News - 3rd Quarter 2011
News - 3rd Quarter 2011
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The 2010/11 season may well go down at some point in the future as one of Illovo’s most challenging to date. But amid the adversity brought about by drought, unseasonable weather and currency movements, Illovo’s base business actually strengthened through the dedicated contribution of its people and the solid progress achieved with the group’s ongoing capacity expansion programme which, in time, will bring about enhanced operational and financial performance. Pictured from top left, clockwise, are: The Ubombo sugar factory in full cry following the commissioning of its major factory expansion and co-generation project; a high-level technical inspection of the Noodsberg refinery prior to its commissioning earlier this year, following its recent capacity expansion; Tanzania goes high-tech with the installation of linear irrigators; and senior managers from across Illovo take part in the Group Leadership Development Programme. |
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| Robbie Williams will retire from Illovo at the AGM in July 2011 after 14 years as chairman of the board and 26 years as a director.
His association with Illovo goes back to 1985 when he was Chairman of CG Smith Foods and he has been part of all major changes in the group since that date, including a number of expansions and rationalisations of the business over the past 14 years which have occurred under his guiding hand, as well as the advance into Africa.
When he became Chairman, Illovo’s sugar production was just over 800 000 tons, now having grown to
1.6 million tons in 2011. Earnings amounted to R81 million and now stand at R516 million. Employees numbered 5 200 permanents and 4 100 seasonals, compared with the current numbers of 12 169 and
17 000 respectively.
Deputy chairman Don MacLeod says: “Illovo, its management and staff, and other stakeholers are highly appreciative of the role Robbie has played in guiding the group through a definitive period in its history, and we wish him well in his fully-retired years.” | 
Robbie Williams | | | | DON MACLEOD APPOINTED |
Don MacLeod has been appointed chairman of the board of Illovo, to succeed Robbie Williams.
Don has been the group’s deputy chairman since he retired as managing director of Illovo Sugar in March 2009. At the time, he had been MD for nearly 17 of his 35 years with the company, having first joined at the old Illovo mill in the early 1970s. |  |
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THE ‘MILLIONAIRES’ – AND WHAT IT REALLY MEANS IN SAFETY TERMS |
‘Millionhours’ is a catchy way of bringing to your attention some of our impressive safety performance achievements across the group which are detailed below. Safety, and all that it encompasses, continues to receive high priority throughout the group and it’s encouraging to note that, for the 2010/11 season, the group Disabling Injury Frequency Rate improved to 0.44 from 0.57 last year, below Illovo’s objective of less than 0.8.
These statistics don’t tell the full story of the group’s considerable ‘behind-the-scenes’ efforts to achieve an increasingly safer workplace and cultivate a culture of safety among employees, the end result being an environment where injuries are reduced and safety rules are completely understood and upheld.
To this end, we have recently standardised safety reporting systems across the group, implemented safety performance measurements which are both internally and externally assured and have appointed senior risk control managers in each country of operation. While we highlight a few significant safety-related achievements in the group over the past year, the responsibility for safety within Illovo starts with you – please play your part.... | | MEREBANK’S MILLION |
In February 2011, Illovo Sugar Merebank achieved its 1 000 000 (1 Million Hours) without a disabling injury. This achievement was the culmination of more than 10 years of hard work, continued efforts in improving safety standards and the dedication from all employees on site who combined as a team to make this milestone a reality.
The overall Disabling Injury Frequency Rate (DIFR) for Illovo Sugar Merebank is 0 and continued efforts and continual improvement strategies are in place to maintain the current standards. These include the continued promotion of safety awareness (especially on vehicle/hyster management and the completion of risk assessments for each task to be undertaken), use of high visibility clothing, identification of designated walkways on site, upgrade of the planned maintenance system to incorporate critical safety requirements, adoption of the behavioural safety programme and the implementation of mandatory SHE Walkabouts of the site.
The Management Systems at Merebank (i.e. ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007) have been successfully re-certified and audited by the South African Bureau of Standards (SABS) and these systems continue to be imperative to the sustainability of the business. Strategic plans have already been initiated to ensure continued compliance to these Integrated Management Systems requirements which ultimately dictates the tone of the SHEQ culture on the Merebank site. |
| NCHALO AGRIC’S TWO MILLION MILESTONE |
For the first time in the history of Nchalo Sugar Estate, the Agriculture Operations achieved a two million (2 000 000) hour Disabling Injury-free milestone. From 18 December 2010 to 28 February 2011 this department never recorded any disabling injury.
This achievement was the result of concerted effort by managers, SHE coordinators and members of staff who ensured that the required company SHE standards are being adhered to in the various work places.
In recognition of this feat, top management congratulated all those involved in the achievement in a very special way and also encouraged them to continue their positive attitude towards safety. |
Lengster Mlenga (field manager) (standing left) and Roben Shaba (area manager) (standing right) with two members of Nchalo’s agricultural staff who were all congratulated on their historic safety achievement.
| NOODSBERG LAUNCHES ‘TAKE TWO’ |
Noodsberg has launched the “Take Two” risk analysis as another initiative to help investigate and prevent accidents. This is a mini pre-task hazard assessment system, a tool to help ensure we perform even the most mundane tasks without getting hurt. It is used to assist in maintaining awareness of our environment at all times and to aid in the identification and control of immediate hazards as we go about our day-to-day work.
The system involves the person or group about to carry out a task taking time out to assess risks related to the job activities by following a pocket risk assessment guideline prior to commencing the task. Completed documents serve as a record of the risk assessment. The process of talking to others and performing a risk assessment brings knowledge about a potential incident and appropriate corrective actions. The system has been well received by the supervisors.
"Take Two" means that a person can work more safely by taking two minutes to think through a job before the job is started. It is an acronym which stands for:
T= Talk: Have I talked with everyone involved with this job?
A= Action: Do I know the proper actions I need to follow to do this job safely?
K= Knowledge: Do I have the proper knowledge to do this job safely?
E= Equipment: Do I have the proper equipment, including the proper personal protective equipment, to do this job safely?
A review of “Take Two” will be done by the factory management with the line supervisors to address the progress and any other challenges from the system. The review will serve to improve the Take Two risk assessment in order for it to work better for the employees to reduce accidents. To raise the safety profile within all of Illovo SA, all sites have been mandated to implement “Take Two” or equivalent system prior to the start of any task. |
Noodsberg boilermaker Charles Naguran (right) and artisan hand Sandile Khumalo “take two minutes” to fill out the “Take Two” before carrying out the job. |
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   | An annual event in the bustling West African city of Bamako, Mali, earlier this year, provided Illovo with its first chance of taking part in its own small way in the raising by the major sponsors and participants of more than €800 000 for the country’s health and education systems. With continued progress towards Illovo’s capital investment in the greenfield partnership project with the Mali government to produce 200 000 tons of sugar annually, its presence at this event provided Illovo with an ideal opportunity to publicly exhibit its declared interest in the project, and the country itself – as well as the chance to have a lot of fun....!
The Budapest to Bamako rally is known as the ‘poor man’s’ Paris to Dakar equivalent, open to anybody and any vehicle wishing to trek through large sections of open, hot desert, over nearly 9 000 kilometres. The older the vehicle, the better, with free entry to any vehicle over 20-years old – there is considerable international interest in this unique event, with 125 out of 165 vehicles actually making the full distance in 2011. And here’s the best part, no drive home: most of the vehicles that finish the race are actually sold in Bamako, with its drivers taking to the relative luxury of air-travel to make their way back....
PIC 1: This two-cylinder ‘air-cooled’ Fiat made the full distance with just a single battery replacement and PIC 2: provided the perfect backdrop for some of our intrepid Illovo team members, from left: Stuart Dickson, Illovo’s outsourced catering representative in Bamako, Sylvain Serret, “Doc” Canter, and Warren Wessels, along with Andrea and Nick Morris.
PIC 3: This fella, with his two colleagues, all of them immaculately dressed, made the trip in this original hearse, replacing three gear-boxes and going through 450 white t-shirts along the way, while this lass PIC 4, all the way from Gauteng, South Africa, was the only one of all the finishers determined to drive the distance home. |     |
PICS 5, 6 and 7: As a member of the ‘elite’ set of corporate sponsors, with branding and all sorts of other rights, Nick Morris as Illovo regional director Northern Region has his turn at the microphone to congratulate all the finishing teams, and to thank the people and the government of Mali for the opportunity to participate in the event and to invest in their country.
PIC 8: On the more serious side, the team visited the planned site of the sugar factory – it was very important to choose a site with solid bedrock below the surface of the Sahara desert and the sparse population of trees shown here indicates this solid bedrock.
PIC 9: The Malian sunset casts a shadowy glow over the primary canal which will direct irrigation water to the proposed cane fields. |  |
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The outgrower scheme by Zambia Sugar is receiving glowing admiration from stakeholders as the strategy has a positive impact on the development of smallholder sugarcane farmers, which can be replicated in other sub-sectors of agriculture. World Bank President, Robert Zoellick, who was recently in Zambia, was impressed that Zambia Sugar engages both smallholder and commercial farmers to produce sugarcane. At an exhibition hosted by Zambeef at their Novatek mill, where Mr Zoellick was present, Zambia Sugar’s agriculture business development manager Tony King explained the role Zambia Sugar plays in the development of smallholder sugarcane farmers in Mazabuka district. He said the company was invited because of its legacy in empowering and developing smallholder farmers with regard to its relationship with the successful Kaleya Smallholder Company Limited (KASCOL) and other new outgrower projects. It was also hoping to build on this success by facilitating the development of more small scale outgrower projects as part of its expansion programme, with more farmers engaged under the Magobbo and Manyonyo projects. Mr King said the company demonstrated how to empower smallholder farmers by engaging them on viable partnership terms where they are able to produce with a guaranteed market. The chairman and secretary of the Magobbo Cane Growers Trust attended the exhibition together with members of the KASCOL Board, its management as well as some smallholder farmers. Mr Zoellick interacted with them and asked the farmers about the impact of their relationship with Zambia Sugar and they were buoyant about their future. For the visiting World Bank president, this was an initiative worth replicating in other areas of the agriculture sector because it has potential to develop smallholder farmers into viable economic agents. “Robert Zoellick was impressed with the scale of the sugar industry and the success of the partnership thus far and was keen to see similar investments in the country, possibly with other crops, to increase the numbers of farmers who benefit from such schemes,” Tony King says.  |
Tony King, Zambia Sugar’s agric business development manager, at a recent exhibition with small-scale farmers from Magobbo. |
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On behalf of the Garfield Weston Foundation, medical equipment worth K5.6 million has been handed over to Montfort hospital in Chikwawa by the Nchalo Ladies Charity Fund, a group comprised of spouses of Nchalo Sugar Estate employees. The equipment includes an ultra sound machine, an x-ray film processor, cassette and intensifying screen for cassette, a haematology analyser, an electrical suction machine, two examination couches, three fourfold ward screens, four patient trolleys, six hard neck collars and a dental autoscaler. Nchalo GM Eddie Williams paid tribute to Mark Carr of Associated British Foods for working together with the ladies to source the donation. The Garfield Weston Foundation, a United Kingdom-based charity, was established in 1958 by Willard Garfield Weston, a Canadian businessman who was also the creator of Associated British Foods. The Nchalo Ladies Charity Fund also renovated two private rooms and the children’s ward at the hospital at a cost of over K1.5 million. Fund chairperson Marilyn Williams thanked various individuals and local companies who made donations towards the renovations. Receiving the donations, the Bishop of Chikhwawa Diocese, His Lordship Bishop Peter Musikuwa, thanked the Nchalo Ladies Charity Fund for spearheading development activities at the hospital.  |
Marilyn Williams and Bishop Peter Musikuwa in the children’s ward. | ‘MC’ THE FOCUS ON AIDS DAY IN ZAMBIA |
Male circumcision (MC) was the focus for the 2010 World AIDS Day in Zambia. It is recognised as one of the ways of mitigating the spread of HIV/AIDS as it is said to reduce HIV infection rates by up to 85%. At Nakambala Estate the company highlighted the male circumcision that has been introduced at Njomona main clinic. The company is among the pioneers of this effort in the private sector as part of its contribution to HIV prevention strategies - MC procedures are carried out at the clinic’s theatre. At the Lusaka Depot, the commemoration activities took the form of a workshop on 16th December under the global theme: ‘’Universal Access and Human Rights.” |
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AT LEFT: A new 20MW alternator was installed at Ubombo during the offcrop. This is a 2 pole machine spinning at 3 000 rpm. Start up date was April 14.
ABOVE: Ubombo’s new powerhouse, with cooling towers on the left and the new boiler stack in the background. |
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Despite abnormally wet conditions on the Maragra estate during the season, resulting in a 7% decrease in cane production compared to the previous season, cane yields showed an encouraging improvement underlining the benefit of ongoing work undertaken by the agricultural operations. The 2010/11 season was a tough period for the Maragra team with total sugar production falling to 69 000 tons from 81 000 tons last year, but with good early summer rains and drier weather conditions leading up to the start of the new milling season, hopes are high for increased production in 2011/12. |
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Zambia Sugar has secured a US$128 million (ZMK 605 billion) syndicated term debt facility. This is the largest Kwacha denominated facility raised for a stand-alone corporate borrower in Zambia for the past three years. The transaction was arranged by Citibank N.A and The Standard Bank of South Africa. The financing was necessary for Zambia Sugar as partial refinancing of its US$160 million (Kwacha equivalent) 2007 syndicated facility, which was arranged to finance its major capacity expansion programme undertaken between 2007 and 2010. A total of eight banks and one fund manager participated in the local syndication.
Guest of honour at the signing ceremony was Hon. Lwipa Puma, Deputy Minister of Commerce Trade and Industry.
Zambia Sugar managing director Steve Langton, who signed on behalf of the company, said the loan facility was a milestone in the working relationship between lenders and Zambia Sugar, an indication of the confidence that the banks have in our company and also reflects the confidence that both Zambia Sugar and the financial sector have in the Zambian economy. |
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On 14 April 2011, Zambia Sugar’s MD Steve Langton signed the syndicated term debt facility on behalf of the company. |
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Illovo’s small-scale cane-growing sector supplying cane to our Sezela factory recently received a boost with news of a R60 million partnership deal aimed at increasing cane production in this region. Joined by the Sezela Cane Growers’ Association, Standard Bank Agricultural Banking and the growers themselves, Illovo will play a joint role in the ‘Sizanayo’ project which is aimed at increasing annual cane production by 180 000 tons, bringing with it almost 750 permanent job opportunities.
‘Sizanayo’ is a combined initiative involving the rehabilitation of approximately 2 000 hectares of existing land under cane and, at the same time, the development of an additional 2 000 hectares of new land to sugarcane agriculture, directly benefiting around 4 000 small-scale growers in the area.
The project is planned to reverse the dwindling cane supply of the South Coast region of the industry which has been beset by a number of significant factors in the recent past, resulting in sugarcane production from Sezela’s small-scale growers alone declining by almost 62%, from 260 000 tons in the 2000/01 season to around 80 000 tons currently.
Commenting on the project, Dave Howells, regional director South Africa, said that the strength of the partnership and the innovative structure of the scheme would ensure its successful implementation. ‘This project itself is an outcome of several ongoing initiatives to build on our existing partnership with our growers, both small and large scale. We have worked very closely to get elements of the Sizanayo development perfectly in place so that it can be used as a development model across the rest of our mills. We see this project as a significant step towards the process of increasing our South African cane supply in order to provide a long-term sustainability platform for both our growers and ourselves’.
The key to unlocking this project has come from Standard Bank Agricultural Banking which, through its BEE fund, has made available R60 million loan and developmental finance. The initial programme will run for a period of five years with cane profits ploughed back into the grower operations to ensure long-term sustainability while also ensuring a fair return for growers. Unlike previous development models, the Sizanayo project hinges upon the active participation of every farmer involved, supported by the partnership, other industry role-players, the national and provincial governments, and a unique personal mentorship programme enlisting the vast experience of existing large-scale growers and private cane agriculture contractors. |
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From left are Suresh Naidoo, chairman of the South African Cane Growers’ Association; Rejoice Ncwane, South Coast small scale grower and chairman of Sezela Cane Growers’ Association (SCGA); Jurgens du Preez, provincial agricultural manager, Standard Bank; Stan Rau, general manager – raw sugar mills, Illovo South Africa; and Errol Koekemoer, vice chairman of SCGA. (Photo courtesy of Farmer’s Weekly.) |
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| Malawi’s Minister of Labour, Honourable Yunus Mussa, visited Nchalo Sugar Estate to familiarise himself with its operations. He saw the factory and the clinic and said he was impressed with how Illovo handles labour issues at its Estates and the amount of money the company is spending on social responsibility projects.
“I am impressed with Illovo because they employ about 10 000 Malawians. I am also happy that the company is giving our fellow Malawians managerial positions and the workers are provided with free housing, schools and clinics,” he said – also that the clinic served non-employees living in the surrounding communities.
He was also happy that Illovo adheres to safety and health standards as well as the country’s labour laws, such as no child labour. Instead the company is recruiting inexperienced graduates, training and equipping them with skills and then employing them in managerial positions. “There is a very good example of a young lady who graduated from the managers-in-training programme last year and now she is one of the Area Managers. This is something other companies should emulate,” he said. He also observed that Illovo provides protective clothing to its employees such as helmets, ear muffs and reflective jackets. |
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Dr Albert Mkumbwa briefs the Honourable Yunus Mussa (left) at the clinic in Nchalo. |
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The Mayor of Camperdown, Councillor TE Maphumulo, visited Eston Mill on 10 May accompanied by her deputy and five other councillors, including the municipal manager, Devon Pillay. With them were two visitors from the USA - Linda Barnes, assistant mayor of the city of Winston-Salem, and Lane Bailey, city manager of Lenoir.
Considering that 64% of the land in their municipality is caneland, the local officials felt they should engage with the private sector and develop a working relationship to promote social responsibility. They will be meeting Eston’s mill management again with more details but also mentioned that they are busy with housing developments in the district that will assist Illovo in the longer term.
The visitors were very impressed with Eston’s social investment in Arden School and surrounding areas and were also taken on a tour of the factory, as pictured. |
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The Eston team welcomes Camperdown’s mayor (sixth from left) and councillors and two visitors from the US (second and fifth from left). |
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| Illovo Sugar’s human resources director Nigel Hawley visited Kilombero Sugar in November 2010 and took the opportunity to have a look at development taking place there. His first stop was the agriculture department at Msolwa Farm where the new linear irrigation system had been installed. Nigel (left) is pictured with Peter Albers - MCP manager, alongside the new system irrigating field No. 520.
AND THE SAME FIELD SIX MONTHS LATER . . . | |
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| | In the same field after six months, the linear irrigation project has brought about a big improvement in terms of cane yield in the field and section manager Alestus Ngolly is a happy man, hoping to harvest a bumper cane crop in the milling season 2011/2012. |
News - 2nd Quarter 2011
News - 2nd Quarter 2011
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 Marilyn Williams (right) and Ethel Majamanda of Nchalo Ladies Charity check out the bicycle ambulances. | Nchalo Ladies Charity handed over three bicycle ambulances to Nkhwazi, Tizola and Chigweshe villages in Nchalo, Chikhwawa, earlier this year. Chairlady of the group Marilyn Williams said they had been raising funds for a year to buy the bicycles and expressed the hope that the ambulances - which have stretchers fitted with braces - will assist people to ferry patients to hospital with ease. 
All smiles as they take hold of their new bicycle ambulances are (from left) village headman Tizola, village headman Chigweshe and senior group village headman Nkhwazi. | Senior Group Village headman Nkhwazi, who spoke on behalf of the other chiefs, said the donation will greatly ease their transportation problems of patients, both sick people and maternity cases, to hospitals. The villages have formed a committee which will take care of the bicycle ambulances. The function was also attended by village headman Tizola, village headman Chigweshe, members of Chimbiya community-based organisation and people from the three villages. Nchalo Ladies Charity is composed of wives of Illovo, FES, Agricane and Nkhanga Services employees.
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GROUP HR manager Colin Kyle and head teacher of Kanjedza Primary School Monica Kainja share one of the 30 desks
donated by Illovo for a standard eight class at Kanjedza Primary School in Blantyre. On the right is PTA chairman Goodnews Mphande and behind are some of the pupils. Colin said Illovo gets involved in projects like these to ensure there are educated people it can employ and thereby secure the future of the company. Monica Kainja thanked Illovo for responding quickly to the school’s request for the desks while Goodnews Mphande said they had written to many companies asking for the desks but so far it was only Illovo that had responded positively. He said a good learning environment makes pupils learn well.
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 Dal Price Moore, Maragra’s cane supply manager, inspects the new N41 variety. Note the heavy black clay soils that it is reputed to thrive in. | In the continual search for improvement, Maragra has embarked on finding, hopefully, even more productive cane varieties. To this end Maragra agronomy department is the first sugarcane grower in Southern Mozambique, and quite possibly the whole of Mozambique, to import the South African variety N41. The appeal of N41 lies in its alleged ability to produce high RV yields (RV = Recoverable value (high sucrose), under waterlogged conditions - a situation that is all too familiar on the black clay soils of Maragra following even minimum amounts of rain. It is also claimed that this variety has been particularly good on heavy clays, for which Maragra is famous. Long straight stalks that resist lodging will also ensure that good payloads and easier harvesting is achieved. Although it has a smut (cane disease) rating of “Intermediate”, good management practices could see it become one of our top varieties in years to come. After having applied for, and been issued with, all the relevant phytosanitary permits, a good seed source was found growing under drip irrigation in the Komatipoort area. Other logistical problems relating to transport, loading, border delays and local traffic police saw the seed arrive at Maragra at 01H30, with some very weary drivers. They had been on the go for nearly 18 hours, most of which was spent waiting for the importing and export processes to be correctly implemented, a trip that can be easily accounted for in three hours by car. The bulk of the varieties at Maragra at the moment are N19, N23, N25, and N28. The ever-popular variety NCo 376 is slowly being phased out, due to the high smut figures being recorded and consequent management demands. N41 is not the only variety being evaluated at the moment; along with N41 are two local varieties, MM1 and MM2, presently also undergoing trials.
