Food Prices and Economic Well-Being in Sub-Saharan Africa

Abstract

Over the years, Sub-Saharan Africa has been one of the regions worst hit with the deleterious effects of food insecurity owing to the soaring prices of food items. Therefore, this paper examines the effects of rising food prices on economic well-being in 31 Sub-Sahara African countries from 2001-2012 using panel regressions. Findings from the study reveal that both contemporaneous and the initially prevailing food prices impact negatively on economic wellbeing in the region. Thus, it is recommended that governments should put in place policies and measures (like social safety nets, targeted food subsidies, special cash transfers) that will enhance and supplement income earnings of the people and improve their economic access to sufficient food.

Keywords: Food prices, Food insecurity, Economic well-being, Panel regression, Sub-Saharan Africa