Refined sugar shortage has emerged on the Zambian market with calls for government to open up the market to private importers and not only restrict the issuance of import permits to a few large multinational companies.
And Zambian Breweries Plc which is one of the companies that had been listed as having resorted to importing sugar has clarified that the company decided to import refined sugar due to operational challenges, which were emanating from the main supplier within the country.
According to information obtained by the Zambian Business Times-ZBT, the duty on refined sugar was suspended until 31st July 2022 for 4 companies to allow some companies that were issued with Sugar import quotas and permits to import without paying relevant import taxes.
Zambian Breweries – ZB, which is one of the four (4) companies that had been issued with import permits to bring in the commodity was permitted to import 2, 100 metric tonnes of refined sugar. Other companies that allowed to import refined sugar include Coca-Cola Beverages which got a quota of 8, 500 tonnes, Trade Kings with a quota of 7, 060 tonnes and Invesco Limited-2, 000 tonnes.
ZB Company Corporate Affairs Director Ezekiel Sekele told ZBT that it was a once off short term measure and the imports were allowed in order to address the gaps that were existing from the supplier’s side as the supplier experienced some challenges.
Sekele explained that the importation of refined sugar is not something that will be happening going forward as the company is getting all its required quantity locally noting that such challenges are understandable. He revealed that government, the main suppliers and all key parties worked together to ensure there is stability and agreed to allow imports adding that all stakeholders are engaging for purposes of progress.
Sekele clarified that ZB does not intend to import more sugar, as the idea is to support local industries because local sourcing is the only way to achieve sustainability, but when there is a genuine operational challenge; all parties sit together and find a way forward.
“I believe that at the moment the main supplier is beginning to close those supply chain challenges, the operational challenges that we had experienced earlier on. It’s normal for them to experience operational challenges”, he said.
He noted that a number of players in the country have been experiencing operational challenges in the last 2 years due to supply chain challenges which in many instances have impacted the local trading environment adding that this can be attributed to what has been happening globally and regionally.
Sekele added that the local manufacturing sector has been resilient in terms of addressing the many operational challenges that have been taking place. Refined sugar is used for industrial purposes and has been experiencing expanding demand year on year.
