We know it has been a difficult few years for everyone in the UK, with the compound effect of a number of factors giving rise to the cost of living crisis. Sadly this is not restricted to the UK and Malawi has been hit by significant changes in their economy putting many families on the breadline and further into poverty.
On proof-reading this article it’s really brought home how bleak the situation is. Take a breath and please do read on…
A key trigger in Malawi is the rate of inflation. As we enter 2026 the rate is currently a frightening 28.4% (year to end 2025). This is actually slightly down from the previous year but it remains unnervingly high, fluctuating around this level.
Whilst Malawi’s economy has always been volatile, this level has not been seen since 1999. Key drivers for the inflation rate have included:
- Food inflation for staples like maize and rice at 36% (2025);
- Fuel price rises and shortages;
- A shortage of Foreign Exchange which slows down and drives up prices for imported goods. The shortage is typical of a country that imports much more than it exports;
- High prices force families into food poverty, reducing their food intake whilst a high proportion of their income is spent on basics like housing;
- Poor growing seasons reduce food availability and the opportunity for labour and income.
In comparison, the UK’s inflation peaked at 10% in 2022, and has now settled at around 3-4%
Shortages continue to leave families desperate. In June the BBC reported on the Malawian economy with stories that include Suzanna Kathumba who told her children ‘not to get too dirty when playing, so we can save on soap’.
Her salary, which is typical, was 80,000 Kwacha (£34) per month. 70% of the nation live on less than $2.15 per day. Salaries are not rising at all, whilst the cost of living continues to escalate. Over three years the cumulative inflation has been more than 100%. The whole country lives hand-to-mouth, with even the government unable to establish reserves of fuel as the nation periodically runs dry of diesel.
Near Chimbiya, where we have helped deliver education opportunities for the last 15 years, the land is being manually mined without regulation in a desperate search for gold. Several lives were lost in mine collapses last month, yet the mining continues.
What can be done?
Our focus remains on bringing opportunities to vulnerable children and their families, opening doors to education and healthcare and establishing sustainable communities. Our Roots of Hope programme goes from strength to strength as we explore agriculturally-based interventions for individuals and schools, and developing a demonstration facility to generate income in-country.
How you could help:
We’re asking you to consider helping us roll out our programmes to greater effect, and monitor activity in the country to target at-risk families.
- Are you a regular donor? Would you consider raising your donation by 10%, or perhaps by £5 per month.
- Are you an occasional donor? How would you feel about establishing a regular donation by Direct Debit, of just a few pounds per month?
- Do you engage with our media? Spread the word and encourage others to learn about our work, sign up to our newsletter, and donate.
We are very grateful to all our regular donors. In the light of Malawi’s inflation and economy, though, just think what more we could do if we increase our income by around 10%. We could:
- Ensure Roots of Hope can be rolled out year-on-year, bringing improved opportunities, education access, food and income to vulnerable children and families;
- Set Chalizya Primary School up with their sustainable farming project, to bring circular income to the school and food and learning benefits to the children. A three-year support programme will get them to a viable self-sustaining income-generating turnover;
- Buy rather than rent land for our demonstration farm, so that Medicom moves more swiftly towards self-financing their programme of work by reducing overheads and generating domestic income.
The more children remain in poverty, the less education they receive.
The more families remain in poverty, the less access to healthcare and clean water they receive.
The more communities suffer from the effects of drought, unemployment and de-skilling, the less resilient they are to future challenges.
Our goal is to see a Malawi where everyone has a chance to thrive.
Will you help us do that? Please donate, give regularly or talk to us about getting involved.
There is hope: We’re trying to sow its seeds.
Sources: World Bank Open Data; Reserve Bank of Malawi; BBC article 28/6/2025; reliefweb