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Protest Fears Freeze Mozambique Capital as Cost of Living Bites
(Bloomberg) -- Mozambican schools closed and office workers mostly stayed at home in the capital of Maputo as fears grew that cost-of-living protests could turn violent.
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The city was largely deserted and law enforcement on high alert after an anonymous recording circulated on social media called on citizens to take part in an “historic” demonstration on Thursday. Bus operators have already been on strike to demand the government allow fare increases to match climbing fuel costs, both in Maputo and the port city of Beira.
Unrest has been growing across Africa, including in neighboring South Africa, Ghana, Uganda and Guinea, as populations grapple with soaring food and fuel costs in part driven by drought and the impact of Russia’s invasion of Ukraine.
The annual inflation rate in Mozambique, the world’s third-poorest nation, surged to the highest in nearly five years in June, and that was before the state regulator increased diesel pump prices by 11% on July 2. Some roads were blockaded as people burned tires early in the morning.
The World Bank took the unusual step of agreeing to pay subsidies for urban transport users in Mozambique, while also providing unconditional cash transfers to the most vulnerable and poorest citizens for as long as six months. The government has mobilized about $50 million for passenger subsidies, Finance Minister Max Tonela told reporters last week. The state plans another $85 million in assistance for the most disadvantaged families, he said.
Protests have been relatively rare in Mozambique in recent years as police are generally quick to crack down on demonstrations. The last deadly unrest was in 2010, when Maputo residents rioted against rising costs, including bread.
The government is struggling to put down an Islamic State-linked insurgency in the north of the country that’s left more than 4,000 people dead, prompted hundreds of thousands to flee their homes, and frozen a $20 billion project TotalEnergies SE is building to export natural gas.
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