The rise in prices observed on the local market in recent days worries more than one. In its media release on March 21, the Observatory for the Fight against Corruption and Economic Malpractice (OLUCOME) spoke about what it considers to be the catalysts for this situation. Among other recommendations, this organization demands transparency, competition in procurement and the establishment of reserve fuels.
Gabriel Rufyiri, president of OLUCOME: “Let us dismiss the corrupt and carry out investigations against those who are involved in the embezzlement of public funds”.
The Burundian market is currently affected by an unprecedented price increase. The prices of foodstuffs, like those of manufactured goods, have rebounded spectacularly. The lack of fuel and the scarcity of foreign exchange are the main factors of this destabilization of the market. Annual inflation has for the first time reached the record level of more than 28% according to the Central Bank (BRB).
OLUCOME elucidates the causes of this price increase
Acting as rapporteur for the general assembly of the organization he oversees, Gabriel Rufyiri listed the causes of the price hike. This local NGO considers that the scarcity of fuel is one of the direct factors in the rise in prices. The scarcity of currencies in the market has also been considered as an element that influences the rise in prices.
For OLUCOME, the lack of transparency in the awarding of public contracts is another problem to which solutions must be found. To this end, the members of OLUCOME point the finger at the administrative authorities who interfere in trade. Indeed, the participation of the administrative authorities in the trade is linked to the speculations on the prices which are observed on the market. Rufyiri did not forget to underline the problem linked to the under-production that he opposes to the galloping demography of the Burundian population.
Quid des solutions ?
OLUCOME asserts that it is possible to find solutions in the short and medium term, but with some planning. Rufyiri indicates that the return of foreign currencies is not possible in the absence of production growth. Here he indicates that he does not understand where the money from the sale of gold ends up. He also mentions the contribution of foreign direct investment and foreign cooperation. However, this activist winks at the authorities by reminding them that a good business climate is a stimulus that encourages foreigners to come and invest in Burundi.
Regarding an immediate response to the uncontrolled rise in prices, Gabriel Rufyiri advises national authorities to recognize the existence of the challenges. Rather, it is the basis for a lasting solution. Secondly, it proposes the setting up of a commission of independent experts which must propose short, medium and short-term solutions. The president of OLUCOME insisted on the issue of good governance. “Let us dismiss the fraudsters and carry out investigations against those who are involved in the embezzlement of public funds,” he insisted. For Rufyiri, the rigging of public contracts has close links with the shortage of essential goods including fuel or selected seeds.
The annual inflation rate on the Burundian market is well above the average consumer price inflation for the African continent. According to the AfDB, inflation reached the average of 13.8% for Africa in 2022, while it is 28% for Burundi in the same year.