Fuel crisis deepens : Businesses on stand still

Malawi’s fuel crisis is deepening and grounding businesses across the country.

What started as intermittent diseal shortages in border and few districts has become a national disruption.

Queues stretch for Kilometres in Lilongwe, Blantyre and Mzuzu.

Many filling stations are dry. Those with stock ration supply. The black market is thriving.

For businesses, fuel is not a luxury.

It is a cost of operation. Minibus operators are spending a full day queuing to get 20 litres.

Truck drivers are failing to meet delivery timelines for tobacco, sugar and cement. Manufacturers say they cannot reliably move raw materials from the port of Beira and Dar es Salaam.

Small businesses are hit hardest.

Maize millers, welders and barbershops that depend on diesel generators to survive persistent power cuts are shutting early. In townships, butcheries and grocery shops report cold chains broken because they cannot run backup power.

Hotels and lodges in tourist districts are cutting services.

The cost is being passed on. Transport fares have risen by up to 40 percent on some routes in the last week.

Food prices are climbing. At a time when the World Bank recently hailed Malawi for fundamental economic gains on fiscal consolidation and forex management, the fuel shock threatens to reverse stabilisation and push inflation up.

Economic commentator Dr Ben Dzolowere said the crisis exposes a deeper failure of planning and communication. He said the absence of clear, daily updates from Minister of Energy Jean Namathanga has left the market to speculation and panic buying. Confidence, he argues, is as important as the commodity itself.

The government attributes the shortage to foreign exchange constraints and logistical bottlenecks along the import corridor. Importers privately point to delayed payments and slow forex allocation. Whatever the cause, the effect is the same. Productivity is falling. Every hour spent in a fuel queue is an hour lost from the shop floor, the farm or the classroom.

If not resolved quickly, analysts warn the country faces a cascade. Lower business activity will cut VAT and tax revenue. Exporters will miss contracts. The kwacha will face renewed pressure as demand for fuel in the black market drives parallel forex dealings.

The fuel crisis has moved beyond pumps. It is now a business crisis.