Malawi faces a crushing economic crisis marked by hyperinflation and rising commodity prices, forcing many, like domestic worker Suzanna Kathumba, to make difficult financial sacrifices, affecting their children's lives.
**Escalating Cost of Living Forces Malawian Families to Make Tough Choices**

**Escalating Cost of Living Forces Malawian Families to Make Tough Choices**
The relentless rise in prices in Malawi compels families like Suzanna Kathumba's to make extreme sacrifices to survive.
In Malawi, the relentless economic challenges continue as low-income families struggle to cope with skyrocketing prices and stagnant wages. Suzanna Kathumba, a domestic worker based in the capital, Lilongwe, exemplifies this plight. Earning a meager 80,000 kwacha (approximately $46) per month, she often finds herself prioritizing school fees and essentials over basic needs for her four children.
Amid rising inflation, which peaked at 27.7% in May, Kathumba has stoically devised ways to save, including telling her children to avoid play to minimize soap usage. “The money finishes before it even comes. We're living a very hard life,” she lamented. The dire financial circumstances, compounded by minimal support from her ex-husband, amplify her struggles as she tries to send her children to school while managing daily living costs, including food and household supplies.
An alarming report from Ernst & Young categorizes Malawi as facing a hyperinflationary economy, one of only a few globally, indicating cumulative inflation rates exceeding 100% over three years. The World Bank further emphasizes the severity of the situation, estimating that 70% of Malawians survive on less than $2.15 daily.
Contributing to these economic woes is a significant shortage of foreign currency, which stymies imports and drives up the cost of essential goods. “We need a huge amount of forex for this,” noted Dr. Bertha Bangara Chikadza, a macroeconomics expert at the University of Malawi. Those seeking foreign exchange are often met with rejection from banks, pushing some to the black market, where rates soar to upwards of 5,000 kwacha for $1.
Local businesses are feeling the squeeze too, with owners like Mohammed Hanif Waka experiencing drastic drops in customer footfall, driven by increased prices and limited access to imported goods. “Sales have drastically dropped. We have had to make redundancies,” he said.
In response to ongoing hardships, informal traders have staged protests, calling attention to their economic despair. The government's financial program with the International Monetary Fund (IMF) faces suspension due to a lack of compliance, prompting Finance Minister Simplex Chithyola Banda to highlight their inability to balance essential expenditures against the need for reserves.
As Malawi gears up for national elections in September, the rising cost-of-living crisis has become a focal point for political discourse, with citizens hoping for effective solutions that foster economic stability. “We depend on the government for assistance,” reflected Kathumba. “I hope the politicians remember the less privileged Malawians when making their decisions.”
Ultimately, the struggle for everyday essentials in Malawi sheds light on a larger crisis affecting the most vulnerable, pressing for immediate remedies to lift families out of this entrenched cycle of poverty.