Government moves to reform sugar industry

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Government moves to reform sugar industry
Government moves to reform sugar industry

Africa-Press – Malawi. The government has announced plans to overhaul the sugar industry, aiming to address persistent shortages, stabilise prices and promote locals’ participation in distribution.

Speaking during the launch of the 2025 sugar production season at Salima Sugar Company on Tuesday, Industry and Trade Minister Vitumbiko Mumba announced new measures targeting not only illicit stockpiling but also issues of production, distribution and pricing.

The reforms include prioritising local empowerment in sugar distribution, enforcing price regulations through a proposed Essential Goods and Services Bill and mandating that all sugar distribution trucks be escorted by both trade officials and police officers to prevent illicit stockpiling.

“We are not just responding to the crisis with punitive measures. We are restructuring the entire value chain to make it more accountable, inclusive and transparent,” said Mumba.

A key policy shift will see priority given to indigenous Malawians in the licensing of sugar distributors.

“Foreign investors have not shown commitment to long-term investment in this country. It is time local communities started benefitting directly,” Mumba said.

Mumba also disclosed that vending of sugar might be temporarily banned until supply stabilises, pending consultations with the Ministry of Local Government, Unity and Culture.

Salima Sugar Company Executive Chairman Wester Kosamu reported that the company expects to release 22,000 metric tonnes of sugar into the market this year.

“However, financial constraints have limited [our] operations to just 1,500 of the company’s 6,000 hectares of arable land,” Kosamu said.

To further boost supply, the government has said it will issue sugar import licences targeting countries such as Brazil and Egypt.

In parallel, all sugar producers have been instructed to submit detailed lists of their licenced distributors.

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