According to a new study reported by Nation Online, currency devaluations in Malawi could cost households approximately $6.8 million, or about K12 billion, under a flexible exchange rate regime. Bertha Phiri, executive director of the Malawi Economic Justice Network, stated that exchange rate fluctuations are intensifying inflationary pressures across the country. A thin foreign exchange market has led businesses to raise prices in anticipation of higher import costs, while fuel and fertilizer price hikes continue to drive up food inflation. Phiri cautioned that without adequate foreign exchange supply and an increase in local production, devaluation without supply-side reform becomes an inflation shock that will only worsen the financial burden on consumers.
In other economic developments, the government and the United Nations Economic Commission for Africa hosted a National Workshop on Innovative Climate Action in Lilongwe on September 7 and 8. The event focused on advancing green industrialisation to support economic recovery and growth. Dr. Bright Molande, Principal Secretary for Industrialisation, stated that empowering the private sector is essential for making Malawi an exporting nation capable of generating foreign exchange and reducing poverty. Furthermore, ECA Director Eunice Kamwendo noted that using resources efficiently and expanding clean energy will create local jobs and build economic resilience against climate shocks, according to reports from the ECA and Mibawa TV.