President Bassirou Diomaye Faye, elected in March, pledged during his campaign to address high living costs in the West African nation, which heavily relies on imports. The issue has been prominent in the media and on social media, with many considering it a priority.
The government announced at a media conference that the price of a kilo (2.2 pounds) of the most widely consumed type of rice would be reduced by 40 CFA ($0.065, 0.061 euros), and a baguette would cost 15 CFA (0.023 euros) less. These reductions, which also cover cement and fertilizer, will take effect in the next few days, according to government secretary general Ahmadou Al Aminou Lo.
Lo stated that food spending accounts for half of a Senegalese household’s budget and emphasized that checks would be increased to ensure traders respect the new prices. Budget Minister Cheikh Diba noted that the government would forgo taxes and customs duties imposed on importers to subsidize the price cuts, which will cost 53.3 billion CFA (over 81 million euros, $87 million).
However, the government did not specify how long the measures would last. With at least a third of Senegal’s population living in poverty and unemployment around 20 percent, these measures are significant.
Additionally, Senegal joined the ranks of oil-producing countries this week as Australian group Woodside Energy announced the start of production in the country’s first offshore project. President Faye assured that profits from the country’s gas and oil resources would be “well managed.”