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 A farm worker stands beside an N41 seedcane field at Nakambala. | As cane variety is critical for good yields in both tons and sucrose, sugarcane cultivation starts with choosing an appropriate variety for the agro-climatic zone and soil type. The N25 has been the variety of choice at Nakambala estate for a long time and has fared better than others on the estate. However, Nakambala is now diversifying into other cane varieties. Of note are results of recent trials of the relatively new variety N41 which have shown good attributes that are likely to compare to the highly-acclaimed N25. According to trials done by the South African Sugar Research Institute (SASRI), N41 is a widely adaptable variety that has shown good performance under rainfed and irrigated conditions. It produces good sucrose (ton sucrose of 102% of irrigated N25 yields) under waterlogged conditions as well as under medium and high potential irrigated conditions. Performance has been particularly good on heavy clays and shallow soils. It is well suited to high potential, on a 12-month cutting cycle. N41 has very straight, long stalks that tend to resist lodging under irrigation. Trial results also suggest that yields tend to improve with ratoons. Within the 2010 season Nakambala has increased the N41 area disposition from 2 to 11 %.
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THE lives of more than 600 learners at the Louisiana Primary School, on the doorsteps of Illovo’s Umzimkulu Mill, have been made a whole lot brighter with the approval of an almost R300 000 donation from Illovo Umzimkulu which has been used to build more classrooms. This donation, added to a similar amount of money collected by the school itself, was just the catalyst required for the participation of a locally-based ready-mix concrete company, South Coast Quarries, which donated all of the concrete for the foundations of four new high-quality classrooms. This brings to eight the total number of classrooms which Illovo has helped fund, the first involvement being in 1999 when four classrooms were built at the Etshamahlamvu School which subsequently amalgamated with Louisiana Primary. 
A ribbon-cutting ceremony officially opened the new classrooms. From left are Kobus and Louise de Vrey from South Coast Quarries, Sizakele Zuma and Bruce Holmes from ISSA-Umzimkulu, Cyprian Loyiso the chairperson of the school governing body and John Smith, a member of the school governing body. | The school is situated 5 kms from the mill and caters mainly for learners from indigent and disadvantaged backgrounds, with almost 80% of the learners coming from single-parent families, as well as from child-headed households. There is constant pressure on the school to open its doors to an increasing number of learners, from Grade R right through to Grade Seven, thus the new classrooms will go a long way towards upgrading the education delivery of current learners, and new ones down the track. A heart-warming handover function was held at the school on 15 October, attended by all contributors to the project. Among the many activities planned and executed for its ‘special guests’ was the staging of a live Illovo advertisement (ABOVE) – their way of saying a huge “thank you” to all the donors involved! In the background is the principal of Louisiana School, Dr Mala Appalraju, who has been the driving force behind the upgrading of the new classrooms, which you can see to her left.
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Factory manager Etienne Rousseau shows the Deputy Minister around the factory. | Deputy Minister of Industry and Trade, Hon Shadreck Jonas, visited Nchalo Estate on 16 September to familiarise himself with its operations. Nchalo GM Eddie Williams gave a presentation on Nchalo, tackling among other things skills development, social responsibility, current social impact, hectarage, group structure and shareholding, safety and health, partnerships with smallholder sugarcane growers and the sugar village concept. Honourable Jonas said he was impressed with what Illovo is doing, especially in the provision of infrastructure such as schools, houses, clinics, roads and employment to Malawians. The Deputy Minister said the Government will assist by ensuring that the Bangula bridge is fixed and the Nsanje World inland port is completed so that the company can move its goods smoothly. He was later taken on a tour of the fields, where agric manager Ignatious Majamanda showed him green harvesting and centre pivot irrigation, and factory manager Etienne Rousseau took him around the factory.
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 Laison Madimbo (centre) explains to the shareholders the use of some equipment in the factory. On the left is factory manager Steve Cloete. | Some 13 shareholders of Illovo Sugar (Malawi) Ltd visited Dwangwa Sugar Estate for the first time on 9-10 October and saw the Ukasi area, where new land is being developed for cane growing. Wyton Magwira, Ukasi’s area manager, gave a presentation covering topics such as field data, basic Dwangwa Estate production statistics, cane varieties, sugarcane pests and diseases, labour statistics, crop nutrition, irrigation, cane loading and haulage. At the factory, back-end engineer Laison Madimbo took the shareholders around and explained to them the process of making sugar. Dwangwa GM Ken Tembo officially welcomed the shareholders to Dwangwa at Bana beach. He gave them a brief overview of Dwangwa Estate, and thanked them for coming to see what was happening at the Estate. On behalf of the shareholders, Wilfred Paligolo thanked Illovo for sponsoring the trip and said they were impressed with the good quality of sugarcane at Dwangwa.
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 Barry Stuart, Illovo’s operations director, highlights safety issues. | Directors of Illovo visited Dwangwa Sugar Estate on 8 October primarily to assess the Health, Safety and Environmental compliance status of Dwangwa Sugar operations. The audit started with a factory tour and later the directors were briefed on various programmes and processes being undertaken to manage the health, safety and environmental risks associated with Dwangwa operations. After the briefing, the directors made a number of key suggestions to Dwangwa’s management team on how to further improve the management of health, safety and environmental issues. The team comprised Barry Stuart (operations director for Illovo), Ian Parrott (MD Illovo Malawi), Karl Carter (technology director - British Sugar), Richard Pike (finance director – British Sugar) and Lloyd Jenkins (head of programmes for the project management office). 4 STARS: Dwangwa Estate’s agricultural and factory divisions have maintained the NOSA 4 platinum stars for Safety, Health and Environmental Management following an audit in August.
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| LONG SERVICE AT NOODSBERG |  |
PROUDLY holding their long-service certificates, Noodsberg’s long servers are pictured with members of management. From left are (front) Fana Hadebe, Macatheni Shezi, Nicolas Gumede, Bhekekhaya Magubane, Alfred Masikane and Elliot Kwela; (back) GM Eckard Lucht, Elphas Jama, Foyifoyi Nkosi, Roy Pillay, factory manager Marc Pousson, Danny Moodley, HR manager Elias Sibiya and cane procurement manager Julius de Lange. |  | . . . AND AT MEREBANK |
At Merebank, GM Barry Cornish (centre) handed out long-service awards to (from left) 40 years: Philemon Mzobe, Siphiwo Dube and Henry Mazongolo; 25 years: Witness Dlangamandla and Arnold Harper, with Caleb Mdakane (HR manager). | | . . . AND AT HEAD OFFICE |  |
Five smiling recipients of 25-year long-service awards at Head Office were (from left) Gordon Knox, Ravi Govender, Grant Edmunds, Mona Govindan and Vijan Govender. |
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The 2010 Supervisor Development Programme (SDP) training at Kilombero was officially opened on 6 September by HR manager Chris van den Berg, with 26 participants from various sections of the estate (PICTURED). The intensive five-day programme comprised six modules: Understanding & exercising effective leadership, Communication for improved business performance, Motivation for improved business performance, Workplace Diversity: understanding & maximising it, Effective performance and behaviour management and Effective employee supervision skills. The programme was based on practical work experience and case studies and was facilitated by Tryphon Mwangosi and Jorander Lyampawe.
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During an official tour of Manhiça and Calanga on 16 August, the Minister of Tourism, His Excellency Mr Fernando Sumbana, made a stop at Maragra, where he had a meeting with factory manager Mike Cotter, who was acting GM at the time.
The minister urged Maragra to pursue its social responsibility initiatives and to encourage the local population not only to farm commercial crops but also to farm food crops. The minister and his entourage were welcomed with a lunch at the Maragra Club house in Calanga. 
On the right is His Excellency the Minister of Tourism displaying a sculpture of a cane cutter presented to him by factory manager/acting GM Mike Cotter.
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South Africa’s Pick n Pay company, the champion of "consumer sovereignty", made its debut in Zambia when it opened its first store on 22 July 2010 with some pomp. The grand opening attracted high-profile guests and the Zambian President, His Excellency Mr Rupiah Banda, officially opened the mega store, situated in the suburb of Woodlands in Lusaka. A pre-launch cocktail party the evening before marked the high-profile event and Zambia Sugar was invited, among the key guests, as the preferred supplier of sugar products to the supermarket chain. Zambia Sugar’s operations director Stanley Munsamy, marketing director Rebecca Katowa and business development manager Matongo Matamwandi attended. | | |
Stanley Munsamy (operations director) and his wife Rita with Gareth Ackerman, chairman of Pick n Pay, at the Zambia Sugar display during the cocktail party marking the opening of Pick n Pay Zambia. |
Operations director Stanley Munsamy and his wife Rita greet Hon Felix Mutati (Minister of Commerce Trade and Industry) at the cocktail party. |
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Earlier in the year, GM Don Carter-Brown (PICTURED) informed Kilombero employees that the PRBS target was to crush 622 913 tons by 30 September. They exceeded the target by 1 657 tons, which earned them Don’s thanks and congratulations: “I would like to congratulate you and all our employees for having hit PRBS level 1 for our September crush figure. As you will recall our season start was delayed by rain so it has been a great effort by everyone in catching up. Well done to everyone – this is hopefully the first of many PRBS targets achieved in 2010/11. Our next target is to have crushed more than 929 268 tons by mill week end 2 December 2010 – I am sure we can do it again.”
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ABOVE: Dr Steven Loina (senior medical officer) explains the impact of the refurbishment done at Kilombero clinic and its positive effect on optimal physical and mental health. |
ABOVE: In the operating theatre, risk control and services manager Joseph Rugaimukamu emphasises a point about the good work done by the civil section in a short space of time. |
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Directional signs assist patients to find their way to the relevant services. |
Dr Fastina Chela with state registered nurse Margaret Sampa in the new male ward. |
Karen Kabubi (pharmacy technologist) in the new bulk drug store. |
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 NOSA conducted an audit of the Umzimkulu MCP farms during April this year and the audit result was a 4-star rating. Umzimkulu MCP also received an award as the best NOSA 4-star company in the coastal KZN region at a recent NOSA award ceremony held in Durban. This is the first NOSA certificate ever awarded to the Umzimkulu Agricultural Department.
PICTURED: Umzimkulu’s safety officer Ronnie Moodley receives the award from NOSA managing director Justin Hobday.
At the NOSA awards function, Eston received five awards in the KZN Midlands section as follows: - Winner Agriculture Operation – Beaumont Farm
- Winner Manufacturing Operation – Eston Mill
- Winner of Food Products and Beverages – Syrup Plant
- Runner up in KZN Overall – Beaumont Farm
- Best SHE Rep in Region – Farook Casimjee of Eston
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From left are Farook Cassimjee, Eston GM Vis Pillay, Eddie Padayachee, Sathesh Persadh and Carol Mbele at the NOSA awards.
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News - 1st Quarter 2011
News - 1st Quarter 2011
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As the commissioning date for Ubombo’s major expansion gets closer by the minute, so the final installation of major sugar-processing equipment in and around the factory site changes Ubombo’s characteristic appearance, forever. Roll on April, 2011! Shown are (left) the new boiler stack and early stages of construction of the Howden Venturi Scrubber; (top right ) the new 150m³ A-CVP (continuous vacuum pan) and boilout vessels; and (bottom right ) the progress on the Bosch Chainless diffuser. UBOMBO EXPANSION NEARS COMPLETION The first phase of a major expansion project at Ubombo in Swaziland was successfully commissioned during the 2010 crushing season, and the second phase is well within budget and on time to meet the coming April 2011 season start date. The Ubombo Sugar Operations team, the Owners Team and the EPCM contractor – Bosch Projects, have formed a strong bond during the project and this augurs well for its success. Illovo’s own Technical Services team has been deeply involved with the project from the start and continues to add value in all disciplines of engineering and process. The broad scope of the project is to increase the factory crushing capacity, increasing sugar production from 220 000 tons per annum to more than 300 000 tons per annum by 2015. In addition, the power generating capacity of Ubombo is also being increased which, from renewable fuels, will ensure power self-sufficiency on the estate and allow Illovo to export surplus electricity into the Swaziland national grid for 48 weeks of the year. The horizontal expansion of the cane supply will be achieved by the development of an initial 5 000 hectares of outgrower land to irrigated cane, followed by a second phase expansion thereafter. This ground-breaking initiative has been made possible by the implementation of the Lower Usuthu Smallholder Irrigation Project (LUSIP), the foundation of which rests upon the newly constructed Lubovane Dam, with sufficient water capacity to sustain the development of up to 12 000 hectares of irrigated land. In order to augment these cane supplies in the initial phase of the project, Ubombo has also developed additional area on its own land to irrigated cane which is on track for harvesting in 2011. The project is unique in a number of ways: - Supplementary boiler fuel is derived from sugar cane residues - in the form of cane trash or ‘biomass’ which is made available by harvesting green cane with chopper harvesters and prepared after collection by a biomass shredder imported from the US. This equipment has traditionally been used in the logging industry and prepares a ratable supply of cane trash prior to mixing it with the mill’s bagasse stream;
- The bagasse storage area is the size of 20 football fields, and is able to store 100 000 tons of bagasse/biomass for power generation and export to the national grid.
The project has aligned and integrated itself with Ubombo’s Safety Standards and Procedures which are being strictly enforced. To date, the project has achieved a very encouraging safety record - over 700 000 man-hours have been worked with only a single Lost Time Incident being recorded. The number of people on site is expected to peak at over 1 100 people during the coming months, but with the already established culture of safety awareness on site, and the daily focus on safe work practices, the project team is confident of maintaining its current good record. Much remains to be completed in a short time, but the Project Team is focused and determined that Ubombo Sugar will start the season with a world-class installation of which all involved can be proud.
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| At the presentation of Illovo’s Annual Awards in September 2010, the group’s Tanzanian operation at Kilombero not only received the honours for the Best Country Performance, but also secured the Human Resources Award. MD Graham Clark commented that the business had recently been through a tough time but, through Kilombero’s heightened commitment and performance across the board, it had overcome some of its major challenges by responding quickly and effectively.
“The turn-around at Kilombero is tangible, playing a big role in its successful achievement of several important business targets over the adjudicating period, and hence they are worthy winners of the award,” said Graham.
The full list of award winners is: - Best Country Performance: Tanzania (Kilombero)
- Human Resources Award: Tanzania (Kilombero)
- Financial Management Award: Swaziland (Ubombo), second year running.
- Best Factory Performance: South Africa (Noodsberg)
- Best Agricultural Performance: Malawi (Dwangwa)
- Best Marketing Achievement: South Africa
- MD’s Special Commendation Award: Corporate Finance
In closing, Graham paid tribute to all the category winners and to all operations in general for their ongoing efforts in what has been a particularly challenging business environment. He also noted the introduction of a new Safety Award to be presented in 2011, challenging each of the operations to become its first-time winner. | 
Accompanied by his wife Sue, MD Graham Clark presents the Top Country Performance award to Tanzania country head, Don Carter-Brown. |
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Merebank Indian staff members who came to work in colourful traditional dress to celebrate the 150th anniversary of the arrival of Indians in Durban were (from left) Stephanie Naicker, Jennifer Pillay, Bernie Naidoo, Julie Mudali (in front), Shanilla Gopichand, Shakti Govender, Arthie Gungadeen (in front), Ritasha Roopnarian and Melashnie Subramoney. |
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ROBIN BLAKE (left), branch manager of Roller Chain Opti, receives the Supplier of the Year award from Illovo Sugar’s commercial director Larry Riddle.
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On 29 July 2010 MultiGuard Protect® was awarded a registration for use as a nematicide and fungicide on golf courses and turf farms in the United States of America (USA) by the Environmental Protection Agency (EPA). This is the first registration of furfural as a nematicide on turf in the USA and allows access to this substantial market. Being the most stringent regulatory system in the world, this EPA registration will be the platform to achieve further registrations on additional USA crops (food and non-food) and also to expand into other major international markets.
MultiGuard Protect® is a unique emulsifiable concentrate of furfural which allows furfural to mix easily in water and support penetration of furfural through the turf thatch layer into the root zone. The product is branded Crop Guard® in South Africa due to trademark controls in the different countries. Nematodes are microscopic worms that feed on the roots of plants and under severe infestations have the ability to kill the plant. Under medium pressure situations the parasitic nematodes impede the plant’s ability to feed and absorb moisture, which results in an economic loss via lower yield and quality. Lifecycles vary due to temperature yet typically a root knot nematode has a 28-day lifecycle with a single female laying up to 800 eggs. If the nematode population is allowed to explode, the subsequent impact on the plant can be severely detrimental. The intellectual property is protected through two international patents. In addition, because this is the first registration in the USA, there is an exclusive use period of 10 years. A state-of-the-art toxicological, chemical and environmental data package has been generated and is owned by Illovo Sugar. This information supports the use of furfural in new agricultural applications and strengthens furfural’s usage profile as regulatory standards increase.
Nematode impact on grass is often observed as circular zones that are patchy in colour. Symptoms of the infestation include lower plant vitality, greater susceptibility to fungal diseases and loss of turf. As the root system deteriorates and in certain situations is completely destroyed, turf quality becomes variable, which can negatively impact on your putting surface! Grass can also become loose and major events have been cancelled to prevent injury to players and horses. Application of MultiGuard Protect controls the nematodes through contact mode of action. Regular applications result in the nematode levels being controlled, the root system improving (stimulating the growth and vitality of the plant), which results in quality green grass. Out of interest, Crop Guard® was used to grow turf for Durban’s FIFA 2010 Soccer World Cup stadium and is being used post World Cup to maintain several stadiums, sports fields and race courses. The nematicide market is undergoing a period of change as regulatory controls are forcing the phase-out of existing nematicides because of their extremely toxic profiles. The major nematicides that were traditionally used on turf in the USA have been withdrawn and the market is searching for an alternative method of control.
The powerful commercial advantages of MultiGuard Protect to the end user are: - It is made from sugarcane (renewable feedstock)
- Has a lower toxicity profile than the current turf nematicides
- Leaves no harmful residues in the soil or plant
- Application is via standard golf course equipment and multiple applications are registered that allow the greenkeeper to protect his turf throughout the growing season
- Downtime during application is 2 hours versus 24 hours (traditional products), which results in the golf course not having to lose an entire day’s revenue.
Marketing and distribution of MultiGuard Protect in the USA will be undertaken by Advanced Technologies (AAT), the specialist turf division of Agrium that will service golf courses and turf growers directly. An agreement has been signed with AAT and the market introduction phase is scheduled to start in February 2011 at the USA turf show (catering for the 16 000 USA-based golf courses). The regulatory process in the USA and the commercial activities of Crop Guard have been driven by the South African and USA Market Development team, with specialist consultants in South Africa, USA and Europe. The process has been extremely challenging due to the complex regulatory requirements that expanded as the review progressed. Teamwork focused on the regulatory and commercial end points with a deep association with the product benefits has supported us through the challenging times. Numerous people within Illovo Sugar and externally have been involved in this process and our appreciation goes to them for their support. In South Africa Crop Guard® sales on a wide range of crops are progressing well as the registration has been expanded to all commercially attractive crops, with new sales targets being set in 2010. For more information visit the Crop Guard® (South African brand name for MultiGuard Protect®) website at www.cropguard.co.za | | |
GREG BURGER (left), market development manager who wrote this report, is pictured with his team at their Merebank base. From second left are Elise Buntting, Mary Anne Majozi, Linda Mkhize, Shakti Govender, Anelia Steyn, Sats Somera, Alan Campbell, Winnie Cele, Sicelo Khuzwayo and Rishi Ramroop. Not included in the picture are Steven Maybaum, Jonathan Myers and Dr Jerry Hensley from Agriguard Company LLC, which is owned by Illovo Sugar USA and Harborchem, and Memtha Ramroop, on maternity leave. |
GETTING the message out to greenkeepers. |
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MEMBERS of Illovo Sugar Group Executive attended a Management Awareness for Safety Health and Environment training programme conducted by ND Consulting. The training programme included an overview of the NOSA safety programme with specific emphasis on management’s responsibilities in respect of safety and health in the work place. The executive are highly committed to providing a work environment which is free from risk to the health and safety of our employees. In a group-wide initiative, risk management structures have recently been reviewed and senior risk managers appointed in each country to help achieve our new disabling injury* frequency rate (DIFR) target of less than 0.8, while we strive to achieve zero fatalities. In simple terms, DIFRs are a measure of the total number of disabling injuries in relation to the number of employee manhours worked by a company’s total labour complement over any given period – the lower the rate, the higher the safety record. As such, DIFRs are one of the globally accepted forms of accurately determining the safety record of individual companies. Where businesses fall short of acceptable targets, the process will pinpoint those areas of specific concern, thereby indicating to management where exactly to implement remedial measures. More recently, the concept of Total Injury Frequency Rates (TIFRs) has gained popularity as a supplementary aid to accurately measuring company safety standards because it measures the total number of injuries, whether they are disabling or not. The initial emphasis will be on identifying high risk activities, conducting risk assessments and developing safe work procedures whilst encouraging employee safety behaviour that is conducive to minimising and eliminating unsafe practices in the work place. In this respect, Alf Ueckermann has been appointed to Illovo’s Durban head office to spearhead the group’s risk management initiative. Previously employed at Mondi Business Paper, Alf brings to Illovo vast agricultural and industrial risk management experience having worked in both the forest and milling operations. *Note: The term disabling injury refers to any injury - minor or serious - which disables/prevents an employee from carrying out his/her normal occupational duties for at least one full shift following the shift in which the injury took place.  ALF UECKERMANN, the new group risk manager (corporate), shows off the Illovo standard for personal protection equipment (PPE) when working on, or visiting, a factory site - consisting of steel-capped shoes, a high visibility vest, earplugs, safety glasses and a helmet. |
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 WELL DONE to the Merebank Fire Fighting team (PICTURED) who won the KZN Regional Fire Fighting Competition for 2010, beating 19 other industry teams in their first-time entry into this competition, which is hosted by Alexander Forbes. The team was awarded the “The Ron Constant & EThekwini Fire and Disaster Management Floating Trophy for the best team in the KZN Region”, a deserved reward for all the training and dedication they put into the event.
They then went on to represent the KZN Region at the national level in Gauteng in November, where they were placed 1st in basic fire fighting theory out of a total of 15 provincial teams, but lost points due to their lack of experience in live fire fighting, to finish 11th overall. However, they gained invaluable experience and were able to identify their weak areas.
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SOUTHERN AFRICAN sugar industry production records are not easily beaten, considering the industry has been growing cane and making sugar in this region for over 150 years. But at Zambia Sugar, with its new rated crushing capacity of 640 tons of cane an hour, the factory hardly blinked as it easily chugged past its own Southern African sugar production record of 315 000 tons in a season, which it set last season. On 25 November, Nakambala reached the 3 million tons cane crushed mark, and expectations are, now having settled down really well after its significant expansion was commissioned in April of last year, that the operation will produce around 400 000 tons of sugar in the 2010/11 season. This is good news but has not come without additional challenges. Our logistics teams have been tested to the hilt as a large proportion of the additional sugar has been exported to the EU, necessitating a considerable up-scaling of transport arrangements to get the sugar safely to port and on-board to Europe. So far, so good...and even more to come next year!
