Malawi grapples with economic challenges amidst a backdrop of natural disasters and financial exclusion. In 2014, cash transactions dominated the Malawian economy, with 75% of all transactions conducted using physical currency, contributing to widespread financial exclusion among the adult population. However, the landscape shifted significantly in 2022, as economic activity was severely disrupted by the devastation caused by cyclone Ana, power shortages, and resultant fallout on the local economy.

The cyclone’s impact was particularly acute, damaging critical infrastructure such as the Kapichira dam, a key electricity source, and vast swathes of cultivated land, exacerbating existing financing difficulties and pushing fuel, electricity, and maize prices higher. These challenges, coupled with unsustainable public debt levels, have raised concerns about social unrest and underscore the need for resilient financial solutions and sustainable economic policies to navigate Malawi’s path towards recovery and prosperity.