Illovo says the ball in government court
Amid pressure from the public and local manufacturers to cut the price of sugar, Illovo Malawi says government is free to amend the law and issue licences to other suppliers to bring down prices on the local market.
Illovo Malawi managing director Lekani Katandula said this in an interview at the Parliament Building on Friday when he appeared before the Parliamentary Committee on Trade, Industry and Tourism as part of an inquiry on the production and price of sugar.
He said: “If the users of industrial sugar believe that they can import the sugar at a cheaper price, then we will not stand in their way.
“Government is at liberty to issue the licences to bring down the products cheaper for local manufacturers. We would be happy to bring the prices down for local consumers.”
Illovo initially opposed a government decision to issue licences to other importers on the basis that the Ministry of Trade did not consult the sugar manufacturing company as prescribed in the Control of Goods Act of 2023.
Section 6 subsection 1 of the Act reads: “The minister shall consult relevant interested parties before a final determination is made to make an order to regulate specified goods under section 4(1) or section 5(1).”
In a separate interview, Ministry of Trade and Industry director of trade Christina Zakeyu said the government will use the instruments at its disposal to regulate product prices in Malawi in the interest of local consumers.
She claimed that the ministry does not have to consult with anyone before issuing an import licence to any supplier because it is the ministry’s prerogative and mandate to protect the interests of local consumers.
Said Zakeyu: “We have instruments to bring the price of sugar down. The government can issue import licences to other suppliers to bring down the prices of products. We have done this with the cement and cooking oil.”
On his part, the committee chairperson Paul Nkhoma said they will continue with consultations to ensure that the outcome is mutually beneficial for interested parties, including Illovo, users of industrial sugar and local consumers.
Said the chair: “The Ministry [of Trade] proposed that Illovo prioritises exporting sugar where they can command higher prices and we let other suppliers import sugar. The price of sugar locally goes down, the government gets forex and Illovo can focus on foreign markets where their prices will be maintained.
“The ministry made a strong case. It is a win-win and we hope we can get Illovo to agree to the proposal.”
Parliament is on Tuesday scheduled to hold a consultative meeting with other relevant stakeholders to map the way forward
