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Malawi Autos Report Q2 2014

Malawi Autos Market: New market information published

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2014-04-03 05:53:01 - Malawi Autos Report Q2 2014 - a new market research report on

BMI maintains a particularly bearish outlook for vehicle sales in Malawi, forecasting a 16.3% decline in total sales in 2013 and 3.3% fall in 2014.

We believe that the macroeconomic picture is becoming increasingly poor - predicated on rampant inflation, the rapidly depreciating local currency, and high interest rates - which will curb sales growth.

Food insecurity has caused the price of maize to climb, and resulted in long queues for the little that is available. An estimated 2mn people are in need of food aid within the country and, for the first time in six years, Malawi has had to import maize from neighbouring Zambia in order to meet its domestic requirements.

At the beginning of the year we reported that public



discontent was rising in Malawi, as inflation continued to soar, in large part due to the weak currency, which had fallen 108.5% since May, when authorities devalued the kwacha in preparation for the adoption of a floating exchange rate regime. The government had tried to address the issue through tight monetary policy, but with little effect.

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