Malawians deserves better undettered access to fairly priced and quality sugar -MaBLEM

The leadership of the Civil society Led Black Economic Empowerment Movement (MaBLEM) which is a development focused wing of HRCC along with other CSO leaders, on 13th May met the Management of Illovo sugar on a fact finding mission to understand the reasons for sugar scarcity, price increase and sugar smuggling across the borders among others.

Speaking briefly to our reporter after the meeting, MaBLEM chairperson Robert Mkwezalamba advised the grouping will hold a media briefing to present it’s summary from engagement with Illovo, Salima Sugar and other key players in the sector soon.

Mkwezalamba however stressed that it’s time Malawians started getting the best out of their resources citing the raw deal they currently are facing in the sugar sector, ” the sector is lucrative and remains a game changer for the nations growth. There are opportunities in the sector but only a few individuals have and continue benefitting from the sector, this must stop!” ” Sugarcane growers, communities around the sugar factories and Malawians at large deserve better and it’s so sad that they had to go over a month without access to sugar because of a few gready individuals!”

Mkwezalamba stated that some distributors have not be fair in their dealings as they were central to smuggling of sugar beyond the borders using uncharted routes, held the commodities from customers in anticipation for a an increase in prize, selling at high cost and abandoning of their designated delivery zones just to rush for lucrative markets where they made profits amidst the shortage of the commodity!

” From our engagements, we have learnt that there are sugar curtails which include distributors, police, MRA, ordinary citizens who buy Salima and illovo sugar enmass and smuggle outside as it fetches better prizes there. Again you have entities which violated import licenses for the commodities, for which we will not divulge more details but will shortly name and shame including demand that they be banned forever in treading in sugar as well as charged for smuggling the commodity beyond the borders when we most needed the commodity. Issue of tax evasion and duping will also be put to the open as Malawians have been ripped off in the period from November 2023 to may 2024!” Mkwezalamba stated.

Commenting on the prize increase, mkwezalamba said from their investigations, which remains underway, the increase was justified and questioned the motive why the state and CFTC arrived at their decisions on the matter. He felt there is need for sincerity and honesty in dealing with the subject matter as opposed to blame games.

” The cost of producing a packet of sugar is way beyond 2000 but the producers re being penalised and pushed to sell at below the production cost, one day the sector will collapse and we shall be forced to start importing more than what we are locally getting. This is why we are pushing for a sugar conference where we seek to bring together players in the sector for a frank discussion to safeguard the sector and get lid of selfish individuals who are stealing from Malawians.! ” Mkwezalamba said.

” The plunder at salima sugar for instance can not be let scot free. While there are mediations going on in court, as MaBLEM we are opposing plans for immediate bringing in of further partners or consultants as the current management has demonstrated that they are delivering. You can’t be bringing so called equity partners who brings 12% but you end up giving them 60% ownership of the company yet government paid over40% for it’s equity, this is day light robbery. You can’t be paying 150000 dollers a month for so called expatriates( undocumented migrants) just to end up supervising locals how to grow or cut sugarcane, really!?? As MaBLEM we silute the current SPC and Secretary to Treasury for agreeing to handover their shares in Salima sugar to Greenbelt Initiative because the abused used to happen because of this allocation” Mkwezalamba retorted, ” so those who decided to give these investors 60% ownership or got loans using the company for their personal benefits MUST be prosecuted and brought to book!”

Mkwezalamba however expressed happiness that the producers are keeping up to their promise of ending the sugar scarcity problem by 20th may as there are reported cases of more shops and new locations being supplied with sugar, ” our initial concern was to have the commodity on the market then look at pricing issues and distribution. With the availability now, the next focus is to discuss the prices, abuse/theft and screening of the distributors to break the monopoly of some unscrupulous sugar barons to promote equitable distribution and benefits for all!” Mkwezalamba stated. He expressed deep concerns with high levels of Vandalism and setting of fires at the estates and felt as CSOs they are duty bound to engage communities on the same ” we realise the company is struggling to keep up with. Vandalism and wild fires started by individuals who have issues with Illovo or simply want to steal. It’s easy to track where they are selling the irrigation equipments hence ther eish need for us to engage communities around the states and police to fight this vandalism?”

Illovo CEO when contacted advised that the firm is busy trying to manage the situation on the ground and would give a statement at an appropriate time.

Malawi has had sugar shortage since February owing to lack of production, holding of the commodity by traders and high cost prizes when the commodity from neighbouring countries was available.