Africa-Press – Malawi. Malawi Stock Exchange-listed Illovo Sugar Malawi plc has announced plans to borrow $45 million from its parent company from its majority shareholder, Sucoma Holdings Limited, to settle outstanding foreign currency payables.
The proposed loan, which shall not bear interest, could be pushed further with another $15 million, according to a statement and signed by Illovo Sugar Malawi Company Secretary Maureen Kachingwe.
In the statement, the company said the loan is aimed at easing acute foreign exchange liquidity constraints caused by limited exports and a broader shortage of foreign currency in the domestic market.
“The shareholder loan is primarily intended to provide immediate foreign currency liquidity to enable the settlement of a significant portion of the company’s outstanding intercompany payables,” the statement reads.
In the statement, the firm says given the current challenges, it is unlikely to generate or source adequate foreign exchange to meet its obligations in the short to medium term.
“The proposed shareholder loan will ease pressure on internally generated and locally sourced foreign currency, thereby preserving financial flexibility and allowing ISM to focus on long-term investments and value creation initiatives,” the company says.
At the recent Investor forum held in June 2025, Illovo Sugar Malawi disclosed that it had $64 million in outstanding payables to foreign creditors. Board Chairperson Jimmy Lipunga also cited persistent forex shortages, rising production costs and informal cross-border trade as key challenges undermining sugar production and supply.
Meanwhile, Malawi continues to grapple with foreign exchange shortages.
As of June 2025, the country’s forex reserves stood at $595.2 million.
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