Strengthening rand increases Mozambique’s food import prices

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Strengthening rand increases Mozambique’s food import prices

12:20 CAT | 17 May 2016

The depreciation of the metical against the South African rand looks set to undermine domestic measures to curb the rise in imported food prices. One rand now costs close to 4.5 meticais, up from the usual exchange rate of three meticais.

Faced with the rising cost of food in recent months, the government agreed with customs and micro importers to reduce reference prices for imported fresh produce, and importers said that this, combined with the recovery of domestic and South African production, would allow food prices to fall if the metical kept its value against the rand. But this has not happened.

Minister of Industry and Trade Max Tonela recently said that if the agreement was not complied with he would meet stakeholders again to ensure that his goal was achieved.

Despite food remaining expensive generally, the price of tomatoes has dropped from around 700 meticais to 350 meticais a box. Other products have however recorded insignificant fluctuations.

Source: O País