Raw cane or beet sugar in solid form market in Malawi

Earlier Report Observations

From 2018 to 2020, Malawi's sugar market volume experienced significant fluctuations, starting at 195 thousand tonnes in 2018 before dropping sharply to 120 thousand tonnes in 2019 due to a surge in exports. During this period, the entry of new producers like Ntalimanja Holdings and Kasinthula, alongside investments in irrigation infrastructure from the Shire River, began expanding sugarcane cultivation capacity. Government-led irrigation schemes aimed at shifting to commercial farming helped sustain production, which grew to 270 thousand tonnes by 2020 despite climate-related disruptions such as droughts and floods.

Market volume recovered to 176 thousand tonnes in 2021 and rose further to 214 thousand tonnes in 2022. This growth was primarily driven by trade liberalization policies that allowed import and export licenses, encouraging more sugar to remain on the domestic market and reducing export volumes. Environmental regulations, including the closure of the PressCane factory due to untreated waste, and ongoing climate challenges posed production headwinds. However, the dominant position of Illovo Sugar Malawi and the expansion of Salima Sugar Company maintained overall processing capacity.

In 2023, market volume declined to 165 thousand tonnes as production fell and exports increased. The government responded by opening the market, issuing import licenses to 20 traders to address scarcity, and setting minimum farm-gate prices to protect farmers. Regulatory actions by the Competition and Fair Trading Commission (CFTC) targeted unfair trade practices like hoarding and tied sales. Annual flooding continued to disrupt cane supply and crushing schedules, affecting output.

Production raw cane or beet sugar in solid form in Malawi

In kind, 2017-2020, K t

Top producers of raw cane or beet sugar in solid form, 2017-2020

World map of production of raw cane or beet sugar in solid form, 2017-2020

Malawi's production of raw cane or beet sugar in solid form has increased for the third consecutive year. In 2020, the country produced 269.9 thousand tons, marking a moderate year-over-year growth of 7.1%. Over the period from 2017 to 2020, production rose by 12.5%, which translates to an average annual growth rate of 4.0%.

Annual dynamics of production in Malawi in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Malawi's production value of raw cane or beet sugar in solid form has grown for the second consecutive year. In 2020, the output was valued at 172.3 million US dollars, representing an 8.9% increase from the previous year. From 2017 to 2020, production value increased by 3.1%, equating to an average annual growth rate of 1.0%. The lowest value was recorded in 2018 at 154.5 million US dollars, which also saw the largest decline of 7.6%.

Annual dynamics of production in Malawi in value, 2017-2020, M $ US

Exports raw cane or beet sugar in solid form from Malawi

Exports in kind, K t

The market experienced noticeable fluctuations during this period. Exports reached their lowest point in 2018 at 55.1 thousand tons and peaked in 2019 at 131.8 thousand tons, showing a 2.4-fold difference between these years. In 2020, cross-border shipments of raw cane or beet sugar in solid form from Malawi amounted to 113.9 thousand tons, reflecting a robust decline of 13.6% compared to the previous year. The largest increase was recorded in 2019 at 139.4%.

Annual dynamics of product's exports from Malawi in kind, 2017-2020, K t

From 2017 to 2020, Kenya, the United States, and Spain were the leading destinations for Malawi's exports in kind of raw cane or beet sugar in solid form. Kenya accounted for 27.4% of exports, the United States for 20.0%, and Spain for 13.4%. Together, these three countries represented 60.8% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Malawi in kind, 2017-2020

Exports in value, K $ US

Market behavior was characterized by volatility during these years. Export values dropped to their minimum in 2018 at 34 025 thousand US dollars and climbed to their maximum in 2019 at 82 782 thousand US dollars, a 2.4-fold shift. In 2020, foreign supplies of raw cane or beet sugar in solid form from Malawi amounted to 72 740 thousand US dollars, indicating a year-over-year drop of 12.1%. The largest decline was recorded in 2018 at 13.7%, while the largest increase occurred in 2019 at 143.3%.

Annual dynamics of product's exports from Malawi in value, 2017-2020, K $ US

From 2017 to 2020, three main markets—Kenya, Spain, and the United States—together absorbed 54.0% of the total export value of raw cane or beet sugar in solid form from Malawi.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Malawi in value, 2017-2020

Imports raw cane or beet sugar in solid form to Malawi

Imports in kind, K t

The market showed signs of volatility over the observed period. Imports reached their lowest point in 2020 at 0.0 thousand tons and peaked in 2019 at 0.1 thousand tons, with a peak-to-trough ratio of 23 times. In 2020, Malawi imported a total of 0.0 thousand tons of raw cane or beet sugar in solid form, down by 95.7% year-over-year. The largest increase was recorded in 2019 at 223.9%.

Annual dynamics of product's imports to Malawi in kind, 2017-2020, K t

Over the period from 2017 to 2020, Zimbabwe remained the dominant partner for Malawi's imports in kind of raw cane or beet sugar in solid form, accounting for 77.2% of total flows. Other markets contributed smaller shares, forming a long tail.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Malawi in kind, 2017-2020

Imports in value, K $ US

The market exhibited volatility during the observed period. Import values dropped to their minimum in 2020 at 3 thousand US dollars and peaked in 2019 at 48 thousand US dollars, varying by a factor of 15. In 2020, imports of raw cane or beet sugar in solid form to Malawi totaled 3 thousand US dollars, reflecting a sharp decrease of 93.5% compared to 2019. The largest increase was recorded in 2019 at 215.6%.

Annual dynamics of product's imports to Malawi in value, 2017-2020, K $ US

Throughout 2017 to 2020, two countries—Zimbabwe and South Africa—concentrated most of the import value of raw cane or beet sugar in solid form to Malawi, while other markets were individually less significant.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Malawi in value, 2017-2020