Numerous reports that spread across social media this week claimed a questionable fertilizer agreement between Salima Sugar Company Limited and Nyasa Hills Company, involving an initial payment of K200 million. These claims sparked intense discussion, with some accusing of corruption or poor management.
Nevertheless, a detailed examination by this outlet shows that the deal, although complicated, was real and focused on business, with no hidden motives involved.
Background: Fertilizer Shortage
In 2024, Malawi experienced a significant lack of specialized sugarcane fertilizer—MAP and MOP—which are essential for sugarcane farming. In response to this issue, Salima Sugar aimed to identify suppliers capable of consistently providing the necessary fertilizer.
The Nyasa Hills Company became a viable option because of its established business connection with a Chinese supplier, Xingtai Ruijin Import and Export Company. The supplier was willing to proceed with the product but required an initial payment of K200 million to start the process.
The Transactions
On 15 April 2024, Salima Sugar sent K190 million to Nyasa Hills, with an additional K10 million transferred on 22 April 2024, finishing the K200 million initial payment.
Reviewed documents by this publication indicate that Nyasa Hills paid the Chinese supplier on 25 April 2024.
Supplier's Extra Demands
Issues emerged when the supplier unexpectedly requested full payment—a massive K604,293,888—prior to delivering the product. This went against the original agreement that the fertilizer would be sent after receiving the initial payment.
Consequently, Nyasa Hills had to find an extra K400 million to finish the deal and obtain the Bill of Lading, which would allow the goods to be shipped. This sudden requirement led to major delays, causing worries at Salima Sugar.
Legal Intervention
Frustrated with the halted supply, Salima Sugar hired its legal counsel, Chris and Legal, to request the return of the K200 million, which it considered a violation of the contract. The law firm is currently working diligently to recover the money for the company.
Leadership Under Pressure
Amid the commotion on social media, Salima Sugar's leadership, especially that of Counsel Wester Peter Kosamu, is worthy of acknowledgment for guiding the company during difficult periods. Although there were governance issues, including a three-year delay by the former administration in selecting a board, Kosamu has maintained the company's stability.
Under his leadership, Salima Sugar has guaranteed on-time payments to staff and sugarcane farmers, aided local enterprises, and contributed to nearby communities via Corporate Social Responsibility (CSR) programs.
In the future, the company is poised on the brink of a significant change, following a forthcoming $650 million investment from an African investor. This funding will increase sugar production and create fertilizer and ethanol facilities—initiatives anticipated to greatly enhance Malawi's economy and alleviate foreign exchange constraints.
Kosamu has firmly supported the choice to seek legal restitution of the K200 million, calling it an essential action to preserve the company's credibility and maintain public trust.
Conclusion
The evidence suggests that the Salima Sugar-Nyasa Hills transaction was not deceptive but instead a legitimate business agreement that faced challenges due to last-minute supplier requests. Although social media portrayed the deal as controversial, the reality contradicts this perception.
As Salima Sugar seeks legal remedies, the focus now turns to the new government to quickly appoint a capable board. With skilled leadership and effective management, the company can contribute to Malawi's industrial development and serve as a key factor in stabilizing the national economy.
Copyright 2025 Nyasa Times. All rights reserved. Distributed by AllAfrica Global Media (MountainTravel).
Tagged: Malawi, Southern Africa
Provided by SyndiGate Media Inc. (Syndigate.info).
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