Minister vows to preserve Malawi status as sugar exporter

Minister of Trade and Industry Sosten Gwengwe has directed the Competition and Fair Trading Commission (CFTC) to intensify efforts against some traders accused of overpricing sugar on the local market.

The directive comes amid reports that despite sugar being readily available, some traders are still selling the commodity at exorbitant prices.

Gwengwe addressed journalists in Lilongwe on Monday after convening a meeting with representatives from sugar producers, Illovo Sugar (Malawi) plc and Salima Sugar Company.

“The ministry is dedicated to combating insecurity and lawlessness, ensuring fair trading practices not only within the sugar industry, but across all sectors,” he said.

Representatives from the two sugar manufacturers declined to talk  to the media.

In July last year, amid pressure from the public and local manufacturers to cut the price of sugar, Illovo Sugar (Malawi) plc said government was free to amend the law and issue licences to other suppliers to bring down sugar prices on the local market.

Illovo Sugar initially opposed a government decision to issue licences to other importers on the basis that the Ministry of Trade and Industry did not consult the Malawi Stock Exchange-listed sugar manufacturers as prescribed in the Control of Goods Act.

In Malawi, sugar is a protected commodity, according to the Control of Goods Act.