Zambia, Tanzania, others to receive financial support from IMF’s new Food Shock Window

Zambia is among the African countries receiving financial support from the International Monetary Fund (IMF) Food Shock Window aimed at mitigating the global food crisis.

Since Russia’s invasion of Ukraine, new IMF-supported economic programmes in Benin, Cabo Verde, Georgia, Mozambique, Tanzania, and Zambia, among other countries included policies to address the impact of the food crisis.

The new Food Shock Window provides increased access under emergency financing instruments for countries that have urgent balance of payments needs associated with acute food insecurity, the rising costs of food and fertiliser imports, or substantial cereal export shortfalls.

This is according to the IMF in its update on the new Food Shock Window issued on Tuesday.

Read more: World Bank calls for transformed fertiliser market to curb food crisis in Zambia, Africa

“In response to the global food crisis, the Fund is helping countries by identifying pressures and formulating effective policies. The Fund provides policy advice to member countries impacted by the global food crisis.

“By combining information on the balance of payments impact of higher food and fertilizer prices with insights on vulnerabilities and risks –including debt sustainability—the Fund helps identify the countries that are most likely to encounter acute financing pressures and advises country authorities on policy responses,” the Fund stated.

The IMF’s new Food Shock Window has so far supported Guinea, Haiti, Malawi, South Sudan and Ukraine.

In addition, nine countries facing acute food insecurity benefited from IMF financial support through new or existing programmes, with a focus on strengthening social safety nets and policies to help address the impact of the food crisis.

The IMF and other global institutions recently said in a joint statement on food security that governments and donors must step up support for the most vulnerable, facilitate trade and market functioning, and abandon harmful subsidies.

They emphasised the need for more concerted action across these three key areas to prevent a prolonged crisis.

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