"As prices soar and salaries remain stagnant, Malawians are forced to adopt drastic measures to cope. Domestic worker Suzanna Kathumba shares her story as she strives to provide for her children in a hyperinflationary economy."
"Surviving Amidst Hyperinflation: Malawi's Daily Struggles"
"Surviving Amidst Hyperinflation: Malawi's Daily Struggles"
"Malawi faces a daunting cost-of-living crisis impacting families like that of Suzanna Kathumba who navigate daily hardships in an economy grappling with one of the highest inflation rates in the world."
In the heart of Malawi, domestic worker Suzanna Kathumba fights daily for her family's survival, navigating the overwhelming challenges presented by an economy experiencing soaring inflation. With a salary of 80,000 kwacha (approximately $46), Kathumba dedicates a significant portion of her earnings toward school fees while striving to make ends meet for her four children, who live in their hometown of Kasungu.
"I tell my youngest children not to get too dirty when playing so we can save on soap," Kathumba explains, highlighting the harsh realities many families face as they contend with diminishing resources. As inflation rates soar, the cost of living continually escalates, adding to the burdens of single-income households like hers.
The most recent statistics reflect an annual inflation rate of 27.7%, a slight decline from April but still one of the highest in Africa. Despite the dwindling value of her income, Kathumba's financial responsibilities remain constant. "The money finishes before it even comes. We're living a very hard life," she confirms.
The daunting economic landscape extends beyond Kathumba’s household, as Malawi has emerged as one of the few countries classified with a hyperinflationary economy, alongside nations like Sudan and Venezuela. A report from Ernst & Young indicated a staggering cumulative inflation rate of 116% over three years as of December 2024.
The World Bank paints a stark picture, estimating that 70% of Malawians live on less than $2.15 a day. Amidst rampant price increases, Kathumba finds herself struggling with basic necessities, reiterating, "I would be lying if I say that I save some money at the end of the month. I have absolutely nothing left."
The inflation crisis is compounded by a lack of foreign currency supply, which is critical for importing goods. Dr. Bertha Bangara Chikadza from the University of Malawi explains that the problem partly arises from the nation’s reliance on importing high-value commodities while exporting less valuable goods such as maize and soybeans.
Businesses are affected too; many shop owners, like Mohammed Hanif Waka, face drastically reduced sales and challenging operational conditions as they attempt to adjust to the pricing crisis. "We have had to make redundancies," Waka laments, as access to foreign exchange becomes increasingly elusive.
Earlier this year, protests erupted among informal traders in Lilongwe, signaling widespread frustration with the economy. Trade Minister Vitumbiko Mumba has acknowledged the forex rationing but also points fingers at traders inflating prices amid the crisis.
As the national elections loom in September, the ruling government is under pressure to address economic woes. Conversations about regulatory measures to control pricing are promising, yet the ultimate effectiveness remains to be seen. For people like Kathumba, the hope lies in government actions that will help alleviate their struggles.
"I hope the politicians remember the less privileged Malawians when making their decisions," she emphasizes, embodying the hopes of many for a more stable and affordable life in Malawi.
