3/2/99

ANNUAL GENERAL MEETING - ILLOVO SUGAR LIMITED
CHAIRMAN'S ADDRESS - ROBBIE WILLIAMS

CLIMATIC CONDITIONS ACROSS THE GROUP HAVE BEEN VARIABLE DURING THE SUMMER
MONTHS TO DATE.  IN SOUTH AFRICA THE SPRING RAINS ARRIVED LATE IN LINE WITH THE
PREDICTION OF THE WEATHER BUREAU.  SINCE THEN, IN MOST AREAS, WE HAVE RECEIVED
BETTER THAN THE LONG-TERM MEAN AND THIS IS PREDICTED TO CONTINUE FOR THE REST
OF THE SUMMER MONTHS.  IN SWAZILAND AND MOZAMBIQUE GOOD RAINS, WELL ABOVE THE
LONG TERM AVERAGE, HAVE BEEN RECEIVED.  IN MALAWI, NCHALO HAS RECEIVED BETTER
THAN NORMAL RAINS WHILST AT DWANGWA ALTHOUGH RAINFALL WAS LESS THAN NORMAL,
IRRIGATION HAS MADE UP ANY DEFICIT.  IN MAURITIUS AND TANZANIA, HOWEVER, IT HAS
BEEN VERY DRY AND THIS WILL IMPACT NEGATIVELY ON NEXT SEASON'S CANE CROP IN
THESE COUNTRIES.   OVERALL, GOOD SUNSHINE HOURS HAVE BEEN RECEIVED BY ALL OUR
OPERATING AREAS.  THE CURRENT FORECAST OF GROUP SUGAR PRODUCTION FOR THE COMING
SEASON IS 1,78 MILLION TONS, WITH PRODUCTION IN SOUTH AFRICA BEING ABOUT 80 000
TONS LESS THAN LAST YEAR BECAUSE THE ABNORMALLY GOOD GROWING CONDITIONS OF LAST
YEAR HAVE NOT BEEN REPEATED.

THE 1998/99 SEASON WHICH ENDED RECENTLY WAS A RECORD ONE FOR ILLOVO ALTHOUGH
THE FINAL PRODUCTION DECLINED SLIGHTLY FROM THE ESTIMATE.  SOUTH AFRICAN
PRODUCTION OF 1 261 000 TONS OF SUGAR WAS 179 000 TONS ABOVE THE PREVIOUS
RECORD WITH NOODSBERG, ESTON, SEZELA AND UMZIMKULU ALL ACHIEVING NEW PRODUCTION
HIGHS.  THE FINAL PRODUCTION AT UBOMBO OF 184 200 TONS WAS ALSO A RECORD FOR
OUR SWAZILAND OPERATION BUT THE GOOD SUMMER RAINS DID CAUSE DISRUPTIONS TO
FACTORY AND FIELD OPERATIONS.  IN MALAWI 209 700 TONS WAS PRODUCED AFTER
UNSEASONABLE WET WEATHER AT NCHALO DISRUPTED THE SUPPLY OF CANE TO THE MILL
RESULTING IN CANE HAVING TO BE CARRIED OVER TO NEXT SEASON.  IN MAURITIUS 84
970 TONS WERE PRODUCED AND IN TANZANIA 42 000 TONS.

THE FURFURAL, DIACETYL AND FURFURYL ALCOHOL OPERATIONS CONTINUED TO PERFORM
WELL WITH THE FIRST TWO ACHIEVING RECORD OUTPUTS.   AN ADDITION TO THE
DOWNSTREAM PRODUCT RANGE WILL BE INTRODUCED DURING MAY 1999 AS PLANNED.
THE FACTORY EXPANSION PROJECTS IN SWAZILAND, MALAWI AND SOUTH AFRICA ARE ALL
PROGRESSING WELL AND ARE EXPECTED TO BE COMMISSIONED ON TIME FOR THE NEW
SEASON.  THE MAJOR FACTORY AND FIELD REHABILITATION WORK BEING UNDERTAKEN AT
KILOMBERO IN TANZANIA HAS COMMENCED AND IS PROCEEDING ACCORDING TO PLAN.  GOOD
PROGRESS HAS BEEN MADE WITH THE REHABILITATION OF THE MARAGRA MILL IN

MOZAMBIQUE AND THE COMMENCEMENT OF SUGAR PRODUCTION REMAINS SCHEDULED FOR MAY
1999.

A SHARP DECLINE IN THE WORLD SUGAR PRICE HAS OCCURRED RECENTLY MAINLY AS A
RESULT OF CONCERN REGARDING WHAT THE IMPACT OF THE DEVALUATION OF THE BRAZILIAN
CURRENCY AND THE HIGH DOMESTIC INTEREST RATES IN THAT COUNTRY WILL HAVE ON THE
QUANTITY OF SUGAR WHICH IT WILL MAKE AVAILABLE TO THE EXPORT MARKET.  THIS
PRICE DECLINE WILL HAVE A NEGATIVE EFFECT ON SOUTH AFRICAN EXPORT REVENUES.
HOWEVER THE DEVALUATION OF THE RAND AND OTHER AFRICAN CURRENCIES AGAINST THE US
DOLLAR WILL BENEFIT PREFERENTIAL SUGAR EXPORTS FROM MAURITIUS, SWAZILAND AND
MALAWI AS WELL AS SOUTH AFRICAN SUGAR AND DOWNSTREAM PRODUCT SALES.  THE
PERFORMANCE OF THE SOUTH AFRICAN CUSTOMS UNION (SACU) SUGAR MARKET, WHICH IS
IMPORTANT TO THE GROUP'S SOUTH AFRICAN AND SWAZILAND OPERATIONS, HAS CONTINUED
TO BE DISAPPOINTING DUE TO THE IMPACT OF LOW ECONOMIC GROWTH AS WELL AS SUGAR
IMPORTS INTO THE REGION FROM ZIMBABWE.  THE SOUTH AFRICAN PRICE OF SUGAR
INCREASED BY 6,5% ON 1 FEBRUARY 1999.

INTEREST RATES HAVE DECLINED IN LINE WITH OUR FORECASTS FOR THE CURRENT YEAR
AND IT IS HOPED THAT THIS TREND WILL CONTINUE.

THE FACTORY AND FIELD OFFCROP OPERATIONS ARE PROCEEDING ON SCHEDULE IN ALL
COUNTRIES AND MILL START-UPS FOR THE NEW SEASON ARE PLANNED TO COMMENCE AS
NORMAL FROM THE END OF MARCH ONWARDS.

REAL GROWTH IN HEADLINE EARNINGS PER SHARE IS EXPECTED IN 1999.