During Illovo Sugar Malawi’s 55th Annual General Meeting (AGM), minority shareholders complained to the board, raising concerns over alleged over-pricing of sugar on the domestic market and low dividends.

The Minority Shareholders Association expressed dissatisfaction towards the declaration of a dividend of 50 tambala per share, as the company has not declared dividends in 3 years. On the other hand, the minority shareholders noted that Illovo is selling sugar in Malawi at a higher price per tonne as compared to what is charged in export markets.

In response managing director Mark Bainbridge said the company competing against excessive sugar from other countries on the world market. “Currently, the excess sugar is sold to South Africa and deficit markets in the region [like Kenya, Tanzania, Rwanda, Burundi and DRC].” he said.

In a recent cautionary statement published on Friday, Illovo Sugar Malawi advised that profit after tax for the half year ending February 29 2020 is expected to be lower than the previous corresponding period by at least 70%, attributed to a decrease in domestic sugar sales caused by an influx of illegally imported sugar.