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Very thin budget’: Forex shortage triggers cost-of-living crisis in Malawi

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Malawi says its forex reserves are ‘nearly empty’. Its citizens say their pockets are emptying, too. Joe Kambale has been stitching men’s suits from his living room in Blantyre, Malawi’s commercial hub, for the last eight years. Sometimes he makes about 200,000 kwacha ($173) a week, decent wages in a country where half of the population lives on $1 daily or less, according to data from Malawi’s National Statistical Office. He was often so swamped with work that he was sometimes unable to take on new customers for up to a month. But in the last two weeks, the 35-year-old tailor’s pair of sewing machines have been idle because demand is dwindling. And now he is finding it hard to cater to the needs of his wife and one-year-old son. “The high cost of living has driven clients away,” he said, with a look of despair in his eyes. A month ago, two of his most loyal customers suspended orders indefinitely, telling him that they are now prioritising spending their earnings on basic needs. The r