Business and Finance

Katandula bids Illovo Malawi farewell, tips businesses

Katandula bids Illovo Malawi farewell, tips businesses

By Benadetta Chiwanda Mia:

Businesses have been urged to adopt strategic turnaround measures to achieve growth despite volatility of the operating environment.

Illovo Sugar Malawi Managing Director Lekani Katandula said this, highlighting the company’s positive performance over the past four years.

Speaking at a farewell dinner in Blantyre, Katandula, who will soon assume a new role as chief financial officer for Associated British Foods Sugar—the majority shareholder of Illovo Sugar Malawi—reflected on the challenges of Malawi’s business environment in 2024.

He said the country has continued to grapple with the aftermath of shocks such as the cholera outbreak, Cyclone Freddy and macroeconomic imbalances.

“We have faced significant fiscal deficits year-after-year, leading to increased tax rates, and experienced severe shortages of foreign exchange and essential goods such as fuel, making it difficult to operate in Malawi,” Katandula said.

He said sound economic management could transform Malawi into an attractive investment destination.

“We can shift from being a net importer to a net exporter, addressing foreign exchange shortages and fuel crises to build a stable economy. Although the environment is challenging, the potential for change exists,” Katandula said.

Recalling his tenure as managing director since 2020, Katandula noted that Illovo was initially in decline but had since increased profitability and operational efficiency.

Katandula also highlighted the company’s contributions to the Malawian economy through over K58 billion in taxes paid in the last financial year alone, and various community investments as part of their corporate social responsibility initiatives.

Illovo Sugar Malawi Board Chairperson Jimmy Lipunga commended Katandula for his visionary leadership and adeptness in steering a complex organisation involved in agriculture, manufacturing, marketing and distribution.

“The company’s strong performance, both domestically and regionally—compared to neighbouring branches under the ABS Group, and its recognition through awards—is credited to the leadership of Katandula and his team’s implementation of essential strategies,” Lipunga said.