Key Achievements
- 53 million people living in the vicinity of the Abidjan-Lagos trade and transport corridor benefited from reduced travel times and easier movement of people and goods along the corridor between 2010 and 2018.
- 1.5 million people in Nigeria gained access to an all-season road within 2 kilometers (km), between 2008 and 2016, resulting in improved access to markets and services, and enabling farmers to sell their produce at higher prices.
- Nearly 100,000 rural residents in South Sudan, 48 percent of whom were women, gained all-season access to key services and markets between 2012 and 2016.
- The border crossing time at the Raxaul-Birgunj border post between India and Nepal was reduced by 62 percent from 2.3 days to 0.87 days between 2013 and 2021.
- Costs for trucks operating on the Osh-Batken-Isfana road corridor between the Kyrgyz Republic and Tajikistan decreased by 20 percent between 2014 and 2019.
Challenge
As of 2023, progress toward achieving Sustainable Development Goal (SDG) 2, Zero Hunger, was significantly off track, with more than 250 million people estimated to be facing food crises. The cost of transport is a significant factor impacting food prices and food security, particularly in the world¡¯s poorest countries, where food expenses can reach 70 percent of household budgets. In some parts of Africa transport prices at the local level can make up as much as 50 percent of the price of food. In many developing countries, inadequate infrastructure along the supply chain and inefficient transport services lead to high transportation costs and delays, food price volatility, shortages, and post-harvest losses. For example, according to the , in sub-Saharan Africa, the value of post-harvest losses registered each year for grains alone exceeds the value of food aid received over the past decade and is equivalent to the annual value of cereal imports.
Additionally, supply chain disruptions such as those caused by the COVID-19 pandemic, conflicts, and the effects of climate change, can lead to a complex set of challenges that increase the cost of transporting food products, affecting the entire food supply chain from producers to consumers even at a global scale. Russia¡¯s invasion of Ukraine in early 2022 exacerbated food supply pressures that had been triggered by the pandemic. The invasion halted Ukraine¡¯s grain exports for some time and led to a search for alternative arrangements to reconnect to global markets for grains in particular. The combined effects of the COVID-19 pandemic and the war in Ukraine led to an increase of 56 percent in real terms in the between February 2020 and March 2022, when it reached a peak. The index has since receded from this high point, but in February 2024 it was still 10 percent higher than it was in February 2020, in real terms.
Approach
World Bank-funded transport projects focus on improving access to agricultural inputs and food products, reducing transport costs, decreasing cross-border trade time and costs, and facilitating the transportation of food and agricultural inputs within and between countries and regions. The projects are designed to help countries maintain and enhance connections to local and international markets, which is crucial for providing access to inputs, ensuring food availability, stabilizing prices, minimizing post-harvest losses, and addressing deprivation during shortages or significant disruptions to food systems.
World Bank support enables countries to expand their transportation infrastructure creating resilient networks in rural areas and at regional levels. Transport operations are tailored to the needs of each context typically combining infrastructure (ports, roads, railways, airports, and border crossings) and policy and regulatory reforms. This approach aims to ensure that farmers have better access to agricultural inputs, and people enjoy increased food security through better access to fresh, diverse, and affordable food options. Reduced transport costs also lead to less food waste and support economic development in general.