In the heart of Malawi, the cost of living has reached new, staggering heights. A recent report from the Centre for Social Concern (CfSC) paints a grim picture: between December 2024 and January 2025, the cost of living surged by an alarming 12.9 percent, from K615 138 to K694 653. This spike, driven largely by steep increases in the prices of maize, tomatoes and sugar, is suffocating families, particularly those already teetering on the edge of poverty.
The economic strain: a closer look
The most immediate victims of this crisis are the country’s low-income families. For a Malawian family, struggling to make ends meet on a meagre income, these price hikes represent more than just numbers. They represent hunger, missed meals, and the reality that tomorrow’s meal may be out of reach.
Take maize, Malawi’s staple food, which saw price increases ranging from 28 percent in Mangochi to 33.3 percent in Zomba. For many households, this grain is the core of every meal, and such a dramatic price rise could mean a family eating less, or even forgoing meals altogether. Tomatoes, an essential component of everyday cooking, have also risen sharply—88.8 percent in Blantyre alone. And sugar, a key ingredient not just in households but also for small businesses, has seen price hikes up to 22 percent.
This sharp increase in basic food prices is not just a crisis for today—it threatens the future of the nation itself. If the rising costs of living are not addressed, we risk deepening the divide between the rich and the poor, locking entire communities in cycles of poverty and undermining economic stability in the long term.
Why is this happening?
There are several layers to this economic mess, and they all point to systemic issues that have festered for years. Let’s break down the key factors:
Erratic weather and climate change: Droughts and unpredictable rainfall patterns are hurting crop yields, especially maize and tomatoes. With less produce available, prices inevitably climb.
High input costs: Farmers are struggling with the rising costs of fertilisers, seeds, and pesticides. This burden is transferred to consumers, creating a vicious cycle of high prices and stagnant wages.
Transportation bottlenecks: Fuel price hikes and logistical challenges make it expensive to transport goods, and these costs get passed on to consumers.
Market speculation: Traders, anticipating further price increases, stockpile goods, making the problem worse. This artificial shortage exacerbates food insecurity.
The Malawian kwacha’s decline: A weakening currency means that importing goods, such as sugar and agricultural inputs, becomes more expensive, further pushing prices upwards.
Pest and disease outbreaks: The destruction of crops by pests is another significant factor contributing to reduced food production and rising prices.
The impact on households: a growing crisis
For many Malawians, this price surge threatens their very survival. Households already facing unemployment, stagnant wages, and little to no access to social safety nets now find themselves with even less purchasing power. Malnutrition is a growing concern, especially for children, as families struggle to put enough nutritious food on the table.
The ripple effect is felt beyond the home. Informal traders, who make up a significant portion of the workforce, find themselves unable to afford the goods they sell, and small businesses relying on sugar, tomatoes, and other essential goods are grappling with the financial strain.
Can Malawi recover?
The big question on everyone’s mind is: Will Malawi ever recover from these mounting challenges?
The truth is that recovery will not happen overnight. There is no silver bullet for this economic crisis, but there are several crucial steps that, if implemented effectively, could provide long-term solutions.
Proposed solutions: a path forward
Investment in sustainable agriculture: The government must prioritise modernising agriculture. A focus on irrigation farming, climate-resilient crops, and better farming techniques could reduce reliance on rain-fed agriculture and protect the country from erratic weather patterns. Partnering with international organisations to implement climate-smart farming initiatives could prove essential in improving productivity and stabilising food prices.
Boosting domestic food production: Reducing the dependency on imports for essential commodities is critical. Sugar, in particular, should be a focus. Encouraging local production of sugar through private and public partnerships will reduce foreign exchange demands and cushion the impact of global price fluctuations.
Expanding social safety nets: Strengthening cash transfer programmes, food assistance, and other social protection programmes for vulnerable groups is vital. These programmes should be designed to reach the most marginalised groups—particularly informal workers and subsistence farmers—who are not covered by formal social security systems.
Tackling corruption and market regulation: Price hikes due to market speculation and hoarding need to be addressed. The government must improve market regulation and enforce policies to prevent price gouging. Transparency in the food supply chain will help ensure that traders cannot manipulate the system to their advantage.
Energy solutions for lower production costs: Rising fuel prices are driving up the cost of production for farmers and small businesses. To alleviate this, the government should accelerate investments in alternative energy solutions such as solar and biogas. This will not only reduce energy costs but also help make the agricultural sector more sustainable.
Enhancing access to finance for small businesses: Offering low-interest loans or grants for small businesses, particularly those in the agricultural and food sectors, will empower them to grow, diversify, and withstand price fluctuations. Strengthening the financial ecosystem is crucial to fostering innovation and reducing economic dependency on external markets.
Infrastructure development: Improving roads, transport logistics, and storage facilities will help reduce transportation and distribution costs. Better infrastructure will make food distribution more efficient and reduce post-harvest losses, ultimately helping stabilize prices.
Hope is not lost
Malawi is at a crossroads. While the country is undoubtedly facing significant economic challenges, there is still hope. Through a combination of smart policy, targeted investment, and improved governance, Malawi can weather this storm and build a more resilient, self-sustaining economy.
But time is of the essence. The government, private sector, and civil society must collaborate urgently to address these issues head-on. With decisive action and long-term strategies in place, recovery is not just possible, it is necessary for the survival of future generations.
In the end, the question isn’t whether Malawi will recover, it’s whether we, as a nation, will rise to the challenge and secure a better future for our children. The ball is in our court.
Agness Nyirongo is CfSC economic governance officer.
