Reduce sugar prices,Cdedi urges Gwengwe

Centre for Democracy and Economic Development Initiatives (Cdedi) has urged newly-appointed Minister of Trade and Industry Sosten Gwengwe to pick up from where his predecessor left to reduce the price of sugar.

Cdedi executive director Sylvester Namiwa said this in Lilongwe yesterday during a press briefing to lay out expectations from the former minister Finance and Economic Affairs who swapped positions with Simplex Chithyola Banda in President Lazarus Chakwera’s minor Cabinet reshuffle on Saturday.

He said Gwengwe has “his work cut out” to continue the job his predecessor started to push Illovo Sugar (Malawi) plc to bring down the price of sugar.

Said Namiwa: “They [Malawians] recall him [Chithyola] giving an ultimatum to the sugar manufacturers to reduce the price. They recall him presiding over a series of consultative meetings of stakeholders in the sugar value chain. It gave them hope, and they are still hoping for that moment.”

He urged Gwengwe to use his previous experience at the Ministry of Trade and Industry and his perceived positive relationship with Illovo Sugar to negotiate a compromise that benefits Malawians.

The press briefing follows a parliamentary inquiry initiated by Cdedi that involved testimony from industrial users of sugar, sugar manufacturing companies and the Malawi Revenue Authority.

The Ministry of Industry and Trade in July held off on making a determination on sugar prices after Illovo requested that the ministry should wait for the conclusion of the Competition and Fair Trading Commision (CFTC) case.

Illovo Sugar was found guilty of unfair competition and unconscionable and misleading conduct following a consumer complaint on the adjustment of its sugar prices. However, the giant sugar manufacturer has appealed the determination at the High Court.

Parliamentary Committee on Trade, Industry and Tourism chairperson Paul Nkhoma said it was prudent for the Ministry of Trade and Industry to wait for the ruling by the High Court before making a final determination on the sugar prices.