• FX scarcity, gas dollarisation may spike inflation
• Gas users to pay $5.10/mmbtu from July despite shortages
With the new gas price regime expected to kick off on July 1, alongside challenges of currency devaluation and access to foreign exchange for raw materials, local manufacturers have told The Guardian they are contemplating moving their production hubs to neighbouring African countries under the African Continental Free Trade Area (AfCFTA) regime.
According to the manufacturers, it is increasingly difficult to produce locally and remain competitive, going by the new challenges they encounter. x
With an upward review in the price of natural gas used for local production and dollarisation of the commodity by franchisers, which operators describe as preferred option to exporting the commodity, the cost of production is expected to rise further, spiking inflation when costs are passed to consumers.