Illovo Sugar Malawi plc has fired 45 management staff from its Dwangwa and Nchalo sugar factories, as the company’s spokesperson Ireen Phalula told The Nation that the tough call is to secure long-term sustainability of the business amidst a challenging business environment.
Last month, a recent cautionary statement by Illovo Sugar Malawi advised that profit after tax for the half year ending February 29 2020 is expected to be lower than the previous corresponding period by at least 70%, attributed to a decrease in domestic sugar sales caused by an influx of illegally imported sugar.
Months further, the company, like all other manufacturers, has to worry of the COVID-19 pandemic, which is coming amidst an already struggling industry. During the 55th Annual General Meeting this year, the company’s minority shareholders noted that Illovo is selling sugar in Malawi at a higher price per tonne as compared to what is charged in export markets. In response, managing director Mark Bainbridge said the company was competing against excessive sugar from other countries on the world market. “Currently, the excess sugar is sold to South Africa and deficit markets in the region [like Kenya, Tanzania, Rwanda, Burundi and DRC].” he said.