Malawi's Forex Crisis Drives Up Prices, Forces Lifestyle Changes
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Malawi is facing a severe foreign currency shortage, leading to scarcity of essential goods and high inflation. This is hurting businesses and making life unaffordable for many.
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The forex shortage stems from reduced exports, effects of COVID-19, Ukraine war disrupting global supply chains, and damage from Cyclone Freddy.
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To stabilize currency, Malawi's central bank devalued kwacha by 25%. But inflation remains high at 28.6%, making basic goods unaffordable.
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Agriculture powers Malawi's economy but earns insufficient forex. Analysts say private sector needs to drive import substitution and industrialization.
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With economy in bad shape, people are skipping meals, taking debts, and looking for opportunities abroad. The crisis is forcing lifestyle changes.