‘Unscrupulous business people creating artificial scarcity of forex for their own greed to sell at crazy rates’

* As concerned citizen Chepetsani Kazembe supports reports of RBM’s plans to crack down on those hoarding forex

* If we are serious about fixing our economy, there should be no exceptions — we need to investigate even politicians and those in high places

By Duncan Mlanjira

Blantyre-based concerned citizen, Chepetsani Kazembe, strongly supports reports that the Reserve Bank of Malawi (RBM) plans to crack down on traders and individuals who are suspected to be hoarding forex in their homes, saying they are creating an “artificial scarcity for their own greed to sell at crazy rates”.

Kazembe, an ICT professional working as business development officer for a Blantyre-based firm, whose work involves having access to forex, says as a concerned citizen, he thus fully support RBM’s move “because some people are keeping forex just to profit from its scarcity”.

“This is hurting all of us!” he writes in an open letter to the public. “I cannot sit back and watch our nation suffer under this forex crisis. The US dollar is now trading at MK5,200 [on the parallel market], and life is becoming unbearable.

“Prices of goods and services are through the roof, businesses are struggling, and ordinary Malawians are suffering,” says Kazembe, who shared that when the current government administration assumed leadership in June 2020, the exchange rate was approximately MK737.46 to US$1 but today — as per the official RBM exchange rate — it is around MK1,750 and trading at MK5,200 on the parallel market.

“This is a significant depreciation of our currency,” Kazembe says. “This drastic decline has led to skyrocketing prices, fuel shortages, and power blackouts, severely impacting our daily lives. As a concerned citizen, I urge the government to take immediate action to stabilise the economy and address the root causes of this crisis.”

He emphasises that “it’s no secret that some business people, especially in the Asian community and even some Malawians, are hoarding the forex currency instead of allowing it to circulate — this is pure greed!

“They know that by creating artificial scarcity, they can sell it at crazy rates — but what about us, the ordinary Malawians? How are we supposed to survive?

“But let’s not stop at small traders — we need to investigate even politicians and those in high places. If we are serious about fixing our economy, there should be no exceptions.

“The enforcers should not hesitate to search state residences, just as they are searching random citizens. It is highly possible that some politicians and high-ranking officials are involved in forex hoarding, and they must be held accountable like everyone else. There should be no selective enforcement in this fight!”

Kazembe reminds Malawians that this forex scarcity has severe ripple effects for ordinary Malawians, that include the continuing skyrocketing of prices: “Everything is expensive now; food, rent, school fees — you name it! Life is just too costly.

“How many times have we queued for hours at filling stations only to be told there’s no fuel? Transport costs are crazy, and businesses that rely on fuel (like taxis and delivery services) are struggling.”

On power load shedding, Kazembe reminds the public of its effects on business, who rely on power generation using gensets, and following the forex crisis that has affected fuel imports, the businesses are forced to buy the commodity on black market, just as they do to access forex itself on the parallel market.

It has also led to job losses as “businesses are closing or downsising because they can’t afford to operate under these conditions” and that through a weak economy and without enough forex, “Malawi struggles to pay for imports, affecting development and investments”.

So what needs to be done? Kazembe suggests that the “Government must act fast – the Ministry of Finance should secure forex reserves and push for more exports to bring in foreign currency”.

The Government should also regulate forex trading, saying “authorities must monitor forex movements and punish those hoarding it illegally”.

He also suggests, just as many other experts have recommended that the country needs to reduce import dependence by producing more locally instead of relying too much on imports.

He also says there is need for transparency in forex allocation: “No more corruption! We need clear and fair distribution of forex to businesses that genuinely need it.

“As a citizen, I am personally struggling — transport cost is expensive, household groceries cost a fortune, and the economy is unstable. This is not just about statistics — it’s real life, and we are all feeling the heat.

“I, Chepetsani Kazembe, call on all Malawians to speak up and demand better. We cannot sit back and watch while a few greedy individuals hold the country at ransom. Enough is enough!”

As Malawians were at loss of words to fully describe the half truths that President Lazarus Chakwera made in Parliament last week in his State of the Nation Address (SONA) during the opening of the 2025-2026 National Budget session, Kazembe also wrote another open letter, saying “our beloved nation stands at a crossroads”.

“Time and again, Malawians have placed their trust in leadership, believing in promises of progress, development, and a better future,” he wrote. “Yet, it is disheartening when those entrusted with governance use national platforms to mislead the very people they swore to serve.

“The 2025 SONA should have been an honest reflection of the state of affairs in our country. Instead, what we witnessed was a speech filled with claims of development that do not exist on the ground.

“Roads that remain mere proposals were praised as completed projects; hospitals promised years ago still lack essential resources; economic growth statistics were paraded, yet the average Malawian continues to suffer under heavy taxation, high inflation, and an unbearable cost of living.

“Section 12 and 13 of the Constitution of Malawi upholds the principles of good governance, truth and accountability. When those in power deliberately mislead the nation, they violate not only the Constitution but also the trust of the people.

“Leaders are elected to serve, not to deceive — they must be held accountable for their words and actions. Lying to the nation has severe consequences — it erodes public trust, discourages investors, and keeps the nation in a cycle of stagnation and poverty.”

He accentuate that “Malawians deserve better — they deserve leaders who are transparent, who acknowledge challenges honestly and who work tirelessly to resolve them”.

“It is time for our leaders to put the people first, rather than crafting narratives that serve political survival. As citizens, we must demand the truth. We must hold our leaders accountable and refuse to be silenced by deception.

“Malawi belongs to its people, and it is only through truth and integrity that we can build a better future for generations to come. I call upon all stakeholders — civil society organisations, religious leaders, the media, and the general public — to stand up against dishonesty in governance.

“The voice of the people must be heard, and those who betray the trust of the nation must be reminded that they are in office to serve, not to exploit.