Malawi-based domestic worker Suzanna Kathumba is thinking about the ways she can save to make her salary of 80,000 kwacha ($46; £34 a month) to support her family.
As she tightens the damp cloth from a bucket of water in the living room and then wipes it from the table and chairs, she considers her latest strategy to save money.
“I told my youngest kid not to be too dirty, so we can save soap,” the 43-year-old told the BBC.
“But it’s hard because kids are kids and they want to play.”
Ms. Kesenba, a four divorced mother who works in Lilongwe in the capital, has been struggling to survive over the past few months as commodity prices rise in the market.
She is the only income for the family when her ex-husband has little financial support. Most of her money went back to her four children, who lived in their hometown of Kasungu, the capital of about 130 kilometers (80 miles). The two youngest children are still in school and the two older children are unemployed.
In May, Malawi’s annual inflation rate was 27.7% – Africa’s highest inflation rate fell by 29.2% in April.
“It is surprising that salary remains the same, but the prices of goods are rising every day,” Ms. Kesenba said.
“This money was done even before it arrived. We were living a very difficult life.”
Shoppers in Malawi see prices keep rising [BBC]
A report by Ernst and Young said that Malawi is one of the few countries in the world and it believes it has an “over-inflatable economy” as well as Burundi, Sierra Leone, Sudan, Venezuela and Zimbabwe. This is the time for cumulative inflation of 100% or more over three years.
According to the World Economic Outlook Database, compiled by the International Monetary Fund (IMF), the accounting firm said that as of December 2024, Malawi had an inflation rate of 116%, and the three-year cumulative inflation rate in 2025 is forecast to be 202% and 102% in 2026%.
World Bank data also suggest that the country is one of the poorest countries in the world. It estimates that 70% of the South African country’s population is less than US$2.15 a day.
The current cost of living crisis has left many citizens, such as Ms. Kesenba, without any savings.
“If I said I saved some money at the end of the month, I would be lying. I absolutely have nothing to do with it,” she said.
“I paid 50,000 kwacha [$29] Tuition fees per semester. Then you need to buy practice books, food, soap – all from the same small salary. sugar [1kg] It’s 4,500 kwacha now [$3]. ”
“We are really affected and we should profit from our business. But the way things are, we are failing.”
Economists place Malawi’s current inflation problem in part because of foreign currencies (called “forex”) in banks.
Malawi often struggles with foreign exchange because the country’s imports far outweigh exports.
“We do not export high-value products,” said Dr. Bertha Bangara Chikadza, senior lecturer in macroeconomics at the University of Malawi and president of the Malawi Economics Association.
“We export products like corn, soy and sugar, but import expensive products like fertilizers, medicines and furniture, so we need a lot of forex,” she said.
Businesses who want to import goods say that when they apply for Forex from banks – especially the US dollar – they usually refuse because there is nothing available.
This forces some people to look for the US dollar on the black market, where the exchange rate is higher than the official interest rate of 1,750 kwacha, and the price is $1.
Traders can pay between 4,000 and 5,000 kwacha for $1 – a ripple effect on consumers.
Business owners like Mohammed Hanif Waka, who owns the capital’s stationery store, said he has lost many customers since the rise.
“Sales are down sharply. We have to do layoffs,” he told the BBC.
Although he usually imports goods for his shop, such as office supplies, pens and notepads, the lack of Forex means he is now trying to use goods locally.
“I don’t remember when our bank gave us foreign exchange,” he said.
Desperate hope for a change, informal traders took to the streets in February to protest, with hundreds of people blocking the entrance to the Malawi parliament.
“We’re really affected and we should profit from the business,” Lilongwe’s Tsoka flea market chairman Steve Magombo told the BBC.
“But what things look like, we are failing. The Malawians are unable to buy our goods.”
Earlier this year, it was announced that the $175 million loan agreement with the International Monetary Fund had been temporarily suspended. The four-year loan was approved in November 2023 and has paid $35 million so far.
“Under IMF policy, if the review is not completed within 18 months, the program will expire automatically and the review is not successfully completed,” Justin Tyson, Malawi mission leader, Malawi MALAWI mission leader,,,,, Tell the BBC.
Mr Tyson added that “fiscal discipline” has proven difficult to maintain in the current environment due to increased spending pressures”.
Last November, Lilongwe protested against fuel scarcity [AFP/Getty Images]
However, Malawi Finance Minister Chithyola Banda said the government decided to suspend the loan due to differences on the terms.
“When you are told you need to build reserves, but at the same time, the country is dry because there is no fuel – you choose to buy fuel [rather] Banda told the BBC’s World Business Report last month.
“We were told to keep the plan you need to adjust the fuel price, but this could negatively affect the price of the basic commodity.”
Malawi’s national election scheduled for September, the government said it is taking many steps to lower prices.
Trade Minister Vitumbiko Mumba acknowledged the need to ration foreign exchange, but said registered businesses could apply for essentials through the Reserve Bank or the Ministry of Finance. But he also accused traders of price inflation.
He told the BBC that we are working on an economic destruction bill and there will be a basic goods and services bill. ”
Meanwhile, the main opposition blames inflation at the feet of those in power.
Regardless of the reason for price inflation, the cost of living can be a huge campaign issue.
Malawians hope that their daily struggles will be subject to government plans to alleviate their plans – and everyone wants to solve a solution that will continue to be stable.
“We rely on the government for assistance,” Ms. Kesenba said.
“I hope politicians remember that Malawians have less privilege when making decisions.”
Jack McBrams’ other reports on Lilongwe.
You may also be right:
go bbcafrica.com More news about the African continent.
Follow us on Twitter @bbcafrica,on Facebook BBC Africa Or on Instagram bbcafraca
BBC Africa Podcast
