Suzanna Kathumba, a domestic worker in Lilongwe, Malawi, faces daily challenges in making her salary of 80,000 kwacha (about $46) stretch to support her family. With rising prices for basic goods, she has had to think creatively about saving money. One of her strategies? Telling her young children not to play too much to avoid the need for extra soap.
At 43 years old and a mother of four, Suzanna is the sole breadwinner for her family. Most of her income goes toward school fees for her children, who live in their hometown of Kasungu, about 130 kilometers from the capital. The two youngest are still in school, while the older ones are currently unemployed. With little financial support from her ex-husband, she struggles to provide for her family amid soaring inflation.
Recently, the annual inflation rate in Malawi reached 27.7%, one of the highest in Africa. Suzanna notes that while prices keep climbing, her salary remains the same. "The money finishes before it even comes," she said, highlighting the tough reality faced by many Malawians. She spends around 50,000 kwacha ($29) each term on school fees alone, leaving her with little for food and other essentials.
The current economic situation in Malawi has drawn attention from experts. An Ernst & Young report classified the country as having a "hyperinflationary economy," alongside nations like Venezuela and Zimbabwe. This means that inflation has cumulatively exceeded 100% over three years. The World Bank reports that about 70% of Malawi’s population lives on less than $2.15 a day, making it one of the poorest countries in the world.
Economists attribute the inflation crisis partly to a shortage of foreign currency, which Malawi struggles to acquire due to its heavy reliance on imports. The country mainly exports low-value products like maize and soya beans but imports essential goods like fertilizers and medicine, creating a significant trade imbalance.
Local businesses are feeling the pinch as well. Mohammed Hanif Waka, who runs a stationery shop in Lilongwe, reports a drop in sales due to rising prices. Many traders have turned to the black market for foreign currency, where rates are much higher than the official exchange rate, further driving up costs for consumers.
In response to the economic crisis, protests have erupted in the streets, with citizens demanding solutions to the rising cost of living. The government has suspended a $175 million loan agreement with the International Monetary Fund due to disagreements over terms, which has raised concerns about future economic stability.
As the national elections approach in September, the government is under pressure to address these pressing issues. Trade Minister Vitumbiko Mumba has acknowledged the challenges but also pointed fingers at traders for inflating prices. The opposition parties blame the current administration for the economic turmoil.
For people like Suzanna, the hope for change is palpable. "I hope the politicians remember the less privileged Malawians when making their decisions," she shared, reflecting the sentiments of many who are struggling to make ends meet in this challenging economic climate.