Ethiopia, Djibouti move to cushion food crunch

April 30, 2008 (ADDIS ABABA) — Ethiopia and Djibouti on Wednesday each announced urgent measures to alleviate the effects of the global food crisis on their populations.

“Ethiopian Prime Minister Meles Zenawi said the government has no other urgent agenda than issues connected with bringing down the skyrocketing cost of living in the country,” the official ENA news agency reported.

“The premier said the government would further continue subsidising major food items as part of the drive to address the problem,” the agency said.

The government said it was also tackling the issue by raising the salaries of civil servants and stepping up its efforts to create jobs for the country’s youth.

Ethiopia, a country of around 80 million inhabitants, is often hit by food shortages but no popular protests have yet erupted over the sharp rise in the cost of basic commodities that sparked unrest in other African nations.

Neighbouring Djibouti also announced that it was scrapping taxes on some basic commodities in a bid to counter the food crisis.

“The government has decided to stem the surge in the prices of basic commodities by lifting the consumption tax on some products: rice, powdered milk, cooking oils, wheat flour and powdered sugar,” a statement said.

The Djiboutian government also said it would seek to protect its people’s access to food by building up stocks, importing from a variety of sources and sealing trade deals that would ensure a steady influx of basic food products.

(AFP)