Business
W’African Leaders Slash Taxes, To Curb Food Prices
Niger and Cote d’ Ivoire have slashed or removed taxes on a range of imported basic foods as they try to contain rising food prices.
Rising prices of food have led to protests in a number of countries when they last spiked five years ago.
Grain prices hit record highs on international markets in July as drought scorched crops in the U.S. midwest and Russia, prompting the UN’s Food and Agriculture Organisation to warn that it was concerned about prices although it did not yet see a repeat of the 2007 to 2008 crisis.
Russia’s heat wave has fuelled speculation about export restrictions in the Black Sea producer, while U.S. corn and wheat prices at times rose by 50 per cent in the last six weeks and remain close to highs.
High food prices sparked riots in countries such as Egypt, Cameroun and Haiti five years ago, although the UN has pointed out that supplies of staple rice are more comfortable this time.
Global food price pressures come as many in West Africa celebrate the Muslim holy month of Ramadan, which traditionally drives up prices, and as a food crisis affecting some 18 million people across the Sahel peaks with the onset of annual rains.
“I know we are in a period of rising prices, especially when it comes to basic foods like sugar.
“But I call on businesses to respect promises that they made with the ministry of trade,” Niger’s President Mahamadou Issoufou said in a speech late on Thursday, referring to meetings between the government and traders last month.
Niger has removed all taxes on imported cereals but figures produced by the country’s SIMA agricultural information index showed the price of cereals was 45 per cent higher in July than during the same month last year.
In markets in the dusty capital, 100 kg of millet now costs 30,000 CFA francs, up from 25,000 CFA the month before and 19,000 at the same time last year.
The same amount of maize cost 25,000 CFA francs in July, up from 19,000 CFA the month before, according to SIMA.
Saley Saidou, the land-locked nation’s trade minister, blamed failed rains in Niger and the high cost of transport from ports in nations to the south, as well as world prices for the increases.
Alarm is growing that an expected fall in U.S. grain exports could cause shortages and further jumps in prices worldwide.
Niger, a uranium-producing nation that straddles the south of the Sahara, saw street protests against the cost of living during the 2007 to 2008 food price spike.
Neighbouring Mali, which is gripped by a political crisis in the south and whose northern desert zone is occupied by a range of Islamist forces, has slashed taxes on imported rice and sugar as it too seeks to keep prices under control.
Customs and value added tax on imported rice were reduced in May to a combined 2.5 per cent, down from 31.28 per cent.
Meanwhile, the tax bill for sugar importers has been brought down from 105 per cent to 2.5 per cent.
The move is a welcome relief for a country seeking stability after a March coup precipitated the fall of the north to a mix of rebel forces.
“This year I was surprised to buy a kg of sugar even cheaper than the price fixed by the authorities,”said Moussa Doumbia, a stonemason.
“Long may it continue.”
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Blue Economy: Minister Seeks Lifeline In Blue Bond Amid Budget Squeeze

Ministry of Marine and Blue Economy is seeking new funding to implement its ambitious 10-year policy, with officials acknowledging that public funding is insufficient for the scale of transformation envisioned.
Adegboyega Oyetola, said finance is the “lever that will attract long-term and progressive capital critical” and determine whether the ministry’s goals take off.
“Resources we currently receive from the national budget are grossly inadequate compared to the enormous responsibility before the ministry and sector,” he warned.
He described public funding not as charity but as “seed capital” that would unlock private investment adding that without it, Nigeria risks falling behind its neighbours while billions of naira continue to leak abroad through freight payments on foreign vessels.
He said “We have N24.6 trillion in pension assets, with 5 percent set aside for sustainability, including blue and green bonds,” he told stakeholders. “Each time green bonds have been issued, they have been oversubscribed. The money is there. The question is, how do you then get this money?”
The NGX reckons that once incorporated into the national budget, the Debt Management Office could issue the bonds, attracting both domestic pension funds and international investors.
Yet even as officials push for creative financing, Oloruntola stressed that the first step remains legislative.
“Even the most innovative financial tools and private investments require a solid public funding base to thrive.
It would be noted that with government funding inadequate, the ministry and capital market operators see bonds as alternative financing.
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