Maputo – The Malawian kwacha has eclipsed the Mozambican metical as the preferred currency in several border districts, sparking concerns and calls for government intervention.
In the northern Zambézia province, particularly Morrumbala, Milange, and Molumbo, residents often go years without seeing a metical. Some have never even held the Mozambican currency. Local traders refuse meticais, insisting on kwacha payments.
Past government attempts to curb kwacha usage have met with resistance. A recent crackdown in Corumana led to violent protests and infrastructure damage.
Economists link the trend to the stark differences in socioeconomic conditions between the two countries. Malawi’s superior healthcare and other services draw Mozambicans across the border, where the kwacha is king. The metical holds little value in acquiring basic necessities.
Traders lament the forced currency exchange, often at unfavorable rates, and the detrimental impact on their businesses. They urge the government to promote metical usage.
Zambézia Governor Pio Matos acknowledges the challenge but emphasizes public education as a solution. However, economists advocate for broader reforms, including improved infrastructure and services in border areas, to strengthen the metical’s position.
