Key Business Points
- Illovo Sugar Malawi urges government to reform foreign exchange policies to support long-term business growth
- Export restrictions are limiting market expansion opportunities for key agricultural processors
- Policy changes could unlock further investment and improve foreign currency access for manufacturers
One of Malawi’s most established manufacturers, Illovo Sugar Malawi, has called for changes in how the country manages its foreign exchange and export approvals.
The sugar producer, which runs Africa’s largest cane refinery in Nchalo, says current policies are making it harder for large agribusinesses to plan ahead and grow sustainably.
Among its main concerns is the difficulty in accessing foreign currency to import essential agricultural inputs like fertilizer and specialized equipment. Without timely access, the company says, factory production can stall and farming yields can drop.
Illovo also wants export rules relaxed to allow processors more freedom to sell surplus sugar—especially in lean production years—so they can reach new markets outside Malawi. Currently, such sales require extra government clearances that can delay agreements with international buyers.
Industry watchers say loosening these controls could lead to more private investment, stronger global trade links, and more predictable cash flow for manufacturers. This matters because companies like Illovo, which employ thousands across rural districts, are cornerstones of both food security and local income.
Business chambers and trade associations have added their voices, urging the central bank and other authorities to consult manufacturers more closely before changing forex guidelines. They point out that fewer bureaucratic hurdles could help fast-track Malawi’s export earnings, reduce trade deficits, and give small-scale farmers reliable off-take markets.
With sugar demand in regional markets rising, a shift toward more flexible foreign exchange and export rules may, therefore, give both large processors and their smallholder cane suppliers a steadier path to profit. As one agricultural banker in Blantyre noted, "When business confidence rises, so does investment across the supply chain." Keeping Malawian products competitive in places like Mozambique, Zambia, and further afield could depend on decisions made on these policy shifts.
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