Good afternoon. Mozambique’s government continues to try and thread the needle of parlous public finances on the one hand, and a population that’s run out of patience with the cost of living on the other.

Having failed last week to head off an increase in the price of bread, two measures were announced yesterday to try and reduce the pressure on ordinary Mozambicans — though questions remain over how the benefits will be shared in reality, between consumers and businesses.

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In parliament, a new measure was passed to exempt sugar, soap, and cooking oil from value added tax (VAT, or IVA in Portuguese) until the end of this year. The move is expected to cost the treasury around MZN2bn ($31m), something that will make the Ministry of Finance reluctant to make the move permanent — or to extend it to electricity, water, and education, as the opposition MDM party is calling for.