Consumers Association of Malawi (Cama) says the 2024/25 Mid-Year Budget Review Statement has failed to cushion Malawians from the harsh economic environment.
In an interview yesterday, Cama executive director John Kapito said consumers expected the budget review to address the challenges.
He said: “Malawians have shown their patience expecting that the high cost of living being experienced would be addressed with this revised budget.
“Unfortunately, consumers will suffer for a long time with these serious economic challenges.”
Kapito said the budget review has not provided any cushioning measures to consumers, considering the current challenges they are experiencing as a result of poor economic policies worsened by the implementation of International Monetary Fund (IMF) Extended Credit Facility the country clinched in November last year.
He observed that the challenges, which include the 44 percent devaluation of the kwacha and rising bank lending rates have failed to improve the lives of Malawians, particularly the poor.
Resultantly, cost of living has continued to rise, with the Centre for Social Concern (CfSC) data showing that the basic needs basket for a household of six has risen from K523 648 in September to K540 353 in October.
Rising food prices are one of the most pressing factors exacerbating the cost of living, with a 50 kilogramme bag of maize selling at about K43 000.
Transport prices have also been on the rise due to the shortage of fuel, which has been worsened by shortage of foreign exchange.
Consequently, inflation has averaged 33.8 percent between January and October 2024 compared to 28.8 percent during the corresponding period in 2023, according to Minister of Finance and Economic Affairs Simplex Chithyola Banda.
In an interview yesterday, CfSC economic governance officer Agness Nyirongo observed that the sharp rise in costs is particularly alarming in urban areas.
She said: “The implications of rising living costs are far-reaching.
“Families are increasingly resorting to harmful coping strategies such as reducing the frequency of meals, substituting nutritious foods with cheaper alternatives and sacrificing healthcare and education. “
In his 2024/25 Mid-Year Budget Statement preseted in Parliament on Wednesday, Chithyola Banda touted $175 million (about K306 billion) ECF programme for unlocking financial support from development partners.
