In response to the 44% devaluation of the Malawi Kwacha, the Malawi Congress of Trade Unions (MCTU) is urging the Government to implement a salary increase for workers and raise minimum wage from the current 50,000 Malawi Kwacha to over 100,000 Malawi Kwacha per month.
Charles Kumchenga, President of the Union, emphasized the pressing need for revised wages, stating: “Even during the devaluation, we requested the government to reconsider wages, but our appeal remains unanswered. The devaluation has exacerbated the financial strain.”
Currently observing the World Day for Decent Work (WDDW) under the theme “It’s time for Pay Rise,” MCTU aligns with the global focus on ensuring decent work, dignity, and respect for all.
A study by the Centre for Social Concern’s Food Needs Basket estimates that a family of four requires approximately Mk 406,629 per month to meet basic needs.
Efforts to obtain a response from the Ministry of Labor were unsuccessful, with spokesperson Nellie Kapatuka unavailable at the time of reporting.
However, Minister of Finance and Economic Affairs, Simplex Chithyola Banda, has expressed intentions to address the situation, particularly for those on the government’s payroll.
During a press conference in Lilongwe on Monday, Banda stated, “Government will immediately engage all Civil Service Trade Unions to review salaries in the public sector and determine how civil servants can be properly cushioned against this economic realignment.”
The recent devaluation of the Malawi Kwacha has led to an immediate impact on trade, causing a surge in the prices of goods.
Richard Muphuwa, an international business expert, anticipates that while the devaluation poses economic challenges, it may enhance the competitiveness of local products in the global market.
Muphuwa explained: “A weakened domestic currency makes a nation’s exports more competitive globally, albeit with challenges as it raises the cost of imports.”
Romeo Umali
