Africa’s biggest problem is politics of brokerage, says Matsanga

Chairman of Pan African Forum Dr David Matsanga has joined the conversation regarding the high cost of living in the continent saying the biggest problem of Africa is “politics of brokerage” that causes artificial increase in the price of basic commodities.

According to economic experts,the greatest threat to macro-economic stability in the coming months are the prevailing high consumer prices which are rising across a broad spectrum of goods and services and impacting the cost of living adversely — especially for those on low income.

Matsanga on his part believes the cost of living is high world wide but the level of corruption makes matters worse for some countries.

“The increase of fuel prices and that of other commodities is due to brokerage economy.For example in Kenya there are too many middlemen and brokers than honest traders and investors who create artificial price increases. Then all is blamed on the Government of Kenya” he said.

Locally,the transport sector might soon be paralysed if the shortage continues, underlining the immediate and painful impact of the oil crisis.

Public service vehicles might hike fares, hitting millions of commuters hard, most of whom are already finding it hard to make ends meet in a struggling economy that had been suffocated by the pandemic

The recent increase in food inflation is attributed to rising oil prices (which raise fertilizer prices and transportation costs), droughts and export restrictions imposed by some major food exporters, and stockpiling in some countries

Matsanga who is also a conflict resolution expert argues that according to the UNs global food price index, in the last year, the cost of cereal went up almost 13%, meat- 17%, sugar- 20%, and vegetable oil- 34%.

“There is no doubt Inflation is rising around the world and Kenya is not exceptional. In sub-Saharan Africa, food is driving the trend more than others: food prices account for roughly 40% of the region’s consumption basket” he added.

Four days ago,Dakar in Senegal was ranked as the most expensive city to live in Africa as of 2022, considering consumer goods prices.

The Senegalese capital obtained an index score of 50.87, followed by Addis Ababa, in Ethiopia, with 50.49. Morocco and South Africa were the countries with more representatives among the 15 cities with the highest cost of living in Africa.

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