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ZAMBIA SUGAR scooped four major awards at the 84th Zambia Agricultural and Commercial Show, the biggest of all Zambian shows, held this year under the theme “Sustainable Development”. The guest of honour was the Malawian President, His Excellency Professor Mbingu Wa Mutharika. The theme was well suited to Zambia Sugar, as sustainable development is entrenched in its everyday operations. It was no wonder then that Zambia Sugar scooped the first prize for “Best Theme Interpretation” and first prize for the inaugural “Best Environmental Awareness” award. Zambia Sugar was unchallenged in the category for “Best Lusaka Stock Exchange Listed Company” and received second prize for “Best Export Promotion”. The exhibition was divided into three sections. For “Social pillar of sustainable development”, the company’s entry comprised a life-size replica of the newly-completed Njomona clinic, displays of Zambia Sugar’s CSR focus areas, and live Gambusya fish used as an environmental method to fight malaria. On hand was a fully-fledged Medical and Public Health team to showcase Zambia Sugar’s contribution to sustainable health at Nakambala. The replica clinic caught the attention of the Ministry of Health exhibitors who commended the company’s contribution to health care and delivery. For the section “Economic pillar of sustainable development”, the focus was on the company’s Whitespoon Sugar product range, which showcased its contribution to the economy through sugar exports and local market sales. Third was “‘Environmental pillar of sustainable development”. The operation at Nakambala is pro-environment and the company’s impact on water, air and carbon emissions are at a minimum. The use of the Gambusya fish as an environmental method of fighting malaria also highlighted how environmentally sustainable the company is. It was a comprehensive and innovative effort by the company’s show exhibition team to win it again for Zambia Sugar!  Lovemore Sievu, corporate affairs manager, receives the 1st prize for “Best Interpretation of Theme” from Malawian President H.E. Professor Mbingu Wa Mutharika, while Zambian President H.E. Rupiah Banda introduces Lovemore. |
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Illovo South Africa’s two EITs, merit-selected for a three-month secondment to British Sugar, are pictured at the Bury factory. From left are Ranjeetha Hiraman (Eston) and Phindile Xolo (Noodsberg) with British Sugar HR director Quintin Heath.
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SEZELA’S women celebrated National Women’s Day on the golf range at Pennington on August 6. Wearing appropriately pink shirts, they were treated to a golf lesson, a knockout competition and a lunch with roses and gifts, all courtesy of the Sezela Management, who supported and sponsored the event. The day was filled with laughter, fun and a whole lot of golf balls flying in all different directions. Many of the ladies were attempting golf for the first time and most of them are now keen to carry on playing. Mission accomplished: Sezela Women Fearless on the Golf Course.
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2010 LIONS SHOW: Umzimkulu again proudly displayed projects at the local Lions Show 2010, including a shredder project by the mill’s EITs, a SASRI display on alien weed invasion which was ably manned by SASRI and local extension office staff, samples of downstream products from Sezela, and - as part of corporate social investment - a raffle and coffee shop to raise funds for the mill’s current project, the Louisiana Primary School. These were well received by the community and Umzimkulu was again awarded the best marketed, best outdoor and best overall stand prizes. Local dignatories, including the Ugu deputy mayor and Hibiscus Coast municipality mayor, visited the stand and were photographed (ABOVE) with the Umzimkulu team. 
2010 INGELI SHOW: After an absence of three years, Umzimkulu once again put up a display at the Ingeli agricultural show in Harding this year. The mill’s presence was appreciated both by its growers in the area and the local community, with comments that its projects – including on green cropping and land reform - were educational and informative. Mr LL Bosman, the DA’s Shadow MP for Agriculture, Forestry and Fishery, was one of the visitors to the stand and he was impressed with the progress on the land reform projects undertaken on various farms in the area during the past two years. ABOVE: Some team members are pictured with Mr LL Bosman.
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 THERE’S no doubting who sponsors this one, is there!!! Darrell de Wet, national marketing manager - syrup, says the Eston Mountain Bike Challenge, which Illovo has sponsored for the past 8 years, provides a fantastic opportunity to 'brand-build' Illovo, both in KwaZulu-Natal and across the country.
"As the biggest MTB event of its kind in South Africa, with more than 3 100 participants this year, we get fantastic exposure in the media, reaching into homes across the country through the Press, sporting magazines, radio and television. Combined with our other sponsors, we are able to give back value to all of the participants and the many community-based projects in the Eston area which also benefit from this race. The sugar farmers here have done a fantastic job to put this race on the map - and we are naturally pleased to be able to give back something to this community," says Darrell.
News - 4th Quarter 2010
News - 4th Quarter 2010
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Untitled Document STRAIGHT after the analysts’ results presentation in Johannesburg on 31 May 2010, Illovo hosted a site visit in Zambia for a group of institutional shareholders and investment analysts. What better place to visit than Nakambala, recently the focus of a significant agricultural and factory expansion, increasing annual production to around 450 000 tons of sugar. Aside from comments about the ‘huge’ size of the factory, most of the group were incredulous about the size of the cane – five metres in the air, thicker-than-thick cane stalks – producing around 120 tons of cane per hectare! First-hand experience gained by the analysts on such site visits provides valuable evidence to support their investment cases to their clients and institutions.
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Untitled Document THE Nakambala bulk sugar handling plant was successfully commissioned during the 2009/10 crop. The shed has a design storage capacity of 30 000 tons. During the season, approximately 56 000 tons passed through the facility bound for various export terminals. During the offcrop the shed was handed over to Barloworld Logistics, who handle much of the group’s sugar logistics The shed will play an even greater role in the coming season as 95 000 tons will pass through it. The plant’s facilities, including measuring scales, conveyor belt, loading point and weighbridge are state of the art. In fact, it has become a sort of tourist attraction with its front-end loaders climbing up to conquer the “sugar hill”. 
A FRONT-END loader climbs the “Sugar Hill” at the
new Nakambala bulk sugar handling plant. | 
ONE-TON bags stand ready for export at the new plant.
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A 10-member delegation from Kilombero travelled over 1 400km by road to the north west of Tanzania to attend a TSSCT factory workshop at Kagera Sugar Estates factory, at the border with Uganda, using two vehicles on their six-day mission. They traversed hills, valleys, forests, dry land, rivers and lakes, covering an average of 700km per day. The Tanzania Society of Sugar and Cane Technologists (TSSCT) is the equivalent of SASTA in South Africa and this was its 12th factory workshop. “Increased Sugar and Cane Management amid Environmentally acceptable conditions” was the theme of the workshop, which attracted participants from three sugar estates and the Sugar Board of Tanzania and was sponsored by BP/WLO and Vodacom Tanzania. Nine scientific papers and one promotional paper from the sponsors were presented. Kilombero had three papers and two were awarded the best and second best paper prizes. The third best position was shared between Kagera and TPC estates. Lee Elkington, Kilombero’s GM finance, remarked that the performance of Kilombero’s presenters and the quality of their papers explains the high standards of Kilombero sugar. Kilombero’s delegates included Timothy Tandika (production manager Msolwa factory), Melchior Muangi (chief engineer Ruembe factory), Muhoja Manane (central workshop manager), Hermann Mwangobola (process manager Ruembe factory), Taifa Mlesa (lab manager), Francis Francis (mechanical engineer), William Rutaserwa (electrical engineer), Remy Miho (instrumentation engineer), Ms Halima Mbaga (section manager Msolwa farm) and Juma Sheiza (outgrower service manager, Ruembe). | KILOMBERO’S delegates to the TSSCT factory workshop gather for a group photo on the banks of Lake Kyaka, Kagera region. |
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 DWANGWA’S shift competition was launched six years ago at the warehouse and the ensuing years have brought real improvement to the people and the work performance.
Shift B has won the 2008 competition and has done it four times since 2003, while the other two shifts have had one win each. “What we see now is team work from all employees, diligence and concerted efforts in safety measures,” says warehouse manager Aubrey Siti. Andy Stewart, representing the GM at the trophy presentation, spoke about team work and emphasised alertness. He said Illovo Sugar’s management is trying all they can to make sure there are no accidents in the company, hence the message should filter down to all employees to avoid accidents at all costs.
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Untitled Document MALARIA kills between 1 - 2 million and infects between 400 – 500 million people a year in Africa. In Mozambique it has been on the increase since 2001, and in the light of this increase, Maragra’s malaria integrated vector control programme can justifiably be described as a success story in the control of malaria among employees and the surrounding community. Maragra has managed to reduce and control the level of malaria to a low annual level of 5-6% of the annual work force (approximately 3 000 personnel monthly) within the estate, as well as within the surrounding village areas under the control programme. This is compared to approximately 50–75% of the surrounding population of Maragra, outside of the control area, suffering with malaria at any one time. The Maragra malaria control team sprays the interior of all the estate residential housing, offices and mill with a residual insecticide which lasts 4 months, as well as the surrounding community housing for a mile (1.6km) around these areas, protecting approximately 7 500 to 9 000 adults and children. This success is also accomplished by health education on all aspects of the mosquito, personal protection measures with repellents, insecticide-treated mosquito nets, with pregnant mothers and young children receiving priority in their use, and how early diagnosis and treatment at the clinic saves lives. Children under 5 years suffer the most with malaria, with the highest mortality rate in this age group. But this programme has had a dramatic effect. In December 2009, the high season of malaria in this area, the number of malaria cases for this age group was compared inside to that outside of the control area. Of 802 children under 5 years attending the Manhiça government clinic which is situated in the grounds of Maragra, 359 were positive for malaria outside the control area, and only 3 inside the control area. This is a very significant and life-saving difference for these children and their parents. This is a great achievement by the Maragra malaria control team. | THE Maragra malaria control team in front of their office. |
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ILLOVO has given medical equipment and a generator to the Malawian Vice President, Right Hon Joyce Banda, for Makuwira Health Centre for safe motherhood initiatives. She is also the African Union goodwill ambassador for safe motherhood for Malawi. The centre is in a rural area of Chikhwawa East, near Nchalo. Handing over the items, MD Ian Parrott said they included an oxygen concentrator, a resuscitator for infants, a generator, beds, mattresses and suction machines, as well as other items not available at this Health Centre but crucial for safe child delivery. “As a company we are proud to be associated with this initiative,” Ian said. Vice President Banda said the donation will go a long way in saving women from maternal deaths and complications. Makuwira had been chosen by the District Health Office and the Ministry of Health as most in need of equipment in the district and she encouraged mothers to deliver at hospitals helped by trained staff to reduce maternal and infant deaths. Also present at the function were the Minister of Natural Resources and Energy, Hon Grain Malunga, MP for Chikhwawa East Hon Ragson Chirwa, MP for Chikhwawa Central Hon Bernadette Mlaka Maliro, a representative of United Nations Population Fund (UNFPA) and traditional leaders. 
ILLOVO (MALAWI) MD Ian Parrott (left) makes a symbolic presentation of the equipment for Makuwira Health Centre to the Malawian Vice President, Right Honourable Joyce Banda, with MP for Chikhwawa East Hon Ragson Chirwa at the back. |
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 NCHALO Ladies Charity Group has handed over an Accident/Emergency ward to Montfort Hospital Management. The ward was originally a cashier’s office on one side and an old emergency room on the other which were merged into one bigger ward with donations from the Charity Group. The group’s chairperson, Nchalo GM’s wife Marilyn Williams, said funds to the tune of MK 1.7 million had been raised for the renovation. Montfort Hospital is the major referral hospital for Nchalo Estate. The picture shows Marilyn handing over the keys to Monsignor Father Chasukwa, board chairperson for the hospital. | | NCHALO’S GIFT OF SEEDLINGS
 NCHALO GM Eddie Williams (LEFT) has made a symbolic presentation of a tree seedling to Paramount Chief Lundu representing the 5 000 indigenous tree seedlings handed to the community in Chikhwawa for the tree-planting programme. He expressed happiness at the news that the trees will be planted along Mwanza River, which has lost many trees on its banks due to deforestation.
Eddie also said Nchalo Estate had already planted more than 20 000 trees within the Estate during this year’s national tree-planting season. Also present at the function were Senior Chief Chapananga (RIGHT), representative of Chief Maseya, the Officer in Charge of Chikhwawa and a representative of the District Commissioner. | | ILLOVO SUPPORTS CYCLING
 ILLOVO donated a cycling package including a custom-built top of the range bicycle and gear to Illovo Classic top cyclist Misi Kathumba, and three air tickets to the Blantyre Cycling Club for the Malawian team of Misi, Leonard Tsoyo and coach Dyton Chimwaza to travel to South Africa for the Cape Argus tour in March 2010. National sales manager Walter Nyamilandu-Manda said the company will continue to sponsor the Illovo Classic cycling race. President of the Federation of Cycling of Malawi, Andrew Mkwezalamba, thanked Illovo for the support it has rendered to the sport for the past four years.
MISI KATHUMBA (front) shows off his custom-built bike, with (from left) Walter Nyamilandu-Manda, Leonard Tsoyo, and Dyton Chimwaza.
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 THE plan of the Kilombero Club Committee and the Sharp Women’s Group to help the orphans from Muungano and Kilombero Primary Schools has had the best of outcomes. Both schools are on Kilombero Sugar Company premises, and it was a happy occasion when each of the 78 orphans was handed a school uniform, a pair of shoes, a full set of exercise books and one year’s school fees.
LEFT: Maria van den Berg presents the gift to one of the children. The head teachers thanked Club management for their timely donation to the children.
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|  NCHALO Estate has turned the HIV and AIDS open day into an annual event since the first in 2006, bigger and better each year, and this year’s was the best to date. Under the theme “Universal access and human rights – access to HIV and AIDS service is my right”, the commemoration took place at Mangulenje Sports Grounds on February 13. Guest of honour was Hon Bernadette Mlaka Maliro, Member of Parliament for Chikhwawa Central. She commended Nchalo Estate for taking part in the welfare of the people it works with and for not discriminating against employees found with HIV and AIDS. Instead the company is applying its resources so that those infected and affected have the right to access the services associated with HIV and AIDS. Organisations such as Escom (Kapichira), Bridge Project, Montfort Hospital, Population Services International (PSI), Hunger Project CBO and Illovo Clinic were present and demonstrated different activities in the HIV and AIDS field.
BELOW: The HIV/AIDS banner was displayed ahead of people as they did a solidarity walk towards the function venue.
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READING MATTERS
ILLOVO HR secretary Futhi Ngidi joined the KZN North Rally to Read 2010, along with representatives of 15 other companies which had also sponsored the event. They visited 12 schools in Weenen and Umsinga (Greytown) region, targeting the primary schools on purpose, because this is where the foundation for these pupils’ education is set – they were given stationery and books to set up their very own libraries.
The teams spent time with the children interacting with them, together with using the opportunity to motivate and encourage the teachers to get the children to utilise the materials effectively. The schools generally are very poor and have limited classrooms, and the children walk long distances to school, often crossing rivers and streams along the way.
The Rally to Read teams, under the auspices of the Read Educational Trust, were welcomed with music and traditional dance, with the parents ululating and sharing this day with their children. Futhi says it was a great experience and fantastic to see how Illovo is contributing towards educational development in KwaZulu-Natal.
FUTHI NGIDI (centre), an Illovo HR secretary, enjoys her ‘Rally to Read’ interaction with the children. |
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 SINCE the Maragra agriculture department went on to the Platinum grading system in the last 12 months, the DIFR (disabling injury frequency rate) has dropped from 1.76 to 0.39 at the end of April 2010 and 2 105 400 hours have been recorded without a disabling injury. The improvement is attributed to section management, training and a general safety awareness campaign on the estate. The management focus on employee transport has also had a positive influence. AT RIGHT is the agric SHE (safety, health & environment) team, (from left) Mark Jackson (systems and agronomy manager), Helena Chachuaio (SHEQ clerk) and Narciso Chitlango (safety officer).
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ILLOVO Head Office staff and those at the KZN mills took part in the ILLOVO U-Tube Competition with the chance of winning one of two R200 shopping vouchers every week. The internal staff competition was just one of the initiatives to “up our game” in the hospitality market, with the hope that all staff would join in the fun and help improve Illovo’s presence in the hospitality industry. Research and the constructive feedback from passionate Illovo staff reminding us how often they have had to explain to friends and family why our Illovo Sugar Tubes are not served at the table while dining at their favourite establishment got us all thinking and out of this came the solution … You & Tube!! The U-Tube competition aimed to find out which coffee shops, restaurants and sports clubs are not serving Illovo sugar tubes, syrups and chocolate sauces so that we can send our dedicated Illovo distributors to service their requirements. We also designed the following tools to help them win the support of the establishments: - The 4 kg Illovo Promotional Sugar Tube Bucket with new 2kg refill cartons allowing small B&B’s to order Illovo Sugar Tubes;
- The Illovo Hospitality Guide which has our range and the contact details of each distributor;
- Illovo “Hospitality Vouchers” which we give to the coffee shop and restaurant owners to redeem against their first purchase.
ABOVE RIGHT: The U-Tube Competition poster. LEFT: Simon Robson presents Head Office executive secretary Ann Boden with her R200 prize voucher.
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 ONE of the largest linear irrigation systems in Africa is up and irrigating on Illovo Sugar’s Kilombero sugarcane estate in Tanzania. The system measures 1 kilometre across, with two “arms” of 500m, traverses 2.5 kilometres and gives total irrigation coverage of 250 hectares. This technology saves water, reduces labour input, is able to produce the highest crop yields at relatively low capital cost, is flexible and offers superior water management with a 95% uniform water distribution.
According to Mark Zartmann of MBB Consulting Engineers who, through Kilombero’s Agricultural operations, authored an in-depth feasibility study into irrigation development options for Kilombero, this technology is relatively untried in Africa, though good results have been achieved over the last six years in Australia, which mirrors local conditions. The machine is available in many configurations, including extra high clearance of 4.2 m for the high-yielding sugarcane found in some parts of Africa. Essentially the linear or lateral irrigator has the same structure and equipment as a centre pivot, but it moves in a straight line rather than a circle. The most noticeable difference is the cart on which the pump and engine are mounted; this is fixed either to the centre or the end of the system. For the larger machines, which cover longer spans, water is drawn from a central canal and power is provided by diesel engines. MBB initially undertook an investigation into how irrigation, water management and drainage could be improved at Illovo’s considerable Kilombero sugarcane estate. They also handled the design and implementation of recommendations which were aimed at increasing sugarcane yields by an average of 20% in the long term. “With the linear irrigation system we feel confident that the average yield of 75 to 80 tons of cane per hectare (tch) can be increased by 15 to 20 tch, which exceeds the required increment,” comments Mark Zartmann. Linear irrigators have significant advantages over centre pivots: water application is extremely even and whereas centre pivots sometimes lay down more water than the soils can accommodate towards the periphery, a linear’s application rate can be selected to match the soil’s infiltration rate across the entire field. Linear systems are fed via a central or side channel which is cheaper and has a lower energy demand than pressurised pipe systems.
The larger systems are diesel driven, so there is no reliance on electricity which is erratic in many parts of Africa, including South Africa. The system requires a low labour input, saves water and has a lower capital cost per hectare than centre pivot. Conversely, the higher cost of diesel energy may be a factor against this technology. In the correct environment it is expected to offer, through improved harvests, a healthy bottom line profit which is the key to the success of any farming operation. According to Greg Ascough, Kilombero’s irrigation manager, the system is working well. “Linear irrigation machines are well suited to the topography and square layout of fields at Msolwa farm. The flat gradients are ideal for accurate wheel tracking and we have laid down gravel tracks to ensure a smooth run through the cane and to prevent wheels getting bogged down. The water supply is via open channels, which are particularly simple and cost effective. An above-ground alignment system has been used, which is more robust than the buried or furrow varieties.” The drainage system was re-designed and extensively improved using a 1:2 year flood base (as sugarcane can tolerate low frequency flooding). The Msolwa River running into the Selous Game Reserve was badly congested with fallen trees, debris and invasive vegetation downstream of the estate. So Kilombero obtained permission from the Game Reserve’s management to clear about two kilometres of the river in the game reserve of invasive vegetation. A good portion of the reach was cleared with noticeably positive results, despite a family of large crocodiles occupying a section of the river. “Subsequent results are good despite the recent exceptionally torrential rain,” Greg reports.
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 MARK SETTERBERG, Illovo’s national marketing manager sugar, and his son Mike enjoy fishing together, with considerable success. In April, Mike caught a very rare fish called a Prodigal Son (he is pictured holding it) in the Durban Ski Boat competition in which they fished as a team. It weighed 21,7kg and won 1st prize for the heaviest fish other than a 'Cuda. The prize was an off-road trailer/tent worth R55 000. The competition was held in very rough seas with swells of four metres. A sample of the fish was frozen at the request of a scientist at the competition and he then couriered it to Thailand for 'genetic mapping' - apparently adult specimens of Prodigal Son are hard to come by for research.
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ILLOVO Head Office has taken under its wing Cherith Home, which is actually a church converted to provide shelter for about 80–100 homeless people, from babies right through to the aged. The home is based in Phoenix and is run by Pastor Arnold and his wife after he felt led to assist the needy. They have given up their home to live with the homeless in order to assist with the day-to-day running of the home/church. This home is not government funded and hence is totally dependent on community assistance. The shelter is home to orphans, the HIV positive, the abandoned, raped & abandoned women and the elderly. The Arnolds provide sleeping quarters on a verandah/Wendy houses, as well as meals for all these people.
