In recent days, areas of Somaliland have seen a rise in the price of tea.
In Burco, one of the most popular cities in Somaliland for tea drinking, the price increase in tea was felt most strongly, after a cup of tea, which was previously 1500 Somaliland shillings, was increased to 2000 shillings. So what caused the price increase in tea?
According to the BBC, Aden Ahmed Ali, one of the owners of a cafe in Burco, attributed the new price increase in tea to three factors that he noted had been going on for a long time, and had put a strain on their business.
“The reason we increased the price was because the sugar, charcoal and camel milk that I added to the tea became more expensive.” Said Aden Ahmed.
Adan Ahmed also said that during the period of inflation in Burco, their coffee shops were burdened with the price, which they used to subsidize so that customers would not have to pay, but they could not continue to do so when inflation increased and taxes were imposed. He said, “Tea used to cost one thousand five hundred, and now we have reduced it to two thousand. At first, we kept the price high and subsidized it from my own pocket, but later circumstances forced us to increase the price.”
Regarding the price of sugar, which is the most important ingredient in tea, Adan Ahmed said that its price changes constantly. “Sugar stores add something every day, for example, two months ago a bag of sugar was 36 dollars, now it is 40 dollars more,” he said.
So what is the order issued by the Burco Local Government regarding the increase in the price of tea? A written order issued today by the Burco Local Government, signed by the Secretary of the Local Government, Amin Abdilaahi Yasin, has been sent to the owners of tea shops, and has been ordered not to exceed the price of tea, which was previously one thousand and five hundred.
“Tea shops are warned not to sell tea for more than one thousand and five hundred,” the order said. The Burco Local Government also stated in this order that legal action will be taken against shops that increase the price of tea.
Burao is one of the cities where tea is widely consumed, according to Adan Ahmed, the owner of a restaurant called Mansha-allah, who told the BBC that he sells up to two thousand cups of tea a day, adding that unemployment is the reason why people sit there for a long time and drink tea.
In 2021, some Burao restaurants similarly increased the price of tea, which led to the arrest of some owners. This incident coincides with the holy month of Ramadan, and most places where food or drinks are served during the fasting month are closed. However, in the evening there are places where you can eat and drink tea.
