Urban inequality widens—Report

Inequality in Malawi’s urban areas has widened significantly over the past five years, with new data revealing a growing disparity, especially in household consumption.

The National Statistics Office (NSO)’s Poverty and Inequality Report, based on the Sixth Integrated Household Survey (IHS6) for 2024-25, shows that the urban Gini index increased from 39.0 in the 2019-20 financial year (FY) to 45.6 in 2024-25 FY.

The increase was higher than the national trend, where the index rose from 37.9 to 39.9 over the same period.

The Gini index measures inequality in consumption, with zero representing complete equality and higher values indicating greater inequality.

The findings suggest that economic gains and improvements in living standards have not been shared equally among urban households.

The widening gap comes against a backdrop of rising food poverty, which increased nationally, from 20.5 percent to 24 percent, while overall poverty declined from 50.7 percent to 47.3 percent.

Urban poverty also increased from 19.2 percent to 20.9 percent, although it remained considerably lower than poverty in rural areas.

This comes at a time Malawians continue to grapple with the rising cost of living, with urban families facing significant pressure.

Latest figures from the Employers’ Consultative Association of Malawi show that the cost of living for an average household of six people exceeded K1.11 million in August 2026, from over K1.10 million a month before.

Economist Marvin Banda said many Malawians struggled to fend for themselves.

“Widening urban inequality reflects an economy where some people have secure jobs, businesses and assets, while many others survive on informal trading, casual work and irregular incomes,” Banda said.

“The economic consequences are significant, as poorer households spend most of their income on necessities, leaving little for savings, education or investment,” he said.

Meanwhile, price pressures remain a concern in the country, with non-food inflation rising to 31.9 percent in August 2026 from 31.2 percent in July.