“I tell my children not to play so we can save money from soap”

Susanna Kathamba, a Malawi housekeeper, spends every day thinking about the ways he can economize to make her salary of $ 80,000 ($ 46; 34 pounds) a month to support her family.

As she wipes a wet cloth from a bucket of water in the living room and begins with the deletion of tables and chairs, she considers her most bet to save money.

“I told my youngest children not to get too dirty when we play so that we could save soap,” the 43-year-old told the BBC.

“But it's hard because children are children, they want to play.”

Over the last few months, Ij Kathumba, a divorced mother to four working in the capital, Lilongwe, has been struggling to survive from her salary due to the rising prices of goods on the market.

With little financial support from her ex -husband, she is the only household carrier. Most of her money returns to her four children who live in their hometown of Casung, about 130 km (80 miles) northwest of the capital. The two youngest children are still in school, and two bigger ones are unemployed.

In May, the annual inflation in Malawi was 27.7% – One of the highest in Africa – a drop of 29.2% in April.

“What is surprising is that the salaries remain the same, but the price of the goods continues daily,” said G -Ja Kathumba.

“Money ends before it even comes. We live a very difficult life.”

A recent Ernst & Young report He said Malawi is one of the few countries in the world that he considers to what he calls a “hyperinflation economy” – along with Burundi, Sierra Leone, Sudan, Venezuela and Zimbabwe. This is when there is a cumulative inflation for three years of about 100% or more.

The accounting firm said that according to the world's economic prospects database, composed of the International Monetary Fund (IMF), Malawi has a three -year cumulative inflation rate from 116% to December 2024 and predicts three -year cumulative inflation rates of 102% for 2025 and 66%

World Bank data It also shows that the country is one of the most overwhelming in the world. He estimates that 70% of the South Africa population lives at less than $ 2.15 a day.

The current crisis of the cost of living has left many citizens, such as Mrs. Kathumba, without any savings.

“I would be lied to if I said I saved some money at the end of the month. I have absolutely nothing left,” she said.

“I pay 50,000 kwacha ($ 29) in school fees every term. Then you have to buy textbooks, food, soap – everything from the same small salary. Sugar (1 kg) is now 4500 kWacha ($ 3).”

Economists have posed the current problems with Malawi's inflation partly to the shortage of foreign money – known as “forex” – in banks.

Malawi often fights with Forex as the country imports much more than it exports.

“We are not exporting high value products,” said Dr. Bertha Bangara Chicaza, a senior macroeconomic teacher at the University of Malawi and President of the Malawi Economics Association, told the BBC.

“We export products such as corn, soy and sugar, but we bring expensive products such as fertilizers, medicines and furniture, so we need a huge amount of forex for that,” she said.

Companies that want to import goods say that when they apply for Forex banks – more special US dollars – they are often rejected because they are not available.

This forces some to look for US dollars on the black market, where the exchange rate is higher than the official $ 1,750 kWacha course per 1 dollar.

Traders can pay between 4000 and 5000 kWacha per 1 dollar – which has a knockout effect for consumers.

The owners of companies, like Mohammed Hanif Vaka, who owns a stationery shop in the capital, says he has lost many customers after setting prices.

“Sales have fallen dramatically. We had to make cuts,” he told the BBC.

Although he usually imports items for his store, such as office supplies, pens and notebooks, the lack of currency means that he is now trying to access goods locally.

“I can't remember when our banks gave us Forex,” he said.

Desperate for change, informal traders took to the streets to protest in February, with hundreds blocking the entrance to Malawi's parliament.

“We are really affected. It is supposed that we will be profitable from our business,” Steve Magombo, chairman of the LILLong flea market, told the BBC.

“But as things are, we fail. The Malawians fail to buy our goods.”

Earlier this year, it was announced that the $ 175 million loan agreement with the IMF was temporarily suspended. The four -year loan was approved in November 2023, with $ 35 million being paid so far.

“According to the IMF policy, if the reviews are not completed for an 18-month period, the program automatically expires and have not been successfully completed,” Justin Tyson, the IMF Mission Mission Chief., Before the BBC.

G -N -Tyson added that “fiscal discipline” proved difficult to maintain in the current environment due to increased cost pressure. “

However, Finance Minister of Malawi Simplex Chidela Gang said the government's decision was to suspend the loan, as there was disagreement on the terms.

“When they tell you that you have to build reserves, but at the same time the country is drying because you do not have fuel – you decide to get the fuel (rather) than to build reserves,” a band told the BBC World Business Report last month.

“They told us to stay in the program, you need to adjust fuel prices, but this can have a negative impact on the prices of basic goods.”

With the national elections of Malawi scheduled for September, the government says it is taking a number of steps to reduce prices.

Trade Minister Vitumbiko Mumba acknowledged that Forex should be marked, but says the registered business can apply for basic things through the Reserve Bank or Finance Ministry. But he also blames the pricing dealers.

“We are creating a bill for economic sabotage and there will also be a bill for basic goods and services to regulate this,” he told the BBC.

Meanwhile, the main opposition has been blamed for inflation at the feet of power.

Whatever the reason for the pricing inflation, it will probably be a huge campaign problem.

The Malawians hope their daily struggles will be relieved by the government's plans – and everyone wants a solution that brings lasting stability to the economy.

“We depend on the government for help,” said G -Ja Kathumba.

“I hope that politicians remember less privileged Malawi when they make their decisions.”

Additional reporting by Jack McBras in Lilongve.