Malawi Crisis: Illovo sugar sales go down by 40 percent

Feb 19, 2016 Business 196
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Illovo-sugar

At a time when Malawi’s economy continues to stumble, Illovo Sugar Malawi limited has disclosed that its sugar sales in the country have been hit hard to the extent of slipping to 40 percent.

The development has been attributed to incessant rate at which such commodities are being smuggled into the country.

Illovo public relations officer, Ireen Phalula is on record as having told  a local daily that such commodities like sugar are largely being imported from neighboring countries like Tanzania, Zambia and Mozambique with import licenses that apply there alone.

“The net effect of this for Illovo as a company, amongst other, is that sales in the current year are down by 40 percent compared to the same time last year. Most of the sugar being smuggled into the country enters the country without Vitamin A fortification, which is a legal requirement for sugar on the Malawi market.” Phalula told  local daily this week.

Illovo-sugar
Illovo-sugar: Sales down by 40 percent.

Phalula also said Illovo Malawi provides direct jobs to over 10,000 Malawians and that it indirectly creates even more jobs whose viability is under threat with the smuggling.

Tis comes as economic woes are forcing many companies to change their approach on business and expenditure.

Recently, Peoples Trading Limited announced the closure of  20 out of its 85 shops across the nation due to continued losses.

The Standard Bank also recently announced withdrawal of sponsoring the Standard Bank Knockout Cup, a development the bank tilted to the pace that the country’s economy is taking has made the bank  “increasingly challenging” for the bank to generate revenue.

A recent report by international financial experts reveals that the Malawi Kwacha has lost about 35% of its value under the leadership of President Peter Mutharika, pinning it one of the worst currencies in Africa.

The report, published by US Financial aggregator, Bloomberg, shows that Malawi kwacha is just 2 places from the bottom of the Continent’s worst currencies hit by inflation. Slightly trailing the Kwacha is the Angolan currency. The Kwacha’s namesake in Zambia is anchoring the log.

Since his election in May 2014, Mutharika has presided over one of the worst rising inflation in Malawi, a development the report shows as one factors that has lead to “a slump in investor confidence”.

Value of Malawi Kwacha dropped to its record lowest point this month sending a shockwave of price increases on goods and commodities. Bloomberg also reports that Africa’s biggest economies such as South Africa, Ghana and Nigeria are also dancing to the same tune as that of Kwacha.

 

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196 Comments

  2. malawi sugar is very expensive,pple in the community cant afford k700.or mutakhala inuyo wina akupanga k700 and wina k300 mungagule nda? ife we believe kuti chakunja chimadula coz of transport cost and othr cost koma kuno ku Malawi zadabwitsaaa

  14. agalu amenewa samafunira zabwino anthu akwawo, tiyeni titenge gawo ife achinyamata mwina zingasinthepo. ndikuona kuti akulu akuluwa akalamba, ndiye mumadziwa akulu akulu akatha mano amadya minofu yokha yokha.mafupa amasiyira ana, ndiye chonde achinyamata tiyeni titengepo mbali pazomwe chikuchitikazi

  28. Sugar kupangidwa ku malawi komaso kumadula kumalawi koma kumakatchipa ku joloza pamene mumachita kumutumiza pama track amatola zachamba eti imwani nokha tea wanu wanchere yo

  29. Iyaaaaa! Mbuzzii za anthu sugar anatha zaka zamma 2000,pano mukupanga mnchere makape sugar mpaka ma supuni five asana kwanebe mu tea iyaaah itseken dzanu,kudulisaso ngati ku field ko imadula ndi tractor mesa ndi manja aanthu omwe muku adulisilao

  36. koma mchifukwa chan zithu zot zikupangidwa mdziko mommo kumamdula chonchi cement akupagwidwa konkunou koma mntengo wakewo nima lotlon even chimanga chomwechi tikulimachi….kuti uchipeze mnchiletso why malawi?

  37. koma mchifukwa chan zithu zot zikupangidwa mdziko mommo kumamdula chonchi cement akupagwidwa konkunou koma mntengo wakewo nima lotlon even chimanga chomwechi tikulimachi….kuti uchipeze mnchiletso why malawi?

  38. koma mchifukwa chan zithu zot zikupangidwa mdziko mommo kumamdula chonchi cement akupagwidwa konkunou koma mntengo wakewo nima lotlon even chimanga chomwechi tikulimachi….kuti uchipeze mnchiletso why malawi?

