Mozambique's government has suspended plans to increase bus fares after a person was killed by police in riots.
More than 60 people were also wounded when officers opened fire on the protesters in the capital, Maputo.
The transport minister said talks with the transport union would continue for three days, to try to find an alternative to the price rise.
Prices on some bus routes had been set to rise by 25%. The price of bread and rice has also increased in recent days.
Tuesday's demonstrations started in the poorer districts of Maputo and spread throughout the city, with protesters setting up road blocks, burning tyres and attacking property.
"After talks with the transportation union, the government decided to cancel the increase in transport fares," Transport Minister Antonio Mungwambe said on national television.
The capital was calm on Wednesday morning, but public transport had not resumed and many stores and schools remained closed, AFP news agency reports.
The police have said they will investigate why the officers involved switched from rubber bullets to live ammunition.
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