The country’s flagship sugar producers, Illovo Sugar has urged the Malawi Government to swiftly act against high-rising sugar prices, illegal cross-border trade and smuggling, which the company says are impacting on its day-to-day operations and profitability.
Illovo Sugar interim Managing Director, Kondwani Msimuko, made the call at the organisation’s 60th Annual General Meeting (AGM) in Malawi’s commercial City, Blantyre urging the government stamp authority on the matter in order to stabilise the local market.
Msimuko pleaded with the Malawi Government, through the Trade and Industry Ministry, to curb cross-border illegal trading by those who smuggle the product from the country and sell at a thievery prices way above the recommended price of K2,600 per kilogram.
The ad-hoc Illovo boss revealed that large quantities of Malawian sugar are flooding into neighbouring countries such as Tanzania, Mozambique and Zambia thereby disordering and squeezing out the Malawian local market.
Said Msimuko: “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.”
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.
“Illegal cross-border trade poses a significant threat to local producers and market stability.”
Kondwani Msimuko
Illovo Sugar interim Managing Director
