Summary:

This week, statements from the National Chamber of Coffee Shop Owners indicated the price of coffee has risen by 30% which will likely necessitate cafes to increase their prices.

The price of a kilo of coffee rose from around 14.6 dinars to 19.8 dinars. The Tunisian government, which heavily subsidizes the price of the country’s coffee supplies, has struggled to maintain supplies.

During Ramadan, there was a concerted effort by the responsible ministries to ensure the availability of basic products, including coffee. However, in the weeks following Ramadan up to the present, coffee supplies have dwindled. Coffee roasters in Sfax recently raised concerns that their businesses could be closed due to a lack of supplies.

Outlook:  

New challenges are likely to emerge across the Tunisian economy, particularly in heavily subsidized industry, as the 2023 budget is stretched to its limit.

The 2023 budget was compiled based on the assumption that Tunisia would be receiving a $1.9 billion loan from the International Monetary Fund (IMF). However, that loan deal remains in negotiation, leading to a massive budget shortfall that will likely continue to make it challenging for the government maintain supplies of basic goods such as flour, sugar, milk, and coffee.

Shortages and price pressures on basic goods will only increase the economic pressure being felt by Tunisia’s working class while raising the risk of civil unrest. Our team is continuing to watch for fallout from the ongoing economic crisis, which has strained communities across Tunisia and will likely continue to do so.

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