NAIROBI (IRIN) – Prices of basic commodities and house rents have rocketed in the town of Beletweyne in Somalia’s Hiiraan region, due to insecurity and large influx of displaced people.

“Everything is going up, whether it is rent, water, food or even bus-fare,” said Abdirashid Abdullahi, a trader in Beletweyne.

He said his rent went up from the equivalent of US$10 five years ago to $75 in May. He added that the cost of transporting goods had also risen dramatically in the past few months.

“This has forced me and many other traders to increase our prices,” he said. “Unfortunately everyone is affected.”

A local journalist, who requested anonymity, told IRIN the economic situation was affecting all sectors of society.

“In the past it was the urban poor and the displaced that fared the worst; now even families from Beletweyne are affected,” he said.

He said families were resorting to sending their children to the market to look for work. “It is becoming normal to see children carrying stuff for people or doing odd-jobs to help the family.”

Photo: Hassan Mahamud Ahmed/IRIN

Prices of food, water and house rents have rocketed in Beletweyne – file photo

Cost of roadblocks

Abdullahi Ali, a businessman, told IRIN that insecurity in the capital, Mogadishu (also the area’s main port), roadblocks and seasonal port closures were disrupting the importation of food and non-food commodities.

“We use the port of Mogadishu or Bosasso [in Puntland, the semi-autonomous region in the northeast],” Ali said. “The problem is that there are so many roadblocks to pay that by the time you get your goods they cost nearly twice as much. There are also times when the entire consignment is lost to bandits on the highway.”

He said the losses were often passed on to customers.

Ali said many of his customers were buying less than before. “If someone was buying a 50kg bag of rice last month they are now buying half that.”

Many small businesses were closing down. “Things are really getting bad and if the situation in the country does not improve soon we may all end up on the street,” Ali said.

Comments

comments