Easing Guinea’s Food Insecurity: The IMF’s Food Shock Window

IMF News, June 20, 2024

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The outbreak of the war in Ukraine in February 2022 caused international food and fertilizer prices to rise sharply, exacerbating food insecurity in many parts of sub-Saharan Africa. Guinea was among the worst affected.
By late 2022, 11 percent of the Guinean population—1.2 million people—were facing acute food insecurity.
In December 2022, Guinea received $71 million under the IMF’s Rapid Credit Facility’s Food Shock Window (FSW) to address vulnerable populations’ needs related to the food price shock.
In December 2023, the explosion of the main fuel depot in Conakry caused loss of life, injuries, and destruction of property; the IMF’s Executive Board approved another $71 million support package under the Exogenous Shocks Window of the Rapid Credit Facility to help deal with the aftermath.

Purpose: provide urgent relief through food distribution, fertilizer purchases, and cash transfers to vulnerable communities; funds were channeled through the government budget and implemented by specialized agencies.
World Food Programme (WFP) deployment:
- Used FSW resources to provide emergency food assistance to about 790,000 vulnerable people in crisis-affected households.
- WFP estimates its cash and in-kind transfers program—which used FSW funds—had positive impacts on food security during the lean season, including improved consumption scores among the targeted populations.
- School feeding programs helped to promote the schooling of young girls, addressing education and gender gaps.
Agricultural Development Fund (FODA) deployment:
- Financed 10,000 tonnes of corn imports that were then sold at an affordable price to operators in the poultry sector.
- Acquired 2,500 tonnes of rice seeds and 1,300 tonnes of corn seeds distributed to farmers through seed banks in 35 major agricultural centers across Guinea.
Nutrition and vulnerable support:
- In-kind distribution of tailored nutritional supplements to 60,000 children aged 6-59 months is ongoing to help treat and prevent moderate to acute malnutrition.
- The National Agency for Economic and Financial Inclusion (ANIES) is providing $25 million to help vulnerable groups.
- The Social Development and Indigent Fund (FDSI) is distributing in-kind food and health care vouchers worth around $6 million.

Fertilizer subsidy:
- FSW support allowed the government to temporarily subsidize the price of a 50 kg bag of fertilizer to remain at GNF300,000 during the 2023 agricultural season, compared with GNF500,000-700,000 in 2022.
Mechanization and post-harvest losses:
- Purchase of 32 tractors and 30 harvesters with FSW resources helped reduce post-harvest losses of corn and rice.
- GPS tracking systems provide real-time monitoring to help ensure effective and efficient use of tractors.
Processing and cropping innovations:
- FSW funds were used to operationalize the Sinko rice mill, which can process one hundred tonnes of rice per day.
- Pilot training on Tongil rice from Korea involved people from 109 villages; Tongil rice can be harvested every 3 months instead of the usual 6 months for local rice.

Timing and execution:
- Authorities transferred FSW resources to the WFP and other specialized agencies in May-June 2023; implementation was relatively fast once operational safeguards were established.
Execution rates by end-2023:
- WFP’s execution rate was 80 percent.
- Agricultural Development Fund execution rate was 95 percent.
- Social Development and Indigent Fund (FDSI) execution rate was 81 percent.
Recent setbacks:
- The December 2023 explosion of the main fuel depot slowed implementation since.

Successful program types to incorporate into national strategy:
- National school feeding programs.
- Revolving funds.
- Programs to empower local populations.
Financing and targeting:
- Targeted programs can make an enormous difference in alleviating food insecurity and should continue to be financed through budgetary resources.
- Greater coordination—including on the targeting of program beneficiaries—would have improved implementation.
Preparedness and governance:
- Necessity to put in place structures to scale up programs quickly during emergencies.
- Strengthen reporting and governance practices to ensure transparent and efficient implementation and guarantee the proper use of Fund resources.
Broad commitment:
- The IMF remains committed to supporting Guinea’s efforts to address structural vulnerabilities and provide a stable basis for sustainable economic growth and future prosperity.
- Good policies continue to be essential for the country to be able to develop its potential.

*By Pilar Garcia Martinez, Joseph Ntamatungiro, and Neree Noumon (IMF African Department).*/