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

ILLOVO SUGAR LIMITED
ANNUAL GENERAL MEETING - CHAIRMAN'S ADDRESS
PRESENTED BY ROBBIE WILLIAMS
18 JULY 2001, 14H30

I welcome the opportunity provided by this shareholder's meeting to give you
an update on the group's operations.

The past year saw the group achieve record sugar and furfural production.
In April 2001 the company made further progress in enhancing its position as
a leading global, low-cost sugar producer through the acquisition of 89% of
Zambia Sugar and the disposal of its Mauritian sugar and non core hotel
interests.

Climatic conditions across the group have been variable during recent months
and it is still early in the sugar milling season, but the overall

performance of the group's operations to date has been positive with sugar
production forecast to be approximately 2,15 million tons this year.

In South Africa good rains were received during the last week of April and
the first week of May but since then it has been very dry and the lack of
rainfall has started to impact on the cane crop.  The weather has been ideal
for milling operations and all the mills have operated well, with an

improvement in time efficiency and sugar recovery being achieved compared to
last year.  The current sugar production estimate is 40 000 tons above last
year but output could decline as the season progresses as a result of the
dry weather.  The furfural and related product plants at Sezela and the
distilleries at both Merebank and Glendale are all performing well.

In Swaziland sugar production is expected to be only marginally up on last
year.  Cane throughput forecasts are lower than initially anticipated due to
the general lack of sunshine hours during the summer months and the

withdrawal of cane from a large local grower who has been served a disease
related cane plough - out order from the Swaziland Sugar Association, which
includes a ban on the mill accepting its cane.

Sugar production in Malawi is forecast to increase by 15% over last season.
Factory and field operations are settling down after a disappointing early
season performance at Nchalo, mainly as a result of poor juice purities in
the cane carried over from last season.

Operational performance in Zambia has been most encouraging with excellent
cane quality and yields being achieved.  Factory performance has been very
satisfactory and the current sugar production forecast of 204 000 tons could
increase as the season progresses.

At Monitor in the United States beet plantings are 18% higher than the five
year average and the crop is in good condition.  A record beet crop is
therefore expected with beet processing operations scheduled to commence in
late September.  Sugar production, from beet processing and molasses de-
sugarisation, is forecast to increase by 10%.

The cane planting programme at Maragra in Mozambique has made good progress
and the total area is expected to be developed by the end of October this
year.  Preparations for factory start-up on 1 August are well advanced with
approximately 100 000 tons of cane planned to be crushed.

Production at Kilombero in Tanzania commenced at the end of June.  Early
indications are that sugar production will increase by 10%.

Good progress has been made in respect of the European Union sugar quota
arrangements which are of benefit to the group operations in Swaziland,
Malawi, Zambia, Mozambique and Tanzania.  Renewal of the EU sugar regime,
which incorporates the EU/ACP Protocol Quota has been announced.  The
renewal is for a period of 5 years to 30 June 2006 with a review of policy
options and reforms required in 2003.  The regime (including prices) has
therefore been left unchanged for the five year period although technically
changes could be introduced following the 2003 review.  The Lesser Developed
Countries (LDC's) potentially able to supply sugar under the "Everything,
but arms" (EBA) initiative have agreed an allocation mechanism for the
global tariff quota and this has been officially communicated to the EU
Commission with a response expected by the end of July.  The Special

Preferential Sugar quota arrangements expired on 30 June 2001 but a mandate
to renew has been issued by the EU Commission.  The ACP position, including
a new allocation mechanism, has been agreed by all member states and

communicated to the EU Commission.  A response is expected during August.
The outcome of these arrangements are expected to result in a further
benefit to the group.

Improved prices for world sugar and downstream products and the weaker rand,
together with the increased levels of production, are expected to result in
the headline earnings growth forecast for 2002, which was communicated in
the Annual Report, being achieved.
Ends