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Some fuel pumps have run dry in the center and north of the country in recent days. The aviation industry has also been hit hard, with a number of airlines suspending some flights to Mozambique, according to the Confederation of Economic Associations, Mozambique’s biggest business lobby group.
Mozambique is facing acute dollar shortages, which is grossly affecting its food and oil imports. It is now taking a more serious toll as companies struggle to source crucial inputs like wheat, according to the Mozambique Bakers Association.
Shortages or price rises would add to social tensions that have intensified after October’s disputed elections. At least 361 people have died in the unrest, according to the Decide Platform, a local monitoring group.
Mozambique maintains a “de facto stabilised arrangement” for its currency, the metical, according to the International Monetary Fund. And pressure has been building. By November, the local unit was overvalued by as much as 40%, with the real effective exchange rate near the highest since 2015, S&P Global Ratings said at the time.
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Some fuel pumps have run dry in the center and north of the country in recent days. The aviation industry has also been hit hard, with a number of airlines suspending some flights to Mozambique, according to the Confederation of Economic Associations, Mozambique’s biggest business lobby group.
