First wheat shipment from Ukraine docks in Djibouti

The first wheat shipment from Ukraine since the start of the war has arrived in Djibouti, carrying approximately 23 thousand tonnes of wheat destined for Ethiopia. Ted George, the Chief Narrative Officer at Kleos Advisory, joined CNBC Africa to discuss the wider implications of this development. George emphasized the significance of this shipment, highlighting that while it is a step in the right direction, more needs to be done to address the food crisis in the region. He pointed out that despite this shipment, the demand for grains in Africa far exceeds the current supply. The UN estimates that more than 22 million people in the area require food aid, underscoring the urgency of the situation. Despite the ongoing challenges, the agreement between Russia, Ukraine, and Turkey to open the Black Sea for shipments has helped stabilize the market and alleviate some of the previous fears of a wheat shortage. However, global factors such as climate change, disruptions caused by COVID-19, and high demand have contributed to soaring wheat prices. In Africa, where countries heavily rely on grain imports, the shortfall created by the crisis in Ukraine has led to supply chain disruptions and challenges in meeting the population's food needs. Several developed countries have struggled to compensate for the reduced supply from Ukraine due to poor harvests in key exporting nations and export restrictions imposed by some countries. As a result, countries in Africa, including Nigeria, have had to look for alternative sources to meet their wheat import requirements. Looking ahead, there is a growing recognition of the need for African countries to build resilience against future shocks in the grain market. While wheat is not a natural crop for West Africa, its consumption remains high, necessitating substantial imports. George suggests exploring alternatives such as cassava substitution in flour and bread production to reduce reliance on wheat imports. Nigeria, having spent billions on wheat imports, is now pursuing an ambitious strategy to increase domestic wheat production. The government aims to boost production to meet the significant demand for wheat in the country. However, challenges such as suitable climate, water resources, and infrastructure remain key considerations in achieving this goal. Collaborative efforts between countries in West Africa are also essential to ensure a coordinated approach and address the region's grain import challenges. In addition to wheat, George also highlighted the importance of sustainable practices in the cocoa industry as a potential model for collaboration in the grain sector. Prioritizing areas along the grain value chain, such as supporting farmers, improving infrastructure, and securing financing, will be crucial in enhancing the resilience and sustainability of African grain imports.