that goes directly to them.”

However, concerns remain about what lies ahead.

“In the coming decades, many regions around the world are expected to experience increased water scarcity driven by climate change and exacerbated by increasing competition for water resources,” Abdullah said. 

“The battle for water will be one of the next ‘great challenges,’” he added.

Samir Ibrahim, co-founder of SunCulture, a startup for solar-powered generators and water pumps in Africa, shared his experience working with innovative technology on the continent.

He pointed out that new ways for the allocation of funds was crucial for the sustenance of such projects.

“What is important for the ‘newness’ is not necessarily new technologies,” he said. “What we’ve seen is that emerging markets were solving problems that have been solved in other parts of the world.”

He said that while their company did not invent solar irrigation, it was “the first to commercialise in Africa”.

“While technology is incredibly important, we had to do a lot of innovation on battery storage,” he added.

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The post Humanitarian & Food Aid Can Never be Enough to Manage Cascading Disasters appeared first on Inter Press Service.

Japanese firm Shoei Kisen Kaisha says dislodging the Ever Given is proving "extremely difficult".

By External Source
Mar 25 2021 (IPS-Partners)

This short video explores the experiences of COVID-19 in Fiji’s capital, Suva, by University students. The participants reflect on the impact of the virus in the Pacific nation, where themes such as the emotional implications of COVID as well as its effects on the economy, food security, resilience and more are discussed.

They remind us that despite all the negativity that the virus has brought, one has to be hopeful and resilient about the future.

The participants, all students at the University of the South Pacific, are Salote Nasolo (postgraduate student in climate change), Ratu Simione Matanitobua (undergraduate student in land management) and Peni Turagabaleti (postgraduate student in land management).

The video was shot and edited by Tom Vierus / Pacific Media House, and the interviews were conducted by Gregoire Randin.

www.pacificmediahouse.com
www.tomvierus.com

Source: The Pacific Community (SPC)

The post „We will overcome it“: Experiences of the impact of COVID-19 in Suva, Fiji appeared first on Inter Press Service.

Agaezichi Joy is challenging stereotypes as a mother with spinal muscular atrophy.

The "priceless" work in Aberdeen is described as having been looted by British soldiers in Africa in 1897.

Credit: Temilade Adelaja via Communication for Development Ltd/CGAP, Washington DC

By Elisabeth Rhyne* and Eric Duflos*
WASHINGTON DC, Mar 25 2021 (IPS)

Imagine it is 2025 and that, unfortunately, another pandemic is sweeping the world. Much like in the 2020 crisis, borrowers have seen their livelihoods upended and are struggling to repay loans.

One of the questions before policy makers amid this new crisis is whether to extend moratoria to distressed borrowers. In search of answers, they reflect on the world’s experience with the COVID-19 pandemic and whether moratoria were part of the solution. These policy makers conclude that they did some things right in 2020.

Just days into COVID-19 lockdowns, bank regulators in more than 115 countries granted special permission for financial services providers (FSPs) to extend moratoria to millions of borrowers, especially those with small business and consumer loans. These moratoria were the next best thing to cash in the wallet for borrowers who had lost their jobs or seen their business revenue plummet.

For lower-income countries, whose governments could ill afford welfare payments, moratoria became an important form of economic relief. And by relaxing provisioning on paused loans, these special moratoria also shored up FSPs’ balance sheets and prevented panic in financial systems.

Through the moratoria, the world’s economies put the shock-absorbing capacity of financial systems to good use.

But these policy makers also see that moratoria could have worked better in some respects. So, in 2025, as the world once again turns to moratoria, they are determined to learn the lessons of the past and make moratoria work even better. What do they do differently?

Fair burden sharing

As public health authorities shutter the economy to stop the new pandemic, advocates for lower-income people are already calling on policy makers to spread the economic burden among those better able to bear it.

Policy makers know that moratoria on small loans (as well as evictions and mortgages) will shift some economic pain from lower-income families and small businesses onto banks and landlords — at least, temporarily.

But they recall that, in 2020, FSPs shifted the pain back to small borrowers by allowing interest to accrue and compound during moratoria. Ultimately, borrowers paid to pause their loans – often dearly.

Back in 2020, policy makers debated whether to shift some of the long-term burden of accrued and compounding interest away from borrowers, but it was difficult for them to find a workable solution.

In India, after much debate in the Supreme Court over who should pay this additional interest, the government found a remedy when it agreed to pay banks the compounding portion of borrowers’ interest incurred during moratoria. Implicitly, this decision made moratoria part of the government’s overall pandemic response while affirming the right of the banks to charge fully for delayed payments.

