Are small businesses the main victims of the devaluation in Malawi?

There have been many complaints among citizen of Malawi; especially those who operate small scale businesses due to the effects of devaluation of Malawian  Kwacha in May 2012.

The effects have therefore, affected many small scale businesses up to an extent that many shops have been closed down because they are not making enough sales out of their businesses. Some civil societies such as Consumer Association of Malawi and other opposition political leaders have condemned the decision of devaluing the Malawi kwacha arguing that it is creating inflation in the economy.

During a recent survey in the township of Limbe in the city of Blantyre it was  discovered that most businesses were not able to make enough sales out of their various businesses because of the decrease in value of Malawian Kwacha. This means  some businesses are unable to import goods for their businesses since there is no enough forex  in the country. For those who purchase goods in the country, are unable to do that due to high inflation in the prices of their commodities.

Talking to Frank Makaniko who own’s a liquor shop situated at Limbe market, during the interview;  ‘ he told us that he had been running his business for 12 years now and before the devaluation of kwacha things were running smoothly for him but since then, things have taken a wrong turn for him in a way that he can no longer order the same quantity of goods with the same amount of money he used to use before the devaluation. He concluded that he cannot suggest  any solution to this problem as it is  government’s responsibility to solve it’

The same applies to Sattasha Shabir an Indian business man who operates a phone accessories shop. He also claimed that his business started going up and down since the Kwacha was devalued. He went on to say that the devaluation of the Kwacha has brought an increase in theft in most business places since many people do not have enough money to provide for themselves. It is true most poor families in the country are unable to provide basic needs for themselves like, soap, salt, sugar and even school fees for their children.

In spite of this observation, the choice is between a rock and hard surface so that Malawians must not expect any change for the better for some time to come.