Tag Archives: Malawi sugar crisis

Business, Human Rights

Malawians told to endure Sugar shortages as Illovo admits distribution failure

Dorica Mtenje

LILONGWE-(MaraviPost)-Malawians should brace for continued sugar shortages after Illovo Sugar Malawi admitted that supplies are unlikely to normalize in the near future, citing serious challenges in controlling the distribution of its product.

In a letter addressed to the Consumers Association of Malawi (CAMA), Illovo Managing Director Ronald Ngwira acknowledged that despite ongoing sugar production, the company no longer has full control over where its sugar ultimately ends up.

“The company may continue producing sugar, but control over distribution has been compromised,”

“Power appears to lie with individuals operating outside the law.”according to Ngwira.

The admission has intensified public criticism, with consumer rights groups and members of the public accusing Illovo of failing to safeguard sugar meant for local consumption. There are growing allegations that sugar is being diverted, hoarded, or smuggled out of the country by well-connected syndicates.

CAMA say the letter reflects a worrying acceptance of a broken system.

“This is effectively telling Malawians to accept pain and suffering while a few benefit,” said a consumer rights activist. “The crisis is not about production capacity but about accountability and enforcement.”

Malawi has faced recurring sugar shortages despite being a sugar-producing country, a paradox that has fueled public outrage and frustration. Prices on the informal market have continued to rise, placing additional strain on already vulnerable households.

The crisis has increasingly been linked to alleged smuggling networks and manipulation of domestic distribution channels.

However, despite repeated assurances from authorities, there have been no high-profile arrests, raising concerns that those involved may be operating with impunity.

The revelations have further eroded public confidence in both Illovo and government regulators, with many questioning the effectiveness of oversight mechanisms in protecting essential commodities.

Consumer Association is now calling for an independent investigation into Illovo’s distribution systems, border controls, and the alleged sugar syndicates.

For now, Illovo’s own admission suggests there is little immediate relief in sight, and for ordinary Malawians, the bitter reality of the sugar crisis continues.

Business

Former Trade Minister Vitumbiko Mumba breaks Malawi’s Sugar monopoly, makes history

Maravi Post Reporter


When history recalls Malawi’s boldest reforms in trade and industry, Vitumbiko Mumba’s name will shine brightly.

The former Minister of Trade, Mumba dared to do what many before him only whispered about—he took on the powerful sugar cartels.

Social media influencer Idris Ali Nassah has hailed Mumba for his fearless stance against Illovo’s long-standing one-distributor system, which for years allowed a few hands to control the nation’s sugar supply—and, with it, the prices.

“Minister Mumba played his part,” wrote Nassah. “In helping to break the sugar barons’ destructive dominance, he made history.”

Illovo’s decision to open sugar distribution to multiple players across the country is being seen as a direct result of Mumba’s relentless push for fairness and market freedom.

Observers say the move could finally end years of artificial shortages, hoarding, and price manipulation.

“The barons aren’t happy,” Nassah added, “but who cares?”

Indeed, with Mumba’s bold reforms, Malawians may finally taste the sweetness of true competition, marking a historic turning point in the country’s trade and industry.

Business, Malawi, Opinion

Sweet temptations: Why Malawian sugar keeps crossing the borders

Burnett Munthali

Sugar smuggling from Malawi into neighboring countries has become a persistent economic and social challenge, and the recent arrest of a suspect confirms how serious the issue has become.

At the heart of this phenomenon lies a basic economic principle—profit maximization.

Malawian sugar, often cheaper due to government subsidies or favorable production conditions, fetches a higher price in neighboring countries such as Zambia, Mozambique, and Tanzania.

This price disparity creates an irresistible opportunity for smugglers, especially during periods of regional shortages or rising sugar prices in those nations.

In addition, Malawi’s porous borders make it easier for unscrupulous traders to bypass official export routes and smuggle goods with little fear of being caught.

Another driving force behind sugar smuggling is the deepening poverty and unemployment among Malawians, especially the youth and informal traders.

When people struggle to afford basic necessities, any opportunity to earn income—even illegally—becomes tempting.

The prolonged wet season has further disrupted agricultural and supply chains, reducing local sugar availability and driving up domestic prices.

This scarcity at home is paradoxically fueling smuggling as traders seek bigger margins abroad, leaving Malawians queuing for a basic household commodity.

Weak enforcement and alleged corruption among some border officials only worsen the situation, as smugglers often exploit these vulnerabilities.

