Suzanna Kathumba, a 43-year-old domestic worker in Malawi, faces the daily challenge of making her modest salary of 80,000 kwacha (approximately $46) stretch far enough to support her four children. As she wipes down furniture in her employers' home in the capital, Lilongwe, the divorced mother considers creative ways to economize. "I tell my youngest children not to get too dirty when playing so we can save on soap," she confesses, highlighting the hardship of parenting in a time of financial strain.
Over recent months, Kathumba has struggled to provide for her family as the prices of goods continue to rise—an issue exacerbated by an inflation rate reaching 27.7% in May, one of the highest in Africa. "What is surprising is that salaries are staying the same, but the price of commodities keeps going up daily," said Kathumba, feeling the weight of being the sole earner for her family, as little financial assistance comes from her ex-husband.
The reality of life for many Malawians is stark, with recent reports indicating that 70% of the population survives on less than $2.15 a day. The situation is dire: "I would be lying if I said I save some money at the end of the month. I have absolutely nothing left," said Kathumba. The escalating costs of necessities—like school fees, food, and soap—compound the difficulty of a life already stretched thin.
The persistent inflation in Malawi has been categorized as a "hyperinflationary economy" by an Ernst & Young report, with a cumulative inflation rate estimated at 116% as of December 2024. Local economists attribute this crisis to a shortage of foreign exchange, causing dramatic price increases. Dr. Bertha Bangara Chikadza from the University of Malawi warns that Malawi's exports consist primarily of low-value goods like maize and soya beans, while the country relies heavily on imports for essential items.
Local businesses are also feeling the impact of the currency crisis. Mohammed Hanif Waka, who owns a stationery shop, reports dwindling customers due to rising prices, stating, "Sales have drastically dropped. We have had to make redundancies." As businesses struggle, the black market for US dollars has flourished, with exchange rates substantially higher than official rates.
Protests erupted earlier this year as informal traders fought against the economic situation. "Malawians are failing to buy our commodities," lamented Steve Magombo, representing local traders frustrated by the market conditions. Amid this turmoil, a suspended loan agreement with the IMF further complicates prospects for economic relief.
Finance Minister Simplex Chithyola Banda has indicated that government decisions concerning the loan stemmed from disagreements over conditions that prioritize fuel procurement over building reserves. With national elections approaching in September, the government strives to tackle the escalating cost of living. Trade Minister Vitumbiko Mumba has announced plans for an economic sabotage bill to regulate prices, while the opposition blames the ruling party for the ongoing crisis.
Malawians like Kathumba hope that political promises translate into genuine relief from economic hardship. As she appeals for assistance for the less privileged, the plight of individuals and families remains a focal point in the upcoming elections. "I hope the politicians remember the less privileged Malawians when making their decisions," she stated, reflecting the sentiment of many grappling with the harsh realities of daily life in Malawi.
