Government protected monopolies like lllovo Sugar are affecting consumers – says Kapito 


Consumer Association of Malawi (CAMA) has condemned the government’s protection over monopolies like lllovo Sugar Company Limited citing that it is negatively affecting local consumers.

Illovo supplies more than 60% of its total sugar sales to domestic consumers and industrial markets. It has been Malawi’s only sugar company since 1965 until 2016 when Salima Sugar Factory joined what has been a monopolized market.   

Despite the coming in of a competitor, Illovo still claims dominance in the sugar market in Malawi. Yesterday, the Lower-Shire-based sugar company announced the hike in sugar prices.

Announced amid the ongoing national-wide shortage of sugar supply on the market, the price rise has concerned the public including CAMA.                                                                                                           

In a press statement, the Executive Director for CAMA, John Katipo, said that the Illovo Sugar Company should immediately identify alternatives and allow competition in the Sugar market for the benefit of consumers.

Kapito added that the current market ‘dominance and abuse’ by IIIovo Sugar Malawi has only shown that the government is too protective of the company while overlooking the concerns of the consumer.

“We are shocked with the recent Sugar price increase which has come after the recent manipulated sugar supply scarcities that pushed prices beyond the reach of many consumers just because there is no competition of sugar companies on the market,” Kapito explained.

The CAMA executive director went on to describe the recent scarcity of Sugar on the market as a deliberate move by Illovo to create demand and increase their prices.
In an appeal, CAMA has asked the Ministry of Trade to scrutinize Illovo to protect domestic consumers.

Illovo Sugar Company adjusted the prices of sugar on Monday, 22 April, 1kg packet of brown sugar is now at MK2, 300 from MK2, 000, and 1kg packet of white sugar is now at MK2, 600, from MK2, 250.

Due to the shortage of supply, vendors in some local markets are selling almost double the official prices.  


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.