Malawians Struggle to Survive as Inflation Soars and Forex Crisis Deepens

 

Suzanna Kathumba, a 43-year-old domestic worker in Malawi, earns 80,000 kwacha ($46) per month and is struggling to support her four children amid the country’s worsening cost-of-living crisis. Based in the capital Lilongwe, she sends most of her salary to her children in Kasungu. To cut costs, she even discourages her young children from playing too much to save on soap. Like many Malawians, she has no savings and finds her income consumed by school fees, food, and other necessities. Malawi's inflation rate stood at 27.7 percent in May, among the highest in Africa. A report by Ernst and Young classified the country as having a hyperinflationary economy, with a three-year cumulative inflation rate of 116 percent by December 2024. Projections show continued high inflation in the coming years. The World Bank estimates that 70 percent of Malawians live on less than $2.15 per day. Economists attribute the inflation to a severe shortage of foreign currency. Malawi imports more than it exports, relying on costly goods such as fuel and medicine while exporting low-value items like maize and soya beans. This forex shortage drives importers to the black market, where the dollar fetches nearly triple the official exchange rate, further pushing up prices. Small business owners report declining sales and layoffs due to high costs. An IMF loan worth $175 million was suspended, with disputes over fiscal policies and fuel priorities. The government says it is taking steps to stabilize the economy, including proposed legislation to prevent price inflation. However, opposition parties blame the current leadership for economic mismanagement. With elections approaching in September, inflation and daily survival are central concerns for Malawians like Ms Kathumba, who hope for government action to ease their financial burdens

See also: Sudan Approves Humanitarian Ceasefire in El Fasher