Illovo Malawi pledges continued innovation

Illovo Sugar (Malawi) plc has pledged innovation, cost control and diversification as it celebrates 60 years of doing business in Malawi. The firm’s board chairperson Jimmy Lipunga said this during the 60th anniversary commemoration on Tuesday in Blantyre that the Malawi Stock Exchange-listed sugar manufacturer has survived shocks, including the 1970s war in Mozambique, devaluations of the kwacha, liberalisation and recent share price pressures. “The past gives us the basis to face the future,” he said, adding that Illovo Sugar is investing in high-yield, fast-maturing cane to counter climate change and tap from the Shire Valley Transformation Project, with plans to enhance cotton growing.

On pricing, Lipunga cited exchange rate instability and inflation as key cost drivers, warning that under-pricing fuels cross-border trade and shortages. “The only way is to avoid price differentials with neighbouring countries,” he said, emphasising that the firm saves foreign exchange, supports thousands of out growers and invests about K2 billion annually in corporate social responsibility, including a K1 billion science endowment fund at the Malawi University of Science and Technology. Illovo Sugar (Malawi) plc chief executive officer Ronald Ngwira said resilience, teamwork and strong governance underpin the company’s longevity.

He described Illovo as “a national business” delivering close to 1 000 metric tonnes of sugar daily, but operating in a tough environment of foreign exchange shortages and weak exports. There are strategic alignments to fix the macroeconomics of the nation. Tough decisions now can build a stronger, more sustainable Malawi,” said Ngwira.

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Malawi Confederation of Chambers of Commerce and Industry chief executive Daisy Kambalame, who was the guest of honour, said Illovo Malawi’s legacy offers lessons for economic growth. “Looking at their operations in the last 60 years, the impact on the economy through taxes, employment, out growers, distributors and consumers is remarkable,” she said. Kambalame highlighted value addition, entrepreneurship along the sugar value chain, and social impact through schools and clinics, including during floods, as examples of how the private sector can partner with government.

On Wednesday, Illovo Sugar (Malawi) held its annual general meeting in Blantyre where members endorsed the financial results for the year ended August 2025 in which the company chalked a 250 percent increase in profit to K77 billion from K22 billion the previous year. Lipunga attributed the profit growth to increased sugar sales in the year, adding that the outlook indicates the economy is still facing headwinds despite prospects looking positive. Illovo Sugar was originally incorporated in Malawi on May 31 1965 as Sugar Corporation of Malawi (Sucoma) Limited, marking the formal beginning of its operations in the country, particularly at the Nchalo Sugar Estate in Chikwawa.

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