Illovo Sugar Malawi says it may lose 12 thousand tons of its sugar business both on the local and international markets due to Covid-19.
In an interview at the sidelines of a donation of medical equipment to the Kameza Isolation Center recently, the company’s Managing Director, Lekani Katandula, said sugar sales have drastically dropped in recent weeks due to a declining buying power among the masses.
This he said will greatly affect the performance of the company in its current financial year which ends in August.
“Since a state of national disaster was declared in the country, we have seen a slowdown in our local sales from a ran rate of around 3200 tons per week to around 2500 tons per week but we are beginning to see recovery now and last week were able to sale about 3000 tons in a week,” Katandula said.
Katandula further said the company is currently implementing strategic plans aimed at meeting their targeted sales during the year to dodge catastrophic losses.
Covid-19 has affected businesses as travel restrictions and lockdowns have slowed down supply of raw materials for companies who mostly depend on imported raw materials.
Some companies have resorted to lay off staff while others have minimized production levels.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.