Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Abstract

This study explores the potential impact of climate finance (cf) on foodprices in Sub-Saharan Africa (SSA) as climate change continues to createfood scarcity and increase food prices. The study analyses data from43 SSA countries between 2006 and 2018 using a panel fixed effect modelwith Driscoll-Kraay standard errors and methods of moments quantile regressions(MMQR). The findings indicate that countries in SSA that receivemore cf, improve their fight against corruption, have good rainfall patterns,experience reduced extreme temperatures, have depreciated currencies,larger populations and higher GDP growth, reduce food imports, increasedomestic food supply, and demonstrate high governance and socialreadiness are likely to experience stable or reduced food prices. Based onthese results, the study recommends that SSA governments prioritise anticorruptionefforts to earn donor trust and increase CF, ultimately leadingto lower food prices in the sub-region. Further, the findings indicatethat good rainfall patterns reduce food prices: this shows the need for SSAcountries to invest in policies that lead to reliablewater supply as irrigation.