MBABANE – EmaSwati will now dig deeper into their pockets as the price of bread will increase by a maximum of E1.17 from November 1, 2025.
The seven per cent price hike was approved by Cabinet, following a request by the Manqoba Khumalo-led Ministry of Commerce, Industry and Trade Cabinet paper.
The approval of the bread price hike by Cabinet will see the cost of an 800-gramme (g) loaf of white bread cost E17.90, which is a E1.17 increase from the current E16.73.
For a similar size weight loaf of brown bread, a consumer will now have to part with E15.60, which is a hike of E1.02 from the current retail price of E14.58.
This increment is subsequent to the ministry having received a request from the Eswatini Bakers Association to increase the price of bread by seven per cent of the current price.
The Eswatini Bakers Association submitted a 7.1 per cent proposal for a hike on April 9, 2025, which was initially partitioned into two quarters.
Their motivation of the request to have the commodity’s price reviewed with the aforementioned percentage was said to stem from rising input costs and economic pressures adversely affecting the sustainability of local bakeries.
Worth noting is that the last bread price increase was 20.76 per cent and was effected on July 1, 2022.
In motivating their quest, the Eswatini Bakers Association said, apart from stable flour and fuel prices, the industry incurred inflationary increases in all other inputs over the past three years.
*…
Bakeries operate at loss, some face closure
MBABANE – Bakeries were now operating at a loss and some were reportedly on the verge of shutting down their operations, says the Chief Commercial Officer, Sonto Hlophe.
Hlophe said this when sought for comment to establish what the estimated total financial shortfall is for local bakeries that necessitated the entire seven per cent price adjustment along with the average hike in their ingredients.
She was also asked why the seven per cent increase was deemed necessary instead of a lower increment to avert immediate closure of local bakeries and what specific enforcement actions will the ministry take to ensure retailers do not exceed the new maximum retail prices from November 1, 2025.
Furthermore, she was asked if there were any of the stakeholders consulted—such as the Eswatini Competition Commission—strongly opposed to the proposed seven per cent increase and lastly, when is the next assessment of regulated commodity prices under the Price Control Order of 1973 anticipated.
In response, Hlophe expanded that the hike in the seven per cent was in fact a last resort as the bakers sought other mitigation options to their challenges.
She said: “They proposed other measures such as reviewing the levy for some of the ingredients so that the burden of the costs could be shifted.”
*…
Economist blames geopolitics, inflation
MBABANE – Geopolitics and inflation are the cause for transport and utilities to hike frequently, says an economist.
An economist said the cumulative effect of these increases is pushing many families to the brink of poverty. He said these price hikes are a perfect storm for consumers, as the combination of rising inflation, increased taxes and escalating utility and food costs is creating a situation where many households are struggling to afford even the most basic necessities. Government, he said, needs to take urgent action to mitigate these pressures, perhaps through targeted subsidies or by re-evaluating the tax burden on essential goods and services.
The Economics scholar said in the face of these escalating costs, consumers have to adopt drastic survival strategies which include strict budgeting, as families’ resources will not be sufficient for them to meet all their basic needs. This, he said, means that they have to cut back on non-essential goods and services and even reduce consumption of essential ones. Also, he said consumers have to seek out cheaper alternatives, such as buying in bulk to reduce per-unit costs and shopping at discount stores.
*…
‘It’s too much’
MBABANE – “This is too much,” says Mandla Ntshakala of the Swaziland Consumer Forum (SWACOF).
Ntshakala said the price rise, which will start next month, was bad news for shoppers, especially as groceries and other necessities have also gone up.
“This is tough and bread is a necessity. I’m now worried that we are a target of the pending salary hike for civil servants,” he said. He noted that the forum was waiting for a report from the country’s bakeries to find out why they want to increase prices.
“As shoppers, we need to know if the price rise is because flour costs more or if there’s another good reason to increase the price of a food item people eat for breakfast, lunch or even dinner,” Ntshakala explained.
*Full article available in our publication.
Leave a comment