Malawi consumers will have to dig deeper into their pockets again to buy sugar following an eight percent price hike by Illovo Sugar (Malawi) Limited. due to the weakening kwacha against major trading currencies.
The kwacha has lost over 25 percent of its value since early September this year, to trade at around K520.
Illovo Sugar Malawi, the country’s main sugar producer, said key drivers to price adjustments are normally currency movements, inflation, increase in cost of fuel and other major commodity input costs like electricity.
“The marked depreciation has a direct impact on the input costs of the company, which are largely foreign exchange-based since most of the non-cane raw materials that are used in the production of sugar are imported,” reads the statement in part from the sugar producer.
The losing value of the kwacha and the cost of borrowing, prices of commodities have already shot through the roof, making living extremely tough for ordinary Malawians.