INAFRICA !

INA was in CHINA, now: its a PANDA in UGANDA

Wednesday, May 07, 2008

growing commodity prices

internationally, and especially in africa, food and commodity prices are rising, even resulting in peoples violent unrest in Somalia and Haiti for example. Also here in Uganda we notice the prices going steadily up (inflation up to 9%). i mean, as an expat, with a relatively good salary i can still afford good food (and chocolate ;) ) but for the average consumer the pocket pressure is noticable.
what are the reasons in Uganda? it is by far not biofuels, cause there arent any!
  • seasonal factors
  • increasing trade between the neigbhours, which delivers now a share especially into Sudan and Congo, and the goods are not available for local market.
    For over two years now, Ugandan eggs, chicken and goats have been sold exorbitantly by middlemen to the Sudan. While a tray of eggs cost sh3,000 on most poultry farms in Uganda, the same is sold at sh15,000 in the Sudan. A goat that costs sh50,000 in Uganda goes for sh300,000 in the Sudan. (quoted from; 'new vision')
  • increasing fuel prices: right now diesel is up to 1,2 Euro, and limited availabilty in some petrol stations (pe. i had to try 3 stations today to get my diesel)
  • kenya after election crisis
  • high exploitation and depletion of fish. Lake victoria is on the edge of beeing 'overfished" from telapia and perch, and additionally the good fish is exported to europe, america etc..
  • imported inflation from other countries
  • the weakness of agricultural production (very far behind technology, even call it primitive). growth rate only 0.4% and this in a country where 80% of population lives in rural areas and depend on agriculture!
and what is still not mentioned is the growth of population with more mouths to be feeded!
and given all factors of high demand, and steady growing fuel prices (even up to 200$ predictable) the prices are foreseen to remain high and even rise more. on a global and ugandan scale. Farmers itself will not benefit from the rising prices, cause it is all channeld via the middlemen , who collect and resell the good to the markets.
a social unrest is not foreseen, but how can the already poor cope with this situation, is the big question...

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