Salima Sugar Company has approached the Malawian government, seeking assistance to alleviate its burden of a K26 billion loan owed to CDH Bank, citing the potential for enhanced business growth and profitability.
During a visit by the Parliamentary Committee on Trade, Industry, and Tourism to the company’s premises in Salima district, Board Chairperson Counsel Wester Peter Kosamu made a heartfelt plea, describing the hefty loan as a significant impediment to the company’s operations and a deterrent to potential investors.
“We have plans to enlist Salima Sugar Company on the Stock Exchange to allow more Malawians to buy shares from the company, however, the K26 billion loan is likely to discourage potential investors from coming in,” said Kosamu.
The Board Chairperson highlighted that the bailout would facilitate an expansion of production capacity through the cultivation of sugarcane on the remaining four thousand hectares of land and enable the company’s listing on the Malawi Stock Exchange.
He emphasized the importance of this move in attracting local investors while expressing concerns that the looming debt might discourage potential shareholders.
Additionally, Kosamu noted the company’s positive financial performance since the beginning of the sugar production season in April 2024, with revenues exceeding K4 billion.
Chairperson of the Parliamentary Committee Paul Dumembe Nkhoma pledged the committee’s support for the bailout request, citing their satisfaction with a forensic report uncovering financial irregularities totalling K51 billion within the company.
“The Committee has appreciated the forensic report on Salima Sugar Company that exposed the malpractices that were going on at the company, ” said Nkhoma.
Nkhoma also commended the company for taking steps to promote local leadership by replacing expatriate staff with Malawian nationals.
The committee’s visit aimed to assess progress at the company’s manufacturing facility following its recent commissioning.
