Unlike just a few months ago, when many Malawians were forced to move from one shop to another as sugar disappeared from store shelves, signs now point to better days ahead.
Illovo Sugar Malawi says production has stabilized and supplies on the local market have improved, while the company also recorded a K89 billion profit in the first half of 2026.
Speaking after the company’s 2026 Investor Day Forum in Blantyre on Tuesday, Managing Director Ronald Ngwira said the season had been mixed but production had recovered strongly despite major setbacks.
He said the 2025/26 season ended earlier than expected due to early rains, but improved agricultural yields helped the company crush more sugarcane than planned.
Ngwira said the availability of sugar on the domestic market has improved, adding that pricing adjustments linked to rising fuel costs helped reduce illegal exports and improved shelf availability.
“We had a good rainy season, so we have got quite a lot of sugarcane and we are crushing stably as we speak and excited to say that our season started earlier, our sugar make is up,” he said. “Our mandate is to make sure that every Malawian has sugar first. Anything above that, we can export.”
He said Illovo has now resumed exports after prioritizing the local market, with the company exporting 17,000 tonnes of sugar in the first half of the year, higher than the same period last year.
The exports have boosted foreign exchange earnings, although Ngwira expressed concern over the mandatory 25 percent surrender requirement, saying it limits the forex needed for operations.
Looking ahead, Ngwira said the company has an ambitious five-year expansion plan, including increasing sugarcane production in Dwangwa, expanding out-grower schemes, and upgrading factory capacity.
He also said Illovo is diversifying into cotton production and molasses exports as part of efforts to strengthen foreign exchange earnings.
Despite the improved outlook, the company suffered heavy losses from flooding.
Ngwira said floods in Dwangwa and Nchalo caused damage worth more than K60 billion, affecting irrigation systems, sugarcane fields, and infrastructure, while also impacting surrounding communities.
He said climate change has worsened flooding patterns, calling for urgent dredging of the Dwangwa and Mwanza rivers to reduce future disasters.
Ngwira said siltation has raised riverbeds, increasing the risk of overflow, and urged coordinated action with authorities and communities to address the problem.
Meanwhile, Illovo reported a K89 billion profit in the first six months of the year.
Shareholder Frank Harawa said the performance was encouraging, noting that the company has remained resilient despite challenges facing many listed firms.
He said Illovo’s share price has held steady while other counters on the Malawi Stock Exchange have declined, reflecting strong investor confidence in the company.
