GNV News, July 11, 2024

In February 2025, large-scale demonstrations broke out in Lilongwe, the capital of Malawi, which has been suffering from prolonged price increases, and spread to four surrounding cities. These became the largest protests since 2019. In Malawi in southeastern Africa, which faces a presidential election on September 16, 2025, rising prices for daily necessities have become a serious issue. In April 2025, the annual inflation rate was 29.2%, said to be the highest figure among African countries. Price increases have also affected food, and maize flour, the staple, cost the equivalent of US$63 for 50 kilograms, three times the price in December 2024. This is equivalent to twice the monthly minimum wage for domestic workers, dealing a severe blow to low-income groups.

There are said to be various factors behind Malawi’s rising prices. Among them, a shortage of foreign currency has been accelerating inflation. Malawi’s domestic currency, the Malawi kwacha, was trading at MWK 1,700 to US$1 as of July 2025, which is only half its value compared to 2022.

In Malawi, it is said that registered companies can apply for the foreign currency they need through designated banks or the Ministry of Finance, but there have been reports of firms being rejected even after completing procedures because no foreign currency is available. As a result, the black market for foreign currency has expanded, and in March 2025 the rate surged to MWK 5,000 to US$1. The exchange rate has become highly unstable.

In May 2025, the International Monetary Fund (IMF) terminated its US$175 million lending program to the Malawian government, which has also raised concerns. The package had been approved in November 2023, but was ended on the grounds of improper economic management by the Malawian government. Public distrust of the government’s economic management is growing.

In the run-up to the presidential election in a few months, the Malawian government included in its next budget draft the elimination of the foreign-currency black market, a ban on importing non-essential goods that can be produced domestically, and the introduction of schemes to support local companies and encourage production.

In addition, taking into account the surging inflation and the depreciation of the kwacha against the US dollar, on May 13, 2025 the Malawian government announced a 40% increase in the minimum wage: for general workers, from 90,000 (US$52) to 126,000 kwacha (US$72) per month; for domestic workers and the like, from 52,000 (US$30) to 72,800 kwacha (US$42) per month; and for small-business workers, from 75,000 (US$43) to 105,000 kwacha (US$60) per month.

However, raising the minimum wage does not provide a fundamental solution to inflation. Challenges such as the suspension of IMF lending and the expansion of the black market due to foreign-currency shortages mean Malawi’s inflation problem remains severe.

Learn more about global poverty → “How should we interpret the global poverty situation?”

Learn more about protests → “Was the ‘Year of Protests’ reported?”

Women making the staple food nsima from maize flour, Malawi (Photo: IFPRI / Flickr［CC BY-NC-ND 2.0］)