After discussions at the Illovo Ladies forum, it was decided that Illovo should support Cherith Home. A box was placed in the Illovo Head Office canteen in December 2009 and a project called “Illovo Cares” started. There was an amazing response in December with employees providing non-perishable food items, toiletries, cleaning materials, towels, bed linen, clothing, toys etc. A presentation involving employees and Illovo spouses was done and, needless to say, the joy could not be contained. One staff member gave a generous cash donation and MD Graham Clark’s daughter Angie provided school uniforms for all the children, the first time ever that they got to wear new uniforms to school. | | |
ABOVE LEFT: Ben Anirood and Vicky Harte sort through the Christmas box and (ABOVE RIGHT) happy faces as the Cherith children receive their new school uniforms. |
News - 3rd Quarter 2010
News - 3rd Quarter 2010
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THERE were many ‘stand-out’ moments for Illovo in 2009/10, moments of noteworthy importance, each with its own effects and influences. Among them were ( BELOW) the visit of two heads of state to commission the Zambia Sugar expansion; (ABOVE RIGHT) the significant influence of the 2010 Soccer World Cup on Southern Africa as a whole, and the event’s incorporation into the company’s group-wide Business Understanding Programme; and (ABOVE LEFT) the incorporation of the South African operation into a wholly-owned subsidiary of the group in order to maintain a profitable, stand-alone business. Each of these events, along with many others, is reported on in the June 2010 edition of the Illovo magazine, as captured below. |
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THE memories and images of 9 December 2009 have been indelibly etched in the history of Nakambala Estate. The President of the Republic of South Africa, His Excellency Mr Jacob Gedleyihlekisa Zuma, who was accompanied by his host and counterpart His Excellency President Rupiah Banda of Zambia, visited Nakambala Estate to commission the Nakambala Expansion Project. It was not to be an ordinary day as everything and everyone was prepared for the first ever double Presidential visit to the Estate. The advance parties, protocol teams and the high level of State security from both the Zambian and South African Governments, were visible from the break of dawn. Nothing was being left to chance! Both Illovo MD Graham Clark and Don MacLeod, the latter in his capacity as Chairman of Zambia Sugar and Deputy Chairman of Illovo, arrived at Nakambala around 09h00 after a very early departure from Durban International Airport. On hand to join Graham and Don were fellow directors Fidelis Banda and Ami Mpungwe, who had flown from Tanzania. The local management team led by Steve Langton was for good reason hoping all would go well with these and the day’s other very important guests, not to mention two leading African heads of state! The main event took place at the pristine Nakambala guest house grounds, a valuable property built during the expansion project to accommodate Nakambala’s ongoing stream of internal and external guests. A large white marquee had been erected to seat 150 people. The whole area had since the previous day been cordoned off by the joint Zambia-South African Presidential security. Entrance to the Nakambala guest house was only after sharp scrutiny from men in dark sunglasses and after passing through ‘metal’ detectors. Security was unprecedented. Outside the Nakambala Guest house was a large contingent of local people who had gathered to welcome the high profile VIPs. The air was pulsating with African drum beats, laughter and singing. This was indeed Nakambala’s day. Protocol and other considerations compelled the two Presidents to come by road to Nakambala Estate, 140km from Lusaka. The motorcade’s departure and expected arrival was as usual shrouded in secrecy for security considerations. Around 11h00 there were ‘suspicious’ movements among the security contingent and taking up of positions. It wasn’t long thereafter that blaring sirens were heard and our Nakambala security at the main gate alerted us that the Presidents had arrived. And they came in style and pomp. The cavalcade is certainly the longest ever to visit Mazabuka. Although for security reasons the cars in the convoy could not be counted, rumours of vehicles in excess of 80 are not an exaggeration. The two State Presidents, (Zambia and RSA), were now at Nakambala and make no mistake, security level was at maximum! Paramilitary police with AK47 assault rifles and plain-clothed police were everywhere. The presidential entourage included cabinet ministers, permanent secretaries, directors and senior civil servants from both Zambia and South Africa. The two Presidents were briefed on the Expansion Project by Don MacLeod and Steve Langton. After the briefing, Steve gave a PowerPoint presentation in the Training Centre conference room highlighting the milestones of the Expansion project. The Presidential entourage then proceeded to tour the factory and packing station. Then came the moment everyone had been waiting for – the unveiling of the commissioning plaque at the entrance to the Zambia Sugar administration building at Nakambala Estate. This was followed by a photo session around the plaque. The Presidential entourage proceeded to Nakambala Guest house for the speeches. Don MacLeod welcomed the visitors and spoke on behalf of Zambia Sugar and the Illovo group. He elaborated on the Expansion Project and thanked the Government of the Republic of Zambia for supporting the Company. He added: “We spent two years completing the project and are very proud of what has been achieved. We now have a world-class factory capable of producing in excess of 450 000 tons of sugar. The total project also included the planting up of more than 3 000 hectares of land and the development of dams, pump-stations and canal infrastructure. This has resulted in an estate which is now forecast to be able to produce more than 2.150m tons of cane (including Nanga Farms). The agricultural expansion consisted of the construction of 29.7km of canals, 36.8km of pipeline, 265km of roadways and 650km of pivot tracks for 60 new centre pivots (for irrigation). A total 80 000m³ of rock was blasted while more than 1.2 million cubic metres of soil was moved. It should be noted that portions of this infrastructure are also being utilised by our growers. The total project cost was R1.7bn. In addition, I am very pleased that our partners at Nakambala, the outgrowers, have planted the bulk of their portion of the expansion area amounting to 7 000 hectares of land to irrigated cane – a major achievement for which I congratulate them.” His Excellency President Rupiah Banda of Zambia in welcoming the visiting President to deliver his speech said: “I am particularly happy to be here because this expansion was being completed at the peak of the global economic crisis, and therefore safeguarding the livelihood of our people. Nakambala Estate is a hugely important company in the agriculture sector. Zambia Sugar is the largest source of sugar consumed by the country.”
His Excellency President Zuma said Zambia was a model country for investment, with a regulatory regime attractive to South African companies. President Zuma said: “It is therefore a great honour for me to be able to commission Zambia's biggest agriculture project, this sugar plantation here at Mazabuka, highlighting the R1.7bn investment by Illovo. We know that the current global financial and economic crisis and climate change will impact negatively on our countries. However, we should not allow this to result in further marginalisation of Africa." Both Presidents congratulated the staff of Zambia Sugar for the building and commissioning of the second biggest sugar operation in Africa. The agriculture and milling expansion was completed on schedule in April 2009. Other guests who witnessed the commissioning included traditional and civic leaders, farmers, members of the diplomatic corps (notably the British and South African High commissioners to Zambia), as well as Zambia Sugar’s partners. The event was extensively covered by both local and foreign media. In particular, the event received generous airtime on SABC TV. Report by Chisofu Mbula, corporate affairs officer, Zambia Sugar. | ILLOVO SUGAR’S MD Graham Clark (second from left) accompanies Presidents Jacob Zuma and Rupiah Banda on their tour of the factory.
| | AFTER unveiling the plaque – from left Lovemore Sievu, Graham Clark, President Jacob Zuma,
President Rupiah Banda, Steve Langton and Don MacLeod share a happy “mission accomplished” moment.
| | UNVEILING the plaque, from left are Chairman of Zambia Sugar and Deputy Chairman of Illovo Sugar Don Macleod, President Rupiah Banda of Zambia and President Jacob Zuma of South Africa.
| PRODUCTION RECORD NAKAMBALA’s 2009/10 sugar production of 315 043 tons sugar has been confirmed as a Southern African production record. Considering it was the first year after the expansion, this is a notable achievement.
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THE first tentative steps to set up the South African business as a wholly-owned subsidiary of the group commenced in earnest almost 15 months ago in line with the group’s overall objective to rationalise and consolidate this operation into a stand-alone, profitable operating entity.
What appears on the surface to be a simple transfer of assets and liabilities from the group to a new company, Illovo Sugar (South Africa) Limited (ISSA), belies the considerable amount of time spent by our own company specialists, along with lawyers, financial advisers, property experts, insurers and the like, in getting down into the finer detail. Needless to say the deadline was met and on 1 April 2010 the new company was consummated by way of an official signing session involving the key directors and witnessed by our legal partners from Garlicke & Bousfield (G&B).
 ABOVE from left at the signing are Wendy Jackson, corporate finance; Tim Desmond (G&B); Dave Howells, MD of ISSA; Jack Wixley (ISSA); Noel Pistorius (G&B); Illovo MD Graham Clark (seated); Andrew Pitts (Illovo property consultant); Gordon Knox (company secretary) and Jenny Kunst (G&B). | |
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NEW BOARD DIRECTORS |  TREVOR MUNDAY has been appointed as a non-executive, independent director of Illovo Sugar Ltd.
He has an extensive background of wide-ranging roles in financial and commercial management positions both in southern Africa and in Europe, culminating in the position of deputy chief executive of Sasol Ltd.
Since his retirement from executive roles at the end of 2006, he has become a non-executive director of various companies, including chairman of Reunert Ltd and a board member of the Absa Group. |  RICHARD PIKE (40), LLB, ACA, ATII, AMCT, has been appointed as a non-executive director, with effect from 28 January 2010.
He joined the British Sugar Group in January 2010.
Immediately prior to that, he was the group operations & finance director of Bridgemere UK Plc, and previously held senior positions in Manchester Airport Group plc, Scapa Group plc and Pilkington plc. |
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 A very proud day dawned for all at Maragra recently with the commissioning of their factory expansion project at the commencement of the 2010/11 milling season. Being on time and on budget was crucial from all points of view and Maragra delivered, as promised! The expansion doubles factory milling capacity to 150 000 tons of sugar per annum and the project success, against the background of a third consecutive year of record sugar production, holds much promise for the Mozambique operation. Pictured are the new "C" Continuous Vacuum Pan and Vertical Crystalliser.
MAPUTO’S GOVERNOR DOES THE HONOURS  THE governor of Maputo province, Her Excellency Mrs Maria Elias Jonas, visited Maragra on 12 May to conduct the official opening of the 2010/11 season at the newly expanded factory (expanded from 160 to 230tch).
The governor expressed her appreciation of Maragra and sent a message congratulating management on the high standard of the operations she visited, namely the cane fields and the factory. Her father was a cane farmer so she grew up in a sugar environment in Mozambique. She expressed an interest in spending some time on another occasion looking at the entire sugar production process in more detail. THE governor (fifth from left and standing next to GM Mike Buchanan) at the official opening of Maragra’s 2010/11 season. Note the height of the sticks of cane.
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 PHASE ONE of a major R1.5 billion factory expansion and co-generation project at Ubombo has been completed, with phase two scheduled for completion before the commencement of the 2011/12 season. The project will increase annual factory milling capacity to over 300 000 tons of sugar and significantly raise power generation capacity. The project is linked to the government-sponsored Lower Usuthu Smallholder Irrigation Project (LUSIP) which will facilitate the new development of an initial 5 000 hectares of land to cane under irrigation in the medium-term. Development of the first phase is underway, with planting expected to be completed during the year for harvest in 2011. The co-generation project will enable the factory and agricultural operations to become self-sufficient in electricity consumption and will export surplus power into the national grid. On the Right: The foundations for the new diffuser.
LUSIP’S FIRST CANE PLANTED  FOLLOWING the successful completion of the Lubovane dam and a major portion of the primary distribution canal system, the foundation has been laid for the development of smallholder schemes to supply cane for the Ubombo mill expansion. Bush clearing and irrigation infrastructure installation commenced in September 2009 for 880ha from 13 smallholder schemes. An important milestone for the Lower Usuthu Small Holder Irrigation Project (LUSIP) was reached in January 2010 when planting for the 880ha commenced. Excellent crop establishment is being achieved and a foundation for a good crop in 2011 and subsequent seasons is being laid. A total of 5 000ha is earmarked for planting in the medium term. THE cane is planted, irrigation in place, and the field is turning green . . . WHEN PRINCESS TSANDZILE CAME TO CHECK OUT THE UBOMBO PROJECTS FOR HERSELF UBOMBO’s MD Simon Cleasby paid a courtesy call in late October 2009 to the offices of Swaziland’s Minister of Justice and its Minister of Natural Resources and Energy, when he separately briefed these Ministers about the Ubombo factory expansion and co-generation projects. The Hon Minister of Natural Resources and Energy, Princess Tsandzile, as the Minister responsible for energy issues, had indicated then that she would like to appraise this project. On 11 March, she followed up with a visit to the Ubombo sugar mill, travelling with a 30-plus strong delegation consisting of princesses, princes, honourable senators, chiefs, members of parliament, Principal Secretary – Ministry of Natural Resources and some representatives from the Ministry of Natural Resources and Energy, and a delegation from the Swaziland Electricity Company (SEC) which included the SEC MD, Pius Gumbi. The visit began with a formal programme at the training centre which included managing director Simon Cleasby’s comprehensive presentation on the project. This was followed by a factory visit and ended with a luncheon at the Ubombo Country club. The Minister congratulated the MD on his great presentation. She said that during the initial presentation by the MD at her office, she had wondered whether or not the project would be a reality, and that she was now convinced that indeed it was a reality. She said: “I am sure we are now moving forward! The company has done us proud; it has put us as a country on the world map indeed!” She also applauded that there would be more employment opportunities for the Swazi nation and concluded that indeed “we are all looking towards the commissioning of the project, which is coming so soon!” Overall the Minister and her delegates were impressed with the amount of work that had been done at the factory as far as the project was concerned. As a parting shot she expressed the thought that due to the magnanimity and investment in this project, His
Majesty
King Mswati III would have to be the one who will officially open it. 
THE ministerial delegation that visited Ubombo Sugar, pictured with some of the Ubombo management team.
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MEREBANK and its sister distillery Glendale have received notable accolades from a variety of sources this year and both staffs are basking in the knowledge of a job well done and recognised. - INDIGO COSMETICS PARTNERSHIP AWARD  At a recent function in Cape Town, Indigo Cosmetics presented Illovo Sugar Merebank with a Partnership Award. Indigo, makers of Yardley products, is Merebank’s biggest customer in the personal care sector, ranks among the top five customers in the South African market and has achieved tremendous growth over the years. Merebank’s national sales manager Kevin Kavanagh is pictured (AT RIGHT) at the award ceremony with Indigo’s MD Susan o'Keeffe (left) and inbound logistics manager Carmen Marais. (AT LEFT) Jenna van Greunen (marketing administrator), Malcolm Ayers (operation manager) and Ken Naicker (operations controller) welcomed the Indigo Cosmetics award at Merebank.
 In congratulating Merebank staff, Kevin said: “We are the only supplier to Indigo to have supplied a critical primary raw material consistently without stopping their production for a period of over 20 years. Further, there has not been a single product quality issue during this period. This is a fantastic achievement made possible only by the committed attention to detail and communication of the Merebank staff.” - MONDE SELECTION At the annual international Monde Selection, Glendale’s Cape To Rio Cane Spirit was granted the International High Quality Trophy 2010 following three consecutive years of a Grand Gold or Gold Award. Glendale’s manager Isaac Zulu was invited to the closing ceremony in Wiesbaden (Frankfurt) on May 30-31 to receive the trophy. - ‘EXCELLENT SUPPLIER’
One of Merebank’s international customers, Alcosuisse, conducted a supplier evaluation for the year 2009 on quality, quantity and service and they were given an overall rating of 95.71% and placed in the Excellent Supplier category. Shaun Ramsunder, safety, health, environment, risk & quality assurance manager for Illovo Sugar Merebank & Glendale, took pride in conveying the news to staff members, with the words: “Congratulations and well done to all of us.”
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TECHNICAL expertise has long been recognised as a “must have” for us to maintain our competitive advantage in the world of sugar. To this end Illovo Sugar has been working with British Sugar over the past year in the development of what is called the British Sugar Technology Campus, scheduled to become operational from July this year. This is a technical training tool which is being implemented across the whole British Sugar Group. With substantial input from Illovo's Technical Services department, the training modules are designed to meet Illovo's requirements as outlined by our MD Graham Clark, which he says in relation to this initiative are "… to improve technical effectiveness at the operational level while at the same time having effective training in place for our new recruits and refresher requirements". 
Some fast facts:
What is the Technology Campus?
The Technology Campus is British Sugar Group’s online training and development system.
How does the Technology Campus work?
Employees can make use of the Technology Campus's resources in one of two ways. - Firstly, those with identified training needs can have access to a suite of online learning modules via the internet as part of their Personal Development Plan. Known as e-learning or internet-enabled learning, employees can work on their own at their own pace. - Secondly, the learning material can be used in tandem with more traditional “classroom” face-to-face learning methods, such as a group of employees with an instructor. Course material and documents can be used, for example, as hard copy material, or for PowerPoint presentations. Who is the Technology Campus for?
The training material is designed to develop and maintain technical skills for operators, apprentices, trainees, technicians, EITs, engineers and managers.
How does the Technology Campus fit in with Illovo's existing technical training?
The Technology Campus is a valuable supplement to our existing practices, such as on-the-job coaching, TOP training, Shukela Training Centre, etc.
What does the Technology Campus course contents cover?
Approximately 35 hours of modules are available, initially in English, but in due course in all languages of Illovo's countries of operation. Modules cover all the sugar manufacturing processes, such as Cane Preparation, Diffusion, Juice Clarification, Filtration, Evaporation, Crystallisation, Centrifuges, Sugar Conditioning and Refinery Operations. Modules for Agriculture will be developed later.
In addition to training material the Technology Campus will grow to become a central repository of intellectual capital such as technical documents, articles, presentations, etc. There will also be other learning resources such as discussion forums where questions and answers can be posted, Wiki pages, a glossary of terms, Frequently Asked Questions (FAQs) and troubleshooting guides.
What are the benefits of the Technology Campus?
There are many, including:
- Employees will have access to the best training material, developed by our own experts.
- Great flexibility – can be used individually or in a group, at work or at home, 24/7, and can be used together with other training methods.
- Reduced training time and spend.
- A valuable addition to our training tools, which Illovo has not taken advantage of in the past.
REPORT BY ROB GOLDMAN, GROUP HRD MANAGER
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 ILLOVO’S highly-regarded Manager-in-Training (MIT) Programme, a strategic tool for equipping the business with high-quality managers for the future, has at any one time approximately 60 graduate trainees participating from a variety of disciplines, for example accounting, engineering and agriculture.
Each MIT is assigned a mentor and each is required to attend the one-day Group Mentorship Programme, which is designed to establish common understanding and expectations between the parties, in order to give the best chance for a successful outcome to the Programme. The Mentorship Programme is run in all countries of operation, having taken place this year so far in Zambia, Malawi and South Africa. THE picture shows Dwangwa’s HR manager Jeromy Ngolombe welcoming participants to the Malawi Programme, facilitated earlier this year by group HRD manager Rob Goldman. To Jeromy’s right is Dwangwa’s GM Ken Tembo.
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 WITH Africa for the first time hosting the FIFA Soccer World Cup, Illovo could not pass the opportunity by of linking this year's Business Understanding Programme (BUP) to that momentous event!
There are of course many parallels between sport and business, between a successful sports team and a business that stays ahead of its competitors. With the theme “Finding the Net”, this year's BUP picks up on a number of these, for example the need for teamwork (being essential for success); playing by the rules to ensure safety and avoid injuries and not letting the team down by being yellow- or red-carded; and delivering results/performing (a team is as good as its results!). 
CAMERA, lights, action! MD Graham Clark in the new Moses Mabhida stadium gets ready for his part in the BUP video.
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 SHIRE Valley Agriculture Development Division in conjunction with Illovo Sugar Malawi organised a Field Day at Nchalo Sugar Estate to showcase what the Ministry of Agriculture and Food Security is doing in partnership with Illovo in the production of maize.
The theme was ‘Improving Food Security through sustainable partnerships’ and the event drew together officials from the Ministry of Agriculture, ADMARC, Illovo, private sector organsations, World Food Programme, traditional leaders from Chikhwawa, four honourable Members of Parliament from Chikhwawa
and the media. In the field the group was briefed by Nchalo’s agric manager Ignatious Majamanda, who said 116.5 hectares had been planted with the maize variety SC 627 and they were expecting 600 metric tons (12 000 x 50kgs bags) to be harvested. Principal Secretary II for the Ministry of Agriculture and guest of honour, Erica Maganga, said this was the fourth year Illovo had grown maize in partnership with the Government in line with the Malawi Growth and Development Strategy whose one key priority area is agriculture and food security. The 12 000 bags of maize would be sold in Chikhwawa and Nsanje districts.
News - 2nd Quarter 2010
News - 2nd Quarter 2010
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|  THE 2009 Sezela Downstream Agents’ conference was held from 19-24 July in Durban and at Champagne Sports Resort in the Drakensberg.
The agents’ conference is held every three years in South Africa and is always a very enjoyable and successful event which affords Illovo’s agents from various countries around the world the opportunity of gathering together and renewing relationships with the folk at Illovo as well as with one another.
The opening dinner was held at Makaranga Garden Lodge on July 19 and was attended by the Illovo executive, GMs, wives and agents. The next day, Monday July 20, the agents were taken on a farm visit and tour of the Sezela Downstream plant. On Tuesday they attended presentations at Illovo Head Office in Mount Edgecombe.
From Tuesday afternoon to Friday July 24, the conference moved to Champagne Sports Resort. Presentations continued through the week with the conference culminating in a very enjoyable Gala Dinner on the Thursday. Agents were then able to relax with a few rounds of golf, hikes and helicopter rides.
The following agents attended the conference: Michael Kruppa and Jing Li-Kruppa of Nature Chemicals, John Eaton, Eduardo Garcia of Quimidroga, Denis Perruchot of Arnaud, Steve Maybaum and Jon Myers of Harborchem, Jamie Chang and Edward Wang of Kingyorker, Minoru Morita and Charis Lewis of Sumitomo, Chris Doodewaard and Roger Jacobs of Peterson, and Henk Kwakernaak of KWA.
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MAIZE FOR THE ORPHANS
ILLOVO DWANGWA donated 20 bags of shelled maize to Tovwirane Community Based Organisation (CBO) for Orphans. During the presentation of the bags at Dwangwa Trading Centre, Tovwirane board chairman Mathias Mphande thanked Illovo management for the timely donation to the needy children. He said Tovwirane CBO had started in 2004 and now had more than 200 registered orphans, who meet once a week for various activities including educational lessons and feeding. The organisation still faced many challenges and Illovo’s support was appreciated. Jeromy Ngolombe, Dwangwa’s assistant HR manager, is pictured with some of the orphans and board members of Tovwirane CBO. |  | NOODSBERG AND NOAH JOIN FORCES FOR THE KIDS
ILLOVO Noodsberg has helped improve the quality of life for a number of orphans and scholars in the Trust Feed Area following an approach by a local branch (Ark) of the NOAH (Nurturing Orphans of Aids for Humanity) organisation. After a site visit with Dietmar Meyer, a Noodsberg grower and representative of the Inqola kaNoah board, Noodsberg assisted in compiling a project scope, project cost and fund motivation document to secure funding for the upgrading, improving and electrification of four old farmyard buildings into more comfortable school classrooms to house up to 220 children. Part of the project also entailed the installation of a pipeline to supply water to a large vegetable garden used for preparing hearty meals. Noodsberg staff were hosted by Inqola kaNoah at a morning function who showed their gratitude for the improvements with various speeches made by the principal of the Trust Feed School, the school inspector of the Trust Feed area, head of the Inqola kaNoah Ark and Dietmar Meyer representing the NOAH board. Proceedings where enhanced by a children's and adults’ choir. |  |  |  | | ABOVE LEFT: Dietmar Meyer (left) accepts the renovated buildings on behalf of NOAH from Noodsberg GM Eckard Lucht; ABOVE CENTRE: Improvements made to one of the classrooms; ABOVE RIGHT: Eckard with the children who use the premises for schooling. | | THERE’S HOPE IN THE VALLEY
 THE aptly named Hope Valley School is a farm school very close to Eston Mill on a farm owned by Mr and Mrs Stainbank. The school has a total of 74 children, four teachers and one volunteer and currently admits children from Grade 0 to Grade 9.
