Illovo Sugar (Malawi) Ltd is primarily owned by Associated British Foods plc (ABF), an international food, ingredients, and retail group. ABF holds a 51 percent stake in the issued share capital of Illovo Sugar, making it the majority shareholder of the broader Illovo Sugar group.
Illovo's Ownership and Operations in Malawi
Illovo Sugar's presence in Malawi is directly through its subsidiary, Illovo Sugar (Malawi) Ltd, which incorporates the operations of the former Sugar Corporation of Malawi (SUCOMA). Illovo established its dominant position in the Malawian sugar market through strategic acquisitions:
- 1998 Acquisition of SUCOMA: Illovo Sugar acquired a controlling 60 percent share in the previously state-owned Sugar Corporation of Malawi (SUCOMA) from Lonrho PLC. This acquisition was a significant step in privatizing and expanding the Malawian sugar industry.
- 2005 Increased Stake: Further consolidating its control, Illovo increased its stake in SUCOMA to 76 percent in 2005. This cemented Illovo's majority ownership and operational control over one of Malawi's key agricultural assets.
The ownership structure can be understood in layers:
| Entity | Role | Ownership Share | Notes |
|---|---|---|---|
| Associated British Foods plc (ABF) | Ultimate Parent Company | 51% of Illovo Sugar (Group) | Majority shareholder of the entire Illovo Sugar group. |
| Illovo Sugar | Subsidiary of ABF | N/A (Controlled by ABF) | Manages sugar operations across various African countries. |
| Illovo Sugar (Malawi) Ltd | Operating Entity in Malawi | N/A (Part of Illovo Sugar Group) | Local operational arm of Illovo Sugar. |
| Sugar Corporation of Malawi (SUCOMA) | Formerly State-Owned (now integrated) | 76% owned by Illovo Sugar (Group) | Acquired and controlled by Illovo Sugar since 1998. |
This structure highlights that while Illovo Sugar directly manages the operations in Malawi, the ultimate ownership largely resides with Associated British Foods plc.
