Economic analysts and consumer rights activists have urged consumers to find alternative revenue streams to cushion themselves from the country’s rising cost of living.

The analysts were reacting to Centre for Social Concern’s (CfCS) August 2023 issue of the Cost of Living which showed that the average cost of living in urban areas for a family of six has gone up by 25.64 percent from K307 368 in September 2022 to K386 192 last month.

Kapito: Borrowing should
be sustainable

According to the update, Blantyre is the most expensive city to live in, with the cost of sustaining a household of six hovering at an average of K446 102, followed by Lilongwe at K413 486, and Mangochi at K389 616.

The basic needs basket used by CfSC contains food items such as fresh milk, cooking oil, bread, eggs, sugar and beef, among others.

It also includes school fees for secondary school and housing, items that are not usually associated with people living in rural communities.

In an interview on Thursday, Consumers Association of Malawi executive director John Kapito said consumers can protect themselves by expanding their income sources and if they must borrow, should only go for loans with lower interest rates to ensure that their borrowing is sustainable.

Mtembezeka: Have multiple
streams of income

“If we need to create opportunities for people and encourage them to borrow for investment, then as a country we need to take deliberate steps to establish development banks that can provide loans for investment at competitive rates,” said Kapito.

In a separate interview, economic analyst Bondi Mtembezeka agreed with Kapito that the cost of living is bound to keep rising; hence, people need to find alternative revenue streams to cope with the high inflation rates.

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