Illovo Eston and Project Build put together a building project, recently completed. Pictured (AT LEFT) are Eston management, Head Office invited guests, Hope Valley School teachers and Project Build management standing in front of the building (BELOW) that Illovo funded under its social responsibility code.
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| IN its element at the 83rd Lusaka Agricultural and Commercial Show, Zambia Sugar won three prizes. The theme for the 2009 show was “Challenge of Change” and the Illovo company walked away with 1st prize for ‘Best Overall Exhibitor’, 1st prize ‘Best Lusaka Stock Exchange Listed Exhibitor' and 2nd prize for ‘Best Export Promotion Exhibitor’. The show team included Christabel Banda and Jeremiah Banda, merchandisers who did a superb job at the model “Nakambala Supermarket” keeping the company’s product range display neat and attractive. Mubita Namushi was not to be outdone as he displayed his cane-cutting skills in the demonstration canefield at the pavilion. The Zambia Sugar theme was conceptualised and executed by N’gandu Felix Siakalima, Emmanuel Simwinga (agric), Chisofu Mbula (corporate affairs), Bonaventure Chisanga, Simonda Muyunda (factory), Samuel Mulambia, Matongo Matamwandi, Kaunda Manda, Ackson Tembo, Quentinoh Chanda, Evaristo Mubanga (marketing), Gilbert Chiyota and Pauline Inambao (HR). The team took the judges and visitors through the exhibition, explaining how Zambia Sugar was meeting the challenge of change in its operations. The theme was centred on the challenge of the global economic crisis as a major challenge to the business world. | 
ZAMBIAN President His Excellency Rupiah Banda shares a happy moment with Zambia Sugar marketing director Rebecca Katowa and corporate affairs manager Lovemore Sievu at the Lusaka showgrounds after he presented them with the trophy for Best Overall Exhibitor at the 83rd Lusaka Agricultural and Commercial Show. |
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AT the annual Lions’ Show in July, Umzimkulu mill’s Lions’ Show team, consisting of volunteers from all departments, constructed and manned displays relating to various aspects of the industry. These included a display of sugarcane pests and diseases, a working model of a vacuum pump and sealing well, a display on transport as well as Illovo products, including Crop Guard. All the displays were well received by the public and comments indicated they were informative and educational.
Judging the show were various local dignatories. Umzimkulu mill won three trophies: the best outdoor stand, best marketed stand and the best overall stand. | 
The working model of a vacuum pump and sealing well formed part of Umzimkulu’s winning display at the Lions’ Show. |
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A particular issue at Kilombero has been finding the right sort of overhead irrigation method to suit the existing square-based layout of cane fields on the estate. The problem is not so much the fields themselves, but the existing infrastructure such as roads, irrigation canals and drainage channels which would all have to be moved if a traditional centre pivot irrigation system were to be installed. Capitalising on Kilombero’s pancake-flat land, a ‘eureka’ moment occurred when someone suggested installing a linear irrigation system which, with much less uprooting of long-established agricultural infrastructure, could quite easily be adapted to Kilombero’s unique circumstances. Hence, work on this system began earlier this year and was commissioned in early November. In a single pass of 2.5 kilometres it irrigates 240 hectares of cane land. What’s more, by going straight, every conceivable square metre of land is utilised, unlike the ‘corners’ of centre-pivot systems. | 
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| KILOMBERO’S K2 C-Duty Pan No7 heating coil arrangement was replaced with a Calandria during the 2009 Offcrop and commissioned in July, with the project having only been conceived in November 2008 and CAPEX approved in January 2009. During the 2008/09 season the pan had to be taken out of service a number of times for repair. The Calandria was designed in-house by Illovo’s technical services. TS oversaw the manufacture of major parts in South Africa, and Kilombero assembled the Calandria with the assistance of mechanical contractor Rudi van Niekerk, and manufactured minor parts on site. Owing to the pan position in the factory, the Calandria was assembled next to the pan (including the welding of the tube-sheets) and slid into position after the pan was raised by the “pole” method. In addition to the new pan 7, a new condenser was fabricated in the K2 centralised workshop. Hylton Taylor and Grant Edmonds provided services from the TS team together with the Kilombero project team of Dadi Namtumba, Neal Gumley, Mike Gibson and Modest Sosthenes. Other projects were the increase in the size of the A Seed receiver from 15 cubic metres to 42 cubic metres to assist with the efficiency of the A pans, and the installation of the A crystalliser gutter and the reversal of the direction of flow across the crystallisers. | 
“The Team” in front of the converted pan. |
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KILOMBERO’S K1 factory (Simba Team) has been awarded by NOSA Richards Bay branch for being the best NOSA four stars company on the NOSA five star system. The award was issued on 15 July 2009 at K1 factory. With every reason to look pleased are (from left) Danson Masamo (process manager K1), Isack Magassa (mechanician packing station and union chairman), Josia Mgonja (risk manager), Seniwa Ntabole (safety officer K1), Nicholas Mgolozi (instrumentation and electrical engineer K1) and Timothy Tandika (production manager K1). | 
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| MARAGRA has been awarded a NOSA platinum 4 star in its pursuit of the NOSA integrated 5-star rating. In a recent audit, both the factory and agriculture obtained a 4-star platinum rating. In addition, the company also maintained the ISO 9001:2008 quality management system certificate. 
ABOVE is the Maragra agric team, (from left): Abicail Ndimande (trainee cane procurement supervisor), Luke Simbine (field manager:operations), Ray Ducray (agricultural manager), Luís Pinto Lourenço (agric workshop manager), Helena Chachuaio (SHEQ clerk), Narciso Chitlango (safety officer), Mark Jackson (agronomy and systems manager) and Dal Price Moor (cane procurement manager). | 
ABOVE: The factory team is pictured as they proudly display both the NOSA platinum 4-star certificate and the ISO 9001:2008 certificate. |
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| FOR the past three years, Nico Pretorius and António Matavele from the Maragra Angling Club have been volunteering to assist the Mozambican government in ensuring that the marine turtle population at the Calanga beach (32 km east of the Maragra sugar factory) have their environment and themselves protected. Their nesting sites are all GPS plotted and monitored. All data collected is forwarded to the Mozambican authorities. A seminar in this regard was also arranged for all the Angling Club members and at the local schools. Various educational pamphlets were also handed out to both schools and local fishermen along the beach. Pictured is a leatherback turtle on the beach with local villagers and maritime authorities. | 
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ILLOVO sponsored a team and the “leg” from Dwangwa to Likoma Island in the 2009 Lake Malawi International yachting marathon championship, won by South African couple Mike and Louise Goodyer, who beat 21 other teams in a hotly-contested six-leg marathon which saw others pulling out due to damage or injury. The champion couple donated their prize money of K80 000 to Cure International hospital, a Blantyre-based orthopaedic hospital for children. At the prize-giving ceremony at Makuzi beach, Mike Goodyer said they had participated in several yachting competitions in the world but the Malawi marathon was the toughest. The Illovo-sponsored team of Bouke Bijl (dubbed "achimwene” meaning “brother” by journalists for his fluency in Chichewa) and Erik Schouten collected the “most sailor” prize after spending the longest hours in the water due to a lack of wind. Minister of Tourism Hon Anna Kachikho presided over the prize-giving ceremony and thanked companies that had sponsored the marathon. | | THE Illovo-sponsored boat with sailors
Bouke Bijl and Eric Schouten. | ILLOVO (Malawi) MD Ian Parrott admires a gift of the map of Malawi which he received from chairperson of the organising committee of the yachting marathon, Sue Mennell. |
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| THE 2009 SA Sugar Association (SASA) relay race on October 9 saw a healthy gathering of the country’s sugar clans from all sides. There were 592 runners and walkers participating in 61 running teams and 116 walking teams on what proved to be an enjoyable afternoon.
The relay began and finished at SASA’s Mount Edgecombe headquarters, KwaShukela, with competitors finding the route less hilly and consequently easier this year. Illovo Sugar’s Head Office had 20 teams of walkers and 4 teams of runners on the road. The women’s teams The Shooters and The Angels took first and second spot for the walkers. | 
WALKERS and runners from Head Office look fresh, jolly and rarin’ to go before the start. |
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THE medical fraternity of Illovo Sugar, numbering 32 delegates from our six countries of operation, gathered for their annual conference in Nakambala, Zambia, on October 19. A fruitful three days of report backs and presentations culminated in a two-day trip to the Victoria Falls, from where most members of the party visited the Livingstone railway museum, while an intrepid four took to the waters of the Zambezi River below the Victoria Falls for a white water rafting adventure. ABOVE : Half-submerged in the watery rough and tumble are Riekie Leveson (Head Office), Tim Nunn (Ubombo), Pam Moxham (Sezela) and Petra de Lange (Noodsberg), together with the pilot and two American fellow-travellers (swamped in the front). Spare a thought also for the photographer, who preceded them in a small kayak and hopped off at suitable rocky spots along the way to snap them as they hurtled past, to give them a series of memorable pictures.
Photo: Courtesy SAF PAR |
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 ILLOVO recently acquired a 30% stake in the newly-established business entity which has purchased Gledhow sugar mill from its previous owners, Ushukela Milling. Illovo has also entered into a technical agreement to operate and manage the mill. Here Basil Govender, factory manager of the mill, shows off Gledhow's new name - another turn in the long history of this north coast sugar factory.
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News - 1st Quarter 2010
News - 1st Quarter 2010
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| | |  The management conference in the Drakensberg in September 2009 was the backdrop for the inaugural Illovo awards ceremony recognising areas of operational excellence across the group.
In formulating the initial concept and philosophy behind the awards, managing director Graham Clark said that there were many examples throughout the company where, comparatively, some operations would outperform others on an annual basis yet we had no way of recognising their achievements publicly within the group.
“Around the executive, we all felt that there was a need to celebrate our successes more which, aside from the accolade itself, would go a long way to promote and encourage best practice throughout the company over the longer term, and introduce some healthy competition into the various disciplines among our countries of operation,” says Graham.
Taking the five core performance areas of factory, agriculture, finance, marketing and human resources, the executive member under whom these responsibilities fell had the task of assessing performance in each country of operation and putting forward three nominations for the award. The winner was then adjudicated on by the full executive having considered the nominations. Graham says: “With all the evidence on the table, we were very pleased to announce Malawi as the winner for the 2008/09 season, of the Best Country Performance award”. The awards were presented by chairman’s wife Jeanette Williams and MD Graham Clark (see presentation pictures below).
The MD’s Award recognised the extra-ordinary achievements of a single operation, outside any of the categories listed above. There can be little doubt, despite a number of set-backs during the course of the project, that Zambia’s field & factory expansion to 450 000 tons of sugar is Illovo’s biggest expansion project to date, and required a special contribution from everyone involved in order to commence production on the scheduled date of 1 April 2009. At his discretion, Graham was first to congratulate Steve Langton and the management and staff of Zambia Sugar, including Paul de Robillard who has since been posted to Gledhow in South Africa, for bringing reality to a bold and complex expansion project.
Another innovation introduced at this year’s conference was an operational workshop where selected teams from like-disciplines were asked to look at specific issues in their fields, and to report their findings to the conference two days later.
The process was a revelation in itself and, as Graham mentioned in his wrap-up after the feed-back presentations, many of the ideas, proposed solutions to current operational issues and ways of achieving the best cost efficiencies would soon form the basis of a defined work programme against which future performance and achievement of objectives would be based. Said Graham: “If the successful implementation of just one of these ideas can save the group a million rand over the next year, then I believe this workshop has been a resounding success, and we must do it again next year.”
At the same time as the workshop was in progress, Sue Clark facilitated another innovation, bringing together the wives and partners by way of a Ladies Forum. The morning’s programme included presentations on estate living from some of the wives of country-heads and general managers, together with guest speakers who spoke on various topics. Out of the process comes a new newsletter, put together and edited by Wendy Moult and Ilma Lucht, for the purpose of staying in contact and helping to promote common ideas. Another success, and a definite for next year.
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Top left: Steve Langton with the MD’s Award won by Zambia Sugar, presented by Jeanette Williams and Graham Clark.
Top right: Dave Howells - Best Marketing Performance won by Downstream SA Operations.
Below left: Mike Buchanan – Best Factory Performance won by Maragra.
Below right: Ian Parrott receives the Best Country Performance award from Jeanette Williams and Graham Clark. He also took home the Human Resources Award won by Malawi and the Best Agricultural Performance Award for Malawi’s operations at Nchalo. |
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| |  Graham Clark took up the reins as Illovo Sugar’s managing director on April 1, 2009. ILLOVO magazine editor Wendy Vineall spoke with him after his first 225 days as the group’s managing director.
Question: You first became known in the Illovo Sugar group in 1997 with the Illovo Sugar/Lonrho Sugar merger, when you moved from being Lonhro Sugar’s financial director to Illovo’s operations (Africa) director. You are now 54 and Illovo’s Annual Report 2009 describes you as an Australian, Chartered Accountant {BAcct (Hons), FCA (Aust)}, who joined the sugar industry in 1980 in Malawi. Yet I believe you and your wife Sue were both born and grew up in Zimbabwe. What took you to Australia and what brought you back to Africa?
Answer: We were both born in Zimbabwe and grew up there, completing our education in Harare. We got married in 1979 and after I qualified as a Chartered Accountant we moved to Malawi at the end of 1980, to join Lonrho Sugar at the Nchalo estate. After 9 years with Lonrho Sugar in Malawi, the last four of which were spent as finance director of the Malawi operation based in Limbe, we emigrated to Australia for family reasons, with our three children – all born whilst we were in Malawi. I temporarily left the sugar industry whilst in Australia, converted my qualification to become an Australian chartered accountant and worked in the financial services sector for close on three years until I was reappointed by Lonrho Sugar to become group financial director of the Lonrho Sugar group based in Swaziland. We moved to Ubombo in 1992 and lived there for almost 3 years. We were then asked to move the Lonrho Sugar head office to Durban and we moved here in 1995. Question: Tell me about your family and yourself.
Answer: Sue is a psychologist currently completing her doctoral work for a PhD in neuropsychology. We have a son Rory (28) and two daughters Angie (26) and Anna (21), and our first grandchild, Angie’s son James, was born in January this year. I am a keen sports fan, used to play rugby, cricket, golf, tennis and squash and am a keen deep sea angler. I try to keep fit in the gym and by running, I enjoy good food and wine and spending time with friends and family. Question:You were an Illovo Sugar director for 12 years before being appointed managing director in April. What are your strongest company memories from those years? And what did you enjoy most at the time?
Answer: Firstly, I really enjoyed being in the operations with the people on the ground, at the coal face. The stand-out memories are of listing the company in Malawi in November 1997, the Maragra flood in February 2000 and the post-flood rehabilitation, and taking the first operations team into Kilombero in 1998. Also, I was appointed chairman of the commercial group of sugar producers from Least Developed Countries (LDCs) worldwide and in that role I participated directly in negotiations with the European Union (EU) regarding the reform of their sugar regime. I had the opportunity to address the European Parliament on sugar matters – seeing yourself translated into 21 languages simultaneously is an experience! I participated as a representative on the LDC lobby team, travelling around Europe meeting with EU Ministers and parliamentarians to try to help shape the final EU sugar reform and its market access arrangements for LDC sugar producers. This culminated in us enjoying duty free, quota free market access to the EU from 1 October 2009. Question:And, following on from that, what for you have been the most significant events in those 12 years?
Answer: Being in the background helping (former MD, now deputy chairman) Don MacLeod grow the group, notably with the simultaneous disposal of the Mauritian business and acquiring the Zambian business in 2001, the ABF (Associated British Foods) group becoming our majority (51%) shareholder in 2006, then the negotiations to conclude an investment promotion and protection agreement with the Zambian Government to pave the way for our Zambian expansion which was completed earlier this year. Question: What have been the biggest adjustments for you personally since taking on the position of managing director?
Answer: Realising that suddenly the buck stops here. I have had to accept that I have to make the final judgement in a lot of things, whereas before I was part of a team that made recommendations to Don, and then he did what I have to now! Being the public face of the group when it comes to the Press, financial analysts and the investment community. Interacting with ABF and the British Sugar Group (BSG), attending ABF board meetings by invitation and being a member of the BSG board. Question:And what have you enjoyed most this year?
Answer: What I have enjoyed most is progressing the Illovo strategic plan, which has included progressing our expansion plans for the group and raising R3 billion in new capital to fund our expansion. Question: Do you have a philosophy that guides you in your business dealings and possibly also in your personal life?
Answer: Honesty, ethics and integrity. If you display these traits, then those are what you get returned and certainly this is what I expect from the members of the Illovo executive and our management teams. In my personal life? I tend to be quite reserved and pretty private, not too keen on being in the limelight. Question:What do you like best about the Illovo Sugar culture and the group’s way of doing things?
Answer: If we set ourselves a task, we generally achieve it successfully and we go out of our way to succeed. I also enjoy engendering the Illovo family and team spirit. Question:We live in changing and uncertain times. What do you think are the major challenges facing Illovo Sugar (a) in South Africa and (b) in other African countries?
Answer: There are challenges in terms of the difficult financial and economic conditions brought about by the recent global financial crisis but these have been well managed by the group, culminating in the success of the recent rights issue in which we raised fresh capital of R3 billion for our expansions. But, you have to be on your guard and not lulled into a false sense of security - the way things have been done globally in the past is not the way they are going to be done in the future. Our major challenge in tough economic and financial circumstances is to bring home all our planned expansions. The pressure on delivery is massive, for everybody. So, in South Africa – the challenge is to consolidate and sustain our business against a background of declining cane supplies and the very strong rand. Out of South Africa – delivering our planned expansions. Question:How confident are you of future prospects for the company?
Answer: Given that we can deliver our expansion plans and that we maintain our position as being amongst the lowest-cost and most efficient sugar producers in the world, there is no reason why we can’t deliver the results that are expected of us. We have got the people and the teams on the ground to achieve what we set out to do, we have a very supportive Board and we enjoy the backing of a strong controlling shareholder in ABF. If you put all that together you should be fairly confident of being able to achieve what we set out to do. | |
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| |  An exciting development is that Crop Guard, the Illovo-developed environmentally-friendly nematicide, is centre-line at the new Moses Mabhida Stadium in Durban where it is being used to combat nematode infestation of the soccer pitch which will be used in the 2010 World Cup soccer spectacle.
 Crop Guard, made from furfural produced at the Sezela downstream plant, is a registered nematicide developed by Illovo for use on several agricultural crops, together with turf. Crop Guard acts to combat nematode infestation – these are microscopic eel worms that attack the sub-surface root structure of plants and, aside from impacting significantly on the produce of the crop itself, can also lead to plant mortality.
As such, the World Cup 2010 has presented Illovo with an ideal opportunity to showcase the benefits of this unique product. Well away from prying eyes, at a “secret” location north of Durban, Crop Guard was applied to the vast stretches of turf being specially cultivated for the stadium. At the right moment, all of this grass was translocated – en masse – to its new home where it is now well established. Such has been the success of this project that Illovo is now working with the stadium turf maintenance team to include Crop Guard in their ongoing maintenance programme.
And, in a further development, the product has also been earmarked for use on the adjacent People’s Park Stadium, with other designated World Cup stadiums around the country expressing a keen interest for Crop Guard’s inclusion in their turf and nematode management regimes. | | |
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| | | MD Graham Clark has re-inforced a group-wide initiative to enhance workplace safety at all sites and across all operational disciplines within the group. The overall aim is to ensure that Illovo complies with the best international workplace safety standards.
Says Graham: “In addition to internal measures and procedures which we are currently putting into place, all operations must revisit their own existing policies, procedures and standards, with senior management at each operation in particular being at the forefront of the drive. It is up to you to set the safety tone in the business – allowing people to ignorantly walk past safety hazards is just not good enough; you must do something about it, you must drive safety performance.”
A particular area of priority is vehicle safety, as so many of our daily activities – often in remote areas and where there is little supervision - require the use of motorised transport, in some form or another. It is our joint responsibility to ensure that our licensed drivers regularly attend refresher courses, that they are supervised and that the necessary controls to enhance driver and passenger safety are put into place.
“In order to achieve our group objectives, the Illovo Board has set aggressive safety goals which must be attained. No matter your responsibility nor where you work; in all things you do, it’s ‘Safety First’,” says Graham. | | |
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| | |  Land under cane owned and managed by Illovo at Zambia Sugar’s Nakambala operation recently took a big jump upwards, to around 17 000 hectares, following the acquisition of a majority stake in Nanga Farms which is in close proximity to the factory. And it does not stop there. Combined with the completion of all remaining cane expansion areas, due to be undertaken over the medium term, this number increases by almost 500 hectares. Put into perspective, this equates to around 11 600 soccer pitches of the same size that FIFA will use for next year’s Soccer World Cup in South Africa – a fair number by any standard. But Hans Veenstra (at left), agricultural manager at Zambia Sugar, is keeping his eyes on the cane, not the soccer balls!
NAKAMBALA MEASURES MILESTONES IN FIELDS AND FACTORY  The expanded Zambia Sugar’s agricultural operations are leading the Illovo group in two very important performance parameters:
- Tons cane per hectare of 133.4, and
- Tons sucrose per hectare of 19.1.
Two other important milestones took place recently: - The Nakambala factory passed the 2 million tons cane crushed mark on 1 October (the previous full season record was 1 893 608 tons in 2005);
- The Nakambala Estate reached the 1 million tons cane delivered mark, also on 1 October.
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| | THREE CABINET MINISTERS VISIT NCHALO 
Three Malawian cabinet Ministers, Hon Ken Kandodo, Minister of Finance, Hon Eunice Kazembe, Minister of Industry and Trade, and Hon Grain Malunga, Minister of Natural Resources, Energy and Environment, visited Nchalo Sugar Estate on 25 August. Illovo Sugar (Malawi) MD Ian Parrott gave a presentation on, among other things, the Illovo Group ownership structure, Illovo Malawi’s operations and the company’s contribution to the national economy and society. The Ministers had a discussion with Illovo management on the sugar industry and later toured the packing station, one site of centre pivot irrigation and the site of the trial green cane harvesting. They also visited Nyala Park. PARLIAMENTARIANS TAKE THE NAKAMBALA TOUR  Nakambala Estate hosted the Zambian Parliamentary Committee on Economic Affairs and Labour on 20 July. The committee was represented by five members (Hon Charles Kakoma MP, Hon Given Lubinda MP, Hon Christopher Mulenga MP, Hon Douglas M Siakalima MP and Hon Forries R Tembo MP). They were accompanied by S Mutambo from the office of the Clerk of the National Assembly.
