Illovo is one of the major suppliers of sugar to African consumers and industrial markets. Headquartered in Durban, South Africa, the company has enjoyed tremendous market share in the sugar production as well in the agricultural sector on the continent. Established in 1891, Illovo, is currently one of the leading sugar producers globally with 47% of its revenue from South Africa.
As one of the oldest sugar company in the world, Illovo prides itself as a low-cost sugar producer and a significant manufacturer of high-value downstream products. It has operations in six African countries including Malawi, Mozambique, Zambia, South Africa, Tanzania and Swaziland. The company encompasses agriculture and manufacturing operations in African countries where it operates and manages agricultural estates in each country. The group produces and sells a range of sugar, syrup and downstream products into domestic, regional and world markets.
It is listed on three Stock Exchange across Africa. According to Africa Business Magazine, the company is currently listed on the Malawi Stock Exchange (MSE). The company is also listed on the Johannesburg Stock Exchange (JSE) and the Lusaka Stock Exchange with the symbol ZSUG in Zambia.
The company produces almost two million tonnes of sugar annually with the aid of its own agricultural operations and independent out-growers who supply cane to Illovo’s factories. Furfural and its derivatives are produced at the Sezela mill complex on the south coast of KwaZulu-Natal. High quality ethyl alcohol, from which various grades of alcohol are made, is produced at the Merebank plant in Durban and at the Glendale Distillery on the North Coast. Lactulose is also manufactured at Merebank- all of which are owned by the company.
Till date, the company has been able to produce an extensive 6.1 million tonnes of cane. An extra eight million tones of cane came from independent growers that supply to Illovo’s sugar factories with 663,000 tonnes produced in South Africa, 295,000 tonnes in Malawi, 315,000 in Zambia, 210,000 tonnes from Swaziland, 121,000 tonnes from Tanzania and 81,000 from Mozambique.
Illovo’s other subsidiaries in Africa include, Kilombero Sugar in Tanzania, Maragara Açúcar in Maputo, Mozambique, Ubombo Sugar of Swaziland and Zambia Sugar in Mazabuka, Zambia. As a multinational company, Illovo serves as Africa’s main supply of sugar. It has been able to grow overtime as it even enjoys a monopolistic market as the only producer of sugar in Malawi. The same can almost be said of its operation in Zambia as it produces about 94% of sugar used in the country.
The company also has extensive share of 30% in the South Africa market, 35% in Swaziland, 46% in Tanzania and 32% in Mozambique. Apart from the company have access to the South African Customs Union Market in terms of the Southern African Development Community Sugar Protocol on Trade. The sugar giant also enjoys preferential sugar supply in Europe and in the United States.
The company is managed by Mr. Graham J. Clark, an accounting veteran who has served as Director in Illovo for several years. In 2006, 51.5% of the company’s issued share capital was bought by Associated British Foods PLC for more than £400m.
Illovo does not see Africa remotely as an investment destination but it sees it as a sustainable environment that has the opportunity of growing excellently overtime. This, it does through its social investment-related programs by focusing on basic needs such as the provision of water and sanitation, access to health care, education delivery and involvement in community outreach programs throughout the African companies where it has established its operations.
With its excellent output and commitment over the years, it is no wonder its branch in Malawi is the only company in the country listed among the top 250 companies in Africa. Illovo is currently considering establishing a new venture in Mali.