Fortunately, in 2025, several governments have included special provisions in their catastrophe protocols that pledge government funding for a portion of the interest that small loans accrue during moratoria.

This pledge helps to ensure policies intended to help low-income people don’t end up harming them. It has the added benefit of providing banks with a small amount of liquidity during the moratoria period.

Moratoria will also be fairer this time around because policy makers have universally agreed that borrowers should have the right to choose whether to accept or reject a moratorium offer. This was not always the case in 2020.

In some countries, regulators — anxious to prevent panic — and FSPs — wishing to avoid tedious case-by-case administration — promulgated blanket moratoria, even before obtaining agreement from borrowers.

However, some borrowers preferred to keep paying to avoid extra interest charges. In response to push back from borrowers on unilateral moratoria, authorities in Peru affirmed consumers’ right to unwind unwanted moratoria. Today, following this example, regulators the world over require FSPs to notify borrowers of moratoria offers and present them with the option to refuse.

Policy makers have also anticipated the challenge of maintaining borrowers’ standing with credit bureaus. When borrowers accept moratoria during a national emergency, it should not hurt their creditworthiness.

In 2020, there was confusion over how banks should report restructured loans to credit bureaus, how credit bureaus were to incorporate these loans into credit scores, and how new lenders were to use the information.

In India, FSPs simply didn’t report many loans for several months. Eventually, those problems were sorted out. Now, in 2025, credit bureaus follow well-understood protocols for handling loans in moratoria during emergencies.

Preparedness

The emergency protocols that the world’s banking authorities and FSPs put in place after the COVID-19 pandemic also address operational continuity and communications.

Back in 2020, economic lockdowns prevented in-person interactions between lenders and borrowers and often led to breakdowns in communication. In Uganda, loan officers could not meet with customers in the field, and transport restrictions prevented adequate staffing of branches and even call centers. FSPs transacting mainly in cash were caught especially flat-footed.

Thankfully, this problem is behind us now. The pandemic accelerated FSPs’ digitization plans across the world, and record numbers of borrowers started using mobile technology. FSPs serving lower-income customers now routinely communicate and transact digitally.

They have also upgraded their internal systems to handle the irregular schedules of loans in moratoria. And the expansion of digital infrastructure during and after COVID-19 now allows staff to work from home.

Consumer protection

As financial regulators and supervisors prepare for the new moratoria in 2025, they are better equipped to mitigate some of the consumer risks that appeared in 2020. They now use market monitoring tools, such as suptech, consumer phone surveys and mystery shopping, to assess consumer risks in real time. They can quickly spot issues such as abusive collections practices.

Nevertheless, both financial authorities and FSPs have learned from the previous crisis that ensuring good communication and transparency will be challenging. Moratoria are unfamiliar concepts, and the math is complicated.

Learning from 2020, when poor communication led to misunderstandings, mistakes and abuse, regulators have already issued consumer protection rules to ensure the public fully understands moratoria offers and their consequences.

Additionally, communications now flow not just to customers, but also from them. Policy makers are widely using tools that give consumers a collective voice and reveal what they are experiencing.

Several regulators have put consultative bodies in place to have a regular dialogue with consumers, and consumer associations regularly convey issues to them. Such tools proved useful in 2020.

In Peru, for example, the consumer protection agency INDECOPI listened systematically to customers and alerted regulators and FSPs to emerging abuses so that they could respond quickly.

Agility

The COVID-19 pandemic lasted much longer than anyone foresaw, and unanticipated implementation challenges arose. If policy makers learned one thing, was is that you can never anticipate all the ways an emergency will unfold.

Accordingly, the countries that were best prepared for the next pandemic were those that had established channels for authorities and FSPs to work together to respond to evolving conditions.

Source: Consultative Group to Assist the Poor (CGAP) is a global partnership of more than 30 leading development organizations that works to advance the lives of poor people through financial inclusion.

*Elisabeth is the former managing director of the Center for Financial Inclusion at Accion. She is a visiting fellow at the Financial Access Initiative and a consultant at CGAP.

*Eric Duflos, Senior Financial Sector Specialist, leads CGAP’s work on consumer protection, from policy, industry and customer perspectives, ensuring that financial services have positive outcomes for customers.

 

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The post Debt Moratoria in the Next Pandemic: Be Prepared, and Be Fair appeared first on Inter Press Service.

A photography exhibition in Somalia by two women challenges the way the country is seen.

