Informal sector decries high cost of living

 Malawi Union for Informal Sector (Mufis) president Ken Williams Mhango has bemoaned high cost of living, saying small businesses are suffering.

He said this in Blantyre on Wednesday when the union engaged its members from the Southern Region to understand their role in driving the country’s economy.

Mhango said: “The informal sector plays a crucial role in the economy of the country. That is why we want its members to know their role in as far as contributing towards the country’s development is concerned.

“We understand that the cost of living has risen, which is also affecting our businesses.”

One of the participants, Jacqueline Abbul, who sells second-hand clothes in Balaka District, said the meeting will help them understand the union’s role and objectives.

“The cost of commodities has risen. With small capital, it is difficult to stock much for sale. Again, we are not making profits because business is poor. In that regard, our businesses are failing to grow,” she said.

Abdul asked for money-lending institutions to support informal business operators get back to their feet.

Another businessperson from Zomba, Asigele James, who sells dry fish, said it was important to mobilise informal business operators to work together to develop their respective areas.

“But to effectively play our role, we need support in terms of capital. For the past two years, business has been difficult due to a number of economic factors,” he said.

In May 2022, government devalued the kwacha by 25 percent, which partly led to the rising cost of living.