Report estimates Illovo contribution at K117 billion
A report compiled by Corporate Citizenship shows that Illovo Sugar Malawi PLC operations have had an impact valued at K117 billion to the Malawi economy comprising K36 billion in direct impacts and the balance resulting from the multiplier effects of its business operations within the supply chain and wider economy.
Corporate Citizenship is an independent, global management consultancy based in the United Kingdom, which specialises in social impact assessment, sustainability and corporate responsibility.
Commenting on the findings, Mark Bainbridge, Managing Director of Illovo Malawi said as a business, Illovo, endeavours to deliver on its shared value mandate, while actively supporting the government’s social and economic 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.
“This last report, done between 2012 and 2013, has assessed our progress against this to ensure we identify gaps—or areas of improvement—early and take the time to reflect and continue to build on our significant achievements in Malawi.”
Bainbridge said, for example, direct spending on local suppliers increased to K107 billion, payments to employees increased by 69 percent to K22 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 amounted to K408 million, while indirect taxes totalling K9,087 billion were collected on behalf of the government,” he said.
According to Bainbridge, some of the reported highlights from the 2016/17 period include issues of job creation, in which Illovo Malawi directly employs 9,427 people, but is estimated to support at least a further 14,000 jobs in Malawi through outgrower communities and wider multiplier effects.
“Malaria incidences dropped to an average of nine percent in communities surrounding the Illovo Malawi estates, this is down from 20 percent only five years ago. Illovo Malawi clinics attend to 25,000 patients each month. Illovo Malawi spent K1.1 billion on fortification of sugar with vitamin A to help eliminate micronutrient deficiency, particularly in children, reaching an estimated two million people,” he said.
The report added that Illovo Malawi’s community investments totalled K220 million in 2016/17 mainly in the high impact areas of health and education
“We identified critical areas such as job creation, access to healthcare and education, land rights, supply or value chain development and environmental stewardship as key to our own success and that of
the local and national economy,” Bainbridge said.