How Malawi’s forex crisis disrupts everyday life

When Tikhala Mbedza tried to pay school fees for his younger brother studying abroad, he expected the transaction to be completed within hours – as usually. Instead, the bank let him wait without letting him know why. Despite repeated follow-ups with his bank, the foreign-currency payment remained pending, leaving his brother unable to access some of the academic services. Mbedza’s and his brother’s uncertainty and concerns were growing. “I requested the bank for the payment, but sadly it took them nine days to confirm the payment was made,” Mbedza explained. “Of course, in the end this affected his studies.”

Mbedza and his brother are not the only ones in Malawi currently having this or similar experiences with transferring money. A persistent shortage of foreign currency in Malawi is turning what were once routine transactions into stressful ordeals for households, students and businesses. 

The roots of the crisis predate the most recent shortages. For years, Malawi has imported substantially more than it exports, while relying heavily on tobacco and a small number of other agricultural products for its foreign-currency earnings. Declining export revenues, the pandemic and the global price shocks of 2022 intensified that imbalance, drained reserves and led to sharp devaluations of the Malawian kwacha.

At first, the effects of the economic crisis found their way only gradually into everyday life. Today, however, for many Malawians this is no longer an abstract economic problem discussed by policymakers. It is showing up in delayed international payments, unstable mobile networks, disrupted mobile money transactions and growing frustration when banks fail to provide even small amounts of foreign currency.

In Lilongwe, furniture businessman Frank Banda Dovu recently expressed his frustration after failing to access just $ 200 through local banks. “It’s crazy when you think of it – imagine you want a small amount of money and you can’t get it through the banks,” he says.

Businesses and universities affected

The impact has now become so widespread that it is even affecting public infrastructure. Telecommunications operators say they are struggling to secure the foreign currency needed to pay international suppliers and import network equipment. Airtel Malawi says forex constraints have delayed imports of critical equipment, slowing network upgrades and efforts to improve service quality. And even residents in Malawi’s largest cities, Lilongwe and Blantyre, report dropped calls, slow internet speeds and failed connections, while users in smaller towns such as Mangochi, Balaka and Zomba complain of weak and inconsistent network coverage.

For small businesses that depend on digital communication, unreliable connectivity has become another cost of doing business. Some entrepreneurs say they now switch between networks or postpone online transactions when services become unstable. Students are also feeling the strain. University and secondary school learners who depend on online platforms for assignments and research report difficulties uploading coursework and accessing educational resources during periods of poor connectivity.

Meanwhile, mobile money users say network interruptions sometimes delay transactions, affecting both households and small traders who rely on digital payments. So, for ordinary citizens like Mbedza, the consequences are becoming more and more serious. Every delayed transaction or unsuccessful attempt to obtain foreign currency can be seen as a reminder that Malawi’s forex shortage may have a lasting impact on people’s life and ability to keep up their living standard. Telecommunications companies and regulators may continue discussing solutions – but the crisis is already reshaping daily life.

Benson Kunchezera is a Malawian freelance journalist based in Blantyre. 
bkunchezera84@gmail.com