Malawian government faulted for permitting sugar exports amid national shortage
The Centre for Democracy and Economic Development Initiatives (CDEDI) blames the Malawian government for the sugar shortage, citing reckless export approvals despite local deficits. CDEDI’s Sylvester Namiwa criticized the Ministry of Trade for prioritizing forex over citizen welfare. With prices soaring, CDEDI demands urgent policy changes to halt exports, improve local supply, and restore economic accountability.
The Centre for Democracy and Economic Development Initiatives (CDEDI) has squarely blamed the Malawian government for the ongoing sugar shortage in the country, accusing it of recklessly authorizing large-scale exports of the commodity despite clear signs of a domestic supply deficit.
Speaking during a press briefing in Lilongwe on Tuesday, CDEDI Executive Director Sylvester Namiwa accused the Ministry of Trade and Industry, led by Vitumbiko Mumba, of prioritizing foreign exchange gains over the welfare of Malawians.
Namiwa said the current crisis was a direct result of poor planning and lack of foresight by authorities who allowed sugar manufacturers—Illovo Sugar Malawi plc and Salima Sugar Company—to export vast quantities of sugar while local shelves run empty.
“Sugar is scarce in the country amid plenty of it being exported by the manufacturers,” said Namiwa. “The above implies that if the government’s hands were clean, by now, it would have intervened and taken a position to ensure the availability of the commodity, hence our call to the government to bite its lower lip and accept that it erred and should urgently act like a caring government it claims to be.”
According to Namiwa, the shortage has led to skyrocketing prices, with sugar now fetching as much as K6,000 per kilogram in some informal markets. He noted that the crisis could not have come at a worse time—when sugar production was expected to be at its peak and the market well-supplied.
Illovo Sugar Malawi, in a statement, attributed the scarcity to smuggling and unfavourable weather conditions. However, CDEDI dismissed these claims as inadequate, instead shifting the spotlight back to government policy decisions and systemic failures in controlling cross-border trade.
“Since this is not the first time Illovo has cited smuggling as one of the challenges affecting sugar pricing and supply chain, it also begs the question of what steps authorities are putting in place to arrest the situation?” He questioned. “It also begs the question: Apart from sugar, what else is leaving the country unchecked?”
CDEDI also aimed Salima Sugar Company, which was established using a loan from the Government of India to help break Illovo’s monopoly and improve local supply. Namiwa questioned the company’s relevance amid the crisis, accusing it of engaging more in publicity than actual distribution.
“Malawians hear about Salima Sugar on social media, not in shops. Government must stop entertaining these PR gimmicks and demand real results,” he stated.
In addition, the organisation reminded Attorney General Thabo Chakaka-Nyirenda of his promise to recover US$50 million (about K105 billion) allegedly misappropriated from Salima Sugar Company. It expressed shock that the company is now seeking a K24 billion bailout while the recovery efforts remain unfulfilled.
CDEDI has since challenged Minister Mumba to clarify the government’s sugar trade policy and outline steps being taken to stabilize local supply. Namiwa emphasized that the crisis reflects deeper issues of economic mismanagement and misplaced priorities.
The organization is demanding immediate policy shifts to halt further exports, enforce border controls, and restore an adequate supply of sugar to the domestic market.
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Source : Malawi 24
