Report unveils Illovo Malawi economic impact
Illovo Sugar (Malawi) plc contribution to the economy in the 2016/17 financial year was recorded at K117 billion, which is roughly five percent of gross domestic product (GDP), a new report has shown.
This comprises K36 billion in direct impacts and the balance resulting from the multiplier effects of its business operations within the supply chain and the wider economy, according to a report by Corporate Citizenship, a United Kingdom (UK)-based independent global management consultancy firm specialising in social impact assessment, sustainability and corporate responsibility.
For example, the report shows that the Malawi Stock Exchange (MSE)-listed firm’s direct spending on local suppliers increased to K107 billion, payments to employees in the form of salaries, benefits and wages increased by 69 percent to K 22 billion and during the period, the company continued to reinvest in the business spending K17.4 billion on capital investments.
Total direct tax paid by the company in 2016/17 financial year amounted to K408 million, while indirect taxes totalling K9.087 billion were collected on behalf of the government.
Reacting to the report, Illovo Malawi managing director Mark Bainbridge said: “We endeavour at all times to deliver on our shared value mandate, while actively supporting the government’s social andeconomic development agenda.
“We are committed to the transformation of our business in Malawi, but recognise that to keep ourselves focused and on track, we need an independent benchmark against which to measure our real contribution.”
He said the last report was completed in 2012/13 financial year and the sugar manufacturer assessed its progress to identify gaps or areas of improvement.
On job creation, the company directly employs 9 427 people, but is estimated to support at least a further 14 100 jobs in the country through outgrower communities and wider multiplier effects, according to the report.
The company supports the livelihoods of 42 422 people once families and dependants are taken into account
The process to come up with the report involved analysing financial and management information provided by each Illovo country team.
This was followed by site visits to South Africa, Malawi and Zambia and their surrounding communities, as well as interview senior management and key stakeholders affected by the business.
