By Chisomo Phiri
Economics lecturer at the Catholic University of Malawi (CUNIMA ) Greenson Nyirenda has urged the government to take immediate action to tame food inflation and ensure forex availability in the country.
This comes after former Minister of Trade Sosten Gwengwe admitted that Malawi is indeed experiencing hyperinflation, echoing the International Monetary Fund (IMF)’s forecast of a cumulative inflation rate of 108% by the end of 2024.
In an interview with 247 Malawi News,Nyirenda pointed out a compromised food basket, particularly maize production, and forex challenges as the primary drivers of this crisis.
He also emphasized the need for the government to address the thriving black market, which is exacerbating the situation.
“The government must also deal with the thriving black market for the economy to rebound,” stressed Nyirenda.
But Gwengwe assured that the government is working to address the uncontrollable rising prices of goods in the country.
He admitted that the situation demands urgent attention to prevent further economic deterioration.
Currently,on the black market, a dollar is trading at nearly K4,500, while a 50kg bag of maize costs over K100,000.
A 1kg packet of sugar sells for K4,000, and 2 liters of cooking oil costs around K18,000.
Producers of chicken feeds and chicks have doubled their prices, adding to the burden on consumers.
