Illovo to focus on African markets for growth
Although JSE-listed sugar producer Illovo had a disappointing 2015 financial year, the company’s downstream business remains strong and its contribution to operating profit is anticipated to be in excess of 20% in the current financial year.
Illovo chairperson Don MacLeod added that the group would be focusing on its domestic markets, both consumer and industrial, and the opportunities available in growing African regional markets, as exchange rate volatility, in general, and the weaker euro, in particular, would continue to be a major influence on export earnings and the conversion of foreign subsidiary profits into rand.
“We will continue to pursue downstream investments to enhance and diversify future revenue streams, [as well as] evaluate opportunities for future footprint expansions in Africa, but careful assessment of the risk will remain crucial to any new opportunity evaluation,” he said in a statement on Wednesday.
Further, MacLeod pointed out that domestic markets would remain the backbone of the business and that it was “pleasing that demand growth in Zambia remains positive and that the market conditions in Tanzania continue to improve”.
However, he highlighted that the effective implementation of a new import tariff structure in Mozambique remained elusive, while in Malawi, the strong kwacha, high interest rates and little or no economic growth continued to weigh on demand.
“Rising costs, particularly wage increases at levels above inflation, are a concern in a market place which is under pressure, and productivity improvements, together with production cost reduction initiatives, will be areas of continuing focus,” he stated.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation