Experts warn against interference in Salima Sugar operations to attract investors

Economic analysts have urged stakeholders to exercise professionalism and avoid interference in the operations of state-owned enterprises such as Salima Sugar Limited, warning that such conduct could undermine investor confidence and cost the country millions of dollars in potential foreign investment.

The remarks come as Salima Sugar resumes operations following a government-ordered halt earlier this week, a development expected to stabilize national supply and rekindle prospects for increased exports.

Mzuzu-based economist, Tiyane Nyirongo, told the local media that Salima Sugar holds immense potential to contribute meaningfully to the country’s economy if given the right support and operational freedom.

“With full support from its shareholders, including the government, SSL, the company can operate at its full capacity, hence increasing production of sugar, which is in high demand for both domestic and international markets,” Nyirengo noted.

He added that stable management and professionalism would strengthen investor confidence, paving the way for large-scale foreign investment and the injection of much-needed forex into the economy.

“In addition, the company would also easily attract other international investors, which could inject millions of foreign exchange for the benefit of the country,” Nyirongo.

Reports indicate that Salima Sugar has already identified a credible foreign investor willing to invest over $290 million in equity shares to support the company’s expansion plans.

Meanwhile, Minister of Finance Joseph Mwanamvekha recently emphasized that attracting foreign investment remains one of his key priorities, saying the government is committed to implementing strategies that will help boost forex reserves for the importation of essential commodities such as fertilizer and medicines.