“Tell my children not to play until we save money on soap”

Susanna Kathumba, domestic workers in Malawi, spends every day thinking about the ways she can be able to economize to make her salary of 80,000 koch ($ 46; 34 pounds) per month to support her family.

While it was proportional to a cloth moistened from a bucket of water in the living room and started wiping the tables and chairs, it is considered the latest trick to save money.

“I told my young children not to shine when playing so that we can save on soap,” the 43 -year -old told the BBC.

“But it’s difficult because children are children, and they want to play.”

Over the past few months, Mrs. Kathumba, a four -year -old mother working in the capital, Lilongoy, has been struggling to stay on her salary due to the high prices of goods in the market.

With a little financial support from her ex -husband, it is the only profit for the family. Most of her money belongs to her four children, who live in their hometown in Kasongo, about 130 km (80 miles) northwest of the capital. The youngest children in school and two elderly people are still unemployed.

In May, the annual inflation rate in Malawi was 27.7 % One of the top in Africa – a decrease from 29.2 % in April.

“What is surprising is that salaries remain the same, but the price of commodities continues to rise daily,” said Ms. Cathumba.

“The money ends before it comes. We live a very difficult life.”

Ernst & Young recent report He said that Malawi was one of the few countries in the world, which I considered to have what was called “hyper enlarged economy” – alongside Burundi, Serial, Sudan, Venezuela and Zimbabwe. This is when there is a cumulative enlargement over three years of about 100 % or more.

According to the International Monetary Fund (IMF), the Accounting Company said, Malawi had a three -year cumulative rate of 116 % as of December 2024 and expected cumulative rates for a period of three years of inflation 102 % for 2025 and 66 % for 2026.

Data from the World Bank It also shows that the country is one of the poorest in the world. It is estimated that 70 % of the population of the southern African country lives at less than $ 2.15 a day.

The current cost crisis of living has left many citizens, such as Mrs. Kathumba, without any savings.

She said, “I will lie if I said I was saved some money at the end of the month. Nothing remains at all.”

“Pay 50,000 kochs ($ 29) in school fees for each period. Then you need to buy exercise, food and soap books – all of the same small salary. Sugar (1 kg) is now 4,500 koch ($ 3).”

Economists have put the current inflation problems in Malawi partially to the lack of foreign funds – known as “Forex” – in banks.

Malawi often struggled with Forex as you import the country much more than it is issued.

“We are not exporting high -value products,” Dr. Batha Bangara Chikadza, chief lecturer in the macroeconomic economy at Malawi University and head of the Malawi Association in Malawi, told the BBC.

She said: “We export products such as corn, soy beans and sugar, but importing expensive products such as fertilizers, medicine and furniture, so we need a large amount of Forex for this purpose.”

Companies that want to import goods say that when they apply to banks against Forex – especially US dollars – they are often rejected because there is nothing available.

This forces some to search for US dollars on the black market, where the exchange rate is higher than the official rate of 1750 kochs for one dollar.

Traders can pay between 4000 and 5000 KWACHA for one dollar – which has an impact on consumers.

Business owners, such as Mohamed Hanif Waka, who owns a stationery store in the capital, says that he lost many customers since the price situation.

“The sales have decreased significantly,” he told the BBC. “We had to provide repetition,” he told the BBC.

Although it usually imports the elements of his store, such as office supplies, pens and openings, the lack of foreign currencies means that he is now trying to reach goods locally.

“I cannot remember when we gave us a Forex,” he said.

Desperate for change, informal merchants moved to the streets to protest in February, where hundreds closed the entrance to Malawi Parliament.

“We have really been affected, we are supposed to get a profit from our business,” Steve Magombo, head of the Tsuka Market for Magics in Lilongy, told the BBC.

“But the way things fail, we fail Malawi to buy our goods.”

Earlier this year, a $ 175 million loan was announced with the International Monetary Fund temporarily. The loan was approved for a period of four years in November 2023, with $ 35 million to date.

“Under the International Monetary Fund policy, if the reviews are not completed for 18 months, the program ends automatically, and no reviews are successfully completed.”and BBC said.

Mr. Tyson added that “financial discipline” “has proven difficult to preserve it in the current environment due to the high pressure of spending.”

However, the Minister of Finance in Malawi Simple Czechiola Panda said it was the government’s decision to suspend the loan because there is a dispute over the conditions.

“When you don’t have fuel – you choose to buy fuel (instead) from reserves” when you are told that you need to build reserves, but at the same time it dries the country because you do not have fuel – you choose to buy fuel (instead) from building reserves, “Panda told the BBC World Business.

“We were told to stay in the program, you need to adjust fuel prices, but it may have a negative impact on basic commodity prices.”

With Malawi’s national election decision, the government says it takes a number of steps to reduce prices.

The Minister of Trade Vitumbiko Mumba acknowledged that Forex should be legalized, but he says that registered companies can apply for the basics through the Reserve Bank or the Ministry of Finance. But he blames merchants for inflating prices.

“We are creating an economic sabotage bill, and there will also be a commodity bill and basic services to regulate this,” he told the BBC.

Meanwhile, the main opposition has placed blame for inflation at the feet of power.

Whatever the reason for the exaggeration of prices, it is possible that the cost of living is a huge problem in the campaign.

Malawi hopes to give up their daily struggles due to government plans – and everyone wants a solution that brings permanent stability of the economy.

“We rely on the government for help,” said Ms. Kathumba.

“I hope that the lesser -erased Malawi politicians will remember when making their decisions.”

Additional reports by Jack McBrams in Lilongoy.