Africa must avoid food export bans - Bank

Liberia this week became the latest country to announce a ban on all food exports to try to tackle a surge in global prices, after similar moves by other states, including Malawi.

"We must discourage the multiplication of export bans, quotas, export taxes which are exacerbating the problem. ‘Beggar thy neighbour’ will be damaging to all," Kaberuka said at the opening ceremony of the AfDB’s annual meeting in Maputo.

"There is no better way to worsen the situation than to interfere with supply chains at a delicate stage such as this."

Rising global food and fuel prices could ignite inflation and push up interest rates, further damaging growth on the poorest continent as the world economy slows.

Food costs have sparked riots and protests in many African countries, with the poor, who spend the bulk of income on food, the hardest hit.

Almost half of the continent’s 900 million people live in poverty.

Kaberuka said the crisis required coordinated solutions and not hasty actions by some countries.

"Food security is impossible anywhere without a smooth trading system; local, national, regional and global, and I hope after the initial action taken by some countries the barriers can be reduced, or removed altogether," he said.

The AfDB has announced an increase of $1 billion to its portfolio of agricultural loans, bringing the total funding to $4.8 billion, and $250 million to help some countries deal with immediate financial problems.

Kaberuka said the bank was also proposing a fertiliser financing scheme to help farmers tackle sharply higher input prices and let them take advantage of what could be an boon for poor rural communities.

"The rising food prices provide the opportunity, the incentive ... (but) the signals are not getting to the farmer because fertiliser and transport costs have also increased."

Fertiliser prices had jumped to $1,100 a tonne in April from $245 a tonne in January, he said.

Mozambique President Armando Guebuza called for an international effort to find answers to a food and fuel crisis that affected poorer countries disproportionately.

"We appeal to all the international community to be engaged in a more determined way in a collective search for solutions ... We have to act quicker than the rise in crude oil prices and with the necessary pro-activity regarding the imminent cereal crisis," he said.