Mozambique: U-turn On Price Rises
In the wake of last week’s riots in Maputo against price increases, the Mozambican government has done a U-turn and agreed to reduce the fuel prices and subsidise bread. Whilst there is a lot of debate to be had about the supply and demand and the resultant speculation of food stuff, maybe the government will learn to increase prices gradually to allow people to adjust to new prices – price hike wherever they happen in the world are hard to swallow especially for poor people.
I do feel for them through – the increases have to be paid for and the government has to find the funds somewhere. With one of the fastest growing economies in Africa, one is hopeful that the costs can be borne from growth rather than by borrowing.
allAfrica.com: Mozambique: Government Backs Down On Price Rises.
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