Illovo Malawi (IFC-49377)

Countries
  • Malawi
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 16, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Illovo Sugar Malawi PLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 81.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 27, 2025

Disclosed by Bank Nov 6, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed investment is a local currency-linked senior/unsecured loan facility of up to US$81 million (approximately MWK 140.5 billion equivalent) to Illovo Sugar (Malawi) plc (ISM). The loan has an 8-year term with a c.1.5-year grace period. The loan is supported by the International Development Association Private Sector Window (IDA PSW) in the form of local currency hedging and will benefit from a corporate guarantee from the Company's ultimate parent Associated British Foods plc (the Guarantor or ABF) over the life of the loan.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project as per IFC’s Policy on Environmental and Social Sustainability. Based on IFC’s review, the project is expected to have limited adverse E&S risks and/or impacts which are generally Nchalo site-specific, and readily addressed through established mitigation measures.

The key E&S risks associated with the Project include; (i) adequate E&S assessment of the construction and operational phase risks and impacts associated with the Project; (ii) adequacy of ISM’s E&S management system (ESMS) to manage project related E&S risks and impacts; (iii) assurance of fair, safe and healthy working conditions for workers, including seasonal workers, in line with IFC PS2 and legal requirements; (iv) management of water and energy efficiency in line with the IFC General Environmental, Health, and Safety Guidelines, and those for Annual Crop Production and Sugar Manufacturing; (v) management and monitoring of E&S risks associated with outgrowers, and (vi) stakeholder engagement and grievance management.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed loan will be committed in two phases. The first phase is an investment of up to US$36 million to finance the upgrade of bulk water irrigation infrastructure at the Company's Nchalo Sugar Estate, connecting to the World Bank's Shire Valley Transformation Program (SVTP) irrigation project. The second phase is an investment of up to US$45 million for a boiler replacement and debottlenecking in the sugar mill factory.

The first phase investment is expected to be supported by a Water Purchasing Agreement between Illovo Sugar (Malawi) plc and the Government of Malawi, which is anticipated to be signed shortly.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Illovo Sugar (Malawi) plc (ISM) is listed on the Malawi Stock Exchange and is majority-owned by ABF Sugar, which is a business forming part of the international food, ingredients and retail group, Associated British Foods plc. ISM is headquartered in Limbe and has two estates with growing and manufacturing facilities at Nchalo and Dwangwa respectively, where it grows sugar cane and produces raw, brown, and refined sugar. With the support of outgrowers, these two estates cultivate over two million tons of cane annually.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Illovo Sugar Malawi PLC Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Illovo Sugar Malawi PLC
Joaquim Vazi
Acting Finance Director
+265 88 836 9138
jvazi@illovosugar.co.za
Illovo Sugar Malawi PLC, Churchill Road, Limbe, Malawi
www.illovosugarafrica.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works