Senegal: Bassirou’s govt unveils plan to cut down prices of essential commodities

Senegal’s new government announced on Thursday it’s plans to cut down the prices of rice, oil, bread, and other essential products in response to cost-of-living issues caused by rising unemployment and inflation.

President Bassirou Diomaye Faye, who was elected in March, promised throughout the campaign to solve the West African nation high costs of living, which rely mainly on imports.

In recent weeks, the subject has received a lot of attention in the media and on social media, with many people claiming it is a top priority.

Under the measures, the price of a kilo (2.2 pounds) of the most widely consumed type of rice will be reduced by 40 CFA ($0.065, 0.061 euros), while a baguette will cost 15 CFA (0.023 euros) less, the government announced at a media conference.

The reductions, which also cover cement and fertiliser, will take effect in the next few days, government secretary general Ahmadou Al Aminou Lo told reporters.

Spending on food accounts for half a Senegalese household’s budget, Lo said, adding checks would be stepped up to ensure traders respect the new prices.

Budget Minister Cheikh Diba said the government would forego taxes and customs duties imposed on importers to subsidise the price cuts.

The measures will cost 53.3 billion CFA (more than 81 million euros, $87 million), Diba said.

But the government did not say how long the measures would apply.

At least a third of Senegal’s population lives in poverty, while unemployment stands at around 20 percent.

Senegal joined the club of oil-producing countries this week as Australian group Woodside Energy announced that production had started in the country’s first offshore project.

Faye vowed that profits from the country’s gas and oil resources would be “well managed”.

AFP