Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

This study explores the potential impact of climate finance (CF) on food prices in Sub-Saharan Africa (SSA) as climate change continues to contribute to food scarcity and rising food prices. The study analyses data from 43 SSA countries between 2006 and 2018 using a panel fixed-effects model with Driscoll–Kraay standard errors and methods of moments quantile regressions (MMQR). The findings indicate that countries in SSA receiving more climate finance, improving their efforts to combat corruption, experiencing favourable rainfall patterns, facing reduced extreme temperatures, having depreciated currencies, larger populations, and higher GDP growth are more likely to achieve stable or reduced food prices. These factors contribute to lower food imports, increased domestic food supply, and stronger governance and social readiness. Based on these results, the study recommends that SSA governments prioritize anti-corruption measures to strengthen donor confidence and attract more climate finance, ultimately contributing to lower food prices in the region. Furthermore, the findings show that favourable rainfall patterns reduce food prices, highlighting the need for SSA countries to invest in policies that ensure reliable water supplies, such as irrigation systems.