The larger economic context also cannot be ignored—Malawi faces high inflation, a depreciating kwacha, rising fuel prices, and a growing fiscal deficit.

These factors make it difficult for local producers and distributors to operate sustainably, and for ordinary citizens to survive without turning to risky ventures.

Moreover, government policies, though well-intentioned, have sometimes lacked consistency or effectiveness in curbing smuggling and stabilizing the market.

Illovo Sugar Malawi plc’s warnings about the impact of smuggling must be taken seriously as they reflect how illegal trade is affecting even formal businesses.

To address this crisis, Malawi must strengthen border surveillance by investing in modern tracking technologies and increasing manpower at key exit points.

There should be tighter collaboration with neighboring countries to harmonize trade policies and pricing structures, minimizing smuggling incentives.

Another critical solution is to empower the Malawi Revenue Authority and law enforcement with resources, training, and integrity checks to ensure they execute their duties effectively.

Simultaneously, government should launch targeted poverty-alleviation programs that provide alternative livelihoods for those tempted by smuggling.

Public awareness campaigns can also help change community attitudes and expose the long-term damage caused by illegal trade.

Ultimately, Malawi must focus on building a resilient economy that creates decent jobs, stabilizes currency fluctuations, and reduces dependence on smuggling-prone goods like sugar.

If the country fails to act decisively now, sugar smuggling could evolve into a broader economic threat with far-reaching consequences.

The arrest of the smuggling suspect should not be seen as a victory in itself, but as a wake-up call for a coordinated national response.

Only through multi-stakeholder collaboration, firm political will, and economic reforms can Malawi protect its borders—and its people—from the sweet lure of illicit sugar trade.

Business, Malawi

Nutricom & Beverages Limited accused of hoarding “large volume” Malawi Sugar amid crisis

MaraviPost

BLANTYRE-(MaraviPost)-Nutricom & Beverages Limited is reportdely hoarding large volume of Sugar while some being sold to neighbouring Zambia amid the commodity’s crisis in Malawi.

According social media reports, Trade Minister Vitumbiko Mumba has connived with Illovo Sugar to provide 90 metric of Sugar to the company weekly in return billions of Malawi Kwacha is exchanging hands.

The allegation further added that the company is selling part of the consignment to Zambia where Sugar is fetching high prices as compared to Malawi.

But Nutricom & Beverages Limited Managing Director and owner Raj Munnangi described the speculation as fake and uncalled for.

Munnangi argues that his company is not a chainstore or wholesale shop which could need such volume of Sugar for production.

He however disputed claims that the company gets favours from Trade Minister Mumba for supply of Sugar.

“This speculation is fake and uncalled for. We are not linked to any government or political elite agents in our business both in Malawi and Zambia.

“Those clearing these baseless allegations are enemies of progress. We are in business for years without attached to anyone to get favours in any form,” says Raj.

Nutricom manufactures Kombucha Juice, Ginger Kombucha, Rosemary health juice, and Malambe juice drinks.

Apart from Malawi, Nutricom’s Kombucha is also being manufactured in Zambia and Tanzania.

Business, Malawi

“Where are you, Vitumbiko Mumba amid sugar crisis?”-CDEDI queries

MaraviPost

LILONGWE-(MaraviPost)-The country’s civil rights group Centre for Democracy and Economic DevelopmentInitiatives (CDEDI) has dared Trade Minister Vitumbiko Mumba to come clearly as sugar crisis remains a challenge on the market.

CDEDI Executive Director Sylvester told the news conference on Tuesday, May 27, 2025 that
Mumba to be honest and accountable to Malawians by coming out in the open and concede that Malawians are suffering “because government did not foresee
the implications of allowing Illovo and Salima sugar companies to export the commodity amid a deficit”.

“As fate would have it, the sugar crisis is worsening at a time the market was supposed to be flooded with the commodity, which besides being Vitamin A fortifier, has a huge multiplier effect on the economy”.

Namiwa adds, “The above implies that if government’s hands were clean, by now it would have intervened and taken a position to ensure availability of the commodity”.

CDEDI appeals, “Our call to government to bite its lower lip and accept that it erred, and should urgently act like a caring government it claims to be.

“Thus far, it is important to point out that Illovo Sugar Company finally gave its side of the story after vendors have taken advantage of the scarcity to skin Malawians alive by pegging a kilogram at MK6,000”.

According to a statement dated May 23, 2025 currently making rounds on social media, Illovo is attributing sugar scarcity in the country to smuggling and bad weather.

