Small and medium enterprises continue to be squeezed with no end in sight due to rising food prices.
In an interview on Wednesday, Blantyre-based Ellen Jumbe, who operates a restaurant and catering business in the city, said in the face of rising prices, making profits to sustain a business has become a nightmare.
She said for instance, chicken prices have soared from K7 00 in 2015 to around K15 000 today, while the price of rice has increased from K2 500 to K4 000 per kilogramme with cooking oil prices jumping from K19 000 to over K40 000 per five litre bottle.
Maize prices have also been on the rise, soaring from K30 000 to K100 000 during the review period.
“It difficult for them to generate profits as they did in previous years,” she said.
Meanwhile, businesses are transferring the costs to consumers or in the worst-case scenario, compromising on quality to sustain their businesses.
Trevor Maideni, who operates a hotdog business, confirmed that the constant rise in operational costs has affected daily sales, leaving business owners with no option, but to adjust pricing.
“Last year, we were buying sausages at K9 000, and now they cost K13 500. The price of gas has also soared from K2 500 to K3 720. This has left us with no choice, but to raise prices,” he said.
Malawi College of Accountancy student Silvester Ulaya observed that while prices at his local eatery have been maintained, the quality has declined.
The average cost of living for an average family of six in urban and peri-urban areas has increased by 12.9 percent to K694 653 as prices of most basic necessities continue to rise.This is on account of rising food prices, according to data compiled by Centre for Social Concern (CfSC).
According to CfSC, maize, which contributes about 53.7 percent to the Consumer Price Index—an aggregate basket of commodities used to compute inflation— constitutes over 50 percent of daily food intake.