The delegation was met at MRI (Maize Research Institute) by agric manager Hans Veenstra and corporate affairs manager Lovemore Sievu and taken on a tour of the agricultural bulk water infrastructure and selected fields and as well a full factory tour with Stanley Munsamy (operations director). The party then lunched at Nakambala House with members of the Zambia Sugar senior management team, Mazabuka District Commissioner, the Town Clerk and police chief.
Presentations then followed at the Nakambala Training Centre. Zambia Sugar MD Steve Langton spoke on the expansion, with Hans Veenstra taking on the agricultural aspects, marketing director Rebecca Katowa the company’s marketing model and export opportunities, and Lovemore Sievu finishing with a presentation on its corporate social responsibility, followed by a question and answer session. The visit ended with the parliamentarians thanking Zambia Sugar for the opportunity given them to appreciate the company’s operations and especially the completed expansion project. | | |
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| | |  “Sugar to the People”, a project launched in QwaQwa, South Africa, on 26 September, aims at creating job opportunities for the sale and distribution of sugar within an impoverished rural community.
The concept is that sugar is taken in unique mobile 250kg silos to the people who can’t afford transport and is sold in small quantities. Quantity is measured volumetrically, dispensed from bulk into the consumer’s own container, thus saving on packaging costs, and at lower prices, as small packs usually cost more in store. Hence the concept of ‘more for less’ was established.
The National Development Authority (NDA) has recognised the potential in the project and satisfied itself that it meets two key criteria of poverty alleviation and job creation. Their requirements included the mandate that no single individual would be enriched and so a co-operative called “Tizza Foods Co-op”, consisting of 10 members from the local community, was formed. Once satisfied that the project was not a vehicle used by a large business (Illovo) to find a cheap route to market, they agreed to a grant of R1m for Tizza Foods, subject to specific milestones being achieved.
Illovo has assisted Tizza Foods with their application to the NDA by helping with business plans, developing a supply chain, assistance with marketing and pricing decisions and generally supporting them in areas where their business skills were lacking. The NDA, however, is clear that the success of the project rests with the members of the co-op.
 The origin of the Sugar to the People concept goes back to 2003 when the initial silo was designed to make use of Illovo’s Germiston bulk depot, which would have limited the project to townships and excluded needy rural areas. The design then evolved to make use of 1ton bags, which were available nationally but proved unsuitable for easy decanting. Finally, a half-ton mobile silo using a custom-built trailer was developed and prototyped.
From the outset one of Illovo’s emerging customers, Thapelo Mokoena, was convinced the project had application in his home area of QwaQwa, where the needs were great. Thapelo and Mark Setterberg together developed the concept, the “Sugar to the People” brand, business plans and undertook field trials during the past 12 months using a prototype silo and trailer. This silo has now been improved in design, reduced in size to 250kg to keep the cost down and Tizza Foods has now taken delivery of six silos and two trailers.
Each trailer is used to re-locate three silos every morning to a designated site, using local knowledge of where the community needs are greatest, and returned to a warehouse later that day for safekeeping and cashing up. The next day a new site is selected, thereby covering the entire community. By sourcing Illovo sugar from the local wholesaler the supply chain is fully inclusive, flexible and low cost.
 The latest innovation is the Sugar Barrow, significantly more affordable for would-be vendors, robust and extremely mobile. Both silos and barrows offer the distributor and vendor the possibility of expanding their product range, thereby creating more jobs and providing other staples at more affordable prices.
Illovo is aware this project is not intended to increase sales of sugar significantly. However, for those who were at the launch, it was heartwarming to see how much the community of QwaQwa appreciated the efforts of Illovo to help them and the sense of hope this project brought to the community. | | |
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| | | The official opening of the 155 million m3 Lubovane Dam in the Lower Usuthu area of Swaziland took place on March 27, 2009. The opening of the dam and associated canal systems and infrastructure by King Mswati III of Swaziland was attended by Government Ministers, traditional leaders and dignitaries representing SWADE (Swaziland Agricultural Development Enterprise) and Ubombo Sugar personnel, involving agricultural international financing agencies and private enterprise in Swaziland. The dam is an off river storage facility, supplied by water from the Usuthu River via a feeder canal. It is designed to supply irrigation water for 11 500 hectares of irrigable land in the Lower Usuthu basin. It forms part of the Lusip project, which is aimed at assisting with poverty alleviation in this area, by facilitating commercial irrigated agriculture for smallholder farmers. At least 5 000 hectares of this area is planned to be developed under sugarcane from smallholder farmers by 2015/16 to supplement cane supply for the 410 to 500 tch (tons cane/hour) factory expansion, co-generation and offcrop refining project at Illovo Sugar’s Ubombo Mill. The cost of the dam and infrastructure associated with bulk water supply was approximately R1.6 billion, 60% of which was funded by the Government of Swaziland and the balance by seven international financiers. | 
| King Mswati III of Swaziland (centre front), the Minister of Agriculture Clement Dlamini, SWADE Board of Directors and dignitaries at the official opening of the Lubovane Dam. | | | |
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| | Illovo sugar is pleased to report that the Ubombo factory expansion and co-generation project in Swaziland has been approved and has commenced, with equipment orders already being placed.
The project provides for an increase in sugar production from 230 000 to in excess of 300 000 tons per annum, together with an increase in power generation capacity utilising biomass as supplementary fuel for the factory boilers.
The project is linked to the completion of the Lubovane dam and canal system sponsored by the Swaziland Government, which will facilitate the new development of some 5 000 hectares of land to cane in the medium term. The development of the first 885 hectares of land to irrigated cane has started and will be completed this season.
The power plant will enable the factory and estates to become self-sufficient in electricity consumption. In addition, agreement has been reached with the Swaziland Electricity Company to supply power into the national grid for 48 weeks of the year. Ubombo is seeking to earn carbon credits through registration of the co-generation project under the Clean Development Mechanism.
The entire project will cost R1.510 billion and is due to be commissioned in April 2011. | | |
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Phase 2 of the Maragra factory expansion is taking shape with construction having commenced on site. The coming offcrop period promises to be a busy one with the maintenance of the factory running in parallel with the expansion project. The project overall will result in a doubling of Maragra’s capacity to 150 000 tons of sugar, processed from additional sugar cane provided in the main by new outgrower cane developments. Phase 2 of the expansion comes after another good year at Maragra during which the factory has operated at consistently good throughput levels with an excellent overall recovery. | | |
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| | With 1st April 2009 the most important ‘day in the life’ of Zambia Sugar – the factory start-up date after a massive and complex expansion programme to double its capacity – many not involved with the project details will have given little thought as to what happens to all of the additional sugar production.
Even though Nakambala is not yet producing at full capacity, its production of around 350 000 tons this season is still 100 000 tons more than it has ever produced. While much has recently been done to improve domestic and regional market offtake, these two sectors are singularly unable to take up all the additional sugar produced.
Enter the European Union (EU) market which, as of 1 October 2009, has opened its borders to duty and quota-free sugar exports from Least Developed Countries (LDCs) and African, Caribbean and Pacific (ACP) sugar-producing countries. It is to this region that Zambia Sugar’s produce, existing and new, is being sent, alongside ongoing exports from Malawi, Swaziland and Mozambique.
To say that the sugar logistics teams at Nakambala itself and in Durban have been busy, is an understatement – but to date, despite the difficulties involved, not a grain of sugar (well, hardly!) has been lost in the process.
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Most of the sugar being exported to the EU leaves out of Beira in Mozambique. The first raw shipment was loaded in June 2009, on board the MV Costis (LEFT). The Zambia sugar was co-loaded with sugar from Nchalo in Malawi to make a total loaded tonnage of 23 500 tons. | | | |
News - 4th Quarter 2009
News - 4th Quarter 2009
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Noodsberg has implemented a number of plant modifications to enhance food safety, reduce sugar contamination risk and achieve its HACCP accreditation. Clockwise from below left the photographs show the results: Protective covers sealing the wet sugar conveyor which conveys final refined sugar to the dryer; enclosure around the FAWEMA packing machine to protect the prepack range during filling operations; covers across the grasshopper conveyor receiving refined sugar from the centrifugals; a new ablution block, locker and eating facility for packing staff; and a handwashing station to reduce sugar contamination risk by packing staff during filling operations.
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Illovo Sezela has donated a brand new Toyota Hilux bakkie to the Umdoni Vulamehlo HIV/AIDS Association, a non-Governmental organisation founded by Maureen Oxfield in 2004 after seeing the devastation of the rural community from the HIV/Aids pandemic. It services both the Vulamehlo and Umdoni municipalities, a radius of about 80km. With no government funding, this team has a complement of 20 people - which includes a nurse, coordinator and caregivers - and they also have 21 volunteers. Currently they are looking after 926 very sick patients and 200 orphans. Dr Palmer assists with fund raising. They provide home-base care to both patients and families of the very ill patients who are not able to take care of themselves, assisting with treatment and food and spiritual healing too, with Pastor Tobias Mkhize a member of this dynamic team. They also started a subcommittee called “Men to Men”. Their vision is to educate as many men as possible on HIV/Aids and empower them to speak and conduct talks in the communities they live in. Before Sezela donated the bakkie, the association had only two vehicles, which enabled them to visit the community once every two months. Now they are able to visit and check on them once a month. What are friends for? Sezela’s Gretta Nhlangulela (senior HR officer) (left) and Collin Gwala (HR manager) (right) shared the joy of giving with members of the Umdoni Vulamehlo Aids Association when they handed over Sezela’s gift of a brand new Toyota Hilux bakkie for their work with HIV/AIDS-affected communities. The association’s members are (from second left) Elija Mzobe (project manager), Nombuyiselo Ncayiya (facilitator), Pastor Tobias Mkhize (executive member), Zama Mkhize (driver) and Thembi Mkhize (social worker). At left: Signage on the bakkie that helps lighten a heavy load.
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 The industrial and the agriculture departments at Sezela have combined their resources in an operation which excavates sediment from the clear water recovery plant to use as a fertiliser supplement on the surrounding cane fields. It’s a win-win project – and it also saves money.
Further, it is in line with the focus of creating and sustaining a competitive advantage for Sezela’s customers through the manufacture of natural products from a renewable source.  The sequence begins with the scrubber water which carries ash and sand from the Sezela factory’s boilers and is pumped up to a sediment dam about 2 kms inland. The ash and sand settle and the water is drained off the top dam by manholes and large stone drains buried in the sediment. It is then collected in a coffer dam – the clear water dam – about 22m below the sediment dam. The clear water is then returned by gravity feed pipeline to the sugar factory for re-use in the process.
 The sediment left behind comprises mainly soil/sand that was processed with sugarcane delivered to the factory, ash and biological and chemical products that settle from the factory waste water in the sediment dam. It has the appearance of black sand and it contains plant nutrients.
Using the sediment as fertiliser on surrounding canefields has a threefold effect: - It will extend the lifespan of the top sediment pond and realise cost savings, provided enough sediment can be excavated and spread on nearby fields economically on an annual basis. The first phase of the project involved the excavation of sediment and the annual maintenance on the plant. Had we not excavated, it would have cost extra money just to raise the drains. Considering that we also created more available capacity, it was a very cost effective solution.
Thanks to the well-managed team of tractors and trailers supplied by agriculture reporting directly to Dudley Daniel, section manager Sezela farm, we were able to achieve this cost-effective solution. For this first phase of the experiment, 12 425 m³ of sediment was removed, leaving the large hole which can be seen in the photos. - The lifespan of the top sediment pond could be extended well past its current 20-year horizon, eliminating the medium-term need to establish a new site once the current plant has reached its maximum capacity. This also reduces pressure on the environment.
- The agronomic benefit of the sediment lies in plant-available silicon which promotes healthy sugarcane leaves and improves the plants’ resistance to Eldana borer. Other important plant nutrients, contained at low levels in the sediment, supplement the normal fertiliser programme. Report by Lawrence Pratt (civil services manager), with assistance from Tom Hinett (management services manager) and Edgar Bruggemann (agricultural manager), Sezela.
Top: The big hole left after the sediment had been removed. At left: The sediment on the canefields, as fertiliser. Below: Agric’s tractors and trailers load and remove the excavated sediment.
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 Mooka Akapelwa Silumbu, human resources & administration manager at Zambia Sugar, is from the Lozi, the Zambian tribe that celebrates the annual Kuomboka traditional ceremony of the Lozi people of Western Province in Zambia. Below he shares with us his experiences and significance of the Kuomboka ceremony.
Born in Mongu, the epicentre of the Kuomboka ceremony, Mooka last attended it in 1974 as a boy at Lealui Primary School. So the 2009 Kuomboka was the first time he attended as an adult. Mooka says the Kuomboka is for him more than just a ceremony. As a Lozi, he feels duty bound to protect his tradition in a world where tradition is disappearing. His family practises ‘Kuomboka’ every year at a family level, moving from one village in the flood plain to the other on the high land. Mooka’s family also has a long history of royal duty. His great grandfather was the Prime Minister (Minyolui – owner of Barotseland) of the Barotse kingdom during the reign of King Lewanika and he was the leader of the Lozi warriors during the tribal wars when the stronger tribes conquered the weaker tribes, claiming their animals and wealth. Mooka’s great grandfather led the Lozi warriors in battle against the Tongas of present day Southern province. This campaign earned him the name Silumbu Muyasani (foreigner/one who stabs) from where Mooka gets his surname. However, instead of breeding hatred, the wars produced a “cousinship” between the Lozi people and the Tongas as well as other Bantu-Botatwe groupings (Ila and Lenje) which still exists in present day Zambian society. Another of Mooka’s grandfathers, Tawila, a renowned scholar of his time, was the Minyolui during the reign of King Yeta. Mooka says this year’s Kuomboka brought feelings of the prodigal son’s return home. His family took him in a dug-out canoe, and paddled alongside the Nalikwanda (the king’s royal barge) all the way from Lealui (the lowland) to a few kilometres before Limulunga (the highland). He later joined the crowd at the harbour who were anxiously waiting to welcome the Litunga (the King). Five of Mooka’s family members were paddling the Nalikwanda - a great privilege and the dream of any Lozi male. It was also a moment of pride to see his company, Zambia Sugar, as one of the corporate sponsors of the Kuomboka ceremony. Zambia Sugar has been part of the Kuomboka for a long time. This year it provided a ton of sugar, used to sweeten the traditional brew Ilya, financial assistance and branded T-shirts. This support for the Kuomboka cheers the multitude of cane cutters at Nakambala who hail from the Western province. At the time the Kuomboka takes place in April most of them are in Mazabuka missing out on the ceremony, so Zambia Sugar’s participation gives them a sense of contributing to the Kuomboka indirectly. Mooka’s favourite and the most important part of the Kuomboka is the docking of the Royal Barge, the Nalikwanda, at Nayuma Harbour in Limulunga. At this stage the beat of the royal drums (the maomas) reaches a crescendo - each beat rhythmically bringing joy to the onlookers, but seemingly beating in tandem with each Lozi traditionalist heart. Initially there is a mock docking of the Nalikwanda which is simply hilarious - the paddlers put up tremendous, stupendous performances to entertain the crowd. Mooka says: “Oh boy, one must be there to believe it!” The women sing “Tamboka Limwene” (“Welcome King”); “Mumbwe tumuka tukumone” (“King come out of the barge for us to see you”) and other traditional songs. This welcoming and wooing of the Litunga (the king) to come out of the royal barge, so that his subjects can see him, is simply classic. The Royal Highness, the Litunga’s, majestic stepping out of the royal barge is a wonderful moment. Mooka feels that traditional ceremonies like the Kuomboka are the mainstay of any culture, a form of cultural identity for every tribe and a firm foundation of cultural heritage. What did he take away from the Kuomboka? He says: “I left appreciating how Zambians support each other. The Kuomboka was not only attended by the Lozis; even traditional chiefs from Northern and Luapula provinces of Zambia graced the occasion. To me this is a unifying factor of the Zambian people.” And his resolve after this year’s ceremony is never to miss any future Kuomboka.
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 Sicebile
Gordon Malangabi Crawford
(Publisher: Reach)
“Sicebile”, a ground-breaking book published recently about Swaziland’s material culture, was authored by Gordon Crawford, Ubombo’s steam and power generation engineer.
The word “Sicebile” has its roots in the Swazi word for treasure and its meanings include “We are rich”, “We have treasure” and “We are blessed”, usually used in the context of family. Gordon, born Charles Gordon Crawford in Bulawayo, Zimbabwe, in 1954, has lived his whole life in Africa, always in close proximity to the various Nguni peoples of Malawi, Zimbabwe, South Africa and Swaziland. In Swaziland he is known by the name “Malangabi”, which was given to him when he joined the Inyatsi regiment of traditional warriors – a singular honour. The name means “a bright smokeless flame”. Gordon says his love for African artefacts started as a child “when I used to visit a blacksmith and a woodworker in rural Malawi and spend hours watching these men produce beautiful barbed arrows and other items.” In 1989 with his wife Judy he moved to Ubombo Sugar as a mechanical engineer and here they have raised their four sons. Continuing his interest in African artefacts, he was amazed to find that, while Zulu traditional art was widely written about and sought after, the art of the neighbouring Swazis had been largely ignored.  “It has been my experience that even the most knowledgeable Swazi traditionalist knows less than about 20% of the items described in the book because of their scarcity, plus that many are restricted to certain areas and are unknown outside those areas,” he says.
“Sicebile” is thus the first book ever to reveal the artefacts and beaded clothing of Swaziland’s rich heritage. Gordon has spent twenty years in research, visited related tribes in seven African countries and collected thousands of cultural items. He has interviewed numerous elderly people to get their viewpoints, kept detailed notes of provenance (place of origin, history and record of ownership) on all items collected and commissioned experienced craftsmen to show how various items were made. The result is a comprehensive, well-paced and constructive book in which the Swazis are given a chance to speak for themselves and tell their own story about their material culture.
Requested by the curator of the National Museum to write the book, which took almost six years in planning, Gordon received much encouragement from various African art experts to write it, such as Professor Karel Nel of Wits University, Dr William Dewey of UCLA and Dr Michael Conner of ArtConsul in America, as they also realised the great need to document these items before they disappeared. “I trust that now a full appreciation of Swazi traditional art will be experienced by both Swazis and foreigners alike,” Gordon says. Note: The book can be purchased at all bookstores and giftshops in Swaziland. In South Africa it is available at
Clarke's Bookshop, 211 Long Street, Cape Town 8001 and
internationally it is available on the Internet at EBay, where a search for "Sicebile" will reveal it. Illustrations of the Swazi cultural heritage include the back of a beaded mirror, a beaded snuff gourd, a headrest, a three-legged pail 33 cms tall and an imposing headdress.
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At Ubombo Sugar, the theme for World HIV/AIDS day was “Stop AIDS Keep the Promise”, with a slogan of “Lead, Empower and Deliver”. It started with a march from the main gate to the Mayaluka community hall, where participants were reminded of the promises made during the 20 years the country has had to deal with the pandemic. In these 20 years, the King of Swaziland declared the disease a national disaster and that “yindzaba yetfu sonkhe” - “we are all involved”. The youth pledged to delay sexual activity until the right time. The HIV negative groups pledged to remain negative for the rest of their lives by abstaining, being faithful and using condoms all the time. People who tested HIV positive promised not to spread the virus and to adhere to medical advice, while those on ART (anti-retroviral therapy) pledged to remain on treatment for the rest of their lives. Ubombo Sugar, as a business, promised not to ignore the situation and continue with business as usual, but got involved in assisting in the alleviation of the impact of the disease. The company has a vibrant Peer Educator System and a well-managed wellness programme in place. As further assistance the company is, on behalf of the Ministry of Health of the Government of Swaziland, distributing and managing the distribution of anti-retroviral drugs (ARVs). As a result of the activities on the HIV/AIDS day, a support group has since been formed for all people living with the virus. The formation of the group was a ground-level approach as it was initiated by employees who are already HIV-positive. The group meets once a month and has the company’s full support.  |  | | Ubombo's employees display their banner before the start of the march. | Getting ready to “walk the talk” are Khanya Dube (operations manager), Anthony Domleo (agricultural manager) and Oswald Magwenzi (agric development manager). |  |  | | John Hulley, acting Ubombo MD at the time, learns about “eating like a robot” – red, orange and green foods. | Bongani Dlamini, a peer educator, makes a presentation. |
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 A new 30 t/h (tons per hour) sugar drier (pictured) and a new 50 kg bagging plant were installed and commissioned at Ubombo in 2008. The new drier enables Ubombo to produce VHP sugar of improved quality, thereby meeting specific customer requirements. During the latter half of the 2008 season, utilising the new installations, Ubombo has already produced direct consumption VHP sugar and a new VHP sugar bagging size of 50 kg VHP Sugar. The project was completed well within budget with various cost savings incurred from Ubombo staff initiatives. |
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 European Union Advisor for Agriculture and Food Security, Raniero Leto, hands over grant agreement documents to the Chairman of the Shire Valley Cane Growers Trust, Dr Eric Chilembwe (centre). Looking on (right) is the managing director of Illovo Malawi, Ian Parrott. Included in the wide-ranging support package was a €2.55 million grant to the Trust for the expansion of Kasinthula Smallholder Scheme to phase III, ultimately benefiting 220 smallholder cane farmers. Kasinthula small growers send their cane to Nchalo sugar mill. |
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|  Results of the annual game count in Nchalo Estate’s Nyala Park in September show the park is home to 10 different large mammal species, with Nyala buck being the most dominant.
Some species have increased significantly in number since the previous year’s (2007) count, others have decreased. Nyala, for instance, have increased by 20 to 228, giraffe by 4 to 25, wildebeest by 12 to 39 and zebra by 4 to 17. Unchanged in number and marital status is the lone female buffalo which, like the giraffes, is a significant attraction for visitors to the park.