“If contents of the aforementioned statement are anything to go by, then it raises serious competence issues on the part of State organs mandated to
police our borders and it, also, begs the question: Apart from sugar, what else is leaving the country unchecked?

“Since this is not the first time Illovo has cited smuggling as one of the challenges affecting sugar pricing and supply chain, it also begs the question
on what steps authorities are putting in place to arrest the situation ? Or, should the country resign to fate and accept that there is nothing government can do regarding our porous borders?”, queries Namiwa.

He added, “Minister of Trade and Industry should explain to the nation the policy-direction government has put in place while waiting for the weather to improve.

“In addition, the minister should explain what is happening at Salima Sugar Company, which was established through a loan from the Government of India in a bid to lessen monopoly in the sugar industry in this part of Africa”.

Namiwa dares, “Government should challenge those running Salima Sugar Company Limited to stop insulting the intelligence of Malawians with the endless and useless public relations stunts to give Malawians sugar off-line, not online.

“Regrettably, Malawians hear about Salima sugar more on social media and in news outlets than seeing it on shop shelves”.


Consequently, CDEDI hereby reminds Attorney General (AG) Thabo Chakaka-Nyirenda about the public undertaking he made to recover about
US$50 million (about K105 billion) alleged to have been misappropriated at Salima Sugar Company Limited.

“It is shocking to learn that the company is asking for a MK24 billion bailout from the public purse when the AG assured Malawians in December 2023 that he was working with relevant State organs to recover the billions that were lost from the company.

“CDEDI is challenging Hon Mumba to wake up to the
harsh reality that there is no sugar on the market due to government’s cluelessness in managing the economy clearly mirrored through desperate attempts to boost forex reserves at the expense of millions of Malawians whose survival depends on the availability of this product on market”.

Malawi is still grappling with forex crisis which has paralyzed business resulting high inflation pushing prices of goods and services up.

Business, Malawi

Illovo insensitively hikes sugar price to sustain operation

Dorica Mtenje

LILONGWE-(MaraviPost)-Illovo Sugar Malawi has raised prices of sugar from MK2,600 to MK3,000 per kilogram effective Wednesday, March 12, 2025 amidst economic crisis.

Illovo limited’s Acting Chief Executive Officer, Jimmy Mpunga told The Maravi Post that the company fully appreciate the economic realities.

He justified prices increase to sustain their operations against the backdrop of high inflation and depreciation of the Malawi Kwacha.

Mpunga said Production of sugar is a costly exercise and it is impossible to avoid an increase without ultimately paralyzing the operations.

“The increase would have come much earlier, though we taken into account the difficult economic environment,” said Mpunga.

Consumers Association of Malawi(CAMA), Executive Director, John Kapito said “It’s unbelievable that the ministry of Trade can approve such prices for illovo at this moment when illovo is not producing and blamed traders that hoards sugar for creating unnecessary scarcities”

Kapito said the same ministry of Trade discovers that traders that bought sugar from illovo were hoarding Sugar creating unnecessary scarcities and high pricing.

He wondered as from where the ministry gets wisdom to increase prices of sugar that the manufacturers produced a year ago which only benefit the same trader.

“Why are the same traders given to sell the same sugar at higher price when they bought it at lower price ,it is not making sense that someone is cheating consumers,” said Kapito

He therefore appeal to Competition and Fair Trade Commission (CFTC) to inform customers which sugar has illovo increased considering that they are out of season now.

The sugar price rise came amidst the Trade Minister, Vitumbiko Mumba, closing big retail shops including SANA and Chipiku for holding sugar from customers.

Business

Malawi’s Trade Ministry threatens to revoke traders’ license on over-charged sugar prices

Dorica Mtenje

LILONGWE-(MaraviPost)-Ministry of Trade and Industry is set to penalise and revoke licenses for sugar distributors and traders that are conniving with vendors to sell sugar at more than recommended prices.

Ministry of Trade’s Public Relations Officer, Patrick Botha told Maravi Post on Wednesday that the ministry will not hesitate to penalise traders engaging in such malpractice, which may include revocation of business licenses and closure of business premises.

Botha said during an inspection conducted with Competition Fair and Trade Commission (CFTC) observed that sugar availability has improved “but is not accessible to consumers at recommended price in some places”.

“The ministry would like to caution distributors and traders that fronting vendors is a serious violation of the Business Licensing Act and not in the spirit of the agreement entered into between distributors and sugar manufacturers.

“The Ministry wants to reiterate that It is against the Competition and Fair Trading Act (CFTA) to engage in unconscionable conduct such as an excessive pricing in the sale of sugar,” said Botha.

