Sugar Shock in Burundi: Prices Skyrocket from 3,300 to 8,000 FBu per Kilo – But Are the Reasons Adding Up
Sugar Price Increase in Burundi: A Necessity for Downward Revision
The official price of sugar was set at 8,000 FBu per kilo, an increase of 4,700 FBu.
As of September 14, 2024, the official price of sugar in Burundi has been set at 8,000 FBu per kilo, marking a significant increase compared to the old price of 3,300 FBu. This price hike has been met with criticism from various stakeholders, including the Burundian Consumers Association (ABUCO), which has called for a downward revision of the price.
Justification for the Price Increase
Aloys Ndayikengurukiye, Managing Director of SOSUMO, explained that the increase is due to the rise in production costs and raw material prices. However, this justification has been questioned by Evariste Ndayishimiye, the President of the Republic of Burundi, who argues that the company’s foreign currency reserves should have mitigated the need for such a drastic price increase.
Impact on Consumers
The Burundian Consumers Association (ABUCO) has expressed its concern over the impact of the price increase on consumers, particularly during the back-to-school period when children require tea, bread, or donuts. ABUCO’s secretary general and spokesperson, Noël Nkurunziza, has called for a downward revision of the price to alleviate the situation of households.
Instability in Sugar Marketing
Recently, the government took steps to zero-rate sugar to facilitate its marketing and importation. However, this decision was later reversed, and the sugar trade was liberalized, allowing traders to import sugar and set their prices freely based on production or import costs. This development has caused an uproar, particularly among consumers who are struggling to cope with the increased prices.
Fragility of Sugar Production
The Société Sucrière du Moso (SOSUMO) has struggled to satisfy its customers since its creation in 1988. Despite slow production, demand for sugar continues to grow, fueled by the emergence of agri-food companies and new beverage producers. As a result, sugar imports continue to increase, more than doubling domestic production.
A partnership has been established between the Burundian government and the Ugandan group Sarrai Group to support SOSUMO in improving its production. However, the work has not started yet, and the future of sugar production in Burundi remains uncertain.