Niger coup sanctions drive Ghana’s onion prices up, deepen food crisis - Al Jazeera English | Canada News Media
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Niger coup sanctions drive Ghana’s onion prices up, deepen food crisis – Al Jazeera English

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Accra, Ghana – On most Saturday mornings, the shed of Yakubu Akteniba, an onion seller at Adjen Kotoku market, a 33km drive from Accra, is swamped by customers haggling over fresh produce.

But since early August, things have quietened as business has taken a nosedive due to disruption in the food supply chain across West Africa.

“We used to receive at least 20 truckloads of onions daily here,” Akteniba, who speaks for the market’s 200-member onion sellers’ association, told Al Jazeera. “The number of trucks coming here has now dropped to between two and five daily … If things don’t change, most of us will be out of business,” he said.

The source of the crisis is Niger, four countries away from Ghana, but also a member of the 15-member Economic Community of West African States (ECOWAS).

On July 26, members of the Nigerien presidential guard overthrew Mohamed Bazoum, the country’s democratically elected leader since 2021. In response, ECOWAS imposed a number of sanctions including the closure of borders surrounding Niger – and cut off trade with it.

That decision has stoked a brewing food crisis across West Africa.

Niger is the key exporter of dry onions in the region, responsible for almost two-thirds of total exports in 2021, according to market intelligence platform, Indexbox.

Figures from the Observatory of Economic Complexity (OEC) show that in 2021, Niger exported onions worth $23.4m, making it the world’s 31st largest exporter of onions.

In the same year, onions were the sixth-most exported product for Niger. The main destinations of onion exports from Niger were Ghana ($21.7m), Ivory Coast ($1.15m), Benin ($451,000), Togo ($84,500) and Nigeria ($35,100). All five countries have backed ECOWAS sanctions in Niger.

But the sanctions have triggered a shortage of onions and other food commodities like beans and millet – and driven up the cost in places where supply is still available.

“They [ECOWAS] have blocked the vehicles from coming,” Akteniba told Al Jazeera.

According to Akteniba, before the military takeover, a 100kg sack of onions was selling at $61 but the price has now almost doubled to $105. A 25kg sack of onions now costs $27 compared with $17 before the borders were closed.

Sacks of onions under sheds at the Adjen Kotoku market in Accra [Kent Mensah, Al Jazeera]

A beloved vegetable

The bulb-shaped vegetable is revered in West Africa, where many, including Ghanaians, use it as a staple in their cuisines. Onions are boiled, fried, caramelised or even served raw to garnish many meals.

But the cost of onions has become exorbitant as the country’s economic troubles stew; about a quarter of Ghana’s 32 million people live on less than $1 a day, according to the Ghana Statistical Service.

“I love onions but for some time now I am cutting down on the quantity in preparing meals because it is becoming too expensive,” Deborah Biney, a 40-year-old mother of two, told Al Jazeera. “Before the political situation in Niger, I was buying three big pieces of onions for $0.17 in my neighbourhood, but now I use the same amount to buy just a piece.”

Onions also have several health benefits, including improved blood sugar regulation and increasing bone density, experts say.

Patience Naa Adjeley Adjei, a nutritionist and a home economics teacher, told Al Jazeera that the nutritional value of onions could not be underestimated, saying it would be “disturbing” if households stopped using the vegetables due to the soaring prices.

“Onions have a distinct flavour that adds to dishes and stimulate appetite … they are low in calories and fat but rich in vitamins, minerals and antioxidants,” Adjei stated. “They contain fibre, vitamin C and various beneficial compounds that may have health benefits, including anti-inflammatory and anti-cancer properties.”

Nigeria accounts for 20 percent of the onions sold in Ghana, while Burkina Faso exports about 5 percent of the onions consumed there. Ghana only produces 5 percent of the onions it consumes locally.

But 70 percent of onions, valued at about $2m weekly, have been imported from Niger, according to Food and Agriculture Minister Bryan Acheampong.

“I deem this an embarrassment and a needless drain on our scarce foreign exchange,” he said recently, at the launch of a government programme to boost Ghanaian food sufficiency.

He added that Nana Akufo-Addo’s administration is finalising an “aggressive five-year plan” to build food security and resilience by ensuring year-round production to halt the importation of essential commodities like tomatoes and onions.

Food security

Niger’s military government has refused to release Bazoum and has served notice it wants to remain in power for at least three years before transitioning back to civilian leadership, even in the face of a possible military intervention by ECOWAS.

Experts have warned that if the impasse persists, it could result in dire humanitarian consequences and a food security crisis in the region.

A study undertaken by the United Nations Food and Agriculture Organization (FAO) this April showed that acute food insecurity is on track to reach a 10-year high in West and Central Africa this year as humanitarian assistance is severely hindered by insecurity in conflict-affected areas of Burkina Faso and Mali.

The spread of activities by armed groups in the Sahel is also hindering the food supply chain in the region, the onion sellers’ association said.

“One major issue is attacks on our trucks by terrorists, especially in the Niger area. The coup itself is not affecting the supply of onions and other foods like beans and millet that much, but the state of insecurity,” Peter Appiah Mensah, who owns trucks that cart onions, beans and millets from Niger to Ghana, said.

Speaking to Al Jazeera, Ziad Hamoui, co-chair of the Food Trade Coalition for Africa, said the economic sanctions by the regional bloc on the uranium-rich country, especially the border closure come at a cost.

He called on regional leaders to soften their stance.

“I think it’s still important to maintain the regional trade flows,” said Hamoui, who doubles as president of the Ghanaian chapter of Borderless Alliance, a regional trade advocacy group. “First of all, you can’t really stop trade by blocking the borders. So, closing the borders on one hand, does not solve the issue.

“On the other hand, there need to be policies where countries can be held accountable … we need to have mechanisms in place that allow countries to talk together in cases of complaints and challenges,” he added.

Some of the onion trucks are also stuck behind borders in Burkina Faso, also military ruled and which has allied itself with Mali, to support Niger. In Ghana, vegetable traders are worried that the vegetables might rot and their value depreciate by the time the borders are reopened.

“Maybe, this is a wake-up call for our government to invest more in growing our own onions here in Ghana,” Akteniba told Al Jazeera. “The only problem is that our onions are very small due to the weather but those coming from Niger are bigger. We need to find a solution to this situation.”

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Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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