Governments in Sierra Leone,
Guinea and Liberia have all declared states of emergency in order to restrict
people's movements from affected areas and limit new infections. This has included
the closing of borders, as well as bans on large gatherings such as markets and
schools. It is difficult to accurately assess the economic impact of the Ebola
outbreak at this early juncture; the Business Monitor believes, however, that
the restricted movement of goods, people and money - the lifeblood of a functioning
market economy - will inevitably disrupt economic activity within the three
countries in question and drag on real GDP growth over the coming quarters.
Although the economic impact is expected to be most keenly felt in the
above-mentioned three economies , the effects are also likely to be felt across
the wider region. Furthermore, trade and commerce within these countries has slowed
markedly in recent months. The closure of borders is disrupting supply chains
by removing key production inputs as well as weighing on export-derived revenue
streams and, by extension, hitting already fast deteriorating government finances.
The increased scarcity of essential goods will exert growing pressure on prices
and erode purchasing power. Disruptions to the food supply are hard to quantify
but pose a growing risk to local communities. Anecdotal evidence suggests that
agricultural activity has been significantly impacted as farm workers in affected
areas have left their land. The longer the crisis continues (and spreads), the
greater threat this poses to food security and inflation in the affected countries.
Deutsche Welthungerhilfe recently conducted a rapid assessment of the impacts
of Ebola on the livelihoods of rural communities, agricultural production and
food security. The study came up with the following key findings: (i) people's
income has dropped; (ii) food production is decreasing; (iii) limited availability and increased costs of
food; (iv) access to credits has decreased; (v) volume of traded commodities
has dropped significantly.
IFAD is currently supporting
three projects in Guinea.
The National Programme to Support Agricultural Value Chain Actors (PNAAFA) is
being implemented nation-wide, including the border area with Liberia and
Sierra Leone, which is the most affected region in the country. PNAAFA is still
operational, but the project staff cannot visit villages that have been
affected by Ebola. The crisis is having a serious impact on the farmers
involved in IFAD supported projects, also those coming from areas that have not
been hit by Ebola. The potato producing region of Fouta Djallon, for example,
has not been affected by the virus, but it is nevertheless facing serious
problems due to the fact that the farmers cannot export their potatoes to the
neighbour countries. As a result, the price of potatoes has dropped from 3,500
to 2,000 Guinean Francs per kilogramme. Moreover, while in August 2013 farmers
of Fouta Djallon exported 250 tonnes of potatoes to Senegal, quantities have
now dropped to 22 tonnes or less than 10
% of what they were exporting before. It has been estimated that farmers are
losing US$6,5 million due to the trade limitations. With their incomes reduced,
farmers are experiencing difficulties in paying back the loans they got from
the rural banks to purchase seeds and fertilizers. Farmers has asked PNAAFA for
support. Some of the project’s grants are therefore now being used by producers’
organisations to allow farmers to purchase seeds and fertilizers for the next
planting season.
In Sierra
Leone, all districts have been affected by Ebola. Kenema, Kailahun,Bombali,
Moyamba and Port Loko districts have been put under quarantine for more than
one month now. IFAD is currently supporting
three programme in the country. By-laws discourage farmers living in the
intervention areas from attending to their fields and households struggle to
find labourers for their farms. Also due to various government restrictions,
access to markets is seriously limited. Food availability has decrease and
prices are soaring. Although the rural finance institutions supported by IFAD
are open at the moment and still providing financial services, the portfolio at
risk has increased significantly. In response, IFAD has provided farmers and
projects staff with the protective gear. Communication campaigns are being held
in the communities on how to deal with an Ebola breakout. Training is also
being given to communities on hygiene in coordination with other UN agencies
and the Ministry of Health of Sierra Leone. Finally, IFAD is working with the
Ministry of Agriculture to develop a plan to help the agricultural sector recover
once the Ebola crisis has passed.
Liberia
accounts for more than half of all the official Ebola deaths, with a total of
2,697. There are currently two IFAD supported programmes ongoing in the
country. The outbreak of the virus has further evidenced Liberia’s limited
institutional capabilities and has resulted in a near collapse of the country’s
economy. It also threatens to wipe out all gains made post the civil war. Trade
with Liberia is drastically reduced leading to skyrocketing prices and
shortages. Farmers are restricted to tend to their crops, savings are being
depleted, private operators are reluctant to conduct business with farmers from
the affected areas and rural financial institutions are operating at a minimum
capacity. IFAD is working together with other
UN agencies to limit the spreading of the disease and protect assets financed
with IFAD funds.
Lastly, IFAD underscores
the importance of dealing swiftly with the emergency in West Africa, as well as
investing in long-term agricultural development to build resilience in rural
areas. It has pledged US$3 million to support the World Food Program in their
efforts to address food and nutrition security in rural communities in the
worst hit countries.