Illovo Sugar Malawi Plc has urged the Ministry of Trade to take action against rising sugar prices, illegal cross-border trade and smuggling, which the company says are threatening its operations and profitability.
Speaking at the company’s 60th Annual General Meeting (AGM) in Blantyre, Interim Managing Director Kondwani Msimuko raised concerns over traders selling sugar above the recommended price of K2,600 per kilogram.
He also warned that large quantities of Malawian sugar are flowing into neighboring countries such as Tanzania and Zambia, disrupting the local market.
“Illegal cross-border trade poses a significant threat to local producers and market stability. We are working closely with the Ministry of Trade to address these challenges, as we do not have the mandate to regulate market prices,” Msimuko said.
Despite a decline in profits for the 2023/2024 financial year—partly due to the impact of cyclones, rising theft and inflation—Illovo remains optimistic about its future performance.
Shareholders also voiced their concerns, with Joe Maere, a member of Misaliku, saying they were ready to collaborate with the government to tackle the issues.
“The influx of sugar into foreign markets is hurting the local industry, but we believe the measures being taken by management and the board will help stabilise the situation,” he said.
Illovo has maintained its share price despite economic pressures, and shareholders expressed confidence in the company’s long-term prospects.
Illovo Sugar Malawi Plc is the country’s largest sugar producer and a subsidiary of Illovo Sugar Africa, which operates across the continent.
The company runs two sugar estates—Dwangwa in the central region and Nchalo in the south—producing sugar for both domestic and export markets.
As a major contributor to Malawi’s economy, Illovo provides employment, supports smallholder farmers, and invests in community development and environmental sustainability.
