Forex scarcity delays Illovo Sugar energy project
Foreign exchange scarcity has delayed plans by Illovo Sugar (Malawi) plc to invest in a 40 megawatts (MW) power plant, an official has said.
The company’s finance director Kondwani Msimuko said in an interview after a stakeholders’ engagement in Blantyre on Wednesday in response to an inquiry on the progress of the project.
“In terms of energy, we are exploring and we are at an advanced stage in terms of implementing that, but I think as you know that there are forex challenges and to source the actual boilers and related equipment to enable us to exploit the market is difficult,” he sai.
Msimuko’s sentiments come after the Malawi Stock Exchange-listed sugar manufacturer said in its 2023 financial statements signed by board chairperson Jimmy Lipunga that the business is considering investing in power generation to ensure fair returns to shareholders.
Minority Shareholders of Listed Companies Central Region chairperson Purity Chitalo said as shareholders, they value the project which targets generating electricity for the company as well as the country by feeding into the national grid.
“That to us is an exciting diversification and we hope the forex issues are sorted out as early as possible to achieve the objective of the project,” he said.
According to Illovo Sugar Africa, its companies provide around 90 percent of their own energy requirements from installed electricity generating capacity using renewable resources such as bagasse, a by-product of sugar cane.
