South Africa moves to oppose Tongaat Hulett liquidation  

SOUTH AFRICA – Tongaat Hulett is facing possible liquidation as South Africa’s Department of Trade, Industry and Competition prepares to oppose the move, warning it could severely disrupt the country’s sugar industry and threaten thousands of jobs. 

The 134-year-old company is one of South Africa’s largest sugar producers, with milling capacity of approximately 2 million metric tons and operations spanning South Africa, Zimbabwe, Mozambique, and Eswatini. 

Trade and Industry Minister Parks Tau confirmed the government’s position, emphasizing the company’s importance to the national economy and agricultural sector.  

“The (trade department), together with other organs of state, will oppose the liquidation of Tongaat Hulett and will continue to support all lawful efforts aimed at finding a viable and durable resolution,” Tau said in a statement.  

Although the ministry cannot block the liquidation directly, it can participate in court hearings and present arguments against the process. 

The liquidation process follows the collapse of a business rescue effort initiated in 2022 after accounting irregularities severely affected the company’s financial position. 

Vision Group, Tongaat Hulett’s lead secured creditor, announced last week that rescue efforts had failed, increasing the likelihood of liquidation proceedings. A provisional liquidation hearing is scheduled for February 27, raising uncertainty over the company’s future. 

The potential closure poses significant risks to employment and rural economies. Vision Group warned that approximately 250,000 grower and supplier jobs connected to sugarcane farming in KwaZulu-Natal and Mpumalanga provinces could be affected, in addition to 2,600 direct company jobs.  

Industry stakeholders have also expressed concerns about broader supply chain disruptions. 

SA Canegrowers CEO Thomas Funke stressed the company’s operational importance. “The underlying value of the company rests in functional, operating assets,” Funke said, warning that without operational continuity, “the entire South African sugar value chain will be severely destabilised.”  

SA Canegrowers Chairman Higgins Mdluli added, “Tongaat’s liquidation will affect all of South Africa’s growers,” noting that its mills serve as economic anchors in rural regions. 

Tau described Tongaat Hulett as a “systemically important player” and expressed optimism about efforts to stabilise and restructure the company.  

The outcome of the court proceedings is expected to have significant implications for the country’s sugar supply chain and rural agricultural communities. 

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