In February, Mozambique saw a 4.47% increase in prices influenced by a rise in food service costs. Urban centers like Tete and Xai-Xai recorded the highest increases. Local businesses faced challenges due to post-election protests affecting supply chains, leading to strategic price adjustments to maintain customer demand amidst ongoing uncertainty in the sector.
In February, Mozambique experienced significant price increases for goods and services, largely driven by a 4.74% rise in food service costs, as reported by the National Institute of Statistics. The overall price increase of 4.47% was more pronounced than in the same month the previous year, particularly affecting food and non-alcoholic beverages, which rose by approximately 11.89%. Moreover, sectors such as restaurants, hotels, and cafes saw an increase of around 6.20%.
Key urban centers were observed to face the highest price spikes. Tete recorded the steepest increase at approximately 6.85%, followed by Xai-Xai at 6.17%. Maputo, encompassing a majority of the sample, saw a rise of 4.74%, while Nampula had a 4.71% increase. Quelimane experienced the lowest rate of increase at 3.45%.
Investigations into local food establishments in Maputo reveal that the rising costs of raw materials post-election protests largely attribute to price hikes. Wilma da Cruz, an employee at a bakery, noted that recent supplier changes prompted necessity for price adjustments to keep customer demand stable despite challenges. She expressed, “Not all of our products have been increased in scale, one or the other, to be able to maintain customers,” while limiting the price increase to 10%-20%.
Conversely, Raquel Lopes, who operates a restaurant, reflected on the dilemma of maintaining sales against supplier price increases. She stated, “Knowing the situation, increasing the price is the most viable and quickest solution, but we also have to understand the situation versus the customer a little.” Lopes elaborated on the adaptability of offerings to balance quality and cost.
Despite these adaptive measures, uncertainty pervades the restaurant sector, as indicated by Anaisse Perreira, a snack bar manager. She conveyed, “I can’t say that we are happy with the accounts, nor that things are normal,” acknowledging the continuing challenges exacerbated by the reduction of Muslim clientele during Ramadan. Her efforts include cutting costs to boost sales amid a downturn.
Business owners are gradually recovering from turbulent times that jeopardized their ventures. Anaisse shared, “There were several moments of uncertainty,” highlighting closures during protests, unpredicted customer flow, and difficulties in sourcing daily necessities from local suppliers, emphasizing the fragile state of the food supply chain and local markets. Many businesses remained shut during the unrest without clear timelines for reopening.
The rise in prices of goods and services in Mozambique during February illustrates a challenging economic environment influenced by various factors, particularly post-election protests leading to instability in raw materials supply. The retail and restaurant sectors are actively adjusting pricing strategies to retain customer bases while coping with elevated costs. Despite efforts to mitigate losses, uncertainty prevails among business owners as they navigate a complicated landscape marked by fluctuating demands and supply challenges.
Original Source: clubofmozambique.com
