The Centre for Democracy and Economic Development Initiatives (CDEDI) has fired a scathing letter at Minister of Trade and Industry Vitumbiko Mumba, demanding rapid motion to bust what it describes as a deep-rooted sugar cartel led by Illovo Sugar Malawi — an organization it accuses of holding the whole nation hostage by way of worth manipulation and monopolistic practices.
In the hard-hitting letter dated March 6, 2025, CDEDI Executive Director Sylvester Namiwa lays naked the frustrations of tens of millions of Malawians who’re being pressured to pay between K4,000 and K5,000 per kilogram of sugar on the parallel market whereas the nation’s largest sugar producer continues to rake in huge income yr after yr. Namiwa manufacturers Illovo as a “de facto Ministry of Sugar” — a personal multinational that has operated above the legislation for many years with the silent blessing of each authorities and regulators.
The letter describes how Illovo has systematically manipulated provide, creating synthetic shortages which have turned sugar — as soon as a primary family commodity — right into a luxurious merchandise accessible solely to the wealthy. According to CDEDI, the shortage shouldn’t be a coincidence however a deliberate scheme to drive up costs whereas extraordinary Malawians are left to scramble for no matter little sugar trickles into the market. The watchdog additionally accuses Illovo of utilizing authorized gymnastics to evade accountability, revealing that the corporate obtained an injunction to dam the Competition and Fair Trading Commission (CFTC) from imposing a 25% worth discount and to cease the Director of Public Prosecutions from pursuing legal prices towards the corporate.
Namiwa paints an image of a rustic the place each authorities and shoppers have been held to ransom by a company big for over 60 years — with neither cane farmers nor the federal government itself reaping any significant advantages from the sugar trade. The letter additional exposes how the long-awaited Sugar Bill — laws meant to manage the sugar trade — has been gathering mud for 11 years with none clarification from authorities.
CDEDI is now demanding that Minister Mumba requires an emergency Sugar Indaba to unmask the whole cartel, together with secret agreements between Illovo and main distributors equivalent to Price Worth, Right Price, Chipiku, Kalaria, and Simama General Dealers. The group needs full disclosure of the overall tonnage of sugar produced within the final manufacturing yr, how a lot of that sugar was exported, and why no particular person client can purchase sugar straight from Illovo regardless of the corporate monopolizing the market.
In a no-holds-barred assertion, Namiwa warns that Malawi’s sugar disaster can’t be tolerated by any “sensible and serious leadership” — particularly at a time when Malawians are already grappling with the excessive price of dwelling. He accuses the federal government of dragging its toes on essential reforms, hinting at attainable collusion between public officers and highly effective company pursuits.
CDEDI’s letter is a direct problem to Minister Mumba, whose latest crackdown on unlawful sugar hoarding has been extensively seen as nothing greater than a beauty PR stunt.
The group is demanding that the minister goes past storming retailers and addresses the rot on the very coronary heart of the provision chain — beginning with Illovo’s secretive distribution community and its stranglehold in the marketplace.
As the sugar disaster worsens, CDEDI is warning of mass motion if the federal government doesn’t rise to the event.
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