In February, Mozambique faced a 4.47% increase in goods and services prices, driven primarily by a 4.74% rise in food service costs. Urban centers, notably Tete and Xai-Xai, recorded the highest increases. Raw material costs, worsened by post-election protests, prompted businesses to adjust prices, while some took risks to maintain customer loyalty. The restaurant sector is struggling amid uncertainty and fluctuating tourist numbers.
In February, Mozambique saw a significant rise in the prices of goods and services, with an overall increase of 4.47%, largely driven by a 4.74% surge in food service prices, per the National Institute of Statistics. Categories experiencing the highest price hikes included food and non-alcoholic beverages (11.89%) and restaurants and hotels (6.20%).
Urban centers particularly felt the pressure, with Tete recording a leading price rise of 6.85%, followed closely by Xai-Xai at 6.17%. Maputo, accounting for most of the statistical sample, had a 4.74% increase, while Nampula reported 4.71% and Quelimane the lowest at 3.45%.
Our investigation in Maputo highlighted that rising raw material prices, aggravated by post-election protests, were the primary factor behind these increases. A bakery employee, Wilma da Cruz, noted that some suppliers had ceased operations, pushing them to adjust their pricing: “Not all of our products have been increased in scale… we tried to limit increases to 10%-20% of our normal prices.”
Adopting different strategies, some businesses absorbed costs to avoid driving away customers, while others, like Raquel Lopes’ restaurant, opted for price increases to maintain sales. Lopes emphasized the importance of adaptability, stating, “we try to manage… leaving aside what is, let’s say, international…using more national ones.”
The restaurant sector faces ongoing challenges. Anaisse Perreira from a snack bar expressed concern over significant drops in sales and the uncertainty of daily operations: “We can’t say that we are happy with the accounts… these have been blank moments – we are not sure of anything at the moment.”
Perreira’s team is striving to boost sales amidst declining tourist numbers. She noted that local supply chains have faced disruptions, reflecting on the difficulties: “We often had difficulty obtaining our daily products because we work with local suppliers… many times the markets were empty.” Many businesses, having suffered during the protests, remain unsure about their future operations.
Mozambique is experiencing rising commodity prices in February, particularly in the food service sector, which has been affected by supply chain disruptions due to post-election unrest. Urban centers are most impacted, with prices rising sharply in various categories. Business owners are facing difficult decisions to manage costs while trying to attract and retain customers in a shaky economic landscape. As local operations strive to adapt, uncertainty remains a significant challenge in the restaurant and food sector as businesses look to stabilize their finances amidst turbulent market conditions.
Original Source: clubofmozambique.com
