Illovo remits record K74 Billion in taxes to MRA

The Malawi Revenue Authority (MRA) has received a symbolic dummy cheque worth K18.8 billion from Illovo Sugar Malawi, marking part of the company’s total tax contribution of K74 billion for the 2023/24 financial year.

Speaking during the presentation ceremony, Illovo Sugar Malawi Managing Director Ronald Ngwira said the milestone represents the company’s highest level of compliance to date, with timely remittances across corporate income tax, VAT, PAYE, import and excise duties, and other levies.

Ngwira, who is in his first month as Managing Director, described tax remittance as a vital link between private investment and public good.

He highlighted Illovo’s growing contributions from K28.2 billion in 2021/22, K46.7 billion in 2022/23, to K58.2 billion in 2023/24, which reflects both resilience in a difficult operating environment and the company’s commitment to national development.

“Each kwacha we transfer to the Malawi Revenue Authority represents our commitment to shared prosperity.

By remitting diligently and on time, we strengthen public trust, reinforce macroeconomic stability, and fund schools, clinics, roads, and other essential services,” Ngwira said.

Illovo has faced multiple challenges in recent years, including foreign exchange shortages, rising production costs, regulatory changes, and cane theft.

Ngwira said the company is responding through investments in energy self-sufficiency, smallholder farmer programmes, factory optimization, and diversification into cotton production to broaden revenue streams.

MRA Commissioner General Daniel Dominic Daka commended Illovo for what he described as a demonstration of good corporate citizenship and leadership in tax compliance.

He said: “Taxes are the lifeblood of our economy, and sustained compliance from the private sector is what enables government to deliver essential services.

Illovo’s gesture is not just a ceremonial handover, but a symbol of a strong partnership between the private and public sectors.”

He assured that the government remains committed to transparency and prudent use of public resources, channeling tax revenues into critical sectors such as education, health, and infrastructure.

The revenue authority has meanwhile urged other taxpayers to emulate Illovo’s example, stressing that compliance is not only a legal requirement but a patriotic duty that fuels Malawi’s economic growth.