Government to control strategic commodities – The Times Group

Malawi’s Economy on the Block: Government Takes the Helm on Critical Commodities

Post was last updated: May 29, 2025

Key Business Points

  • The Malawian government will adopt a protectionist stance in the production of strategic commodities, including sugar, to ensure supply stability and control.
  • The government will revoke sugar export licenses and issue import licenses to maintain a stable market supply, and will also attempt to ban unlicensed sugar vending.
  • The Ministry of Industry and Trade will prioritize government control over strategic investments, such as sugar production, to address structural issues in the economy.

The Malawian government has announced a new strategy to boost the country’s sugar production and supply, which has been plagued by shortages and unsanctioned price hikes. Minister of Industry and Trade Vitumbiko Mumba led a tour of the Salima Sugar Company, which has begun sugar production and supply, and announced plans to revoke sugar export licenses to ensure supply stability. The government will also issue import licenses to maintain a stable market supply.

Mumba emphasized the need for government control over strategic investments, such as sugar production, citing examples of countries like Mozambique and Botswana, which have not privatized their sugar companies and do not have supply issues. The government will also pursue a feasibility study to establish a sugar plantation and factory at Vwaza to increase national sugar production capacity, which is currently below 20,000 metric tons monthly.

However, the Executive Chairman of Salima Sugar, Wester Kosam, noted that the company is producing below capacity, due to limited cultivation on 1,500 hectares of land out of the available 6,000 hectares. This limits sugar production to just 150 tonnes of sugar a day, translating to 4,500 tonnes a month, which is not enough to meet the country’s demand of about 20,000 tonnes a month.

To address this, Kosam said the company has submitted proposals to relevant authorities, including finding strategic investors, leasing out farm land to mega farmers, or listing the company on the Malawi Stock Exchange to raise funds for capital investment. Economists, including the Malawi Confederation of Chambers of Commerce and Industry (MCCCI), have previously called on the government to lead in investing in strategic production to address structural issues in the economy. Mumba assured that his ministry will work with the Ministry of Finance and other ministries to work on financing strategic investments to ensure control of the economy.

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Vanessa Banda
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