Food prices, Rwanda corner

Rwandans advised to check private sector through consumer activism

BY GEORGE KAGAME

The Minster of Local government has asked Rwandans to be active consumers who can have their views addressed by the private sector instead of relying on government to set out all the policies in the country.

Protais Musoni was Friday a press conference at his ministry headquarters in Kacyiru and was responding to a question about increasing food prices in Rwanda and the fact that agricultural produce is sold at much cheaper prices in districts not so far away from Kigali like Msanze while in Kigali city food prices are exorbitant.
Musoni said a kilogram of irish potatoes in Musanze cost as low as Frw 60 while the same quantity could be as high Frw 150 -200.

Musoni said some policies like price regulations in food prices are no longer independent and are very complex for a country to adopt today, “if you set prices for foodstuffs like Egypt does for wheat, you invite the attention of IMF and World Bank to question your commitment to a free market economy, the risks can be as bad as reducing aid,” said Musoni.

The Egyptian funds the importing of wheat and prices for bread in that country are very low because taxes are subsidized. Bread is the staple food of Egypt.
Many businessmen in Rwanda mention high taxes charges and transport cost as the reason why prices of many commodities are very high making the cost of living in Rwanda higher than that of neighbouring countries like Uganda, Kenya and Goma in Eastern DR Congo.
Prices of agricultural produce are high in Kigali because of high fuel costs to transport foodstuffs from rich agricultural areas like Musanze Kigali businessmen say.

Musoni said government had abolished tax charges on agricultural products in the country; however he said the increase of food prices was because of increasing fuel prices.

He called upon Rwandans to be more active in determining the standards of the commodities they consume; “Rwandans should be more active consumers. They should question the sellers (of services and goods) instead of relying on government to make all the decisions.”


Increasing food prices have been the cause of political violence and death in and will present future concerns like war according to UN secretary general Ban Ki Moon who wrote recently wrote in an international newspaper article that...@@@@@@@@@@@@@....................

Last week another senior UN official said.........................................