Statement on Illovo Sugar Malawi

Statement from Associated British Foods plc

“This legal claim, brought by the London law firm Leigh Day, seeks wrongly to blame ABF for a once-in-a-lifetime tropical storm that devastated communities across southern Africa, causing horrifying loss of life and damage to large areas of Malawi and neighbouring countries. A UN report identified that over one million hectares was flooded and over 12 million people affected.

“The loss of life, injury and damage to property in the village of Kanseche was hugely distressing for its people and their loved ones, as it was for many communities affected across the region. Illovo Sugar Malawi’s estate was also flooded and communities on it were displaced. The reality is that these tragic events were caused by a widespread natural disaster and had nothing to do with Illovo Sugar Malawi’s actions.

“Illovo Sugar Malawi is listed on the Malawian stock exchange, is part-owned by local shareholders, and is rooted in its communities. In the immediate aftermath of the storm, the company and its employees supported those communities with emergency aid and other assistance. The company has since also supported reconstruction projects in the region. Illovo Sugar Malawi has a long history of providing healthcare and education as well as other support to neighbours and to employees and their families.

“By contrast, Leigh Day has brought this unnecessary and ill-advised litigation in London so it can seek to benefit from London-level fees. Were there any substance to this claim, Malawi is the natural place for it to be heard. We note the statement by the Government of the Republic of Malawi on this matter.

“This litigation is also preventing the work needed to improve living conditions in Kanseche by hindering Illovo Sugar Malawi’s ability to communicate with the villagers.

“This claim is totally without merit. ABF will vigorously defend it while Illovo Sugar Malawi will continue to support its local communities.”

For further information please contact:

Citigate Dewe Rogerson
Caroline Merrell
Tel: 07852 210329

Fact sheet on community work by Illovo Sugar Malawi

Illovo Sugar Malawi has been an integral part of the communities within and around the Nchalo and Dwangwa sugar estates for many years. The company’s work to support its communities includes the provision of schools, health clinics, infrastructure and local services.

Illovo Sugar Malawi has developed partnerships with community leaders, civic organisations and NGOs to help address some of the key social and economic challenges facing the wider community, including improvements to agriculture, health, water provision and governance.

On its estates, which are home to approximately 9,447 employees and family members, the company provides housing, schools, community centres, security and utilities. The Nchalo and Dwangwa estates have their own schools and also support some government schools nearby. The two estates are both home to healthcare facilities with full-time qualified doctors supported by registered nursing staff. On average 25,000 patients are treated each month for basic healthcare needs.

In the communities around the estates, Illovo Sugar Malawi engages regularly with local leaders and other stakeholders to understand and help address local challenges and concerns including food security and health.

In 2023/24, Illovo Sugar Malawi’s total community investment was worth MWK 2.13bn (£1.4m). Specific projects during that year and the ones immediately preceding it have included:

• Projects to supply potable water to villages near Nchalo
• Construction of classroom blocks at three schools near Dwangwa as well as the provision of desks, furniture and additional facilities
• Refurbishment of the blood bank room at Nkhotakota District Hospital
• Distribution of maize flour to communities in response to food shortages caused by drought
• Donation of items to flood survivors in Dwangwa such as mosquito nets, blankets, tents and pots
• A schools road safety awareness campaign at Nchalo
• Health campaigns including an anti-rabies vaccination campaign at Nchalo
• Infrastructure upgrades including road grading and bridge improvements

Other projects in past years have included the renovation of police stations; supply of Covid-19 relief items and funding for mobile vaccination clinics; and the sponsorship of many local events and fundraisers, such as for water provision at hospitals and reafforestation projects.

Disaster response

Illovo Sugar Malawi has played a key role in the response to natural disasters when they have struck the sugar estates and surrounding communities.

In the immediate aftermath of Tropical Storm Ana, Illovo Sugar Malawi:

• Supported efforts to provide potable water, food, and tents to affected communities
• Mobilised a dedicated team to maintain and optimise limited power distribution for communities on the estate
• Provided fuel for generators for the Water Authority and the St Montford Hospital, which serves the wider community
• Collaborated with key utility operators and local authorities to repair damaged infrastructure, including the M1 road near the Mwanza River

Following the drought in the region in 2024, Illovo Sugar Malawi:

• Committed to providing maize as food aid, distributing 25kg bags of maize. 6,500 bags were produced and distributed in April 2024 to approximately 16,000 food insecure households in Chikwawa district, spending a total of MWK 439.7 million

In the wake of Cyclone Freddy in 2023, Illovo Sugar Malawi:

• Donated MWK 100 million towards constructing houses for survivors and an additional MWK 82.6 million for immediate relief efforts – ensuring that more than 2,000 people displaced by the floods received vital help
• Worked with the Red Cross Society to set up a temporary site on the Nchalo estate to accommodate over 1,200 people displaced by the floods and provide shelter, blankets, clothing, food and chlorinated water

Following flooding triggered by heavy rainfall in March 2024 which damaged Illovo Sugar Malawi’s estate in Dwangwa and impacted thousands of livelihoods in the district, Illovo Sugar Malawi:

• Supported the Government of Malawi by leading the rescue efforts in the area and providing shelter for displaced communities in schools on the estate
• Provided fuel for boats that were rescuing people trapped by the floods, and distributed maize flour, blankets, buckets, sanitary pads and small tents to flood victims who were accommodated on the estate
• Worked together with the Ministry of Health to designate Illovo Sugar Malawi Dwangwa hospital as a temporary referral medical facility for all medical emergencies that isolated Government Health Centres were not able to manage