By Our Reporter

Copyright mwnation

Illovo Sugar (Malawi) plc says it contributed over K78 billion to the economy through various taxes during the 2024/25 financial year, reaffirming its position as one of the country’s largest taxpayers.

Presenting a symbolic cheque of K21.1 billion to the Malawi Revenue Authority (MRA) in Blantyre on Friday, Illovo Sugar (Malawi) plc managing director Ronald Ngwira stressed the company’s commitment to fulfilling its tax obligations despite operational challenges.

He said the cheque represented part of the Malawi Stock Exchange-listed firm’s remittances, noting that the actual tax payments for the year had surpassed K78 billion.

Said Ngwira: “At Illovo Sugar Malawi, we believe in being tax compliant in all taxes. This is just another opportunity for us to engage with the Malawi Revenue Authority, celebrate the wins and discuss some of the challenges.

“These issues have impacted the business, but we are still happy to have paid MRA over K78 billion this year.”

He cited limited access to foreign exchange, high operational costs for fuel and inputs, erratic weather conditions and government-imposed export bans that reduced sugar exports from over 100 000 metric tonnes (MT) to about 20 000MT last year as some of the hurdles affecting the company.

In his remarks, MRA commissioner general Daniel Daka, who received a symbolic cheque, commended Illovo Sugar for its consistency in tax compliance, describing the contribution as both symbolic and significant.

He said: “Illovo’s commitment to meeting its tax obligations demonstrates not only compliance with the law but also a deep sense of responsibility towards the development of our nation.

“Taxes are the lifeblood of the economy, and sustained compliance from the private sector enables government to deliver essential services such as education, health and infrastructure.”

Daka assured the private sector that MRA is committed to transparency, accountability and prudent use of public resources, adding that partnerships between taxpayers and the revenue agency remain crucial for national development.

Illovo Sugar (Malawi) plc contributes to the tax kitty through corporate tax, value-added tax (VAT), import duties and other levies.

Apart from tax remittances, the firm also sustains thousands of livelihoods through direct employment and outgrower schemes.

Each year, the sugar manufacturer cultivates around 1.8 million metric tonnes of cane from its estates in Dwangwa in Nkhotakota and Nchalo in Chikwawa, employing about 11 500 people, while smallholder farmers supplement output with an estimated 350 000MT.

The company has also been exploring opportunities in power generation to complement Electricity Supply Corporation of Malawi using bagasse from sugar production as a renewable energy source.

In the half-year ending August 2025, Illovo Sugar (Malawi) plc reported a profit after-tax of K26.3 billion, which is an increase from the K22.6 billion achieved in the same period in 2024.