Malawi Government says it is analysing Illovo Sugar (Malawi) plc’s position on the reduction of sugar prices and waiting for other stakeholders’ submissions before making its determination on the matter.

Minister of Trade and Industry Simplex Chithyola Banda said in an interview yesterday the public will “very shortly” know government’s position on the issue that has attracted so much attention from various stakeholders.

He was responding to The Nation’s inquiry on the seven-day ultimatum he gave the local sugar manufacturer to reduce industrial sugar prices.

The seven days expired last Wednesday but to date neither government nor the sugar company has so far informed the public whether the prices have been reduced or not.

The minister said: “They [Illovo] responded to our ultimatum so as a ministry we are now analysing their response. Once that is completed, we will appropriately advise the general public our position.

“Again, you will appreciate that the issue attracted attention from various key stakeholders, including the Parliamentary Committee on Trade and Industry and the civil society who are currently conducting inquiries.

“So we are avoiding a situation where if we make our determinations now before they finish their tasks, it will be like jeopardising their inquiries. But what is coming out prominently is that people want sugar prices reduced and nothing to the contrary.”

Banda also stated his ministry would want to balance up the issue by giving everyone, including Illovo and the general public, enough space for collective decision-making in terms of the government’s position on the matter.

“We know the general public is anxiously waiting on the good news about sugar prices reduction but very shortly we will make a determination,” he said.

The minister issued a statement on June 14 2023 ordering Illovo, which has a 95 percent market share, to reduce its price of industrial sugar within seven days.

The statement came after government led by Minister of Finance and Economic Affairs Sosten Gwengwe engaged the Malawi Stock Exchange-listed firm on the matter.

On Friday, one of the country’s civil society organisations that has rallied behind the government’s order to reduce sugar, Centre for Democracy and Economic Development Initiatives (Cdedi), asked government to swiftly act on the matter.

Cdedi executive director Sylvester Namiwa reminded the minister about the level of public excitement he brought when he ordered Illovo to reduce the prices.

He said: “For once, Malawians believed the crucial ministry had finally gone to a minister who, understands and appreciates the plight of low-income Malawians who have for ages, been denied access to basic commodities, one of which is sugar.

“It just does not sit well that sugar, a commodity produced locally, should be selling at prices beyond the reach of most Malawians.”

Locally, the price of sugar has been on the rise currently trading at K1 500 while for industries they have been buying it at $1 250 (about K1.283 million) per metric tonne.

Illovo Sugar (Malawi) plc is the country’s biggest sugar manufacturer and annually cultivates around 1.8 million tonness of cane from its two estates in Dwangwa, Nkhotakota and Nchalo in Chikwawa, employing about 9 500 people

This is supplemented by approximately 350 000 tonnes produced by Malawian smallholder farmers.

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