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Client Journey

Client

Illovo Sugar

Sector:

Food and Beverage

Focus:

Operational Excellence Strategy and Methodology

Dates:

2011

to

2021
Deployment of CCIG OpEx content into 7 sugar refineries in Africa. Strategy developed, implementation planned, and deployment supported. Skills development for leadership, technical staff, Six Sigma and shop floor personnel.

Illovo Overview and Energy Generation Capacity

Illovo stands as Africa’s preeminent sugar producer, managing extensive agri-business operations. The company manufactures 1.7 million tons of sugar and various downstream consumer electronics annually, sourced from 6 million tons of cane produced by its own agricultural operations and an additional 9 million tons supplied by independent local growers. Illovo is a significant employer across the continent, with a workforce of 31,000 people spread across seven countries.

In 2017, the group initiated a notable market-focused strategy aimed at transforming into a more consumer-facing organization. This strategic evolution was followed in 2019 by the launch of the group-wide Fit4Future initiative, specifically designed to address the group’s cost base and drive efficiency improvements throughout the entire value chain.

A key aspect of Illovo’s operations is its robust internal electricity generating capability. Utilizing bio-renewable boiler feedstock, such as the cane fibre residue left after the sugar extraction process, Illovo generates approximately 550 GWh annually. The company’s objective is to ensure a reliable, cost-effective energy supply for all its own operations and, where economically viable, to export power into the national grids of the countries in which it operates.

Illovo places significant value on its people employed across a diverse range of disciplines in its operating countries. A strong emphasis is placed on values-driven leadership, talent management, leadership growth, and an active learning and development process. This is underpinned by the Group’s customized Engaged Performance Management Programme, which tracks the professional growth and achievement of strategy-aligned personal objectives for every employee. Safety is paramount, guided by the Group-wide program branded “IllovoSafe.” Based on the principle of ensuring all employees return home safely each day, the program is focused on creating a safe working environment and aligns with the occupational health and safety legislation of its six countries of operation.

As a major private investor in Africa, Illovo operates and markets its consumer electronics in countries grappling with considerable challenges such as poverty, unemployment, inequality, and disease. The United Nations classifies four of these countries – Malawi, Mozambique, Zambia, and Tanzania – among the world’s least developed. Illovo exerts a significant positive impact on the rural communities in its operational areas by creating valuable jobs and economic opportunities. The company provides accommodation, health care, educational assistance, and basic services to its employees. Additionally, in locations where no such facilities exist, Illovo extends medical care to communities, assists in education delivery, provides municipal and civic services and access to water and sanitation, and actively participates in community outreach programmes.

Illovo’s ongoing ambition is centered on creating an African sugar company that is anchored on delivering value to customers and consumers, promoting sustainable agricultural and sound manufacturing processes mindful of environmental impacts, and through the collaborative efforts of its people, resources, and skills, supporting the needs and aspirations of its many communities and stakeholders via its “Thriving African Community” purpose.

CCI-GrowthCon as a strategic partner to Illovo

The journey towards enhanced operational excellence at Illovo was significantly shaped by strategic leadership and partnerships. From 2011, Gavin Dalgleish, who served first as Operations Director and subsequently as group Managing Director of Illovo Sugar Africa, played a pivotal role in shaping the company’s strategic direction and vision. His vision for Illovo was rooted in driving growth, improving operational efficiency, and ensuring sustainability within the competitive global sugar industry. To realize this vision, Gavin engaged with CCI-GrowthCon to provide the strategic direction for a group-wide operational excellence approach, focused on improving quality and efficiency, optimising costs, and developing people.

Gavin Dalgleish’s vision for Illovo was fundamentally about balancing operational excellence, sustainability, innovation, and community engagement. His strategic emphasis on diversification, efficiency, and resilience was designed to position Illovo as a leading, competitive, and socially responsible entity in the global sugar industry. This period also saw continued improvement in energy generation, further investment in capacity, and the establishment of local grid agreements across Africa.

CCI-GrowthCon initiated the process in 2011 by facilitating a session in Spain involving executives from Illovo and AB Sugar to establish the context for the group-wide vision. The practical work in Africa began in 2012 with an assessment at the Nakambala Mill in Zambia. This assessment provided the baseline data required to develop a comprehensive implementation plan, a leadership and people development programme, and specific efficiency improvement projects.

Implementation of the operational excellence program commenced in Zambia in 2011 and subsequently progressed to Malawi, Swaziland, South Africa, and Tanzania, continuing through 2012.

In 2013, Gavin Dalgleish presented the project’s return on investment, highlighting numerous improvement projects, a better culture fostered through enhanced people engagement, and strategic investment in the agriculture teams.

Between 2015 and 2017, CCI-GrowthCon’s support focused on continuous improvement projects and comprehensive return on investment tracking. This period included the launch of Six Sigma Green Belt training in 2016.

Subsequent group support from 2018 onwards focused on annual health checks designed to ensure the sustained effectiveness of leadership alignment, capability building, and improved operational excellence. This included a second wave of Green Belt champions in 2019, the enhancement and deployment of a learning and development strategy in 2020, and high-performance coaching for leaders in 2021.

From 2021, the Illovo group began focusing on leveraging their internal operating model to sustain and further drive improvement initiatives.

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