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COVID-19 has amplified the omission of disabled people. Credit: Bigstock

By Shubha Nagesh and Sara Rotenberg
DEHRADUN, India/OXFORD, UK, Mar 24 2021 (IPS)

2020 will be remembered as the year that changed the world, as COVID-19 spared no country, no community, and no person. As the pandemic continues in 2021, there is recognition that some groups are impacted more than others, not just by the virus itself, but also by the socio-economic and access inequities exacerbated by global shutdowns. Globally, countries, and organisations are seeking to build back better and address inequities.

António Guterres, Secretary-General of the UN, highlighted that we have ignored inequality for too long, putting the poor at greater risk during the pandemic.

UK-based studies corroborate this: people in affluent areas are 50x less likely to die from COVID-19, while people of black ethnicity and disabled people are 4 and 3 times more likely to die from COVID 19, respectively.

Only 0.5% of international development funding goes towards disability-inclusive programs.  despite the fact that people with disabilities make up 15% of the world’s population

A third of 18-24 year olds have lost their job–twice the rate of working age adults. The disproportionate impacts on women include reduced reproductive health rights; increased unpaid care responsibilities; more domestic violence; and a record decrease in women leaving the workforce. Together, these trends threaten global gains on equity and inclusion.

India exemplifies the challenges and inequities so many in low- and middle-income countries faced during the pandemic. India’s poor have been hit the hardest in everything from the disease itself to the economic and social impacts of national lockdowns.

Scores of migrants walked hundreds of kilometres to their villages, exemplifying how people in the informal sector lost their jobs, livelihood, and homes. Public and private healthcare facilities tried to support COVID-19 patients, but reports question the accessibility and equity of the services for the poor. Economically, experts expect that millions of people in India will become impoverished due to the pandemic.

For global health more broadly, the pandemic has threatened to drive back progress made in recent decades and highlighted how we neglected calls for health systems strengthening in recent years. Yet, we see opportunities and calls to ‘build back better’, the global health community must first ask itself “What is wrong with Global Health?” so we avoid these systemic issues and build a more inclusive world.

The reality is that many things went wrong within global health prior to 2020. To date, we have seen certain groups forgotten in the global health space. For instance, only 0.5% of international development funding goes towards disability-inclusive programs.  Even less of this goes directly to global health, despite the fact that people with disabilities make up 15% of the world’s population. COVID-19 has amplified the omission of disabled people.

For example, India’s COVID-19 tracker, Aarogya Setu App, public health guidance, and testing sites have remained inaccessible for disabled people. In lockdowns, disabled people also had difficulties accessing essential food, information, medicines, and supplies.

We suggest three ways to address access inequalities in Global Health:

1. Underrepresented and marginalized groups need better, authentic representation. Global health organizations must continually ask themselves who is not represented or reached in their programs, and actively take steps to fix it. Involving advocates and activists from the very beginning will include the needs of at-risk populations and enhancing acceptance, inclusion and belonging.

2. Global health needs better, timely, factual, and accessible communication. Creating accessible and acceptable communication strategies and messages that are deployed to reach even the most remote areas is key to ensuring global health connects everyone.

3. Act in solidarity. Governments, civil society, and international organisations need to come together to distribute resources proportionately to need. Distributive justice can ensure greater security for all–whether that is for health, income, employment–which ultimately impacts our collective ability to weather catastrophes, like pandemics.

 

COVID-19 has been a pivotal moment and offers a unique opportunity to build back a better, more equitable, healthier world. However, without an explicit focus on inequity, we risk leaving out those who global health has forgotten, despite our moral obligation and duty to protect.

In 2020, we showed that anything is possible with political will, dedicated funding, and global action. In 2021, we need a paradigm shift in our approach to global health so that it captures those who most need it. We must apply what we have learned from collective action for COVID-19 to the greatest challenges facing our society: inequity. By addressing this, we ensure that global health is truly accessible to all.

All views expressed are personal reflections

Shubha Nagesh is a medical doctor and a global health consultant based in Dehradun, India. She strives to make Childhood Disability a global health priority.

Sara Rotenberg is a Rhodes Scholar and DPhil Student in the Nuffield Department of Primary Care Health Sciences at the University of Oxford.

The post Centering Equity: A Vision for Global Health in 2021 appeared first on Inter Press Service.

The island nation of Comoros - a country that only joined Caf in 2003 - stand on the brink of qualifying for the Africa Cup of Nations for the first time.

Bayern Munich star Alphonso Davies says he was saved from a life of guns and fighting by his parents' decision to flee war in Liberia and become refugees in Ghana.