Mozambique: Cheaper new food subsidy coming

Mozambique's government will again attempt to curtail subsidy expenditures for essential foods and services, but this time its approach will be more nuanced so as to avoid a repeat of the cost-of-living protests in 2010. Antonio Cruz, director of policy analysis in the planning ministry, recently told local media that subsidies on fuel, bread and rice, estimated to cost the donor-dependent government millions of dollars each month, would be phased out by the end of June 2011. Planning and development minister Aiuba Cuereneia told the state-run newspaper, Noticias, that savings accrued from discontinuing the generalized subsidies would enable the introduction of a new food basket and transport benefits for families earning less than two dollars a day.