The counting was done on foot, with observers walking and recording all the animals they saw, on different days and at different times. Other animal totals counted in September were 21 Impala buck, 17 Waterbuck, 2 Blesbok, 6 Bush pigs and 7 Bushbuck. Compiled by Jones Mwalukomo, senior wildlife officer – Nyala Park. A giraffe, scientific name Giraffa camelopardalis , is called “Kadyansonga” in Chichewa, meaning eating at the top or tip of trees. The world’s tallest mammal, a fully-grown giraffe will reach up to a height of 5-6metres from the ground, like this handsome fellow photographed in Nyala Park. |
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|  A GIFT FOR KASASA SCHOOL
Kasasa Independent Private School at Dwangwa had its humble beginning in the late 1990s with a handful of students, teachers and below-standard structures. It has now grown close to international standards. On a day that will be remembered by Kasasa School, it received a donation of MK700 000 from the general manager of Dwangwa Sugar Corporation, Ken Tembo. The GM said it was his wish to see the school grow to greater heights. In accepting the donation, the chairman of the school, Justin Dzinkambani, said this was an historic donation. Following various donations received, he was now very optimistic that the much-awaited computer lab would be constructed and he thanked the Dwangwa GM most sincerely. At the handing over of a cheque to Kasasa Independent Private School were (from left) Maston Mtambo (Dwangwa’s AHRM-admin), Sidrick Sapuwa (school committee member), Tina Issa (head girl, receiving the cheque), Ken Tembo (Dwangwa GM), Eheud Banda (head boy) and Justin Dzinkambani (chairman of the school and also of the school committee). | |
189 DESKS FOR CHIKWAWA SCHOOLS 
Nchalo has donated 189 desks to four schools in Chikwawa - Nchalo CCAP, Mwanza, Malikopo and Lengwe. When handing them over, then Illovo Malawi MD David Haworth (left) said Illovo Sugar (Malawi) recognises the importance of education institutions as they provide a solution to the skill needs of the company and the country and that is why it had made the donation. The Member of Parliament for Chikwawa and also Minister of Irrigation, Hon Mkombezi Sidik Mia (right), thanked Illovo for the donation which he said will go a long way in improving the education environment for pupils in his constituency. He requested Illovo to continue assisting in education and other areas. 
Pupils at Mwanza School try out their new desks. | |
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Dr Eliana invited the women of the Maragra community to visit the hospital in Manhica, the closest town to Maragra. Here the staff deal with hundreds of sick people daily, malaria, Aids and TB being but some of the challenges they face. The visitors were humbled that in spite of many problems, they still serve with dedication. The children’s ward, where most patients were being treated for malnutrition, touched everyone’s heart and the women came home determined to put their efforts together to “make a difference” (“MAD”). Pooling their talents and resources, they started making material books, soft toys, bean bags and painted blocks for the children to play with. They also made curtains, sheets and pillowcases to brighten up the ward and have planned a fundraiser to help the hospital with its laundry facilities. Over and above what the “MAD” ladies have made, Maragra sugar mill has assisted by donating a much-needed wash line! With new blue sheets and pillow cases, curtains, the mobile, Teddy and toys, all the work of the Maragra mill women’s group, the Manhica Hospital children’s ward (above) has a new lease of life.
News - 3rd Quarter 2009
News - 3rd Quarter 2009
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| Illovo recently announced various strategic disposals, investments and changes in structure, all related to the strategic, long-term future of the group which is currently on a major drive to significantly increase its cane and sugar productive capacity. These are important developments for our group, the main aspects of which are outlined below.
Growth philosophy
The group continues to consolidate its South African operations, recognising the potential for superior returns elsewhere in Africa. Accordingly, we seek to establish a profitable, stand-alone South African entity with the capacity to maintain acceptable group returns. Major investment outside South Africa will be undertaken in areas that display positive and stable social, political and economic fundamentals, have adequate water and land resources, favourable climatic and agronomic conditions, strong local sugar markets and good export potential.
Strategic update
In line with this philosophy, the following initiatives have either been completed or are underway:
South Africa
- The sale of the Umfolozi sugar mill to a grower consortium has been completed effective 31 March 2009, with payment received in full;
- An agreement to sell the Pongola sugar mill to TSB Sugar RSA Limited has been concluded;
- We have acquired a 30% shareholding in and will provide technical services to a new business entity which has purchased the Gledhow sugar mill unencumbered, previously wholly-owned by Ushukela Milling (Pty) Limited (Ushukela). The other shareholders in this new business entity comprise Ushukela, a consortium of supplying cane growers and Sappi Manufacturing (Pty) Limited. Paul de Robillard has been appointed to Gledhow to manage this operation;
- We plan to transfer our remaining South African business to a wholly-owned subsidiary with effect from 1 April 2010.
Mozambique
- Illovo has entered into a joint venture with the local community at Maragra to develop 4 000 hectares of land to cane over the next two years at a site located on the east bank of the Inkomati River, approximately 40 kilometres from the Maragra sugar mill. The joint venture will produce 400 000 tons of cane per annum and the project is linked to the doubling of the capacity of the Maragra factory, to 150 000 tons of sugar per annum;
- We have also acquired an option to purchase a 90% shareholding in the Búzi sugar estate situated near Beira, which provides the opportunity to erect a sugar factory in this area in the future.
Zambia
- The final phase of the major expansion project, which increases the capacity of the Nakambala sugar mill to 450 000 tons of sugar per annum, was completed as planned on 1 April 2009;
- The group has, subject to approval by the Zambia Competition Commission and other regulatory authorities, acquired a majority stake in Nanga Farms PLC, a cane-growing company, located adjacent to the Nakambala estate, and currently producing 325 000 tons of cane per annum. Nanga has the potential to further increase cane production which delivers its cane directly to our Nakambala mill.
Swaziland
- The expansion of Ubombo’s factory to increase sugar production to in excess of 300 000 tons per annum is being progressed, linked to the completion in early 2009 of a major new dam and canal system funded by the EU and the Swaziland Government, which will facilitate expansion of canegrowing in the area. The new area under cane is likely to cover some 5 000 hectares of land in the medium term, with further potential for development available in the longer term.
- Associated with the factory expansion, plans are underway to increase power generating capacity at Ubombo utilising biomass, in the form of residue leaves and tops from harvested cane, as supplementary fuel for the factory boilers. This will enable the factory and surrounding estates to be self-sufficient in electricity for 48 weeks of the year and also provide the ability to export power into the national grid.
Malawi
- At our operations in Malawi the marginal factory expansion and increase in caneland area at Nchalo was successfully completed prior to the commencement of the new sugar season.
Mali
- The proposed greenfields project in Mali is progressing in pre-project mode. Necessary financial approvals are expected by November 2009 and thereafter cane development will commence in the first half of 2010. Construction and commissioning of a new factory is anticipated by December 2011.
- The Malian operation will ultimately produce 195 000 tons of sugar and 15 000 kilolitres of ethanol for fuel blending, and generate sufficient electricity for the agricultural and factory operations, with additional capacity to export power into the national grid.
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Illovo Sugar's areas of operation are shown in detail on the map above. Recent, current and coming changes are highlighted with black type and black arrows. |
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Power generation Overall, the group’s policy is to become self-sufficient in respect of power requirements for its own operations and, where possible, to supply power into the national electricity grids in the various countries in which we operate. Illovo’s factories utilise bagasse to generate sufficient power for ongoing factory operations, while in most countries additional power is produced in order to supply energy to the agricultural operations, particularly irrigation. We continue to progress our bio-mass initiative, as practised at Ubombo, to other parts of the group, with this technology now having been successfully employed at both operations in Malawi. |  |  |
At left and right:
The unique process of utilising bagasse and biomass as an energy source also results in the group having minimal reliance on fossil fuels, such as coal, for its energy requirements. Coal usage within the Illovo group comprises approximately 8% of total energy usage.
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Don Macleod has retired as managing director of Illovo Sugar Ltd but remains on board as a non-executive director and deputy chairman. Speaking at farewell functions at Kloof and Head Office, Don traced both his own and the group’s progress during his 35 years with the company, nearly 17 of which were as MD.
He first joined the sugar industry in 1971 as the industrial affairs/accountant at the SA Sugar Millers “because I felt it was a major industry in Natal”. 18 months later he joined the then old Illovo, which in 1977 was purchased by C G Smith Sugar which in 1994 became Illovo Sugar – “so for the last 35 years I have been an Illovo employee”. Industrial affairs director in 1983 and financial director in 1985, in 1992 he became managing director when “we were faced with the worse drought in a 100 years followed by the second worst in a hundred years”. They took advantage of this by dismantling the Illovo mill to move it to Eston. In 1992 Illovo Sugar Ltd produced 853 000 tons sugar, had 6 860 permanents/4 900 contract employees, turnover was R1,1 billion, operating profit R142,9 million, headline earnings R87 million and the share price 350 cents. “Today when I look at next year’s budget,” Don said, “we have a company which will produce more than 2 million tons sugar, 6,5 million tons cane, furfural and alcohol plants which are double what they were back then and a growing lactulose business. The spread of profits has changed totally with over 85% of operating profit made outside South Africa (80% of headline earnings). Turnover is almost R11 billion, operating profit over R2 billion and headline earnings over R800 million. The current share price is around R27 per share. . . Thus we have grown the company and have plans to continue on that growth path.”
Don attributed this exponential growth to various landmark events since 1994, starting with the group’s strategic intent, developed in 1995, when Illovo moved from being a South African company to being an African business focused on sugar and downstream and maximising the return on every stick of cane. It was to be Illovo’s roadmap going forward.
The purchase of a controlling stake in Maragra came next, then the second step, which was to close or sell all the periphery businesses Illovo had developed or acquired over time. Then came the major acquisition which changed the group – buying the Lonrho Sugar group. “We acquired assets in South Africa, Swaziland, Malawi and Mauritius. It gave us the required footprint and mass in Africa to change the whole group’s future and in one step obtain people and operations with expertise of operating outside South Africa, which was a massive advantage in progressing our objective.”
“We acquired assets in South Africa, Swaziland, Malawi and Mauritius. It gave us the required footprint and mass in Africa to change the whole group’s future . . . ”
Further acquisitions followed in Tanzania and Zambia and, more recently, the Mali project. “Over all this period we have steadily expanded each of our operations, the most significant being the current Zambian expansion.” In addition in 2006 Illovo had a new holding company, ABF, when they acquired 51% of Illovo.
“Thus it can be seen that the last 15 years have been exciting and busy . . . our objective of changing our business to be an African company supplying our products around the world from purely a South African operation has certainly been achieved.”
Don paid tribute to the efforts of a number of people who have supported or driven the company to its new position, including his colleagues on the Illovo board, as well as the rest of the teams throughout the group – “who have delivered the results” – with a special thank you to the wives who make such a significant impact and contribution to the communities in which we operate – and finally to his own family, “my most enthusiastic support base”, and his late wife Bev, “a very special person who gave me fantastic support in my job but also more importantly in everything I did in life”.
He hoped in his new position as deputy chairman, “through my experience and knowledge of the company and the sugar industry in general that I will add value to Illovo going forward”. |  | At Don MacLeod’s retirement function held at Illovo Sugar Park, Graham Clark handed over a special memento of appreciation on behalf of all Illovo employees – a model replica of various working parts of a sugar operation, hand-crafted at Sezela. At his formal retirement function hosted by Robbie Williams, chairman of the Illovo board, Don took over the controls of a new mountain bike – another fine hobby for an exercise enthusiast (in between golf, running, walking in the ‘Berg and, and,…)! |
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John Russell has retired as new projects director, having first joined the company in 1978 in corporate finance. At his farewell function, John recalled that it was then a small office with not a single computer, where accounts were taken only to trial balance, everything else was done by hand and the budget/plan was done once and once only. He moved to SASA (SA Sugar Association) in London and later Durban, which he credits with bringing him into contact with the world of sugar – “It is a small world but quite amazing in its togetherness and friendship and I have always enjoyed being part of it.” From the time he joined SASA he has visited 64 countries in the course of work, and commented: “No doubt that sugar gives you go!” John rejoined Illovo as financial director 16 years ago and says: “What an amazing and exciting race it has been being part of the massive changes that have occurred in the evolution of the group.” He became director of the New Projects department in 2005, a role which suited his love of travel, and adds: “My time at Illovo has been all about people and I have been extraordinarily lucky to have worked with wonderful people all the years at Illovo.”
|  | John Russell (right) is congratulated by Don MacLeod at their farewell function. | |
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| The Director General of the United Nations Food and Agriculture Organisation (FAO), Dr Jacques Diouf, visited Nchalo Sugar Estate in November to see maize which Illovo had grown for the Malawi government. Illovo had entered into an arrangement with the government to grow 120.4 hectares of maize under irrigation which would later be used to complement food security in the country. After seeing the maize, Dr Diouf told reporters that what was happening at Nchalo Estate demonstrated that the country is capable of producing food not just for itself but for other countries in Africa. “One third of Malawi is covered by water. You should be able to produce food through irrigation. You have the capacity, as has been shown in recent years, that you are able not only to export but also to give food aid to other countries,” he said. Deputy Minister of Agriculture and Food Security, Hon Frank Mwenefumbo, who accompanied Dr Diouf, said the government had asked Illovo to grow the maize in order to demonstrate that it is possible to grow maize through irrigation as long as there is infrastructure like that available at Illovo. He said they had brought Dr Diouf to Illovo to show him that it is possible to grow maize through irrigation as long as there are resources. The minister said the government was intensifying irrigation farming through the greenbelt project.
|  |  | | Above: FAO’s director general Dr Jacques Diouf admires the maize at Nchalo Estate. | At right: Dr Diouf takes questions from Malawian and foreign journalists during his visit to the maize project. |
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| Maragra is on the expansion path, with plans to double current production of around 75 000 tons of sugar to 150 000 tons over the next three years.
In the current life and times of Maragra, following its acquisition by Illovo in 1996 and the extensive rehabilitation of all its field and factory operations which took place thereafter, this is a far cry from the production of 6 000 tons of sugar achieved in its first year of operation in 2000. Underpinning the current expansion project is the development of 4 000 hectares of land to sugarcane agriculture in conjunction with local communities in Chinhanguanine on the East bank of the Inkomati River about 40 kilometres from the factory. The land is ideally suited for development and, being in close proximity to the Inkomati River, its water needs for irrigation are virtually assured. It is envisaged that the joint venture will produce around 400 000 tons of cane per annum which, combined with further cane supplies from the development by local growers of other land closer to the factory, will provide enough cane for Maragra to reach its sugar production targets. In readiness, Phase 1 of the factory expansion has already been completed in the last offcrop period, with the second and final phase to be undertaken at the end of the current milling season. Additionally, Maragra has acquired an option to purchase a 90% shareholding in the Búzi sugar estate situated near Beira, which provides the opportunity to erect a sugar factory in this area in the future.
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| | Among the items included in Phase 1 of the factory expansion were the refurbishment of an old existing refinery pan, along with two A strike receivers, and the installation of 8 new vacuum pumps. Above left is the new No 8A pan, and above right are the two refurbished A strike receivers. Much of the work concerned was undertaken in-house by Maragra’s own factory staff. |  | | This picture gives a good indication of the suitability of the land at Chinanaguanine which has been earmarked for development in conjunction with the local communities – flat land, good soils and close to the Inkomati River. |
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| The Kilombero Community Trust (KCT) was formed to act as a conduit for external funding to reach the community. To demonstrate Kilombero Sugar’s commitment to the project, 1 200 hectares of land was leased to KCT for sugarcane development and this area has since been developed. The aim of the Trust farm is to generate funds for community development. During the 2008/09 year, the Trust has funded various community activities, including primary, secondary and farm schools. During a visit to Kilosa District, Tanzania’s President Jakaya Mrisho Kikwete congratulated Kilombero for its support of sustainable community development when he performed the official opening of the science laboratory for Ruembe Secondary School, which was constructed and its equipment donated by the Kilombero Community Trust. The President thanked the Kilombero Sugar Company for depicting a true picture of corporate responsibility and corporate citizenship in the community around the mill. | 
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| Above left: Tanzanian President Jakaya Mrisho Kikwete addresses residents of Ruembe Ward after officially inaugurating the new laboratory at Ruembe Secondary School. Above Right: The President tries his hand in the new lab, accompanied by the Regional Commissioner for Morogoro region Said Kalembo and Kilombero GM Don Carter-Brown (right).
|  | LEFT: In another KCT initiative, Mohamed Mwisongo, KCT farm manager, hands over books and desks to school teacher Mama Kajange of Mwenge Primary School, Kidatu. |
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| The Zambian President Rupiah Banda welcomed Steve Langton as new Zambia Sugar managing director and at the same time bade farewell to former MD Paul de Robillard during a meeting at State House. |  | From left are company secretary Lovemore Sievu, Steve Langton, President Banda and Paul de Robillard. |
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| Sunday, 24 May 2009 will be remembered as a very important day in the history of Nakambala. In the preceding 24 hours the mill crushed
14 048 tons cane. It is the first time in the history of Nakambala and the Illovo Group that a mill has gone above the 14 000 tons per day mark. The average crush rate for the 24-hour period was 638 tons cane per hour. The factory is designed for 640 tons cane per hour. Although there is much work to do in terms of maintaining the high crush rates, they are making steady progress. Other important milestones were achieved in the week 18-24 May 2009. - Posted a new daily sugar packed and bagged record of 1 686 tons sugar per day
- Posted a new daily sugar handover to Barloworld of 1 703 tons per day
- Posted a new weekly sugar packed and bagged record of 9 460 tons per week.
Two new daily records were set on 27 May 2009. - Agricultural operations delivered a record 8 484 tons cane
- The factory crushed 14 483 tons. The previous record was the 14 048 tons on 24 May.
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| In the 2008/2009 season Ubombo Sugar in Swaziland started a cane expansion programme which increased one of the agriculture division’s sections - known as Lukhalweni - by an additional 204 hectares. The expansion project has been named Block C. The Block C expansion took away ±50 hectares of the Mhlosinga Nature Reserve, which reserve is part of Ubombo Sugar. It should, however, be noted that the expansion also incorporated an additional 680 hectares into the nature reserve, therefore increasing the nature reserve from 550 hectares to 1 130 hectares. Five centre pivots were installed for irrigation purposes. Each pivot covers an area between 26 to 63 hectares. Planting of sugarcane had already been completed in some parts of the project as early as April this year. Part of the project will supply seed cane to the LUSIP (Lower Usuthu Irrigation Project). A yield of at least 120 tons of cane per hectare is expected in the commercial areas. |  |  | | Above left and right: Irrigation efficiency is the key - newly-installed centre pivots at Ubombo’s Block C cane expansion project will improve cane yields. |
News - 1st Half 2009
News - 1st Half 2009
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 In July 2008, Managing Director Don MacLeod announced his decision to retire at the end of the 2008/2009 financial year. However, with his appointment to the new position of Deputy Chairman of the board, Don is going to have a particular involvement in the company’s Africa subsidiaries and in specific projects undertaken by the group. As Chairman Robbie Williams noted at the time: “Don’s vast knowledge of and experience in the Illovo group and the countries within which it operates would be of considerable benefit to the group as a whole, and to me personally as chairman, especially with regard to our growth plans in Africa.”
Don’s retirement sees the appointment of Graham Clark to continue the ongoing story of Illovo, which has fast risen from the banks of the Illovo River more than 100 years ago into a global sugar group with extensive African sugar-based agricultural, manufacturing and downstream operations. Says Don: “Graham’s commitment to the Illovo group is significant, and I know that he, with the team, will lead the company to new levels. I am sure that the people in the company will give Graham the support that I have always enjoyed.”
John Russell, currently New Projects Director, will also retire at the end of March 2009, after a long period of time in the company which has seen him involved in several parts of the business, most recently heading up Illovo’s new initiatives to expand its African business footprint.
These moves have brought about the following changes to the directorate:
With Graham working under the new role of Commercial Director until he takes over as MD, Barry Stuart has assumed Graham’s role of Operations Director, with immediate effect. In a new appointment to the board, Larry Riddle, who is currently Country Head of South Africa, has been appointed to take over from Graham (Commercial Director) in April 2009, while David Haworth, currently Country Head of Malawi, has been appointed as Business Development Director, taking over from John Russell. As mentioned by Don, both Larry and David are both well known in the group and will serve the company well in their new positions. | NON-EXECUTIVE DIRECTOR  Also announced was the appointment of Nosipho Molope to the Board of Illovo Sugar as an independent non-executive director. Serving currently as the chief financial officer of the Financial Services Board and also a director of other listed and non-listed companies, Mrs Molope has extensive South African business experience.
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Major Group Expansion – Illovo has commenced a major expansion of its productive capacity base, which it is anticipated will result in sugar and own and managed cane production increasing to 2.5 million tons and 8.5 million tons respectively over the next five years, involving its existing operations in Swaziland, Zambia, Mozambique, Tanzania and Malawi, and the development of a new greenfields project in Mali.
|  SWAZILAND’S LUSIP PROJECT: THE SLUICE GATES ARE OPENED
IT was a moment of great expectation in Swaziland when the sluice gates were opened and water flowed for the first time into the primary canal, taking life-giving water directly from the Usuthu River and thereby setting in motion the agricultural development of about 12 000 hectares of land under irrigation as part of the Lower Usuthu Smallholder Irrigation Project (LUSIP).
With construction of the Lubovane Dam and other project infrastructure now complete, along with the conclusion of many community negotiations and agreements, an initial group of smallholders with about 400 hectares of land has already been issued quota to grow cane which will be delivered to Ubombo mill in the 2010/11 season. Of the total irrigated agricultural development envisaged, a large proportion will be developed to cane and the milling capacity of the Ubombo mill increased commensurately. In the image above, upstream from the canal sluice-gates, this is the point at which water is drawn directly from the Usuthu River for the project. | THE NAKAMBALA EXPANSION PROJECT ROLLS ON With Phase 1 under the belt, the expansion of the Nakambala factory to 640 tons of cane per hour and the development of an additional 7 500 hectares to irrigated cane are taking centre stage at Zambia sugar as Phase 2 of the massive project rolls on inexorably to next season’s start-up date in April 2009. As a result of the expansion project, sugar production at Nakambala will ultimately increase to approximately 450 000 tons per annum. At full project commissioning, Nakambala will be a ‘power island’, completely self-sufficient in terms of electricity power requirements for its operations.
 
At right, the main canal discharges water into the completed ‘Dam 22’. From here, water is directed via two main primary canals that feed about 95% of the cane planted in the expansion, on the left.
| KILOMBERO’S RUEMBE MILL: EXPANSION BRINGS IMPROVEMENTS IN TANZANIA  Significant improvements in plant operations have been seen during the first half of the season at Kilombero’s Ruembe mill (pictured right) following its milling capacity expansion which was completed, under the guidance of the then factory manager Steve Cloete, during the offcrop preceding the 2008/09 season.
The cane preparation, juice heating and mud removal stations were also uprated to cater for additional cane throughput from various agricultural initiatives to increase cane production. A further performance improvement is expected with the full impact of the new cane preparation equipment being realised during the wetter summer months of the season.
| MALAWI – GROWING AGAIN!  Following the completion of phase one of the milling capacity expansion project at Dwangwa and the increase in cane-growing areas undertaken by both the company and its outgrowers last season, Nchalo is currently in the midst of an expansion programme of its own. The agricultural team is busy with a two-year cane development project, increasing Nchalo’s land under cane by 1 200 hectares, with approximately 700 hectares being completed during the current season, and the remainder in 2009/10. To cater for the additional cane supplies, existing milling capacity at the factory is being maximised, and will then be increased in a marginal expansion completed during the 2008/09 offcrop maintenance period. Focus will then switch back to Dwangwa for the conclusion of its phased factory expansion. This augurs well for the Malawi operation overall which is currently enjoying a very successful season with good agricultural and milling performance resulting in increased sugar production, and with increased domestic and export sales.
