The Centre for Democracy and Economic Development Initiatives (CDEDI), has given Malawi government’s principal legal advisor, Attorney General (AG) Thabo Chakaka-Nyirenda, seven days to vacate the High Court order granted to Illovo Sugar Company on August 23, 2023, sparing the firm from prosecution for alleged unfair competition.
Addressing the Press in Blantyre, CDEDI Executive Director, Sylvester Namiwa, also requested AG Nyirenda to explain to the nation why the government is allowing sugar manufacturers in the country to literary bully and punish their consumers.
An earlier investigation by the Competition and Fair Trading Commission (CFTC), found the company guilty of unfair trading practices, but Illovo rushed to court to seek a legal solution by restraining the Ministry of Trade and Industry from effecting a 25 percent sugar price cut, and on the other hand, restraining the Director of Public Prosecutions (DPP) from commencing criminal proceedings against it for allegedly violating the Competition and Fair Trading Act.
CFTC applied to have the injunction vacated and a hearing was done in October 2023, where the court promised to rule on the matter within 30 days.
“Eight months down the line, the low-income consumers that should have benefited from the CFTC determination, had a rude awakening when both Illovo and Salima sugar companies announced another price hike, the second since the 44 percent devaluation of the kwacha,” he said.
According to Namiwa, the recent sugar price increase that smacks of collusion between the country’s sugar producers only succeeded in escalating the sugar crisis.
“To put it blatantly, sugar is now sold as an illicit drug. Those who have access to social media crisscross towns searching for the commodity after getting updates while the poor majority hopelessly cross their fingers that they will someday see it on the shelves of their nearby grocery. Otherwise, they are getting used to doing without sugar,” he highlighted.
Despite the opening of production season, Malawians are still enduring the never-ending sugar crisis that has culminated in unprecedented soaring price shifting of K5,000 per kilogram on the parallel market.
“Strangely, all this is happening under the watch of the Minister of Trade and Industry, Sosten Gwengwe, a man most Malawians had hope in for better living by ensuring affordable commodity prices in the face of the country’s ailing economy.
Namiwa says the current situation is a shame to see productive citizens queuing for hours on end for sugar that never comes.
“Where it is available, they are reduced to laughing stocks as respectable citizens are pictured scrambling for a packet,” he narrated.
Namiwa has reminded the AG that as far as the sugar crisis is concerned, all eyes are on him to see whether he will act in the interest of Malawians by moving the courts to achieve the desirable goal, otherwise, the AG risks being seen as deliberately looking the other way as sugar companies, which are in search of obscene profits, exploit Malawians.
A week ago, CDEDI, through a media briefing, appealed to the AG to lift the aforementioned injunction with the urgency it deserves, but nothing has been done so far.
“But one thing that we at CDEDI know for sure is that the AG does not have the luxury of sitting on the fence, he has a constitutional duty to protect Malawians from monopolies and cartels, otherwise, we will petition the Chief Justice to come to the rescue of the majority poor Malawians that are failing to access and afford that is produced right on their soil,”.
Meanwhile, Illovo Sugar Company and Salima Sugar Company are justifying the price hiking saying that have arrived at that level due to high production costs. But the company is mute on the current scarcity.
Illovo has since expressed fears of low production this season because its ten hectares of sugarcane plantation was destroyed by Tropical Cyclone Freddy.
