9 January 2008
Bujumbura — Talks between the Ministry of industries and commerce and Burundi's brewery, Brarudi, are under way after the recent rise in price of drinks produced by this company, as was announced by the Minister in charge of Commerce and Industries, Mrs Euphrasie Bigirimana.
She revealed that Brarudi did not consult this ministry before deciding to increase the prices of its products. This decision was made by the Administration Board of Brarudi. Brarudi did not consult the government of Burundi, although the government owns some shares in it.
Despite these talks that are going on between the two sides, it is highly unlikely that the price of drinks will be lowered. The Minister of Commerce and industries was careful to add that the â-šprices of oil have increased, and the Burundian currency has been devaluated." The devaluation of the Burundian franc and the rise in the price of oil, hops and malt were the two main factors that Brarudi cited for increasing the prices of its products.
The rise in the prices of products produced by Brarudi was not welcomed by the Burundian people. Burundi's Consumers Association called on the population to boycott the products of Brarudi on 4 January 2008 although Burundians did not heed this call.
Brarudi raised the prices of its products for the second time in less than 5 months. The 2008 budget represented a deficit of 37 billion francs and members of parliament have endorsed accompanying laws which impose other duties and taxes on some products such as cigarettes, sugar, oil and Brarudi's products.
Despite the recent increase in price, the cost of a beer in Burundi remains the lowest throughout the east African region. Surprisingly, the price of a kilogramme of beans has risen, making this food, which once constituted a staple, a luxury.
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