Illovo Sugar reassures government of sufficient stocks to avoid shortages
Gwengwe: This news comes as a huge relief
Illovo Sugar has assured the government of adequate sugar reserves to sustain the country during the lean period, addressing concerns about shortages experienced last year.
In 2023, the company closed the season with insufficient reserves, causing widespread panic and a critical scarcity of the commodity on the domestic market.
The company’s authorities made the reassurance in Lilongwe during a courtesy call by the newly appointed Interim Managing Director, Kondwani Msimuko, on the Minister of Trade and Industry, Sosten Gwengwe.
Msimuko revealed that by the end of the season in December 2024, Illovo had secured 80,000 metric tonnes of sugar, a significant improvement from the 40,000 metric tonnes recorded during the same period in 2023.
However, he expressed concern over the rising demand for sugar in recent months, attributing it to instability in Mozambique following post-election conflicts and cross-border smuggling by unscrupulous traders seeking to exploit the situation.
“As a company, we are confident that the 80,000 metric tonnes in our stock will sustain the country until production resumes in April. However, this is contingent on measures being implemented to manage the unprecedented demand and curb cross-border smuggling,” Msimuko stated.
In response, Minister Gwengwe welcomed the news, highlighting the importance of such reassurances in preventing panic and speculation among consumers.
He noted that panic often leads to exploitation by traders hoarding and overpricing the commodity, ultimately punishing consumers and causing nationwide chaos.
“This news comes as a huge relief, as sugar is arguably the most sought-after commodity after maize. It holds significant importance in our economy and society. While we are a nation focused on exports, I urge you to prioritize satisfying the domestic market before considering exports. The needs of our citizens come first.” said Gwengwe
The Minister also reaffirmed his ministry’s support for both Illovo and Salima Sugar, ensuring that the two producers can thrive while providing affordable sugar to Malawian consumers.
Additionally, he urged Illovo to consider direct supply to larger companies involved in industrialization.
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