Devaluation triggers panic-buying, confusion
Panic-buying was prevalent among consumers in some supermarkets in Lilongwe, Blantyre and Mzuzu amid fears of drastic price adjustments in the wake of a 44 percent devaluation of the kwacha effected yesterday.
In some cases, shops had to restrict quantities that customers can buy while several hardware shops remained closed, especially in Blantyre and Lilongwe.
At the entrance of Game Store in Blantyre, consumers were welcomed with a notice that the shop would be closed this weekend and will reopen for business on Monday.
A Lilongwe-based businessperson, Faith Banda, said in an interview that she rushed to one of the wholesale shops in the capital city to buy supplies in anticipation of price adjustments.
She said: “We got information about the local currency devaluation by the Reserve Bank, prompting us to act swiftly and secure goods before the inevitable price adjustments.”
Banda expressed concern that the devaluation will likely slow down her business as she expects consumers’ buying power to be affected.
As early as 8am yesterday, people flocked to shops in Mzuzu City to stock up groceries only to find prices of some commodities adjusted upwards as a direct consequence of the devaluation.
In an interview, Mzimba-based businessperson Gladson Lupwayi, who came to the city to purchase groceries and fertiliser for his shop, said he failed to buy what he wanted.
He said: “I came to buy groceries on wholesale because I operate a shop in Mzimba, but I am shocked with the prices.
“For example, a bale of sugar with 20 packets is now selling at K30 000 from K28 000 while a dozen of Clere body lotion has been raised from K38 000 to K47 000.
“This means that I have to buy at least half of the commodities I initially planned to buy during my errands in the city.”
A farmer, Tinkhani Mkandawire, who resides in Luwinga Township in Mzuzu and wanted to buy maize seed, said he was shocked with the new prices.
Similarly, fertiliser prices were also raised in many leading shops, especially for Urea and NPK.
“I came here with K160 000 hoping to buy two bags of Urea, but I ended up paying K172 000. At home, I was told it’s K80 000 per bag, but that has changed to K86 000,” said 56-year-old Rhoda Mkonongo of Luzi in Mzimba.
She said she borrowed an additional K12 000 to buy the fertiliser.
A retail fertiliser shop under the banner Fumbanani Agro-dealers raised the prices from K70 000 to K75 000 for a 50kg bag of NPK while the price of Urea has also been raised to K76 000 from K72 000.
