CONSUMERS should brace themselves for more spending patterns as the price of bread goes up on November 1. It is expected to increase by 7% following Cabinet’s approval of a request by the Eswatini Bakers’ Association.
This was confirmed by Chief Commercial Officer, Sonto Hope Hlophe, yesterday.
She noted that the decision was made in line with the Price Control Order of 1973, which mandated the ministry to regulate the prices of essential commodities such as bread.
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With this increase, the price of a 700g brown bread will increase from E13.68 maximum retail price to E14.64, while the same quantity of white bread which currently costs E15.29 (maximum retail price) will hike to E16.36.
The last bread price increase of 20.76% was effected on July 1, 2022. According to Hlophe, the bakers’ association submitted a formal request to the ministry earlier this year, citing escalating input costs, including flour, premix, utilities, fuel and other operational expenses.
In its submission, the association reportedly explained that the current economic environment had made it increasingly difficult for bakeries to operate profitably. They said the cost of essential inputs has risen significantly due to global and domestic inflationary pressures.
Also, the association reportedly said should the industry cease to operate, the nation would face significant challenges, since bread had become a necessity for the majority of households.
They said the closure of bakeries would not only disrupt daily food supply but also result in the loss of employment for many Emaswati who depend on the baking industry for their livelihoods.
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Hlophe said before reaching a decision, the ministry held consultative meetings with key stakeholders, including Consumer Associations, the Eswatini Competition Commission, the ministry of agriculture and NAMBoard.
During these consultations, she said individual bakeries provided detailed breakdowns of the cost of producing a 700g loaf of brown bread, data that was used to benchmark the proposed price adjustment against real production costs.
“Upon analysis, the findings confirmed that the price adjustment is both justified and necessary,” Hlophe said.
While acknowledging that the hike would place an added burden on consumers, the ministry emphasised that the decision was necessary to safeguard the long-term viability of the baking industry.
“Though Emaswati will now dig deeper into their pockets, the increase is essential given the prevailing economic circumstances. Without the adjustment, the availability of bread, a staple food for most households, could have been jeopardised,” Hlophe said.
The approved increase will be implemented under Section 5 (1) of the Price Control Order of 1973 and will be officially cited as the Maximum Wholesale and Retail Prices of Bread Notice, 2025.
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