Malawi has begun importing sugar produced in Mozambique as a measure to respond to the shortage crisis affecting the country. This decision comes against the background of a crisis that led Malawi's Ministry of Industry and Trade to issue 20 licences to several local companies, authorising them to import sugar not only from Mozambique but also from Zimbabwe, South Africa and Brazil.
The Malawian government's liberalisation of the sugar market comes at a time when the only two local producers have seen their production capacity diminished. The challenges faced by these companies are largely due to climate change, which has had a negative impact on their production chain. Since January, Malawi has been going through a sharp sugar shortage in its domestic markets, causing an exponential rise in prices. The price per kilo of sugar rose from 1,700 kwachas (approximately 64 meticais) to 3,000 kwachas (around 115 meticais), leading to widespread discontent among consumers.
Faced with this scenario, the Malawian government, through the Ministry of Industry and Trade, opted to liberalise the market as a strategy to increase supply and, consequently, reduce the price of sugar for consumers. This decision stands firm, despite objections from the two local producers, which until then held a monopoly of the market.
Sosten Gwengwe, Minister of Industry and Trade, reiterated that the government has no intention of reversing the decision, which aims to promote greater commercial competitiveness. In addition, the government has taken action against price speculation, having closed seven commercial establishments for overcharging.
John Kapito, executive director of the Malawi consumers' association, applauded the government's decision, highlighting it as a positive step against the monopolisation of the market, which he described as "a veritable ordeal for the people".
