Government moves to reform sugar industry amid shortages

Government has announced comprehensive reform plans to overhaul Malawi’s sugar industry, aiming to address persistent shortages, stabilize prices, and promote local participation in distribution.

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

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The reforms include prioritizing local empowerment in sugar distribution, enforcing price regulation 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 benefit directly,” Mumba said.

Mumba also disclosed that vending of sugar might be temporarily banned until supply stabilizes, 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 tons of sugar into the market this year.

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

To further boost supply, government will issue sugar import licenses targeting countries like Brazil and Egypt. In parallel, all sugar producers have been instructed to submit detailed lists of their licensed distributors.