The Group of Seven nations have allocated €2.5 billion ($2.8 billion) to provide fertilizers and strengthen food security for poorer countries, especially in Africa, French Finance Minister Roland Lescure said.
The funding will support the deployment of fertilizers to countries including 44 nations identified by the World Bank as being at risk of facing food security issues. Lescure, whose country currently leads the G7, made the announcement in Bangkok on Thursday.
The war in the Middle East has disrupted the flow of fuel and fertilizers from the Persian Gulf through the Strait of Hormuz. That has increased costs for growers and raised fears of a global food crisis.
The situation prompted G7 leaders in June to adopt a joint action plan aimed at mitigating the effects of higher costs for crop nutrients. The new €2.5 billion commitment is part of that effort to shield vulnerable nations from the supply shock.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing