DEVALUED DREAMS; LIFE AFTER DEVALUATION IN MALAWI

 Fourty four percent gone, prices soaring, jobs in the line, hope fading, and Malawian’s currency collapse didn’t just move markets – its crushed lives. Now millions face a brutal question: survive or starve?

On November 19, 2023. The 44% devaluation of the Malawian kwacha has sent shockwaves through the nation's economy, leaving millions of people grappling with the harsh realities of a rapidly changing financial landscape. According to the statement released by the Reserve Bank of Malawi (RBM), the development occurred after assessment of the kwacha which exposed that despite adjustments of the rate through the auction system, still supply-demand imbalances remained in the markets. This 44% downturn pushed Malawi’s currency selling rate of the dollar towards K1, 700 after K1, 180.29 in a net importing country like Malawi where forex drives economic developments. As prices soar and jobs hang in the balance, the very fabric of Malawian society is being tested. The devaluation, aimed at stabilizing the economy, has instead unleashed a torrent of uncertainty, forcing individuals and families to confront the brutal question: survive or starve?

Civil servants and Malawi’s future

As days continue, people mostly vendors, started protesting against the soaring price in different districts. In some areas people gossiped for presidential resignation to show their anger against the government’s ideas. Some of the group who held the protests were civil servants. They complained that despite the kwacha being devalued, the government did not raise their wages the way they expected.

These soaring prices have also an impact on Malawi’s future as a country, for example, the vision 2063 has been affected since people are not focusing on building the country’s economy but instead, they spend most of the days thinking of how to feed their children.

Civil servant protesting over the rise of cost with imbalance salary due to devaluation

One of the civil servants said that the salary they managed to pay rentals, school fees and helped their loved one with was no longer enough for them. Chifundo Kajombo, an extension worker from Zomba district said that they are failing to help their relatives and children after that 44% devaluation and their lives have changed since the breakfast, they ate beck then is no longer there for the family. 

"This is also affecting our family’s nutritional needs ", Kajombo added.

Blantyre's bustling streets, once filled with the hum of commerce and the chatter of market vendors, now echo with the struggles of everyday life. For ordinary Malawians, the devaluation of the kwacha has become a harsh reality, squeezing household budgets and pushing the cost of living to unprecedented heights. From the market stalls to the family dinner table, the effects of devaluation are being felt deeply."

Economic hardship

Businesses are struggling. Happy Phiri, who operates the main workshop inside the Bunda campus highlights that there is indeed the gap if to compare the season before devaluation and now in relation to business. He elaborated that this difference is mainly exposed when it comes to amount of the commodity sold per day versus the amount of commodity being ordered, transportation of goods as well as uncertainty of goods prices. 

“In early 2023, we used to make orders twice per week and sell as many goods as possible within a short period but now orders are happening once a fortnight. Many customers end up with getting back without obtaining what they wished to purchase if they were assuming that yesterday’s price is the same today. Our own profits instead of making progress, sadly now and again that cash is added to the new increased orders prices.” Phiri said.

“The same fruit which tasted sweeter now is bitter. Transportation is higher, number of consumers lowered and what we are doing now is to maintain our business hoping on day thing will work-out again.” He added.

Aida petifolo who is a small business person emphasized that our economy now follows survival of the fittest, elimination of the weakest. 

“Is it that our currency bewitched or what? Should we believe that our government find no solution other than devalue our kwacha? If we are dreaming consciousness should wake us up before completely deceases. She said.

Village life

In the rural areas such as Kachere village, Traditional Authority Chiseka, Lilongwe, deep in the heart of Malawi, life was already tough—but manageable. Most villagers survived through small businesses: selling tomatoes, charcoal, second-hand clothes, or running tiny grocery stalls. But when the government devalued the kwacha by 44%, everything changed—overnight.  

Amai Loveness, a tomato seller at the local market, recalls that it started with a new price tag on cooking oil. “Last week, a bottle was K 2,000” she said. “Now it’s over K 10, 000. But my tomatoes are still selling for the same old price if people even buy them.” Her customers, mostly fellow villagers, could no longer afford to spend on anything beyond maize flour.        

Tomatoes perished in her baskets as she walked home with empty pockets.

The problems are everywhere. Devaluation meant imported goods—fuel, fertilizer, soap, medicine—instantly became more expensive. Transporters raised their prices. Vendors had to increase theirs to survive, but villagers had no extra money to spend. It was a vicious cycle. Even simple joys became rare. Weddings were postponed, church contributions dried up, and village markets—once noisy and full—grew quiet. Lives, dreams, and dignity of the villagers are deeply felt.

Student’s struggles

Students are also feeling the pinch. Pemphero Zegarra, a fourth-year student at Bunda, notes that the devaluation has affected his studies. 

“The 15,000-kwacha printing budget that lasted a month now vanishes in two weeks. My parents’ voices drop when discussing fees, their once-steady salaries now rendered inadequate by supermarket price shocks. My nutrition menu intake has rephrased, breakfast replaced with African cake instead of bread. Soya pieces substitute’s meat financially. My internship dreams now fade away and l wish I graduate tomorrow so that I can leave this place.”

The devaluation of the Malawian kwacha has had far-reaching consequences, affecting businesses, villagers, and students alike. As the nation struggles to come to terms with the new economic reality, one thing is clear: the dreams of many Malawians have been devalued. The future may be uncertain, but the spirit of the Malawian people remains unbroken. While the devaluation has presented numerous challenges, it also offers opportunities for innovation, adaptation, and economic revival, paving the way for a more resilient economy.