Salima Sugar Company Appeals for K26 Billion Lifeline 

Salima Sugarcane’s field

 

Salima Sugar Company has approached the Malawian government, seeking assistance to alleviate its burden of a K26 billion loan owed to CDH Bank, citing the potential for enhanced business growth and profitability. 

During a visit by the Parliamentary Committee on Trade, Industry, and Tourism to the company’s premises in Salima district, Board Chairperson Counsel Wester Peter Kosamu made a heartfelt plea, describing the hefty loan as a significant impediment to the company’s operations and a deterrent to potential investors. 

“We have plans to enlist Salima Sugar Company on the Stock Exchange to allow more Malawians to buy shares from the company, however, the K26 billion loan is likely to discourage potential investors from coming in,” Kosamu. Said.

The Board Chairperson highlighted that the bailout would facilitate an expansion of production capacity through the cultivation of sugarcane on the remaining four thousand hectares of land and enable the company’s listing on the Malawi Stock Exchange. 

He emphasized the importance of this move in attracting local investors while expressing concerns that the looming debt might discourage potential shareholders. 

Additionally, Kosamu noted the company’s positive financial performance since the beginning of the sugar production season in April 2024, with revenues exceeding K4 billion. 

Chairperson of the Parliamentary Committee Paul Dumembe Nkhoma pledged the committee’s support for the bailout request, citing their satisfaction with a forensic report uncovering financial irregularities totaling K51 billion within the company. 

“The Committee has appreciated the forensic report on Salima Sugar Company that exposed the malpractices that were going on at the company,” Nkhoma said.

Nkhoma also commended the company for taking steps to promote local leadership by replacing expatriate staff with Malawian nationals. 

The committee’s visit aimed to assess progress at the company’s manufacturing facility following its recent commissioning.


Comments

Post a Comment

Popular posts from this blog

Image
  MALAWI | System of Rice Intensification (SRI) to mitigate climate change effects   Climate change has in recent years, among other problems, led to unpredictable weather patterns – making it difficult for farmers to plan on an ideal crop to plant with regard to the amount of rain and duration it requires to mature; prolonged dry spells – affecting the development of crops which leads to losses; and floods – affecting both crop fields and displacing households. This made the work of most farmers difficult, including rice farmers who were used to practicing traditional farming methods in the Karonga district. With reduced rainfall amounts and periods, it proved a challenge for most farmers to realize meaningful harvest from their fields using traditional methods. This led to food insecurity and loss of income. Business-minded farmers needed a solution to the problems. In around 2014, NASFAM introduced the System of Rice Intensification (SRI) in the area to help farmers mitigate
Read more
Image
RESULTING INTO LAND DEGRADATION Papers are everywhere at LUANAR (Bunda campus) following campaign which ran for 3 days in preparation for Bunda Students Union (BSU) elections which took place on 19 th April 2024. Each University in Malawi conducts elections for students’ council who work as a bridge between management and students. Before every election, the independent body called electoral commission organizes everything for the elections. The initial name for the independent body is given depending upon the place where electoral commission is instituted. For instance, at Bunda, it is said to be Bunda Electoral Commission(BEC). Moreover, every academic year in second semester, Bunda conducts its elections so do other universities. The same thing happened just a couple of weeks ago when BEC released a vacancy for students to fill position of their choice. Those successful candidates (aspirants) were called to have their certificate of recognition on 22 nd April this year at Bund
Read more