‘Commodity prices not reflecting kwacha appreciation’- Cama

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John-Kapito

The Consumers Association of Malawi (Cama) has expressed concern that prices of different commodities in the country are still high even though the local currency has stabilized.

The Kwacha has been gaining value over the past weeks. A month ago the local currency was trading at K719 to a dollar but according to the Reserve Bank of Malawi it is now at K684 to a dollar.   

Cama executive director John Kapito said business people in the country should have acknowledged that the Kwacha has gained its power by dropping prices of their commodities.

John-Kapito
The development is disappointing. :Kapito

“We are disappointed with the development that Kwacha has gained its power but still the price of commodities on the local market is high. We would like to see the price of different items being brought down,” said Kapito.

He further said that the most worrisome thing is that had it been that the local currency is losing its value as before, the vendors would have reacted by raising prices of their merchandise.

“Had it been that the kwacha was still losing its power you could have seen them day and night busy raising the prices but now they are nowhere to be seen,” added Kapito.

However, reacting to the accusations, some vendors interviewed in the commercial city of Blantyre said they have not noticed any differences even though the local currency has appreciated.

“The fact is that we are seeing no difference that the kwacha has appreciated or not and that is the reason why the prices are at still high,” said James Kataya, a vendor at Blantyre flea market.

Another vendor, Elube John, said the kwacha has gained value only on paper since the traders are yet to experience the benefits of the appreciation.

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19 Comments

  1. In business world, currency areciation does not drop commodity prices instantly bcz most of the stock on market now was order during currency depriciation. There4, business can get know profit

    1. komatu kwacha ikangogwa,mitengo imakwera wthin minutes,so why r thse pipo failing kutsitsa mitengo ya akatundu,anyway ….

  2. Nawonso bwana Kapito, anakakhala anzawo kuluza mlandu ku khoti oti Escom isakweze magesi bwenzi pano akuti atule udindo walephera kuteteza anthu

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  4. Pajatu Late Bingu ananena kale kuti once the Kwachas d evaluates prices goes up, but even when it appreciate afta somtym,

  5. Brother Kapito, when has Malawi business community implemented price adjustments when the Kwacha has regained value in view of the trade liberalisation that the world is in today? Does the country have a law that governs this? And if we were to have one, how would policing be? Zinazi tidzimusiyira Mulungu kuti yekha adzathane nazo when Jesus Christ comes so soon.

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