  49. kkkkk pampanjepamenepo komaya munasakahanokha musamalile apa tiyeni uko mesamumkafuna peter ndizimenezo muyisova amalawi kumeneko ine ndiye ndimatumiza 6okg kumpanje suger wakumeneko athuakwathu samamudzuwa machende apeter kodi akufuna zifike paja zinamufikila mb’ale wake uja pajatu zimati chomchi akakhala kwawo amavazakuti bwana fazitu panopa ili kuchipikupanzele kugula suger iena aliku ptc akudikila suger iena pano aliku shoplet suger watha panyapako peter ngati ulindima wu undiyimbile number yanga ili paline pangapomwepo

  50. sugar ochokera ku zambia kumatchipa koma inu mukupangira pompa panchalo nd komaso ku Dwangwa kudula kwambir kungoti chopangidwa ku Malawi mmalawi akuvutika kuchigula

  57. Do a survey to find out real reason. Phalula, what you are attributing to as a factor for drop in sales is not true. You have become crazy with your pricing. Sugar in rular areas is sold at more than K800.00. The fact that you employ 10,000+ people will not make Malawians buy your expensive sugar. People will always go for an alternative. Next is Escom who will soon see a drop in number of customers.

  58. Do a survey to find out real reason. Phalula, what you are attributing to as a factor for drop in sales is not true. You have become crazy with your pricing. Sugar in rular areas is sold at more than K800.00. The fact that you employ 10,000+ people will not make Malawians buy your expensive sugar. People will always go for an alternative. Next is Escom who will soon see a drop in number of customers.

  65. If u dnt wnt to sllng ur suger in dis country pitani muzikagulitsa ku maiko aku uraya ndinu oputsa more over coz mukudziwa kuti Malawi tili mmabvuto anjala then mukumakakweza ntengo wa suger because of wat shatapu!

    1. Kaya okonda tea zikakhala zidakwa ndesizimwa tea zimamwa beer basi, muisova

  66. If u dnt wnt to sllng ur suger in dis country pitani muzikagulitsa ku maiko aku uraya ndinu oputsa more over coz mukudziwa kuti Malawi tili mmabvuto anjala then mukumakakweza ntengo wa suger because of wat shatapu!

  73. chimanga nde ndi dhilu pano…asitse mitengo kaye.

  78. Musamationese sugar wanuyo apa tinasiya kale ife kumwa tea.bolaso mchele ndiwaphindu ku tundu wanga wachi malawi.tikalima nzimbe pogula matibelaso mitengo koma sugar wanu kumadhulisa

  79. Musamationese sugar wanuyo apa tinasiya kale ife kumwa tea.bolaso mchele ndiwaphindu ku tundu wanga wachi malawi.tikalima nzimbe pogula matibelaso mitengo koma sugar wanu kumadhulisa

  88. Heee kaya zanu izo ife ndye juice cola muphala instead of sugar. Kkkkkkkk kma pa Malawi eeee lyf nt simple crying iz evry where may de lord Almighty hear our crying He is only one hu can calm us.

  90. My grandma used to cook us sugarless porridge. My mom too, tea is my enemy, we drink kachasu wa mizimbe, no sugar is added. Thobwa without sugar eeish so nice. Moti panopa I dnt kno the price of sugar. Chimidziswagger.org

  91. Nanga akanakhala kut Suger apamga ku USA bwezi ali pa bwanji, tikumachita kukanika kugula Suger koma zimbe zilima tokhala mmmmmmm ilovo ar u Really serious?

  92. Kagulitseni kwa azungu ife tasiyadi kugula sugar wanu mkudulitsa ngat tonse ndife zikhwaya muno. Mapeto ake mwayambanso kudabwa kusonyeza kut simkudziwa kut malawi ndife amphawi eti???

