In February, Mozambique saw a 4.47% overall increase in prices, with food services rising by 4.74%. Major urban centers like Tete and Xai-Xai recorded the highest hikes. Businesses attributed these increases to disruptions from post-election protests, leading to price adjustments while striving to retain customer demand. The restaurant sector remains particularly affected, facing uncertainty yet demonstrating resilience in the evolving economic landscape.
In February, Mozambique experienced a notable increase in the price of goods and services, driven primarily by a 4.74% rise in food service prices, as per the National Institute of Statistics’ monthly report. Consumers encountered greater challenges in finding affordable options, with an overall price increase of 4.47%, higher than the same period last year. The report highlights significant price hikes in food and non-alcoholic beverages, and the restaurant sector, which saw increases of approximately 11.89% and 6.20%, respectively.
The report indicates that the most significant price increases occurred in urban centers, with Tete leading at around 6.85%, followed by Xai-Xai at 6.17%. Maputo, which constitutes a significant portion of the data, experienced a 4.74% increase, while Nampula saw a 4.71% rise, and Quelimane recorded the lowest at 3.45%. An investigation into food establishments in Maputo revealed that post-election protests contributed to increased raw material prices.
Wilma da Cruz, an employee at a bakery on Avenida Julius Nyerere, stated that while customer traffic was initially good, disruptions with suppliers forced them to alter their sourcing. The bakery has adjusted prices selectively, opting for increases of only 10%-20% to retain their clientele.
Conversely, Raquel Lopes, a restaurant owner, acknowledged the pressures of raising prices but emphasized the need to balance customer relations. She noted that maintaining sales levels required a strategic approach, including the adaptation of menu items to prioritize local ingredients over imported ones.
Challenges persist for the restaurant sector, as articulated by Anaisse Perreira, a snack bar manager, who described the financial climate as complicated and unstable. The impact of Ramadan further affects business, with reduced customer footfall. Anaisse and her team are focused on improving sales while managing costs effectively.
Despite ongoing difficulties, there is a sense of resilience among business owners. Anaisse recounted the uncertainty they face daily, highlighting disruptions in supply chains due to local harvests and transportation issues stemming from post-election turmoil. Many businesses temporarily closed, contributing to the prevailing economic strain, with uncertain timelines for reopening.
In summary, February’s rise in prices across Mozambique highlights the economic pressures faced by consumers and businesses alike. The significant increases in food service and essential goods reflect broader challenges influenced by political and supply chain disruptions. Business owners are employing various strategies to manage costs and retain customers amid an unstable market, indicating resilience and adaptability within the sector despite uncertain circumstances.
Original Source: clubofmozambique.com
