Local companies secure packaging contracts worth K6 billion

Illovo Sugar Malawi has awarded contracts worth over K6 billion to local companies for the supply of packaging materials, a move the company hopes will help develop local businesses as well as contribute towards local job creation.

The contracts will run for three years, subject to renewal, and are for the supply of packaging materials for Illovo’s pre-pack and bulk sugar to local companies.

Illovo Sugar (Malawi) Managing Director Lekani Katandula said it is one of way in which the company continues to contribute to the economy because sourcing of packaging materials locally is a major move towards developing local businesses as well as contributing towards local job creation.

He noted that while most of the input materials are imported into Malawi, the cost of local conversion is often more competitive resulting in a more attractive solution than importing the final products.

“Our sourcing strategies together with comprehensive local supplier engagement have ensured that packaging prices are fair and market related. The contracts will also benefit the local suppliers in securing additional funds to invest in better and bigger manufacturing infrastructure for production of high-quality packaging materials not only for Illovo, but for their other local as well as export customers.

“Illovo is committed to work with local packaging suppliers who demonstrate potential and are been keen to work jointly with Illovo on this journey towards high quality and sustainable packaging,” he said.

He went on to say that the company hopes to enter into longer term agreements with the suppliers so that they can work together on significant projects that will provide sustainable packaging solutions while reducing total supply chain costs.

He also said that local suppliers are already familiar with the local laws and the projects aimed at reducing the impact of packaging to the environment as such they are therefore well placed to assist Illovo in developing appropriate sustainable solutions locally.

He expressed hope that the contracts given will not only directly benefit our suppliers, but also all those within the packaging supply chain in support of fulfilling the contracts.

“The additional disposable income that has been created will also be used to support the supply chain player’s families and enhance economic growth within their respective communities,” he said.

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