Smuggling bothers Illovo shareholders
Shareholders for Malawi Stock Exchange-listed Illovo Sugar Malawi have asked the company to consider finding long-term remedies to challenges it has faced lately.
The call was made at an investors meeting the company hosted on Friday when it presented financial report for the year ended December 31 2020.
One of the shareholders, who is also Minority Shareholders Association of Listed Companies General Secretary Frank Harawa, said the company needs to improve on capacity instead of complaining about smuggling of sugar from neighboring countries.
“We feel that the solution is to produce more sugar and sell it an affordable price. That way, we will make more money rather than producing less sugar and selling it at a higher price,” he said.
However, Illovo Sugar Malawi Managing Director Lekani Katandula said smuggling remains a major threat to business.
He said the vice has fueled economic slowdown due to the Covid pandemic.
The company has since declared a K4 per share dividend payment, up from the K2 per share dividend declared in the preceding year.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
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