REVEALED! Despite Malawians having 40% share, Salima Sugar only sold sugar in wholesale to Asians for exports
Amidst the scarcity of sugar on the local market, shocking revelations have emerged that Salima Sugar Company, which Malawi have a 40 percent stake, had been producing the products but packaging it in 50 kilogramme bags and sold to Asians exclusively for exports.
This is why, as the scarcity rages, the company, can’t even help as, according the company’ board chairperson Wester Kossam, their sugar already finished sometime back.
“We have been packaging our products (sugar) mainly in 50-kilogramme bags, with little [of the same] in small packets for domestic use. The bags were also sold on wholesale to shop owners, with those from [Asia] being prioritised,” Kossam said in an interview with local media in Malawi.
He further said the firm is undergoing reforms such that, this season, they will supply sugar for domestic use.
“You understand that the company was dominated by [Asians] and, as such, they were not doing some things right as, in terms of business, they were favouring themselves and their colleagues. Now we would like to change things as, this season, we are looking for suppliers in order to make the products available on the market,” Kossam said.
“We have not served Malawians better because our sugar has not been readily available on the market. We are now advertising that those who would like to be our distributors should apply in order to make the sugar [available] in localities,” he added.
Salima Sugar Company Limited was established in 2018 as a government joint venture. Aum Sugar and Allied Company Limited from India had 60 percent of shares, with 40 percent of the shares held by the Malawi Government through the Greenbelt Authority.
Recently, the Malawi Government terminated its shareholding deal with Aum Sugar and Allied Limited due to alleged breach of contract. Last season, Salima Sugar Company produced 22 metric tonnes of sugar.
The company has sugarcane fields in Salima District and also relies on out-growers within the district and Nkhotakota.
However, fires set by some community members have been hampering production in Salima District.
Meanwhile, economist Greenson Nyirenda has said management deficiencies have been a major issue at the company.
“I think we have to work on the management because the company has enough capacity to produce more sugar but, then, why is it failing? Being owned by Malawians, there is a need for the company to be producing reports on how it is fairing,” Nyirenda said.
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