Govt Orders Illovo to Reduce Sugar Price

The Government of Malawi through the ministry of trade has asked the Illovo Sugar company to reduce the prices of Sugar within a week.

In a statement signed by the Minister of Trade and Industry, Simplex Chithyola, dated 14th June, 2023, government said the move has been agreed after holding the meeting with Illovo Sugar Company on 11 June, 2023.

“The discussions centered on Prices of Sugar (PoS) by Illovo Sugar Ltd where the company is the sole producer of the commodity [industrial sugar]. Government wants Illovo Sugar Ltd to reduce the price of Sugar within a week for the benefits of both consumers and industries that use Sugar as a raw material,” reads the press statement in part.

At the meeting, Government was attended by the Minister of Finance, Honourable Sosten Gengwe, and the minister of trade and industry, Simplex Chithyola while Illovo was represented by Board Chairperson, Mr Jimmy Chipunga and the managing director Mr Lekan Katandula.

“In this regard, Illovo Sugar Ltd committed to reduce the price of Sugar within a week [7 days effective 14 June, 2023],” adds the statement.

The statement continues to say, “the government emphasised the point that should Illovo not comply to reduce the price of Sugar within a week, it will have no option but compelled to issue more import licenses to more industry players to help cushion the prices of commodities that use Sugar as raw material using relevant provision in the Control of Goods Act 2018.”

However, the Government has not indicated the percentage that are expected to be reduced from the current price.

Currently, The retail price range in Malawi Kwacha for sugar is between MWK 1030.93 and MWK 1100 per kilogram or between MWK 467.54 and MWK 467.54 per pound(lb) in Lilongwe and Blantyre.

The price was adjusted last year in May as the company cited devaluation as the cause of the development.