  115. amene muli ndi sugar wa maiko ena or mukuziwa uko akupezeka mungotiziwisa basi kuti nafe tizikagura komweko coz nkangosiya ine igwaso ifika pa 60 loadin down fall

  116. amene muli ndi sugar wa maiko ena or mukuziwa uko akupezeka mungotiziwisa basi kuti nafe tizikagura komweko coz nkangosiya ine igwaso ifika pa 60 loadin down fall

  123. Zafodya bas muzigura nokha zimenezo pano ife timangopwanya nsima nde kudula kumeneko muzigura nokha zimenezo fucken ILLOVO COMPANY SHIT

  124. Zafodya bas muzigura nokha zimenezo pano ife timangopwanya nsima nde kudula kumeneko muzigura nokha zimenezo fucken ILLOVO COMPANY SHIT

  127. Illovo must fall, we will stop buying your sugar for gud, u know most coz of poverty we are wise enough to find other alternative, Mizimbe titolima tokha iyi koma mtengo wa shuga high ngati zitochoka kunja asa!!!!

  128. Illovo must fall, we will stop buying your sugar for gud, u know most coz of poverty we are wise enough to find other alternative, Mizimbe titolima tokha iyi koma mtengo wa shuga high ngati zitochoka kunja asa!!!!

  131. Yoo, the warm heart of Africa, things are getting out of hand in almost every area of our Life, Mr Bigman any plans for better Malawi yet?

  132. Yoo, the warm heart of Africa, things are getting out of hand in almost every area of our Life, Mr Bigman any plans for better Malawi yet?

    1. If malawi doesn’t have a morning after a night then u can say there is no breakfast in malawi.and for your own foolishness is sugar used for breakfast only??????

    1. If malawi doesn’t have a morning after a night then u can say there is no breakfast in malawi.and for your own foolishness is sugar used for breakfast only??????

  137. Sugar wathuyi athnk ndi waku califonia coz in real sense sugar xangafike 900 ilovo ur a disgrace to malawians mbava zawanthu atonde achabechabe ximunati ifika 90 percent tieni uko

  138. Sugar wathuyi athnk ndi waku califonia coz in real sense sugar xangafike 900 ilovo ur a disgrace to malawians mbava zawanthu atonde achabechabe ximunati ifika 90 percent tieni uko

  143. Tikumanwa juice osungunula ife,mwezi asanathe tikumangosungunula Pang,onoPang,ono,tikumagula K600 basi,1litre kusungunula 10Litres,khalani nayeni suga wanuyo mpaka 1000 kwacha iya

  144. Tikumanwa juice osungunula ife,mwezi asanathe tikumangosungunula Pang,onoPang,ono,tikumagula K600 basi,1litre kusungunula 10Litres,khalani nayeni suga wanuyo mpaka 1000 kwacha iya

  145. Sugar is so expensive I use honey instead of it; honey is natural and more healthier than sugar. Mwanyanya a ILLOVO sugar ngati akupangidwa ku Italy pa Nchalo pompa.

  146. Sugar is so expensive I use honey instead of it; honey is natural and more healthier than sugar. Mwanyanya a ILLOVO sugar ngati akupangidwa ku Italy pa Nchalo pompa.

  152. Anthu tinatsiya kumwa thiyi kale kale…timadya nsima Break Fast, Lunch & Dinner. Tazolowelanxo apapa. Sugar asamachite kudhula kuposa packet ya salt + half kilo ya beef/pork.

  153. I can understand this as it is fast becoming a luxury for the majority. I too would look for a cheaper alternative to stretch the few MkwS. Praying for the Malawians, they deserve better then this!

  163. Phalula, Illovo, escom, pse do some soul searching. Why is it that lacally produced commodities should be more expensive than imported ones? I have in mind sugar, cement, electricity etc. Let me teach you something free of charge. Most of the prices are inflated as they have to accomodate company benefits to employees. Company car, company house, free electricity, six vehicles to a funeral, xmass party/gifts, high salaries. All these costs are borne by the comsumers and most of them are down to earth peasants.By scraping the benefits you could bring down prices and sell more. Even the govt has some places where it pays utility bills for it’s employees who enjoy the services free. And Good Gondwe is sound asleep in the tradition of APM.

  164. A product that is locally made is more expensive than that of foreign..munthu umagula chomwe ungakwanise.lol

  165. your price is too high as if it is not produced in this country.musova!

  166. Sugar winayo ndi wotchipa nde timakwanitsa kugula.
    Inunso pezani misika kunja anzathu akakuguleni,kumeneko kuli ndalama. Pano sugar sikwenikweni koma chimanga. Ndemukamakweza muziganiza izo nzakonkuno kumalawi. Musadamdaule if you need more sales then reduce the price otherwise you keep on complaining .

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