In the midst of the current sugar scarcity, a thriving black market has emerged—traders purchasing the commodity in bulk using various middlemen and selling it at inflated prices to desperate consumers.
These middlemen—often disguising themselves as desperate consumers standing in long queues in supermarkets and other outlets—have found a lucrative business as they are paid different amounts by the traders.
“This is better than minibus touting,” said Elliot George whom Nation on Sunday met at Chipiku Stores at Ginnery Corner last Wednesday.
“I do not mind standing all day because I make more money from this as compared to being a minibus tout at the Queen Elizabeth Central Hospital stage.”
George, seemingly partly drunk on the day, said on a good day he makes between K15 000 and K20 000—an amount he cannot manage through minibus touting.
But the Soche-based resident is into the trade together with three other friends, although they pretend not to know each other when inside shops.
They are also not sure whether most people in the queue are in the same business or are desperate consumers struggling for the commodity.
His colleague Adamson Mawanda said the sugar scarcity is helping address their personal financial woes.
“I am always happy when sugar is available and together with my friends we are called to do business,” he said.
On this particular day, Nation on Sunday witnessed how the four loaded various bales of sugar into a pick-up truck parked inside the same compound. After they were given money, they went back to the queue. This happened about four times.
Nation on Sunday also established that this is the trend elsewhere in Zomba, Lilongwe and Mzuzu whenever there is a scarcity of the commodity.
One trader from Mzuzu who opted for anonymity claimed that almost every other trader is engaging in such
practices.
“Most of them are hoarding the commodity knowing fully that a scarcity is imminent. Whenever a scarcity arises, they bring out the sugar and they can sell at any price knowing consumers will buy. Do you think all those people in queues are desperate consumers?” he said.
Two others corroborated the Mzuzu claims. The duo said in some instances, they are supporting each other to make more purchases knowing they will make double profits; hence, be able to pay back their debts.
“For every packet sale, traders are making a hefty profit. Others are selling double the price, others nearly double the initial price. It all depends on how much you have spent on transportation. Otherwise, traders are making profits out of this scarcity,” said one of the traders.
The situation has since negatively impacted small-scale business owners, especially those in the confectionery business who are struggling to make profits as they cannot adjust prices.
In an interview during the week, Jenifer Malunda, a baker from Zomba, said adjusting prices of her cakes would mean losing customers.
She said: “I already adjusted prices twice following recent adjustments in some of the items we use in baking. Now, if I have to adjust the prices upwards because I am buying a packet of sugar at K6 000 would mean some of my customers would abandon me.”
But for the traders, they don’t really care about how the situation is adversely impacting both consumers and businesspersons.
“We all want money and this is what we are doing. At all cost, we know people will buy from us because sugar is more of a basic need. It is used every day, everywhere,” said the Blantyre trader we talked to.
“We make sacrifices to buy the sugar, and so the consumers should also make sacrifices in buying from us. Mind you, we also have to pay the middlemen we are using to buy the sugar. We cannot buy on our own.”
This is the situation despite the Competition and Fair Trading Commission (CFTC)—a statutory body mandated under the CFTC Act to regulate unfair trading practices while promoting competition.
This means consumers are protected from exploitation by law.
Consumers Association of Malawi executive director John Kapito said in an interview on Tuesday that the situation is appalling.
He said the sole loser in this situation remains ordinary consumers, whose lives are already strained by an escalating cost of living.
Kapito said what is further worrisome is the inaction by the Ministry of Trade and Industry, and CFTC who are mandated to enforce trade regulation rules.
He said: “It is, therefore, annoying to consumers who are now buying a pack of sugar at double the normal price. Why has the Ministry of Trade and Industry together with CFTC abandoned their responsibilities and obligations?”
CFTC public relations officer Innocent Helema on Tuesday asked for more time before responding while Minister of Trade and Industry Vitumbiko Mumba did not respond to our questions sent to him through WhatsApp.
When we followed up with Helema on Friday, he indicated that our questionnaire was yet to be cleared.
Illovo Sugar Malawi plc acting managing director Kondwani Msimuko told The Nation edition of May 26 2025 that the sugar scarcity is due to late opening of its crushing season and illegal exports.
He said the major sugar manufacturer delayed opening its factory due to weather-related factors.
The country’s major sugar manufacturer, which has a 97 percent market share, annually cultivates around 1.8 million metric tonnes (MT) in addition to about 350 000MT produced by smallholder farmers.
