2023-10-22 22:04:54
This aid for petroleum products makes it possible to lower the price for consumers but it weighs heavily on public finances in the countries of the continent. Some are reducing them, others have already abolished them under pressure from institutions such as the International Monetary Fund.
First there was Kenya at the start of the year and its president William Ruto for whom these subsidies were not viable: “ It was not an economic decision, but a political one. The Kenyans did not bite because with the subsidies, prices did not fall. »
Then came Nigeria’s turn: President Bola Tinubu removed subsidies that cost the state around $10 billion per year at the end of May: “ I admit that this decision entails additional costs. I feel your pain. But we had to do it so as not to go any further. »
Budgetary orthodoxy measures strongly encouraged by international donors such as the IMF. One of the arguments put forward: these subsidies, which are too expensive, primarily help the wealthiest. Montfort Mlachila Deputy Director for Africa at the IMF: “ Without fighting once morest these expenses which are often monopolized by the most advantaged social classes. This leads to excess spending and at the same time, it does not allow the country to have the necessary budgetary space for investment in education or infrastructure, for example. »
Pressure from the IMF
Consequence of the elimination of subsidies. In Nigeria, the price of gasoline has tripled. The diktat of institutions is singled out in certain countries. This is the case in Tunisia where the government decides to stand up. In Morocco, an oil-importing country. Subsidies have fallen drastically since 2015. Untenable according to activist Omar Aziki, secretary general of Attac Maroc: “ This is still the IMF’s hobby horse “remove subsidies”. Today, our prices are aligned with international prices: the price of diesel has increased from 7 to 14 dirhams (1.29 euros). We are one of the countries where diesel is the most expensive. »
Under pressure from the IMF, Congo-Brazzaville the government has reduced its fuel aid by 30%. In Angola the end of subsidies in June provoked intense demonstrations. One of them left five people dead. Vera Daves de Sousa, the Minister of Finance, leaves it unclear regarding a possible restoration of subsidies. “ Everything is on the table “, she explained at the beginning of October.
Read alsoIs Africa turning the page on gasoline subsidies?
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