By Jones Gadama
In a bid to stabilize the domestic sugar market, the Ministry of Trade and Industry has revoked Illovo Sugar Malawi plc’s export license. Minister of Trade and Industry Vitumbiko Mumba made the announcement at a joint press briefing with Illovo Sugar Malawi plc and Salima Sugar Company officials in Lilongwe.
According to Minister Mumba, Illovo had applied for a license to export 6,000 tonnes of sugar in June this year. However, after analyzing the domestic supply situation, the ministry decided not to approve the license to ensure the company prioritizes the local market. “We have not approved the licence so that the company stabilizes supply on the domestic market,” Mumba said.
The minister also addressed concerns over sugar scarcity in the country, attributing it to transporters diverting the commodity to neighboring countries, particularly Zambia and Tanzania. To mitigate this, the government is implementing measures to ensure trucks carry sugar directly from factories to retail shops under security escort. “Transporters were diverting the commodity into Zambia and Tanzania, but mechanisms are being made to ensure the trucks are carrying sugar directly from factories to retail shops under security escort,” Mumba explained.
Illovo Sugar plc interim managing director Kondwani Msimuko and Salima Sugar Company executive chairman Wesley Kosamu confirmed that their production started late due to weather challenges. However, they promised to stabilize supply starting immediately. “Our production started late because of weather challenges, but we promise to stabilize supply starting today,” they said in unison.
The government’s decision to revoke Illovo’s export license is a proactive measure to ensure the country’s sugar needs are met before any exports are considered. With the domestic market being prioritized, consumers can expect a more stable supply of sugar in the coming weeks.
The joint press briefing demonstrated the government’s commitment to collaboration with the private sector to address pressing issues affecting the nation. By working together, the government and sugar manufacturers aim to ensure a stable and reliable supply of sugar to meet the country’s demands.
As the government continues to implement measures to stabilize the sugar market, citizens can expect relief from the scarcity that has been experienced in recent times. The ministry’s efforts to monitor and regulate the distribution of sugar will help prevent diversion to other countries and ensure that the commodity reaches the intended consumers.
The sugar industry is a significant contributor to Malawi’s economy, and the government’s intervention is crucial in maintaining stability in the sector. With the measures put in place, the country can expect a more stable sugar market, benefiting both consumers and manufacturers alike.