Most small-scale businesses, especially cross-border traders have told Business Review that they are being squeezed and paying the price of the continuing kwacha depreciation.
Small and Medium Enterprises Association (Smea) president James Chiutsi said the situation is dire that some SMEs do not have enough capital to maintain large stocks of merchandise as they cannot afford foreign exchange.
Indigenous Businesses Association of Malawi (Ibam) president Mike Mlombwa said the fall in value of kwacha has taken the business community by surprise.
Car importers have also been hit hard as one of the officials for Car Dealers Association in Blantyre said they have slowed down on imports as imported vehicles will be too expensive for locals.
“We do not have enough money to import cars because sales have gone down too,” the dealer said.
A resident of Chirimba Township in Blantyre Agnes Lyson, whose hopes of owning a car soon have been dashed by the kwacha performance, said she hopes the kwacha will regain its value the soonest.
However, tobacco farmers are rejoicing that the kwacha has shed its value to the dollar