Illovo Sugar Malawi’s choice to enterprise into the scrap steel enterprise has ignited outrage amongst native Small and Medium Enterprises (SMEs), who declare the transfer will devastate their livelihoods.

The Malawi Stock Exchange-listed firm, which produces uncooked, brown, and refined sugar, has introduced plans to promote scrap metals on to recycling firms in Limbe and Blantyre.

This shift in coverage has sparked issues amongst SMEs that beforehand bought scraps from Illovo’s Nchalo property.

James Chiutsi, Executive Secretary of the Chamber for Small and Medium Businesses Association, criticized Illovo’s choice.

“We plead with Illovo to reconsider this decision… It’s very punitive to come up with a decision before concluding investigations,” Chiutsi mentioned.

Illovo Sugar Malawi’s Managing Director, Lekani Katandula, cited irregularities as the explanation for suspending contracts with SMEs at Nchalo.

However, Chiutsi argued that the corporate ought to examine and deal with these points reasonably than abandoning native companies.

“This move will kill Small and Medium Enterprises, which is opposite to what Illovo has been doing in the past,” Chiutsi added, referencing the corporate’s historical past of offering enterprise alternatives to communities surrounding its factories in Nchalo and Dwangwa.

Tax analysts have additionally raised issues about Illovo’s tax obligations, questioning how the corporate will handle funds for its new scrap steel enterprise.

Illovo Sugar Malawi employs 11,800 individuals and is a major participant in Malawi’s economic system.

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