He added that the Ministry, in collaboration with law enforcers, will not hesitate to deal with vendors who are fronting shop owners and exploiting consumers in the process.

The Ministry, therefore, calls to the general public to report any possible sugar business violation through 2489 toll-free line.

Meanwhile, Malawians are still struggling to get sugar from shops that are selling at fair prices as they are required to get one packet per person in some supermarkets.

Business, Malawi

CDEDI wants CFTC to probe Illovo, Salima Sugar for colluding sugar prices

Maravi Post Reporter

LILONGWE-(MaraviPost)-The country’s civil rights Centre for Democracy and Economic Development Initiatives (CDEDI) is appealing to Competition Fair and Trade Commission (CFTC) to probe both Illovo and Salima Sugar Company for conniving to hike the commodity’s prices amid scarcity over four months.

CDEDI Executive Director Sylvester Namiwa told the new conference on Tuesday, April 23, 2024 that both Illovo and Salima Sugar are insensitive with Malawians lives over Sugar.

Namiwa therefore dared both companies not to hike Sugar prices until the commodity is available on the market.

He however CDEDI has questioned President Lazarus Chakwera’s Tonse Alliance government Trade Minister Sosten Gwengwe silent over sugar crisis.

“The Centre for Democracy and Economic Development Initiatives (CDEDI) has noted with regret recent announcements of increase in both Illovo and Salima sugar brands.

“The development has laid bare Malawians’ vulnerability to dehumanizing cartels and monopolies. Actually, it has left us at CDEDI wondering whether there is anyone in Government who cares about the suffering Malawians are going through because of the harsh economic environment,” reads CDEDI statement in part.

CDEDI adds, “The case of the sugar industry, Malawians have a reason to feel let down by Minister of Trade and Industry Hon. Sosten Gwengwe, under whose watch major players in the sugar industry have been left to do as they please at the expense of the well-being of the country’s poor majority.

“With the announced new sugar prices, we at CDEDI feel vindicated that the prevailing sugar crisis is artificial and was tactically crafted to push the unsuspecting consumers into the narrative that the commodity ought to be on the market at any price suitable to the producer. This is not only unfair but,also unacceptable”.

Namiwa observes, “Thus far, there has been no official communication from either the line ministry or Illovo justifying the scarcity of the product that has given birth to the increased prices.

“Ordinarily, Illovo should have flooded the market with its sugar before increasing the price. Otherwise, the company has merely succeeded in creating panic and pushing the price of the commodity further on the parallel market”.

The aforementioned, has prompted CDEDI to suspect that Government is allowing players in the sugar industry to use legal instruments that were supposed to protect consumers from exploitation and unfair trading practices, to punish them.

“It should be noted that Malawians’ memories are still fresh that in August 2023, Illovo sought an injunction restraining the Ministry of Trade and Industry from
effecting a 25 percent sugar price cut on one hand, while on the other hand, also, restraining the Director of Public Prosecutions from commencing criminal
proceedings against the company for allegedly violating the Competition and Fair-Trading Act.

“Malawians have a right to know that the Competition and Fair Trading Commission applied to have the injunction vacated and a hearing was done in
October 2023, where the court promised to rule on the matter within 30 days,” adds Namiwa.

He explains further, “Eight months down the line, CDEDI, hereby implores Attorney General Thabo Chakaka-Nyirenda to urgently move in to liberate Malawians by ensuring that the injunction is lifted.

“It is also worth pointing out that Parliament is sitting on the July 2023 initial public inquiry into sugar pricing and production conducted by the Parliamentary Committee on Trade and Industry. The committee, which recommended a 25 percent sugar price reduction, was led by Hon Paul Nkhoma”.

Namiwa adds, “In view of the above, CDEDI hereby challenges Leader of the House Hon. Richard Chimwendo Banda to justify Parliament’s failure to adopt the report by the Committee on Trade and Industry on the sugar pricing issue in the past two sittings of the House.

“Furthermore, Minister of Agriculture Hon Sam Kawale owes the nation an explanation as what is holding the long-awaited Sugar Bill of 2021 which those in the know believe has the potential to bring sanity in the sugar industry and, also, help to address perpetual forex crisis”.

CDEDI observes further, “Simply put, the recent soaring prices of basic commodities have sent tongues wagging as to what has been the role of Salima Sugar Company, and beg the question as to whose interests the company is serving? This is so given that besides the unavailability of its sugar on the market, its pricing shows traits of collusion with Illovo”.

