Hippo Valley Estates says Tongaat Hulett liquidation will not disrupt Zimbabwe sugar production 

ZIMBABWE – Hippo Valley Estates has moved to reassure stakeholders that the expected liquidation of South Africa’s Tongaat Hulett will not disrupt sugar production in Zimbabwe. 

Tongaat Hulett wholly owns Triangle Ltd and holds a 50.3% controlling stake in Hippo Valley Estates. Combined, the two companies account for more than half of Zimbabwe’s total sugar output, making developments around the South African group a significant concern for the local sugar industry. 

Tongaat Hulett entered business rescue in October 2022 after facing severe financial difficulties linked to a corporate accounting scandal that left the group with liabilities estimated at around R12 billion (US$750.44M).  

This week, business rescue practitioners confirmed that they intend to apply for liquidation, stating that all viable restructuring and recovery options had been exhausted. 

In response, Hippo Valley Estates emphasized that the Zimbabwean operations remain unaffected by developments in South Africa. “The developments in South Africa do not involve our Zimbabwe operations, which operate as separate legal entities with their own management, finances and operations,” the company said.  

It added that both Hippo Valley Estates and Triangle Ltd remain financially stable, fully operational, and committed to meeting all operational and financial obligations. 

Attention has also turned to the contest over Tongaat Hulett’s assets. In 2024, a business rescue plan proposed the sale of the group’s assets to the Vision Group, a consortium that includes South African businessman Robert Gumede and Zimbabwean investor Rutenhuro Moyo.  

Tongaat’s last reported financial statements for the year ended March 31, 2021, showed total assets valued at ZAR13.27 billion (US$838.42 million).  

Following a competitive bidding process, Vision Group was selected in January 2024 to acquire the business and assets in a ZAR5.9 billion (US$330.05 million) debt-to-asset transaction. 

Hippo Financials 

Meanwhile, Hippo Valley Estates reported a strong operational performance for the third quarter ended December 31, 2025, resulting in excess sugar production beyond domestic market requirements.  

The manufacturing division recorded a 1% increase in sugar output, producing 1,905 tonnes more than the prior year, supported by improved cane supply and milling efficiencies. As a result, the cane-to-sugar ratio improved by 0.6% year-on-year to 8.01%. 

“In light of this, more sugar was being availed to the export market,” the company said. “Export sales grew by 53%, with increased volumes supplied into Burundi, Rwanda, Botswana and the USA. A 36,000-tonne industry shipment to the European market departed shortly after the quarter end.” 

Domestic sales also rose by 10%, increasing by 27,290 tonnes year-on-year, supported by strong demand, stable disposable incomes, and the competitiveness of the Huletts Sunsweet brand.  

Revenue for the nine months grew by 10% to US$174 million, underpinned by a 14% increase in total sales volumes. However, higher exposure to COMESA markets moderated gains, as export prices were 7% lower year-on-year. 

“The growth in revenues remains underpinned by positive production performances, good product quality and excellence in our sales and marketing efforts, which guaranteed product availability,” Hippo Valley Estates said. 

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