Sweetener for Malawi’s Economy: Revitalizing Sugar Exports for Business Growth
Key Business Points
- Illovo Sugar Malawi plc’s export capacity has been severely impacted by an abnormal surge in domestic sugar demand, resulting in overseas sales plummeting to just 6 percent of total production in 2025.
- The company is taking urgent steps to address the crisis, including investigating the root cause of the demand spike, boosting productivity, and collaborating with the government to tighten border controls and curb smuggling.
- Restoring export capacity is critical for Malawi’s economy, which relies heavily on agriculture to stabilize its dwindling foreign exchange reserves, with economists warning that prolonged export declines could further strain the country’s fragile economic position.
Illovo Sugar Malawi plc has reported a significant drop in its export capacity, with overseas sales declining from 46 percent of total production in 2020 to just 6 percent in 2025. Zinthu zimekwana kupita kudatula, or things have gotten out of hand, according to Interim Managing Director Kondwani Msimuko, who attributes the drop to a 53 percent spike in local consumption. This kukwaniritsa kwa sukari, or sugar surge, has raised concerns over smuggling and its effect on Malawi’s foreign exchange reserves. With daily sales now averaging 900 tonnes, Msimuko is questioning where all the sugar is going, hinting at possible smuggling.
The export crash poses a significant threat to Malawi’s economy, as sugar is one of the country’s top foreign exchange earners. Msimuko cited the demand surge as a primary factor but acknowledged other unspecified challenges contributing to the downturn. To address the crisis, Illovo is taking hatua za haraka, or urgent steps, including investigating the root cause of the demand spike, boosting productivity to meet both local and export needs, and collaborating with the government to tighten border controls and curb smuggling.
Msimuko expressed optimism that exports could rebound if smuggling is managed and production scales up. Kufikiaüfikia, or working together, with the government to ensure borders are properly managed is crucial in addressing the crisis. This is coming at a time when economists and various stakeholders have been warning that prolonged export declines could further strain Malawi’s fragile economic position, calling for stricter oversight of investments that will focus on production and exports.
Illovo’s ability to restore its export capacity will be critical for Malawi’s economy, which relies heavily on agriculture to stabilize its dwindling foreign exchange reserves. The country’s forex reserves have been consistently below the internationally recommended rate of three months of import cover, making it essential to kutengeneza njira za nje, or find ways to boost exports. With Illovo’s efforts to address the crisis and restore its export capacity, Malawi’s business community can expect malezi ya biashara, or business growth, in the sugar industry, which will have a positive impact on the country’s economy.
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