Struggling to Survive: Malawi's Domestic Workers Face Inflation Crisis

With inflation reaching record highs in Malawi, families are struggling to meet basic needs. Domestic worker Suzanna Kathumba shares her desperate measures to cope on a meager salary while the government contends with criticism over its handling of the economy as national elections loom.

In the heart of Lilongwe, Malawi, Suzanna Kathumba, a 43-year-old domestic worker and mother of four, grapples daily with the challenges of living on her meager salary of 80,000 kwacha (approximately $46 or £34) per month. As she wipes down furniture in her employer's home, Kathumba reflects on her ongoing efforts to stretch her income amid surging prices of basic goods. "I've told my youngest children not to get too dirty when playing so we can save on soap," she confides, a testament to the harsh realities of her financial situation.

With education fees consuming a significant portion of her wages and minimal support from her ex-husband, Kathumba is the sole provider for her family, which has been increasingly strained due to inflation. According to the latest statistics, the annual inflation rate in Malawi was recorded at 27.7% in May, a notable decrease from 29.2% in April. Nonetheless, for workers like Kathumba, stagnant salaries amidst rising costs make survival feel almost impossible. "The money finishes before it even comes. We're living a very hard life," she laments.

Malawi’s inflation crisis, cumulatively reaching 116% over three years, has been described by Ernst & Young as indicative of a "hyperinflationary economy," placing Malawi alongside countries like Venezuela and Zimbabwe. Despite the inflationary pressures, salaries remain stagnant, placing additional strain on households already struggling to make ends meet. The escalating cost of food, with sugar now priced at 4,500 kwacha ($3) per kilogram, further exacerbates the situation, leaving families with little hope for savings.

Experts attribute Malawi's inflation woes partly to a persistent shortage of foreign currency, which complicates imports. Dr. Bertha Bangara Chikadza, a senior macroeconomics lecturer at the University of Malawi, emphasizes the disparity between what Malawi exports—primarily low-value goods like maize and soya—and the high-cost imports needed for the nation’s development. Many businesses face difficulties accessing US dollars through official banks, leading some to turn to the black market for currency, where rates are significantly higher.

This economic turmoil is evident across the spectrum of society, with business owners like Mohammed Hanif Waka noticing a stark drop in sales as he contends with higher costs for imported goods. As protests erupted in February among informal traders demanding economic relief, the sentiment of frustration has spread widely, with many citizens feeling the burden of rising prices.

Compounding these issues is a temporary suspension of a $175 million loan agreement with the IMF due to unmet fiscal requirements. Finance Minister Simplex Chithyola Banda stated the suspension resulted from disagreements over terms but underscored the urgent need for economic stabilization as the country approaches national elections in September.

In the face of rising discontent, the government is implementing measures to control prices while businesses voice their concerns over inflation and profit margins. Trade Minister Vitumbiko Mumba has acknowledged the dire situation and aims to regulate prices through bills aimed at combating economic sabotage and ensuring access to essentials.

As the economic climate becomes a pivotal issue in the upcoming elections, numerous families like Kathumba's hope to see tangible reforms that will alleviate their struggles and pave the way for lasting stability. "I hope the politicians remember the less privileged Malawians when making their decisions," she states, encapsulating the hopes of many in a nation grappling with severe economic challenges.