Weak Kwacha propels Zambia Sugar

The weak  Kwacha has been a blessing to Zambia Sugar Company (ZSC)which has recorded a 9 per cent increase in operating says managing director Rebecca Katowa.

Ms Katowa said the company also recorded meaningful cost saving of K20 million during the same period under review.

Speaking at the Open Day of the Zambia Sugar shareholders in Mazabuka yesterday Ms Katowa said previous business year was a gret one in that the compan y managed to produce 424 024 tones of sugar.

“The weak Kwacha did improve our export realisation export although it also impacted on our cost of imports but all we can say is that we benefited on the realisation side,” she said.

She explained that when the US dollar was performing well on the foreign exchange, the company got better sugar prices from its cross border customers.

Ms Kotowa however said  that her company recorded a decline in the exports of sugar to the European market.

Ms Katowa attributed the situation to the general decline of sugar on the global market.

She said prices of sugar  onworld market which had gone down somehow afffected the performance on the local sugar company.

“If the exchange rate is in favour of us then we get better prices from the European market but as for now we have been exporting sugar not on a good price hence the decline,” she said.

Speaking at the same event, Zambia Sugar finance director Henry Mambwe emphasised that the increase of profit for the company was due to high performance of the US dollar.

Meanwhile, Zambia Sugar legal consultant Michael Liweleya told shareholders that every shareholder regardless of how many shares they had were important to the company.

Mr Liweleya added however that shareholders should not interfere in the work of management if they wanted Zambia Sugar to operateto expectations.

Different issues were discussed at the event with a majority of shareholders advising the company to improve on how it communicated notices of meetings to its shareholders. Shareholders later toured the Nakambala Sugar estate.

Categorized | Business

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