A 2020 market functionality index flagged increases in food prices in Cabo Delgado markets where WFP beneficiaries redeem vouchers as part of a humanitarian food assistance programmes. This market systems analysis was undertaken to better understand the local retail market and potential root causes of sub-optimal market functionality. This analysis found that the market in Pemba is competitive and functioning, with profit margins sitting within industry averages. Currency devaluation has led to steadily increasing prices, creating challenges for retailers, particularly around reimbursement of vouchers spent. The report recommends that WFP shortens payment timelines and includes small retailers in their programming.
