As soon as government had announced the devaluation of the Kwacha by 44 per cent almost all traders and manufacturreres immediately increased prices for their products and services.
They claimed that the devaluation will negatively affect their hence the need to push up the prices to mitigate its impact.
However consumers in the cities of Blantyre, Lilongwe, Mzuzu and towns such as Salima and Karonga can heave a sigh of relief following the decision by Managing Director of Sana Cash and Carry Rauf Chaudrey not to immediately affect an increase prices on old stock.
In an interview Chaudrey said they have the welfare of the customers at heart and will only increase prices once the old stocks are cleared.
Chaudrey further claimed that the company shares the pain that Malawians are going through.
“We value our customers a lot,” Chaudrey said.
“We cannot take advantage of this devaluation to make more profits but we will raise prices once we get new stock. By doing this we are sharing the burden of devaluation with our customers.”
Minister of Trade Sosten Gwengwe has also called on traders and manufacturers to be sensitive when effecting price hikes so that they should not ‘punish’ Malawians.
“Some people just take advantage of anything and we have already heard reports that some have increased their prices by almost 100 per cent. This should not be entertained and we are asking those in business to be sensible,” said Gwengwe.
The devaluation of the kwacha has been described as reckless by some stakeholders, including former Reserve Bank governor Dalitso Kabambe who said that the economic turbulence has been there since 2000 and there is need to follow strictly all macro-economic fundamentals including the monetary policy.
Other bodies like the MCCCI and renowned econonomists like Gilbert Kachamba of MUBAS claim it is good for the ailing economy so that it can rebound and get up from the sick bed.
