Sweet Scarcity: Burundi’s Sugar Shortage Persists Despite Skyrocketing Prices
Many stakeholders had welcomed the recent upward revision of the price of sugar with reluctance. Associations and unions have criticized this measure. After the head of state expressed his opinion on this, no concrete action was taken. In addition, the initiatives taken to revive Sosumo were unsuccessful. The population no longer knows where to turn to access this rare product. Despite this much-criticized progress, this strategic commodity is still not available on the market.
Despite the decision to increase the price of sugar taken recently by SOSUMO from 3,300 FBu to 8,000 FBu per kilo, this strategic commodity is still not available on the market.
During a moralizing session held on Thursday September 19 in the province of Cankuzo, the President of the Republic, Evariste Ndayishimiye, returned to the recent increase in sugar prices. He denied the reasons given by the Director General of Sosumo: “They lied to us. They told us that the bag costs 400,000 FBu. I found out that it was 243,000 FBu in Bujumbura, while the importer got his supplies of foreign currency on the black market. » He also said that Sosumo executives have not brought any added value to the country and, as a result, they are traders like so many others. Evariste Ndayishimiye called on the Minister responsible for trade to review this decision which has been heavily criticized.
Very expensive, very rare
Burundi has been facing severe sugar shortages for years. The Société Sucrière de Mosso (SOSUMO), the only local company that produces sugar, finds it difficult to satisfy its customers, because its production capacity evolves in a sinusoidal manner. In its press release dated July 27, 2024, that company announced an increase in the price of sugar which rose from 2,500 BIF to 3,300 BIF per kg. Consumers only receive one or two kilos of sugar and must present the household notebook to be served. However, the scarcity of this commodity continues despite the decision to increase the price of sugar recently taken by SOSUMO from 3,300 FBu to 8,000 FBu per kilo.
Despair of the population
After hearing the response of the President of the Republic to this extremely unpopular decision, the population rejoiced. However, he notes that no concrete steps have yet been taken to remedy the situation: “We heard that the Head of State is angry against this SOSUMO measure. This is a good response as head of state, even if he did not stop this measure or condemn SOSUMO executives, whom he described as “liars”. As of today, nothing has been done and the price has not changed.
And he added: “Think of a child entering the first nursery. He leaves the house at 7:30 am without having tea and returns at 12 pm due to shortage of sugar. We hope that SOSUMO will reverse this decision, as ordered by the Head of State and we will be very happy to go to a store where this product is sold at least 4,000 FBu per kilo.”
COSYBU is also challenging this measure
In its press release on September 20, 2024, the Confederation of Trade Unions of Burundi (COSYBU) was surprised to note that SOSUMO is participating in speculation to increase the unit price of sugar. This comes as the Ministry of Finance, Budget and Economic Planning announced a zero sugar rate for the current financial year as well as measures to facilitate the marketing and import of this strategic commodity such as the removal of the consumption tax, VAT, and the discount in customs from 100% to 25%.
She asks the government to stop this measure which will only plunge a large number of Burundians into uncertainty and to stabilize and regulate the prices of essential goods and services while ensuring liberalization for products or services that do not have a direct impact on the most vulnerable populations, especially children and the elderly.
Where did the Sarrai Group go?
In order to revive and promote SOSUMO production, the government planned to link the Société Sucrière du Moso (SOSUMO) with Sarrai Group, a Ugandan company. During the lively public broadcast on December 29, 2023, the Head of State noted that he had visited this company which was considered very efficient in managing the sugar shortage in Uganda, a country that previously sourced its sugar from Burundi .
So Evariste Ndayishimiye confirmed that the production will reach 300,000 tonnes per year in three years and that the staff could have up to 12,000 people. In this context, the country will be able to export 200,000 tonnes of sugar per year and therefore earn foreign currency.
As a reminder, the Ministry of Commerce in collaboration with the Ministry of Finance has authorized the liberalization of sugar trade since August 8, 2024. Therefore, the price of sugar would be determined by the law of supply and demand. As a result, all authorizations and exemptions already granted to sugar importers have been canceled and they have been asked to submit a new application under the conditions to be set by the Ministry of Commerce.