The impact of West, Central Africa floods on commodities

The Sahel region of Western and Central Africa has been hit by devastating floods in recent weeks, affecting countries such as Nigeria, Niger, Chad, and Cameroon. The floods have led to the displacement of over half a million people and have raised concerns about food and commodity prices. To shed light on the situation, CNBC Africa's Kenneth Igbomor spoke with Edward George, an independent commodities expert, who highlighted the serious impact of the floods on the region. According to George, the flooding has affected over 12 countries in the Sahel, stretching from Senegal to Sudan. The displacement of populations and destruction of farmlands are expected to have severe implications for food production in the region. One of the key crops affected by the floods is rice, with countries like Nigeria, Indonesia, Mali, and Cote d'Ivoire being significantly impacted. The disruption in rice production is likely to lead to increased prices in the coming months as supplies dwindle. George also mentioned the impact of COVID-19 on commodity prices, noting that the pandemic has exacerbated the challenges faced by the agricultural sector. Despite the disruptions caused by the virus, the flow of raw commodities like cocoa has remained relatively stable due to the efforts of various stakeholders in the value chain. However, the flooding in West and Central Africa poses a new threat to food security and commodity prices. In addition to rice, other major crops such as maize, yams, and cassava are also at risk due to the heavy rains and saturated soil. The inability to harvest these staples could further strain food supplies and drive up prices. Globally, food prices have already risen by 4% since the beginning of the year, and the ongoing floods in West and Central Africa are likely to exacerbate this trend. The situation calls for urgent interventions to mitigate the impact of the floods on food security and commodity prices in the region.