Is climate finance aiding food security in developing countries? A focus on Sub-Sahara Africa

This study seeks to find out whether climate finance (CF) geared toward 35 Sub Saharan Africa (SSA) countries is assisting to achieve food security in the continent. To achieve this objective, we adopted FAO’s classification of food security of 4 main dimensions: food availability, access, stability and utilization and use principal component analysis (PCA) to generate food security indexes corresponding to the different dimensions of food security. The data was analyzed using system generalized methods of moments (GMM) whereas panel quantile regression (PQR) was employed as a sensitivity analysis. Our findings show that climate finance is more useful in securing food availability but fails to enhance food access, stability and utilization. Further analysis shows that other factors such as foreign direct investment and government readiness have more impact in enhancing the different dimensions of food security whilst rural population, agricultural spending, agricultural land and capacity have more adverse effects on food security. Relevant policy implications based on our analysis are discussed.