Foreign exchange (forex) shortages have become one of Malawi’s most pressing economic challenges. The country struggles to access enough foreign currency—especially US dollars—to pay for imports such as fuel, medicine, and machinery. This imbalance continues to affect businesses, prices, and everyday life. Why Malawi Faces Forex Shortages 1. Heavy Dependence on Imports Malawi imports more than it exports. Essential goods like fuel and fertilizers require foreign currency, but export earnings remain limited. 2. Narrow Export Base The economy relies heavily on a few commodities such as tobacco. When global prices fall, forex inflows drop significantly. 3. Low Industrial Production Limited manufacturing means Malawi exports raw materials instead of finished goods, which bring in less foreign exchange. 4. External Debt and Obligations Repaying international loans consumes a portion of available forex reserves. 5. Currency Instability Frequent depreciation of the Malawi Kwacha increas...