To commemorate the 2025 World Consumer Rights Day observed annually on March 15, Consumers International chose the theme ‘A just transition to sustainable lifestyles’, emphasising on the need for affordable and sustainable choices for consumers in turbulent economic environments.
In Malawi, the local consumer rights coordinating agency Competition and Fair Trading Commission crafted the theme ‘Fairness in pricing for a sustainable future’ apparently influenced by increased complaints from consumers amid escalating prices of goods and services.
The commission said fair pricing is not only desirable for achieving transparency in pricing of goods and services, but also in ensuring that the market environment benefits both consumers and businesses.
This year’s commemoration of World Consumer Rights Day came at a time Malawians are grappling with rising prices of goods and services. In most cases, the price increases are so rapid and out-of-control prompting suggestions of hyper-inflation, a scenario where prices sharply and excessively go up in uncontrollable manner.
In the past two weeks, many consumers in the country woke up to the reality of buying a five kilogramme (kg) pack of polished rice at around K30 000 from between K15 000 and K19 000. On the other hand, a 10 kg bag of maize flour is fetching about K32 000 from between K15 000 and K18 000 while chickens, either dressed or live, are trading at between K15 000 and K20 000 each from around K8 000 and K10 000 a couple of weeks ago.
Faced with the scarcity of foreign exchange with reserves standing at an equivalent of 2.3 months of import cover, short of the internationally-recommended minimum of three months, most goods are not readily available in local shops. Empty shelves are now conspicuous in most top supermarkets while a subdued local manufacturing industry is struggling to fill the gaps through import substitution
In such circumstances, the country is exposed to demand-pull inflation where the aggregate demand for goods and services is higher than the supply side can offer. The sharp increase in rice prices was induced by a shortage of the grain and I recall going on a wild goose chase in Ekhaya, ChipikuPlus, Sana Cash ‘N’ Carry and Shoprite outlets two weeks ago.
Malawi’s year-on-year inflation rate for February 2025 increased to 30.7 percent from 36 percent in January on account if rising prices of both food and non-food prices, according to National Statistical Office data.
The 2.2 percentage points increase from the 28.5 percent recorded in January 2025 came at a time Ministry of Finance and Economic Affairs expressed optimism it would ease inflation in the short to medium-term.
Unlike in the previous two years when February recorded declining prices by 12 percent in 2024 and one percent in 2023, retail prices for maize continued their sharp rise this year with the staple grain fetching an average of K1 304 per kg in the last week of January to an average of K1 718 per kg four weeks later in February.
In its tabulation, the Centre for Social Concern has pegged the average cost of living for an average family of six in urban and peri-urban areas at K694 653, an increase of 12.9 percent due to increased prices for most basic necessities.
Recent efforts by the Ministry of Trade and Industry, especially the import and export bans on some products could, if implemented to the letter and not as a smokescreen, help the economy in the medium to long-term. However, implementation and enforcement will be a critical success factor.
To the local manufacturers saddled with challenges such as high cost of borrowing, taxation and other disincentives stifling their growth and production capacity, the import bans could be an opportunity to leverage by improving on quality and satisfying the market.
In the same vein, in implementing the import bans designed to protect and promote local industries, it would also be important for authorities to ensure adherence to international trade agreements as its effect would boomerang on the country’s already fragile economy.
The other way to go about it could be imposing tariffs on some imported essentials ostensibly to make them cost more than their comparable local products, thereby naturally “clearing them out” of the market.
The World Consumer Rights Day 2025 theme ‘A just transition to sustainable lifestyles’ calls for a review of consumers’ choices and given the ever rising cost of living, it would be absurd for one to do business as usual.
This is the time to decide whether you really need three meals (kudya katatu pa tsiku) per day in your household or indeed, to imbibers, consider substituting that imported lager, cider or liquor spirit with local products such as Kuchekuche, Carlsberg Chill, Malawi Gin or CapeStars.
When prices change almost every day, people lose their income as their purchasing power evaporates. In such situations, focus on basic necessities and buy in bulk items that may not easily go bad. Priority should also be given to items that may become scarce sooner than later.
Do not keep huge sums of money in bank accounts, instead engage investment portifolio managers on how to invest in long-term instruments. Building or buying real estate is another avenue for hedging against losing your money to high inflation.
Take with a pinch of salt opinions on investment and the economy from those with some vested interest to avoid being misled by cross-checking with what independent agencies are saying about the same.
Be an informed consumer, fight for your rights in pursuit of ‘affordable and sustainable’ choices.
