By Steven Godfrey Mkweteza
The country’s oldest sugar producer, illovo sugar Malawi plc has assured the consumers in the country that the sugar scarcity problem will end in April this year once it has resumed production.
Managing Director for the company Lekani Katandula made the assurance in Blantyre when the company was disseminating results of the half year performance to its shareholders.
Said Katandula:”Our production for the year dropped due to economic shocks such as devaluation, forex issues, high cost of production and cyclones among others. This resulted into scarcity of sugar in the year, hence the price increases.”
He said over the years the company has been producing hundred and seventy tonnes of sugar for the year but now the production has dropped to around 77 percent.
“We are anticipating the production to be increased once we resume production in April this year. We are confident with the improved economic fundamentals now which has resulted into availability of forex and power. However, our threat is in the current weather conditions the country is country facing,” he explained.
According to him, high levels of smuggling of sugar into other neighbouring countries had also resulted in sugar scarcity in the country.
He noted that the low cost of sugar in the country as s compared to the neighbouring countries necessitated the high levels of
smuggling.
Among others, Katandula revealed plans to venture into cotton production as a diversification initiative
“We want to remain resilient by venturing into programs that will support our sugar production in times of economic shocks. This will help to reduce the forex challenges as we will be exporting to other countries,” he said.
However, the Managing Director also disclosed that the company has paused its power generation project due to some other challenges.
Illovo sugar group operates in seven countries and has a total of 34,000 hectares in its Nchalo and Dwangwa estates.
