Illovo Sugar Malawi Secures $45 Million Lifeline to Boost Liquidity

Illovo Sugar Malawi Plc shareholders have approved a USD 45 million loan facility — with an option for an additional USD 15 million — from Sucoma Holdings Limited to settle part of the company’s USD 72 million intercompany debt.

Board Chairman Jimmy Lipunga confirmed the development during the company’s extraordinary Annual General Meeting (AGM) held Tuesday in Blantyre.

“We are pleased that our shareholders have approved this proposal, which will provide immediate foreign currency liquidity to enable the settlement of the Illovo Group’s intercompany payables,” Lipunga said.

He added that the facility from Sucoma, a major shareholder in Illovo Sugar Malawi, will ease pressure on internally generated and locally sourced foreign currency, thereby safeguarding the company’s financial flexibility.

Frank Harawa, General Secretary of the Minority Shareholders Association of Listed Companies in Malawi (MISALICO), welcomed the move, stressing its importance.

“This loan is a must for the company as it will ensure growth in production while protecting other shareholders from losing their stake,” Harawa said.

Illovo Sugar Malawi explained that persistent foreign currency shortages over the past four years have contributed to the accumulation of payables to sister companies, including Illovo Sugar Johannesburg.