As many lenders will know, exchange rate fluctuations can have an impact on loan repayments. We recently explored this topic in a Lendwithcare blog available here.
In November 2023, the BBC reported a 44% drop in the value of the Malawian Kwacha against the US Dollar. As noted in the article, this is the second time in 18 months that the Malawian Kwacha has decreased in value in relation to the US Dollar.
Malawi's economy has faced great strain in recent years. People across Malawi are living with high levels of inflation, and the economic downturn makes it more important than ever to support hard-working families through Lendwithcare loans.
It is our sincere hope that lenders continue to generously provide loan support to low-income entrepreneurs in Malawi. However, please be aware that the drop in the value of the Malawian Kwacha means you are likely to see larger exchange rate losses on loans you have made to entrepreneurs in Malawi.
If you can, please consider supporting a loan in Malawi today.