Malawians are struggling to afford sugar as prices skyrocket on the parallel market, with the commodity fetching between K4,000 and K5,000 per kilogram.
The crisis has prompted Sylvester Namiwa, Executive Director of the Centre for Democracy and Economic Development Initiatives (CDEDI), to appeal to the Minister of Trade and Industry to take decisive action against the sugar cartel.
“The sugar industry in Malawi is controlled by a cartel that has made life unbearable for millions of low-income Malawians,” Namiwa said.
“It’s shocking that despite the dominant player, Illovo Sugar, registering colossal profits year in and year out, sugar scarcity has become a perennial problem in Malawi.”
Namiwa highlighted several issues that need urgent attention, including the lack of progress on the sugar bill, which has been gathering dust for 11 years.
He also expressed concern over Illovo Sugar’s stranglehold on the industry, which has prevented cane farmers and the government from benefiting from the industry.
“The fact that Illovo Sugar obtained an injunction restraining the Competition and Fair Trading Commission from effecting a 25 percent price slash is a clear indication of the cartel’s influence,” Namiwa said.
CDEDI is calling for an emergency sugar indaba to provide answers to several questions, including the nature of Illovo Sugar’s agreement with current sugar distributors and the total tonnage produced in the last production year.
Namiwa emphasized that the current sugar crisis has a multiplier effect on the economy and should not be entertained by any serious leadership.