The picture above shows the first irrigation of a new centre-pivot field on the Sande Ranch development at Nchalo. In the background (white building) is a pump station. |
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| The importation into Zambia of materials and equipment required for the massive Zambia Sugar expansion project at Nakambala, from specialised sugar processing vessels to mobile homes, and the increased sugar exports which will soon start making their way down to Beira, have recently focused attention on the two major routes used by transport companies to get their cargoes in and out of that country. And by no means is it all Illovo or expansion project-related – Zambia has recently being enjoying a period of positive economic growth and, as a consequence, imports are streaming in at every border post.
 At Kazangula on the Botswana border west of Victoria Falls, this involves a ferry ride over the broad width of the mighty Zambezi River (left), and no cargo – it appears – is too big! Landing on the Zambian side, the ferry disgorges its valuable shipment of people, transport vehicles and other cargoes.
Further east and north, downstream from the Kariba Dam wall is the Chirundu border post, between Zimbabwe and Zambia. Such has been the increase in traffic over the past few years, travelling both ways, that new border-post offices have been constructed on the Zambian side of the border. Equally, the main transport route to Lusaka, which leaves Chirundu and heads north up a 40-kilometre escarpment of winding, undulating roadway, is also in the process of being rehabilitated and has already resulted in vastly improved logistics operations. THE SUGAR ROUTE SOUTH On the route back home, via Beira, the mission has been to ensure that every returning vehicle is filled to the brim with sugar, destined ultimately for the busy ports of Europe.
The map shows the country borders in yellow, roads in white. |
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ILLOVO BAGS TOP SAB SUPPLIER AWARD!  At the South African Breweries gala supplier banquet in Gauteng, Illovo – which supplies all of the sugar requirements of Associated Beverage Industries (an SAB subsidiary) – walked away with top honours, not only winning the Brewing and Process Materials category but also the overall award for ‘Best Supply Partner of the Year’.
A delighted marketing trio, with their booty on display, are from left: Mark Setterberg, marketing manager – industrial; Hans Hackmann, general manager marketing; and Naiem Ally, customer support manager. In the face of stiff competition from a host of leading South African companies, well done Illovo, and well done Barloworld, our bulk delivery partners! | BARLOWORLD – LOGISTICALLY THE BEST 
BARLOWORLD LOGISTICS AFRICA took centre stage at the Supplier of the Year award held in Mount Edgecombe, winning first prize for great service and impeccable customer care.
Handling all our sugar warehousing, logistics and distribution in South Africa, Barloworld is one of Illovo’s largest suppliers. Here, Barloworld GM Ian Milln accepts top honours from Don MacLeod. |
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| A national cane-cutting competition drew eminent people from all quarters of Swazi society to the popular annual event held at Ubombo. Among those who attended were the Minister of Labour and Enterprise, Lutfo Dlamini, a regular participant in this event, Senator Thandi Nxumalo and many prominent business people. From Ubombo, those present included senior managers such as HR manager Jobe Mashwama, senior HR officer Dolly Madau, section managers and many more. The objective is to enhance productivity and neatness in cane-cutting and also to pick the Swaziland team for the international competition in Malelane. The Royal Swaziland Sugar Corporation team (RSSC) was the overall winner and Ubombo’s Josiah Matse won the individual second prize.
  
(Above left) Ubombo’s agric manager Anthony Domleo has a warm welcome for the Minister of Labour and Enterprise, Lutfo Dlamini, who (above middle) lost no time in getting into action. Protective goggles, gloves, boots and jackets are a must in this job, as senior HR officer Dolly Madau shows that women can tackle it too (above right). |
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NCHALO’S FEEDING POT SCHEME Nchalo has donated a school feeding pot to Lengwe Primary School, one of five donated to primary schools involved in the World Food Programme aided school feeding programme. HR manager Emmanuel Banda said Illovo had decided to produce the quality stainless steel pots, which were made in the factory’s workshop, and donate them as part of its social responsibility projects. A school representative, Mr Kandiero, expressed his gratitude for the assistance Illovo gives the school which among other things includes provision of housing for teachers and running water for the school.
 
(Above left) Standard 7 pupils at Lengwe School gather round to sing a song, with the other children in the background. (Above right) Nchalo HR manager Emmanuel Banda hands over the mill-built feeding pot to the Lengwe School committee. ESTON RENOVATES ARDEN FARM SCHOOL Illovo's Eston mill has helped create an effective learning environment for children at the Arden Farm School in Mid Illovo - once dilapidated and unsafe, it has been renovated with the help of funds Eston donated.
 The project was undertaken by Project Build and the end result was heart-warming as the children thanked Illovo (at left) by singing and dancing for HR manager Elias Sibiya at the hand-over ceremony on September 16 which was attended by the mill’s senior management and shop stewards.
Eston’s general manager Vis Pillay handed over the keys of the newly-renovated school to its deputy principal, Ms Zondo. Repainted, repaired, a far cry from its former dilapidated state, the school has become a pleasure for staff and pupils. 
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| Recognised already as the country’s biggest one-day ‘MTB’ event, the August 2008 version of this race – which is staged annually in the Eston cane supply area on the doorsteps of Illovo’s Eston sugar mill – pulled in 3 186 riders, representing a 35% growth in numbers compared to 2007. What’s more, riders who took part in the four main events, including the 75km Illovo Marathon, were almost all unanimous that the organisation of the race – from entry to finish line – was, to quote one tired participant, ‘absolutely superb’! How the race has grown, from its initial beginnings as a community event spearheaded by local cane growers and the Eston community at large, with the event now firmly on the calendar of MTB races around the country, enjoying widespread popularity among riders and their families, and national TV coverage to boot!
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| | Keeping in the “community spirit”, Illovo sponsored these budding young cyclists from schools around the Eston area – hoping that just perhaps one of them one day may rank up there with the Burry Standers (SA national champion) of this fast-growing sport. | And they’re off! With 70kms of offroad cycling to come – up hills, through rivers and mud, down dusty single-track paths – all situated within the green cane of Eston. | |
News - 4th Quarter 2008
News - 4th Quarter 2008
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 In Swaziland, the expansion plans for Ubombo have moved a step closer with good progress having been made with the independent Lower Usuthu Smallholder Irrigation Project (LUSIP). The project involves the establishment of about 12 000 hectares of irrigated agricultural land over a period of six to seven years, a large proportion of which will be developed to cane which will be delivered to the Ubombo factory where our milling capacity is to be increased commensurately.
While construction of the new Lubovane Dam is shown here as almost complete, with finishing touches having being made to the dam wall during July 2008 (see picture), the impounding of water has commenced. Meanwhile, work is continuing on other infrastructure, including the bulk water feeder system which will deliver water to the edges of new cane field developments. The first three grower associations have been granted water permits and authority to grow cane and, as a result, about 500 hectares of irrigated cane is expected to be developed during the coming season, with the first deliveries to the Ubombo factory expected in 2009/10.
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Illovo Sugar (Malawi) has handed over to the Ministry of Health a house worth two million Kwacha which was built for a medical assistant at Mafale Health Centre in Chikwawa District near Nchalo mill.
Nchalo GM Tom Wormald said the house is one of the social responsibility projects the company has undertaken in consultation with Chikwawa District Assembly, in line with the group’s requirement for all Illovo operations to conduct their business in a manner that will make them welcome and accepted as progressive partners by all the communities in the areas where they operate.
Other company social responsibility projects are in education, health, the environment and in funding a wide range of social welfare and community development activities. Minister of Health, the Hon Marjorie Ngaunje, thanked Illovo for constructing the house which she said would ensure good accommodation for medical staff members to enable them to offer high quality services to the sick. “A contribution of this type will go a long way to encourage our health workers to work in a rural setting," she said, adding that the Malawi Government has a programme to build houses with modern facilities for medical staff in the rural areas to match those built in towns and cities. The new house has three bedrooms, a lounge/dining area and attached kitchen. The community contributed sand and water while Illovo assisted with funds of K2 million. Also at the handover ceremony were the deputy Minister of Health, Hon Felton Mulli, Paramount Chief Lundu and other traditional leaders, the District Commissioner and other government officials and members of the community. |
 | | Nchalos's GM Tom Wormald hands over the keys of the medical assistant’s house to Malawi Health Minister Hon Marjorie Ngaunje. |  | | Health minister Marjorie Ngaunje also visited the Nchalo factory clinic, where Dr Albert Mumbai (left) explained the services offered by the clinic to Illovo’s employees and their dependants. | |
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| Nchalo Estate has donated 5 450 tree seedlings to the Chikwawa community at a function held at the company’s premises as a highlight of the national forestry season which runs from mid December to mid April. Its aim is to plant trees, manage them and protect them to make sure they survive. Village environmental management committees are responsible for raising tree seedling nurseries and planting and managing the trees.
Speaking for the community, Paramount Chief Lundu of Traditional Authority Maseya thanked Illovo for its donations of seedlings to the Chikwawa community over the past three years in complementing government efforts in afforestation. Tom Wormald said Illovo was happy to participate in the National Forestry Season to assist in curbing environmental degradation which was being caused by deforestation. Since December 2007 Illovo had planted 40 000 trees within the estate and by mid April it would have planted 22 000 more, making a total of 62 000 trees. Over the years from 2002 to 2007 Illovo has planted trees within the estate and supplied seedlings for local community plantation in the lower Shire valley totalling more than 283 000 trees planted. The representative of the district commissioner for Chikwawa, Lameck Fulukiya, expressed gratitude for the assistance Illovo renders to the Chikwawa District Assembly not only in tree seedlings but also in other developmental efforts in the district. Chikwawa being a flood-prone area, he believed the tree seedlings would go a long way in curbing the floods that hit the area yearly. The four villages benefiting from the seedlings are Kapasule, Sande, Suweri and Lazaro villages. | | 
| | Each one carrying tree seedlings, from left are Geoffrey Kanyerere (district forestry officer for Chikwawa), Tom Wormald (Nchalo GM), Paramount Chief Lundu of T/A Maseya, Lameck Fulukiya representing the district commissioner Chikwawa, village headman Nkhwazi and Emmanuel Banda, Nchalo’s HR manager. |
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| Work on Umzimkulu’s Gijima project is expected to be completed by December 31, 2008, with 281 ha out of the project total of 463 ha having already been completed by April 2008. This project has been beneficial to the growers who, without the 70% grant funding, would not have been in a financial position to develop their canelands. A tonnage of approximately 12 350 will be harvested in the 2008/09 harvesting season. Once the total area is ready for harvesting, a harvest of 31 000 tons per annum can be expected, which would not have been available without the Gijima project. Gijima KZN is a European Union-funded local economic development programme designed to support provincial, local and district municipalities and private stakeholders in implementing sustainable “pro-poor” activities across the province. At Umzimkulu, retention schemes for ratoon management and re-planting have been instituted which should ensure the sustainability of the crop. Everyone involved with this project has learnt a lot, including the growers. A second Gijima project to plant 441.7 ha for small growers in the small grower areas north of the Umzimkulu river was recently approved. Negotiations are in progress with various financial institutions to secure the 30% grower contribution. |  |  | | A field developed by Gijima in the Umzimkulu mill area, with young plant cane in the foreground. | Land to be developed, with the Umzimkulu River in the background, gives an idea of the area’s difficult and steep topography. |  |  | | Bernard Tom (development manager) (left) and Jeremy Naidoo (Gijima administrator) flank the Illovo Gijima sign, with plant cane in the background. | Germinating cane planted as part of the Gijima project. | |
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| | Maragra employees and the community gathered to celebrate Maragra Day on April 12, a day filled with sport and cultural activities. ABOVE LEFT: GM Mike Buchanan (third from right) and António Chemane (warehouse and civils manager, third from left) join in dancing with Maragra’s dancing and singing troupe. Other events in the day’s fun and games included a girls’ bicycle race (ABOVE RIGHT). |
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BY the end of March, the Zambezi River flood plain in the western province of Zambia turns into one vast lake that covers everything except several villages that have been built on very high artificial mounds called Mazulu. The rest of the people have to move from the wet unfriendly environment to higher, dry ground.
Life in the villages is now wet and simply unbearable. It is made worse by snakes, rodents and red ants (called Suluyi), driven by the floods onto the same mounds. The people, together with their livestock and household property, must move to higher dry ground on the edges of the plain. First the cattle are moved from the flood area, and then comes the big event – the picturesque move of the Litunga, the king, in his large royal barge called the Nalikwanda. The movement of the Nalikwanda, accompanied by a flotilla of hundreds of big and small canoes, from Lealui (Lyaluyi), the king’s summer palace, to Limulunga, the winter palace, some fifteen or so kilometres to the north of Mongu, is called Kuomboka. THE word Kuomboka means to get out of water. Though no one knows the date when the first Kuomboka took place, the event has been celebrated for more than a hundred years. The Nalikwanda is decorated in its royal colours and a huge replica elephant placed on its roof. It is paddled by more than 100 men. Paddling the Nalikwanda is considered more of an honour than a strenuous exercise, and therefore it is paddled by men who take pride in paddling their king. Among the paddlers are found not only ordinary Lozi men but also those who hold prominent positions in Zambian society - lawyers, doctors, MPs, businessmen and the like. A surveillance canoe or the “Mother of boats”, the Natamekwa, heads the procession going ahead of the Nalikwanda. Behind the Nalikwanda are several royal barges each with its special functions and significance. Among them is the queen’s barge, the Mbolyanga, which has a replica of a crested crane adorning the roof. The following day, and for several days afterwards, music and dance follow as people continue celebrating the safe arrival of their king to the high dry ground of Limulunga.
 The king’s barge, the Nalikwanda, casts off and starts its journey. Illovo Sugar is a sponsor of the Kuomboka and its staff enjoy watching the event.
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 A calanga Beach cleaning day, involving pupils from the two local schools, was arranged by Maragra’s risk control officer António Matavele. Several dignitaries, including the Manhiça District administrator, the Maputo provincial environmental director and the Maputo education director, attended this outing and spoke on environmental matters. A tree-planting ceremony was performed, with 12 casuarinas from Maragra’s nursery planted. Trees were also planted at both schools. Stationery and caps were distributed among the local school pupils for participating.
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Illovo sugar (MALAWI) observed a week of HIV counselling and testing from 3 - 8 December, in addition to participating in the World AIDS Day activities at district level in Chikwawa on December 1. The HIV counselling and testing week was open to employees, their dependants and the surrounding communities. It ended with an open day at Mwanza township of Nchalo Sugar Estate in Chikwawa. Medical officer for Nchalo Dr Albert Mkumbwa said Illovo conducts its own annual HIV Counselling and Testing week in addition to those it does in conjunction with the Ministry of Health, "because we believe we can act safely and responsibly if we know our HIV status. Knowledge of one's sero status enables a person to take advantage of early treatment opportunities," Dr Mkumbwa said when he conducted the HIV Counselling and Testing for employees at Illovo Head Office in Limbe. Testing is done in line with Illovo's HIV policy, which emphasises strict confidentiality, non discriminatory, voluntary testing, awareness and wellness programme. At the Mwanza township open day function, HR manager Emmanuel Banda said the Illovo main clinic is one of the clinics chosen by Government to administer anti-retroviral therapy. District Commissioner for Chikwawa, Lawford Palani, who was guest of honour at the open day, praised Illovo for its leadership role in the fight against HIV/AIDS in the district, where HIV prevalence and incidence rates have reduced in the past year. He urged other companies as well as NGOs, traditional leaders, religious and family leaders to borrow a leaf from Illovo. Since 2006, more than 2 000 people have undergone HIV counselling and testing at Illovo clinics in Malawi. |  | | Chikwawa district commissioner Lawford Palani speaks at Illovo’s open day function at Mwanza which was the culmination of the company’s HIV counselling and testing week. |
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Golf is a major drawcard at Dwangwa, whose Kasasa Golf Club plays host to a series of popular golf tournaments each year. Not only does everyone enjoy a good time, but the tournaments also serve to cement friendships among the players and the organisations that take part, as well as raising funds for various worthwhile projects. Handicap secretary Kondwani Mphulla supplied details of three such get-togethers:
- The Illovo (Dwangwa) customers’ day invitation golf tournament – Two one-day tournaments which attracted 30 teams of participants from Blantyre, Lilongwe, Mzuzu, South Africa and the host.
- Shayona (Akshar Cement) Kasasa golf tournament - Just about everyone seemed to emerge as winners in the annual Shayona sponsored golf tournament held at Kasasa Golf Club. Speaking on behalf of Shayona’s management, Rolland Mwalweni expressed their thanks to Illovo Dwangwa, announced that his company would continue to sponsor golf tournaments at the club and later donated MK20 000 to the golf section to assist in the maintenance of the golf course.
- Dwangwa mill inter-departmental tournament, where the administration department emerged as Dwangwa mill’s champions with a narrow 87-86 points win over agriculture, with the factory department third on 75 points.
|  | | Dwangwa's inter-departmental golf tournament winners, administration, (from left) front: Victor Wright, Jeromy Ngolombe, Justin Dzinkambani, Rena Botha and Lusubilo Chakaniza; back: Don Carter-Brown, David Haworth and Debs Haworth. |  | | FROM LEFT: Lusubilo Chakaniza (‘best beginner’), Chaupe Kisebe and Smith Sibale get set for the Shayona event. |
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 Equestrian vaulting is the game for this young Malawian development team to whom Illovo Malawi’s GM marketing Rhys Davis (back left) and national sales manager Walter Nyamilandu Manda (back right) handed over track suits, Illovo T-shirts and a donation for their visit to South Africa in March to compete in the Inter-Africa Cup. It is a combination of dance and gymnastics on a moving horse controlled on a long rein as the horse walks, trots and canters in a circle, usually performed to music.
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 A driving course, complete with an instructor from National Vocation Training Morogoro, was held at Kilombero’s KI club. It involved all users of motor vehicles and cycles from senior managers to junior staff level and was conducted in accordance with Tanzania’s national safety regulations. Participants posed for this picture at the end of the course.
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 Every year Ubombo mill organises an event to thank all employees who have reached the milestone of 25 years with the company. A group of 25-year employees is pictured at the get-together with some of the department heads.
News - 3rd Quarter 2008
News - 3rd Quarter 2008
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| | MARAGRA performed well in 2007/08, with record cane throughput and sugar production. Pictured are the flat canelands, under irrigation, with the sugar mill itself on higher ground in the distance | | | |  | | MARAGRA GM Mike Buchanan introduces HRH Prince Joachim of Denmark to his management team, with process manager Krish Govender about to shake hands. The royal visit was under the auspices of both the international NGO, CARE (of which he is the patron), and the Danish Trade Union federation, 3F, (which supports – financially and otherwise - various trade unions in Africa, including Maragra’s resident trade union, SINTIA, in Mozambique). During their very successful visit to Maragra, the Prince and his entourage were particularly impressed with our HR, people and community practices and successes. |
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 | | ILLOVO SUGAR made major donations to help flood victims in both Malawi and Zambia. Malawi’s president, His Excellency President Bingu wa Mutharika, visited flood victims in Nsanje and Chikwawa and later had a meeting at Nchalo Sugar
Estate aerodrome, where (ABOVE LEFT) Nchalo’s HR manager Emmanuel Banda presented him with a symbolic gift. Illovo (Malawi) donated five tons of sugar to the President for the flood victims. | | |
|  | | The Vice-President of Zambia, Hon Rupiah Banda (MP), receives a K60m cheque on behalf of the DMMU (Disaster Management Mitigation Unit) of the Office of the Vice President from MD Paul de Robillard of Zambia Sugar during his visit to assess the flood situation in Mazabuka district on February 19. The donation included ZK60 million towards the nationwide efforts of the DMMU, 250 bags of mealie-meal and one tonne of sugar for flood victims in the Chief Mwanachingwala area. |
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MIKE HANKINSON has been appointed to the Board of Illovo Sugar as an independent non-executive director. He has considerable experience in the corporate sector and is a director of other listed companies. | 
STEVE LANGTON, previously GM (Raw Mills) in South Africa, has assumed the role of operations/project director at Zambia Sugar, taking over from Tony Currie, who has left the group
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STAN RAU has been appointed to GM (Raw Mills) in South Africa. | 
KEN TEMBO, formerly factory manager at Nchalo mill, has been appointed general manager of the Dwangwa estate in Malawi, taking over from Don Carter-Brown. | 
NIKKI MOOR has been appointed GM finance (SA Operations) from corporate finance manager.
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STUART WATSON has been appointed general manager of the Nakambala expansion project, from project team member responsible for the factory development. | 
DOREEN KABUNDA has been appointed human resources director at Nakambala, Zambia, from human resources manager. | 
DON CARTER-BROWN has been appointed head of the Tanzanian operation at Kilombero, from GM at Dwangwa, Malawi. | 
ECKARD LUCHT is operations manager at Noodsberg, replacing Gavin Dalgleish, who has relocated to a position within the ABF group. Eckard was engineering consultant with new projects. | 
HANS HACKMANN has been appointed GM – Marketing (SA operations), from GM finance. | 
GAIL SWARTZ has been appointed group operations finance manager, corporate finance, from financial accountant in corporate finance. | 
WESLEY COWDEN has been appointed group finance manager, Head Office, from corporate finance manager – expansion projects. | 
RALPH DEHRMANN has been promoted to factory manager, Nakambala. | 
ETIENNE ROUSSEAU has been appointed factory manager at Nchalo mill, where he was previously process manager. | 
PETER VAN GREUNEN has been appointed factory manager at Kilombero in Tanzania, from factory manager at Nakambala, Zambia.
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HARRY JOGI has moved to project engineer at technical services Head Office from engineering manager, Sezela. | 
STEVE CLOETE has been appointed to technical services Head Office as senior consultant from factories manager at Kilombero, Tanzania. | 
JASON KNOX has joined the group as finance manager, new projects, Head Office. | 
ANIL SINGH has transferred to Eston as engineering manager from Sezela. | 
DAVE COATES has moved to technical services Head Office as general manager, following the retirement of Andre Koen. Dave was MD at Kilombero. |  | XOLANI MAGOJO has rejoined the group in the new position of general manager – corporate services. He was assistant GM human resources in SA Operations from 1995 to 2001, and after that operated as a general manager at Armscor, with wide-ranging responsibilities. His current responsibilities at Illovo include liaising with
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