Empty shelves in a major supermarket in Tunis, Tunisia. Ghaya Ben Mbarek / The National
Empty shelves in a major supermarket in Tunis, Tunisia. Ghaya Ben Mbarek / The National
Empty shelves in a major supermarket in Tunis, Tunisia. Ghaya Ben Mbarek / The National
Empty shelves in a major supermarket in Tunis, Tunisia. Ghaya Ben Mbarek / The National

‘We are breathing through a straw’: Tunisians plagued by food shortages and price hikes


Ghaya Ben Mbarek
  • English
  • Arabic

In drought-stricken Tunisia, months-long shortages of key food staples and the rising cost of living have left the population feeling desperate and uncertain about the future.

A worsening economic crisis, poor harvests and reduced imports have led to empty supermarket shelves and an increase in the cost of available goods.

Food prices rose by almost 12 per cent this year, according to Tunisia’s National Statistics Institute, with the highest increases reported for coffee (35 per cent), cooking oil (29 per cent) and lamb (28 per cent).

Although the overall inflation rate fell to 8.3 per cent in November – from 10.4 per cent in February – it remains high for food, and families have felt the pinch.

Over the past year, The National has tracked the cost of basic goods in the north African country – witnessing the price of 1kg of beef increasing by almost $1 since January – but, crucially, also reporting a shortage of rice and bread since March and April respectively.

Drought and reliance on imports pushes up prices

Continuing drought has affected Tunisia’s agriculture, increasing reliance on imports and putting further pressure on the country’s dwindling foreign currency reserves.

The war in Ukraine, which is heading towards its third year, has also pushed up global food prices.

Subsidised staple goods and medicines have become increasingly scarce, suggesting problems financing imports and driving up prices of non-subsidised, available products.

Tunisia’s struggling agricultural yield combined with a shortage of subsidised semolina and flour have led to a five-fold increase in the price of bread – the country’s main food staple.

Other food, including cooking oil, coffee, dairy products, sugar, rice, and pasta, have either completely disappeared from supermarket shelves or experienced periodic shortages and regular price hikes.

The shortages and subsequent price increases have led some suppliers to smuggle in goods from Algeria and Libya to sell in border towns.

Earlier this year, thousands of Tunisian trade unionists took to the streets to protest over their worsening economic woes and soaring cost of living.

Families now brace themselves for the disappearance of goods once taken as cornerstones of Tunisian dining.

Growing fear and stress

Cereal shortages threaten bakeries and small businesses in Tunisia. Ghaya Ben Mbarek / The National
Cereal shortages threaten bakeries and small businesses in Tunisia. Ghaya Ben Mbarek / The National

Husband and wife Chokri and Saadia own a small shop in Tunis selling mlawi, a thin flat bread made of fine semolina.

The National first spoke to the couple in May, when the government’s inability to pay for essential cereal supplies caused an extreme shortage of semolina and flour.

Seven months later, the couple continue to struggle to access basic foods, including cereal-based products and dairy.

“If you tell us adults that there is no milk, it’s fine, we can live without it. But what should I do when my four-year-old daughter wakes up in the middle of the night crying for a warm cup of milk?” Saadia asked in front of her family’s shop in a popular neighbourhood on the outskirts of El Aouina suburb.

Since semolina and flour supplies are still fluctuating, Saadia and her husband have resorted to cooking and selling other Tunisian dishes such as couscous and kafteji to keep their family fed.

One of the couple’s neighbours, Issam, who owns a grocery store, let out a frustrated laugh when asked how he had managed to keep going this year.

“We are breathing through a straw,” he said.

Full supermarket shelves in October 2022, but Tunisia has now been plagued with periodic shortages for more than a year. AP Photo
Full supermarket shelves in October 2022, but Tunisia has now been plagued with periodic shortages for more than a year. AP Photo

“This month I was not able to pay for rent on my shop until the 22nd. I usually need to do that on the first day of the month,” he added.

Despite his struggle and some of his suppliers increasing prices, Issam refuses to do the same.

“I cannot also raise prices like others do. I can see myself how I struggle in providing for my family, so I need to feel for others too,” he said.

To make ends meet, he has all but cut out expensive food, including red meat – only consuming chicken and buying fruit as a rare treat for his family.

“The other day I spent 100 dinars ($32.4) just by going to the poultry store and the fruit and vegetables vendor,” he said.

Dairy shortage threatens cafes

Dairy products have also been in short supply in recent weeks, with milk shortages reported throughout the country.

This scarcity has left coffee shop owners particularly hard-pressed, having already struggled with months-long patchy coffee availability that has deterred customers from visiting their once busy cafes.

“Buying drugs might be easier than buying milk these days,” said Hanen, who owns a popular coffee shop in L'Aouina.

She said she often resorts to begging and using her connections just to get a small quantity of milk to keep her business running.

Over the past year, Tunisians have also experienced an extreme increase in the cost of other basics, including rent, petrol and private healthcare, amid a public finance crisis.

Amid this stifling downturn, the government is struggling to reassure its increasingly frustrated population as families are forced to abandon even simple necessities.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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JAPAN SQUAD

Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa

Key developments

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What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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4.35pm: Tilal Al Khalediah
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  7. Highlands, Scotland 
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  9. Fife, Scotland 
  10. Tower Hamlets, London 

 

AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

Meydan racecard:

6.30pm: Al Maktoum Challenge Round 2 (PA) Group 1 | US$75,000 (Dirt) | 2,200 metres

7.05pm: UAE 1000 Guineas (TB) Listed | $250,000 (D) 1,600m

7.40pm: Meydan Classic Trial (TB) Conditions $100,000 (Turf) 1,400m

8.15pm: Al Shindagha Sprint (TB) Group 3 $200,000 (D) 1,200m

8.50pm: Handicap (TB) $175,000 (D) 1,600m

9.25pm: Handicap (TB) $175,000 (T) | 2,000m

10pm: Handicap (TB) $135,000 (T) 1,600m

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4,872 matches 

1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

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Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

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About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

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What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Race card

1.30pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m

2pm: Handicap (TB) Dh 84,000 (D) 1,400m

2.30pm: Maiden (TB) Dh 60,000 (D) 1,200m

3pm: Conditions (TB) Dh 100,000 (D) 1.950m

3.30pm: Handicap (TB) Dh 76,000 (D) 1,800m

4pm: Maiden (TB) Dh 60,000 (D) 1,600m

4.30pm: Handicap (TB) Dh 68,000 (D) 1,000m

MATCH RESULT

Al Jazira 3 Persepolis 2
Jazira:
Mabkhout (52'), Romarinho (77'), Al Hammadi (90' 6)
Persepolis: Alipour (42'), Mensha (84')

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

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Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

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Fuel economy, combined: 12.1L / 100km

NBA Finals so far

(Toronto lead 3-1 in best-of-seven series_

Game 1 Raptors 118 Warriors 109

Game 2 Raptors 104 Warriors 109

Game 3 Warriors 109 Raptors 123

Game 4 Warriors 92 Raptors 105

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

Updated: December 29, 2023, 5:00 AM