MALAWI: CYCLONE AFTERMATH DRIVES INFLATIONARY AND FOREX CONCERNS

   Thu, 25 May 2023

In response to persistently high inflation, Malawi’s central bank has raised interest rates by a higher margin than any other African state so far this year. Consumer prices are pushed upwards by foreign exchange shortages, rising import costs, and the lingering effects of a devastating cyclone earlier this year. The government will need continued IMF and other multilateral and donor support to fund the budget, while debt restructuring negotiations are still proceeding. Meanwhile, the US has offered bilateral support for future disaster relief by deploying National Guard units to selected African countries.

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