Africa's Pulse, No. 25, April 2022

Page 38

The increase in food prices has especially affected poor households in Sub-Saharan Africa where food constitutes a higher share of household budgets. Based on Consumer Price Index (CPI) information, food expenses account for 40 percent of consumer spending while they account for 17 percent of household expenditures among advanced economies.36 Consequently, within African economies, the impact of rising food prices will affect poorer households more than wealthier ones, as the share of food expenditures in the budget of the former is higher. Figure 1.18 plots the national share of food expenditures in household budgets across several countries in the region. The median share of food expenditures is 55.8 percent, with proportions ranging from 28.4 percent (Mauritius) to 73 percent (Burundi). The shares of food expenses in household budgets in Benin, Mozambique, and Uganda are close to the regional median. For the median country in the region, food accounts for 60 percent of the budget for households in the lowest quintile of the income distribution while it accounts for 49 percent of the budget for those in the highest quintile.

75 70 65 60 55 50 45 40 35 30 25 20

Burundi Congo, Dem. Rep. Central African Republic Liberia Rwanda Madagascar Lesotho Malawi São Tomé and Príncipe Niger Gambia, The Kenya Tanzania Chad Guinea Sierre Leone Guinea-Bissau Mali Mozambique Benin Uganda Ethiopia Côte d'Ivoire Zambia Maurtiania Burkina Faso Angola Ghana Senegal Togo Gabon Eswatini Cameroon Congo, Rep. Botswana Cabo Verde South Africa Mauritius

FIGURE 1.18: Food Share in Households’ Budgets across Sub-Saharan African Countries (% of total budget)

Percent of total budget

The share of spending on food is relatively high among the poor in Sub-Saharan African countries.

Source: International Household Survey Network. Note: Low, medium, and high food spending propensity is defined by the 33rd and 67th percentiles of the distribution of the national food budget share across 38 countries in the region. Budget shares do not account for household production.

Regional aggregates, however, hide the heterogeneity of food budget shares across quintiles of the income distribution. Figure 1.19 depicts the food budget shares for countries in the region with low (bottom tercile), intermediate, and high (top tercile) national food budget shares. Poorer households (Q1 and Q2) in countries with low food budget shares nationally tend to spend less than those with higher food budget shares. For instance, households in the bottom 20 percent of the income distribution tend to spend 51 percent of their budget on food in countries with low food spending propensity while that proportion climbs to 69 percent in countries with high food expenditures at the national level. While the top 20 percent households still spend 55 percent of their budgets on food in countries with high national food spending shares, that 36 Bogmans et al. (2022).

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A F R I C A’ S P U L S E


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2.11 Disaster Risk Financing Framework for Adaptive Social Safety Nets

4min
pages 118-119

2.7 Layering Risk Financing Instruments for Adaptive Social Protection: The Case of Kenya

4min
pages 120-122

2.5 Novissi’s Leapfrogging Delivery Model for Shock-Responsive Social Assistance

7min
pages 109-111

2.6 Growing Domestic Safety Net Commitments: The Case of Senegal

2min
page 116

2.10 Share of Connected and Nonconnected Individuals, by Urban and Rural Location

10min
pages 112-115

2.7 Three Emerging Directions for Strengthening Social Protection in Africa

4min
pages 104-105

across the Income Spectrum

2min
page 106

2.9 Social Protection Delivery Chain

3min
pages 107-108

2.6 Three Emerging Insights from the Social Protection Pandemic Response in Africa

1min
page 101

2.3 COVID-19 Fiscal Policy Responses in Support of Workers and Firms in Africa

5min
pages 99-100

2.2 Sierra Leone’s Emergency Cash Transfers in Response to COVID-19

3min
page 98

The Case of the Democratic Republic of Congo

3min
pages 102-103

Evidence on Impacts of Productive Inclusion Programs in the Sahel

2min
page 93

to Promote Inclusion, Opportunity, and Resilience

2min
page 92

A.4 Public Debt in Sub-Saharan Africa, by Resource Abundance

10min
pages 83-87

2.2 New Poor at the US$1.90-a-Day Poverty Line in 2020

1min
page 91

A.2 Output Deviation from Pre-Pandemic Trend

4min
pages 80-81

1.35 Eurobond Issuances as of December 2022

1min
page 57

1.40 Food Price Index in Countries in Sub-Saharan Africa

8min
pages 60-62

1.44 GDP Growth Forecasts for West and Central Africa

31min
pages 66-78

A.1 Natural Resource Revenues Share of GDP, 2004-14

2min
page 79

1.32 Fiscal Balance in Sub-Saharan Africa

5min
pages 53-54

1.31 Evolution of the Current Account

2min
page 52

1.10 Population with at Least One Dose of the COVID-19 Vaccine

8min
pages 27-29

1.18 Food Share in Households’ Budget across Sub-Saharan African Countries

2min
page 38

1.1 Global Shares of the Russian Federation and Ukraine in Food Staples, 2020/21

5min
pages 30-31

1.27 GDP Growth in Nigeria, by Sector

1min
page 46

1.25 Contribution to GDP Growth, Demand Side

2min
page 44

1.26 Output Deviation from Pre-Pandemic Trend

2min
page 45

1.1 The Resurgence of Inflation in Advanced Economies

3min
page 20

1.7 Purchasing Managers’ Composite Index in Sub-Saharan Africa

2min
page 25
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Africa's Pulse, No. 25, April 2022 by World Bank Publications - Issuu