Embattled debt-laden Salima Sugar Company Limited says it has made a profit of over K2.4 billion in the 2024/25 financial year due to operational reforms carried out since cutting ties with Indian expatriates.
The once financially struggling company’s Executive Chairperson, Wester Kosamu, disclosed this in Mponela, Dowa, during an orientation for managers and supervisors on proposed functional reviews and procurement procedures.
The review was necessitated by the departure of Indian expatriates who previously handled all procurement, leaving a gap that needed to be filled.
Kosamu said they have now started servicing their K23 billion debt, which will be significantly reduced by November this year.
“We are now on the right path to recovery as an organisation.
“It is not going to be easy, but we will do it,” said Kosamu.
He also warned against sexual harassment allegations in the workplace.
Salima Sugar Company has been struggling financially that it took the Parliamentary Committee on Trade Industry and Tourism to pledge its support to the company that it would plead with the government to bail it out of the K26 billion loan that the company owes CDH Bank.
Chairperson of Committee Honourable Paul Dumembe Nkhoma, said:
“The Committee has appreciated the forensic report on Salima Sugar Company that exposed the malpractices that were going on at the company.”
Nkhoma said the Committee was happy that the company had taken action to relieve of duty the expatriates in order to pave way for Malawian nationals to lead the company.
Kosamu said bailing out the company from the loan would open up expansion opportunities for the company.
Kosamu said that if bailed out, the sugar company will be able to generate finances as it has already sold over K4 billion since the commencement of the 2024 sugar production season which started on 16th April, 2024 and will conclude in November, 2024.
During the visit, the Committee further learnt that Salima Sugar Company is currently producing 26 metric tonnes of sugar per day.
However, the company intends to increase production by growing more sugarcane on the four thousand hectares that it is yet to plant.
“We are now on the right path to recovery.”
Wester Kosamu
Salima Sugar Company Executive Chairperson
