Oct 02, 2025 (Nyasa Times/All Africa Global Media via COMTEX) --
Reports that flooded social media earlier this week alleged a shady fertilizer deal between Salima Sugar Company Limited and Nyasa Hills Company, centering on an upfront payment of K200 million. The allegations triggered heated debate, with some suggesting corruption or mismanagement.
However, an in-depth investigation by this publication reveals that the transaction, while troubled, was genuine and business-driven, with no sinister agenda behind it.
Background: Fertilizer Shortage
In 2024, Malawi faced a severe shortage of specialized sugarcane fertilizer--MAP and MOP--critical inputs for sugarcane production. To address this crisis, Salima Sugar sought to pre-qualify suppliers who could reliably deliver the fertilizer.
Nyasa Hills Company emerged as a qualified candidate due to its existing business relationship with a Chinese supplier, Xingtai Ruijin Import and Export Company. The supplier agreed to lift the product but demanded an upfront payment of K200 million to begin the process.
The Transactions
On 15 April 2024, Salima Sugar transferred K190 million to Nyasa Hills, followed by another K10 million on 22 April 2024, completing the K200 million upfront payment.
Documents reviewed by this publication confirm that Nyasa Hills, in turn, made payments to the Chinese supplier on 25 April 2024.
Supplier's Extra Demands
Complications arose when the supplier unexpectedly demanded full payment--a staggering K604,293,888--before releasing the product. This contradicted the initial agreement that the fertilizer would be dispatched upon receipt of the quarter payment.
As a result, Nyasa Hills faced the daunting task of sourcing an additional K400 million to complete the transaction and secure the Bill of Lading, which would authorize shipment. This last-minute demand created significant delays, raising concerns at Salima Sugar.
Legal Intervention
Frustrated by the stalled supply, Salima Sugar engaged its retainer lawyers, Chris and Legal, to demand the return of the K200 million due to what it viewed as a breach of contract. The law firm is now actively pursuing recovery of the funds on behalf of the company.
Leadership Under Pressure
Amid the noise on social media, Salima Sugar's leadership, particularly Counsel Wester Peter Kosamu, deserves recognition for steering the company through turbulent times. Despite governance challenges, including a three-year delay by the previous government in appointing a board, Kosamu has kept the company stable.
Under his stewardship, Salima Sugar has ensured timely payment of employees and sugarcane growers, supported local businesses, and invested in surrounding communities through Corporate Social Responsibility (CSR) initiatives.
Looking ahead, the company stands at the threshold of a major transformation, with an upcoming $650 million investment from an African investor. The investment will expand sugar production and establish fertilizer and ethanol plants--projects expected to significantly boost Malawi's economy and ease foreign exchange shortages.
Kosamu has strongly defended the decision to pursue legal recovery of the K200 million, describing it as a necessary step to protect the company's integrity and safeguard public confidence.
Conclusion
The evidence shows that the Salima Sugar-Nyasa Hills deal was not fraudulent but rather a genuine business arrangement undermined by last-minute supplier demands. While social media may have painted the deal as scandalous, facts indicate otherwise.
As Salima Sugar pursues legal redress, the spotlight now shifts to the new government to urgently appoint a competent board. With expert leadership and proper governance, the company has the potential to drive Malawi's industrial growth and play a pivotal role in stabilizing the national economy.
COMTEX_469225525/2029/2025-10-02T15:08:54
by Alfred Chauwa, Senior Business Analyst
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