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• Cost of Goods: The cost of store and supply goods has risen by approximately 120% over the past 12 months. These costs are expected to increase further following the most recent fuel adjustment announced on 19 January.
• Staffing Costs: In June 2025, the Government implemented a 40% increase in minimum wages. We have absorbed this increase as part of our commitment to supporting our team, but it has placed additional pressure on operational sustainability.
• Food Inflation: Food-related costs are currently experiencing inflation levels exceeding 30%, directly impacting our service delivery costs.
• Foreign Exchange Challenges: Many supplier prices are now being driven by the parallel market exchange rate (approximately MWK 4,000.00 to USD 1), rather than the official bank rate (approximately MWK 1,734.00 to USD 1). While there are ongoing discussions regarding a potential currency devaluation, no official changes have been implemented, leaving businesses to operate within this challenging disparity.
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