Castel Malawi’s financial statements reveal risk to future of business – Malawi Nyasa Times

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

Castel Malawi Declaration

According to a financial statement from Castel Malawi Limited 2020, the burden of taxes remains critical and difficult to sustain.

“Despite the cost savings, the exit plan, Castel Malawi remains in heavy financial losses compared to previous years due to internal and external factors and threats affecting the business,” the statement read.

He also indicates that as a Malawian producer, Castel Malawi suffers from a high and uncompetitive tax regime while neighboring countries like Tanzania and Mozambique encourage their industries to remain competitive and attract local investment.

The director general of the cabinet Hervé Milhade confirmed this statement.

The statement further states that the high prices of raw materials and locally supplied services such as industrial sugar, water, electricity and the high level of imports due to the lack of capacity of local industries to supply.

Castel, which succeeded the Carlsberg Malawi brewery, said the depreciation of the Malawian kwacha and the scarcity of available foreign currency is another challenge the company faces.

The report, however, calls on local institutions and leaders to help the industry become competitive and protect employees while benefiting consumers and Malawi’s economy as a whole.

Castel Malawi is ranked among the top 10 taxpayers in the country, contributing to the development of the economy for over 50 years and is also the top taxpayer of import duties.

The company employs more than 1,000 people and has a commercial network of more than 100,000 stakeholders, customers, suppliers, subcontractors, locally and internationally.

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