CFTC uncovers Simama shop in Dedza withholding 3,000 bales of Illovo Malawi sugar

* Ministry of Industrialisation, Business, Trade & Tourism has since sealed the shop after being alerted by CFTC

* CFTC has thus taken a keen interest to uncover and address any business malpractices that may have the potential to distort competition and erode consumer welfare in this market

* The Commission, therefore, encourages the general public to be alert and report any suspected business malpractices surrounding sugar and any other products or services

By Duncan Mlanjira

Following a tip, the Competition & Fair Trading Commission (CFTC) has uncovered Simama Shop in Dedza, an Illovo Sugar Malawi distributor, withholding 3,000 bales of sugar and refusing wholesalers and consumers from buying the commodity.

CFTC spokesperson, Innocent Helema confirmed the development in an interview, saying they did not close the shop as the Commission does not have the mandate to close shops — but has been slapped with a notice of infringement requiring Simama to respond to.

Helema indicated that following the tip from a consumer, CFTC officials visited the Simama shop on Tuesday, December 9, 2025 for inspections and discovered a large tranche of sugar in the warehouse, which was deliberately not being sold to the public.

“After our visit, and upon hearing about our discovery, officials from Ministry of Industrialisation, Business, Trade & Tourism visited the shop as well and sealed it, having established that they had the sugar in stock but were refusing consumers and wholesalers from buy the commodity.

“When we visited the shop on December 9, the shop alleged that they received a consignment of 3,000 bales of sugar on Monday, December 8, 2025, out of which they sold 1,500 bales to the locals in Dedza and the rest was destined for Thete — a trading centre in Dedza.

“However, when we checked their warehouse, we discovered that they had 3,000 bales in stock contrary to what they had declared. Upon being quizzed about this anomaly, they stated changing statements alleging that the 3,000 bales were not for sale at Dedza but were to be sent to their shop in Thete.”

Helema added that the CFTC officers became suspicious this change of statements and as to why a rural trading centre of Thete could be allocated double the volume of the product as compared to the Dedza town. 

“As per the standard practice, the owners of the shop were left with an infringement notice allowing them to formally explain their side of the story as part of the due process in the investigation of matters of this nature,” Helema said.

According to the intel gathered by Maravi Express, Illovo Sugar distributors hoard the commodity to create its scarcity in order to sell it at exorbitant prices and that these distributors are involved in the illegal smuggling of sugar.

These distributors use middlemen to buy the sugar in bulk and sell it to table top retailers at a high price, thus the retailers also increase the prices as a mark up — with the commodity going as high as K5,000 as opposed to the retail price of K3,000.

Helema indicated that the CFTC has thus “taken a keen interest to uncover and address any business malpractices that may have the potential to distort competition and erode consumer welfare in this market”.

“The Commission, therefore, encourages the general public to be alert and report any suspected business malpractices surrounding sugar and any other products or services,” he said.

Distributors are suspected that they buy and hoard sugar during Illovo Sugar Malawi’s production season and wait further after the company has completed its cycle of production to create its scarcity.

Illovo Sugar Malawi always maintains that it produces sufficient stock enough for domestic consumption and adequate sugar to cover throughout the off production season but it is the distribution line — which Illovo has no control of — that leads to scarcity during off season.

Many analysts have always agreed with Illovo Sugar Malawi that the unregulated distribution line helps in sugar to be smuggled into neighbouring countries of Zambia, Mozambique and Tanzanian because the product is cheaper in Malawi.