Malawi: Castel Malawi Financial Statement Reveals Risk of Company's Future

26 February 2021

Castel Malawi Limited, manufacturers of alcoholic and non-alcoholic beverages, has warned that the external threats in the current operating environment pose a risk to the company's future development sustainability.

According to a 2020 Castel Malawi Limited financial Statement, the burden of the taxes remains critical and hardly sustainable.

"Despite Cost savings, retreachment plan, Castel Malawi remains in heavy financial losses comparing the previous years due to internal and external factors and threats affecting the business," reads the statement.

It also states that, as a Malawian producer, Castel Malawi suffers from a high and uncompetitive tax regime while neighbouring countries like Tanzania and Mozambique incentivise their industries remain competitive and attracts local investment.

The firm's managing director Hervé Milhade confirmed about the statement.

The statement further, indicates that high prizes of raw material and services supplied locally like industrial sugar, water, power and high level of imports due to lack of local industries ability to supply.

Castel, which took over from Carlsberg Malawi Brewery, said the depreciation of the Malawian kwacha and scarcity of available foreign currencies is another challenge the company is facing.

The report, however, asks local institution and leadership to help the industry become competitive and protect employees while benefitting consumers and Malawi economy at large.

Castel Malawi is rated as one of the top 10 taxpayers in the country, contributing to the development of the economy for over 50 years and is also the number one taxpayers of import duties.

The company employs over 1 000 people and has a business network of over 100 000 stakeholders, customers, suppliers, distributors contractors, locally and internationally.

More From: Nyasa Times

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