September Sees Steady Maize Prices: A Game Changer for Malawi’s Business Landscape

Key Business Points

• Maize prices have stabilized at K1 361 per kilogram, marking a reversal of the upward price movement that started in June, which is expected to have a positive impact on zochitika za bizinesi (business activities) in Malawi.
• The stability of maize prices has resulted in a drop in food inflation, from 33.7 percent to 33 percent, but non-food inflation has risen, highlighting the need for businesses to manage their nkhaminwa (expenditures) carefully.
• The government’s plan to import 200 000 metric tonnes of maize through Admarc is expected to improve maize supply and further reduce maize prices and food inflation, providing an opportunity for wafanyabiashara (entrepreneurs) to invest in the agriculture sector.

The stabilization of maize prices in September is a welcome development for Malawi’s business community, particularly in the agriculture sector. According to the International Food Policy Research Institute (Ifpri) Maize Market Report, the national retail price of maize stabilized at K1 361 per kilogram, marking a reversal of the upward price movement that started in June. This stabilization is attributed to the stabilization of the kwacha and the uncertainty surrounding the general election results. The report notes that the slowdown in economic activity around the general election and the associated stabilization of the kwacha with respect to neighboring country currencies likely contributed to the easing of prices.

Despite the stabilization of maize prices, food inflation remains a concern, with the year-on-year inflation rate rising to 28.7 percent in September. However, the drop in food inflation from 33.7 percent to 33 percent is a positive development. The National Statistical Office (NSO) attributes the rise in inflation to non-food inflation, which stood at 21.7 percent in September. The Economics Association of Malawi president, Bertha Bangara-Chikadza, notes that the country’s underlying matenda ya chakula (food pressures) need to be addressed through the importation of maize.

The Centre for Social Concern programme officer for economic governance, Agnes Nyirongo, observes that transport costs have been volatile, affecting non-food inflation. She notes that high inflation is not only squeezing households but also stifling mfundo wa biashara (business growth). The government’s plan to import 200 000 metric tonnes of maize through Admarc is expected to improve maize supply and further reduce maize prices and food inflation. This move is likely to have a positive impact on the sekta ya kilimo (agriculture sector) and provide opportunities for entrepreneurs to invest in the sector. As the government and businesses work together to address the underlying food pressures and manage inflation, Malawi’s economy is likely to experience kuimarika (growth) and maendeleo (development) in the long run.

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