Malawi Sells Gold Reserves to Address Fuel Shortages

Malawi is facing deepening fuel shortages that have left most filling stations without supplies and created long queues at those that remain open. The government has reassured citizens that the country is not running out of fuel. However, residents in the capital Lilongwe and other areas report significant disruptions to daily life and business.

Businessperson Anthony Jamali told DW from Lilongwe that some businesses have stopped operating because of rising costs. "At times, we have to trek in order to reach to our destinations. We have stopped some of our businesses because we feel like it's becoming expensive," he said.

Another resident, Isaac Banda, said prices for food and groceries have increased and travel between places has become difficult. Rural farming areas are also affected as they require diesel for agricultural equipment. The health sector faces additional strain from the shortages.

A health rights activist based in Blantyre told DW that fuel scarcity could affect ambulance services and hospital operations, noting that hospital budgets are low and they cannot recoup money quickly.

For many years, landlocked Malawi has recorded Africa's highest fuel costs. This week it had the second highest fuel prices in the world. A liter of petrol costs around $3.83 in Malawi compared with $1.50 in neighboring Zambia. The government has been forced to sell off gold reserves to buy fuel.

Last week it announced plans to sell about $30 million worth of the reserves for this purpose. A Reuters report in early 2026 put Malawi's public debt at around 23.9 trillion kwacha, equivalent to $13.92 billion, with roughly 65 percent owed to domestic lenders.

A human rights activist and Chairperson of the Human Rights Defenders Coalition told DW that the fuel crisis is not new. He referenced demonstrations in 2011 that included fuel shortages among the issues raised. The activist said Malawi's reliance on tobacco sales for foreign currency is problematic because tobacco is no longer fetching good prices, partly due to the World Health Organization's ban on public smoking.

He and others including the World Bank have called for the country to diversify its economy to generate more hard currency. Proposals have included promoting tourism, which was listed as a priority by the last administration. However, budget allocations to the sector have been low.

Politicians have often directed funding toward areas that help them win votes, such as agriculture and the farm input subsidy program.