Consumers Association of Malawi (Cama) has urged people to spend wisely during the festive season, saying its survey shows that commodity prices have increased by 70 percent this year.
Cama executive director John Kapito issued the advice ahead of the festive season, which will reach a climax next Wednesday on December 25, which is Christmas Day and on New Year’s Day on January 1 2025.
during the festive season | Nation
His warning also comes at a time inflation is at 27 percent, foreign exchange is in short supply amid sporadic fuel supply.
Kapito said some unscrupulous traders will use every means to sell products at inflated prices or sell defective, substandard and expired products at cheaper prices through various platforms such as promotions.
“Currently, consumers are experiencing one of the highest cost of living as a result of the devaluation of the kwacha by 44 percent in November last year and shortages of foreign exchange that have drastically depleted consumers’ spending power,” he said.
The seasoned consumer rights activist urged consumers to make careful planning before deciding to spend money during this festive season.
“Prices of goods and services will continue to rise in the coming year and the choices we make must reflect current market conditions and based on our depleted incomes, which have remained too low,” said Kapito.
Cama statement comes at a time Competition and Fair Trading Commission (CFTC) has been warning big market players against unfair tendencies such as supplying the market with cheap and sub-standard products.
In a statement, CFTC executive director Lloyds Nkhoma said this practice tends to bar micro, small and medium enterprises as they could be priced out of the market.
He attributed the tendency to rising inequalities emanating from slow recovery from the effects of the Covid-19 pandemic and environmental disasters such as Cyclone Freddy.
“In order to navigate through such a market environment, some big companies have resolved to engage in anti-competitive business conducts such as excessive pricing or supplying substandard products,” said Nkhoma.
In an earlier interview, Malawi Bureau of Standards director general Bernard Thole said the mandate of the bureau is not to monitor daily production stages and processes of companies, but to promote standardisation and quality assurance of products.
The cost of living for a family of six has increased to K663 204 in November this year, a 4.17 percent rise from the previous month’s K636 634, according to the Centre for Social Concern.
The data further shows that between January and November this year, cost of living has jumped by 18.8 percent from K558 200, making life unbearable for a mjority of people.
