National survival minimum expenditure up 4%

Malawi’s Economic Pulse: A 4% Rise in National Survival Expenditure – What This Means for Your Business Bottom Line

Post was last updated: July 11, 2025

Key Business Points

  • The national survival minimum expenditure basket (Smeb) cost in Malawi has increased by 4% to K219,200 in June 2025, indicating a rise in the cost of essential goods and services for households.
  • Urban households are disproportionately affected, with a monthly expenditure of K275,600, compared to K221,800 in rural South, K212,200 in rural Centre, and K204,800 in rural North.
  • Maize prices have risen by nearly 30% year-on-year, contributing significantly to the increase in the Smeb cost, with a 5% month-on-month increase to K1,026 per kg in June 2025.

The recent increase in the national survival minimum expenditure basket (Smeb) cost in Malawi has significant implications for the country’s business community. The 4% rise in June 2025, from K211,200 to K219,200, translates to an additional K8,000 expenditure for a typical household to meet its essential needs. This development is particularly concerning for urban households, which face the highest expenditure at K275,600 per month. The rural areas are also affected, with varying costs depending on the region, ranging from K204,800 in the rural North to K221,800 in the rural South.

The main driver of this increase is the rise in food prices, particularly maize and beans, which are staple commodities in Malawi. According to the World Food Programme (WFP), the food basket now costs K191,900 per month, a 5% increase since May. Maize prices have risen by nearly 30% year-on-year, with a 5% month-on-month increase to K1,026 per kg in June 2025. This has a direct bearing on consumers, as maize contributes about 53.7% of the consumer price index.

The Consumers Association of Malawi has warned consumers to refrain from engaging in unnecessary purchases, given the likelihood of prices continuing to rise. John Kapito, the executive director, emphasizes that most consumers are unemployed and lack access to incomes, making it challenging for them to afford basic goods and services. As the Chichewa phrase "mphamvu ya mtengo" (power of pricing) suggests, the pricing of goods and services has a significant impact on the purchasing power of consumers.

The rise in Smeb costs comes despite a slower rate of inflation in May, which eased slightly to 27.7% from 29.2% in April. However, the WFP data indicates that nominal expenditure has increased by about 50% since June last year and is currently four times the cost of the April 2020 basket. This trend is likely to continue, affecting the zimamoto za mtengo (inflation flames) that are already challenging the business community. As such, businesses and entrepreneurs must be aware of these developments and adjust their strategies accordingly to remain competitive in the market.

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Vanessa Banda
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