Namiwa says, “That said, Malawians anxiously await to hear from the AG on what has become of Salima Sugar Company, which was establishment to solely offer the muchneeded competition in the country’s sugar industry”.

He appeals, “CDEDI hereby challenges both Illovo and Salima sugar companies to withhold their price hikes until the supply of the commodity has improved across the country”.

Business, Malawi, Regional

Zambia cashing heavily on Malawi’ sugar crisis

Maravi Post Reporter

By Vincent Gunde

LILONGWE-(MaraviPost)-Illegally imported Zambian-White Spoon sugar has finally found its way in Malawi’s markets with thanks to shortage of sugar in the country besides having two sugar manufacturing Companies-Salima Sugar and Illovo Sugar.

Even though the Zambian sugar is in most of the markets across the country, its price MK3,200 as sold in Lilongwe and surrounding areas is not cheaper as expected but a little bit better than Malawi sugar which is MK3,700 a packet of one Kilogram.

Sugar shortage in Malawi has resulted to the commodity to become exorbitant and is beyond the reach of the poor who already are struggling to buy a pale of maize flour at MK3,600 in Mgona township and surrounding areas in Lilongwe.

A Malawi Congress Party (MCP) diehard of Mvera in Dowa district Mr. Rodgers Kamphangala, has called on President Dr. Lazarus McCarthy Chakwera to address the nation on the scarcity of sugar in Malawi and the reasons that has made the commodity to be sold at K4,000 per one Kilogram packet.

Kamphangala said it is sad that the price of sugar which has gone up beating Illovo Sugar company’s factory price of MK1, 912 per one Kilogram packet lamenting that this has again come at a time when most citizens in Malawi are failing to meet their everyday life situations.

He said sugar price of K4,000 per packet has frustrated many Malawians regardless of their political party affiliations saying the situation gives opposition parties chance to de-campaign President Chakwera so that he doesn’t bounce back in 2025.

The MCP diehard has claimed that many people in Dowa district have painted Chakwera’s leadership style being black with no hope that he can do better following the implementation of Affordable Input Programme (AIP) in the district that it was far from the people’s expectations.

He said many people in the district thought that President Chakwera would reward the Dowa people with fertilizer coupons for massively vote for him in the June, 2020 fresh presidential elections resulting to an all MCP Dowa District Council.

He noted with a great concern that eight village heads received only 8 fertilizer coupons, in some villages not even one benefited reducing the Dowa people to beggars while they are hard-working making Dowa a food basket district feeding other regions in Malawi.

“I am pleading with you President Chakwera to intervene in the sugar crises, continued silence on the issue, is resulting to many people insulting and castigating you who was voted on trust that you will turn around the country’s economy,” said Kamphangala.

President Lazarus Chakwera’s Tonse Alliance government has failed to meet Malawians expectations.

The leadership is being marred with high cost of living, inflation, food crisis, forex and drugs shortages, nepotism, corruption and among others.

Business

Trade Ministry seals shop for overcharging sugar

Dorica Mtenje

LILONGWE-(MaraviPost)-The ministry of Trade has sealed some sugar selling outlets in Lilongwe and will
continue to seal such outlets across the country if found to be overcharging sugar.

Ministry of Trade publicist Patrick Botha told The Maravi Post on Friday, March 8, 2025 that the the sealed shops include Romana Trading and Chou Chou shops in Area 2 (Bwalo Lanjovu) and Shalom Shop in Area 25 (Nsungwi) because were selling sugar at exorbitant prices .

He adds that Simama General Dealers in Area 25 (Nsungwi) has also been closed for holding sugar.

He said the sugar recommended price is MK2,200 per kilogram on retail while the whole bale is supposed to be sold at MK37,500.

“The joint exercise confirmed that some wholesalers are selling a 20 x1kg packet bale of Illovo Sugar at MK69,000.00 which is way far much higher than the manufacturer’s recommended price of MK37,500.00,” said Botha.

He said anyone selling sugar beyond the said price is breaching the Competition and Fair-Trading Act and the Business Licensing Act, 2012.

He further said Illovo Sugar Limited is strongly urged to provide recommended prices to their distributors and the consumers have liberty to demand manufacturers recommended prices to avoid being
overcharged.

He called upon the general Public not to panic as the Ministry has issued adequate licences for importation of sugar to increase sugar availability on the domestic market.

He therefore said, “Ministry is warning all traders against this malpractice as anyone found overcharging sugar will have their shops closed and face the long arm of the law or have their licences revoked”.