Over the past couple of weeks sporadic fuel shortages have become more widespread. In an escalation of problems which re-emerged in April this year, fuel pumps across Malawi are running dry. After variously blaming high demand due to a major football match and a visiting Nigerian pop artist, the Government has finally admitted that the shortage is due to lack of foreign currency!
The fuel shortage obviously affects our literature distribution and other operations.
In May, the Malawi Kwacha was devalued by 25% in an attempt to alleviate the foreign exchange shortage, driving inflation and making life even more difficult for poor Malawians. The President claims the Reserve Bank has secured $22 million but needs a further $28 million to purchase more fuel.
It is unclear if/when the promised fuel will arrive, and what further hardships will result, as there is every possibility of a further currency devaluation.
Meanwhile, amid daily 8-hour power cuts, one of 7 major hydro-electric power plants is being taken offline for maintenance, putting added pressure on strained electricity supply. The Government has promised they will run all diesel generators to help make up the shortfall!
The shortage of fuel and electricity is crippling the already struggling economy.
Note: Malawians are not unaccustomed to shortages. There was a very severe fuel crisis in 2010-2012 which was followed by a major currency devaluation. The Malawi Kwacha is now worth less than 1/3 what it was 10 years ago.