Tycoon Robert Gumede champions job security as Tongaat Hulett liquidations are withdrawn

Turning around fortunes

Tongaat Hulett, gets a lifeline

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Business tycoon Robert Gumede highlights the importance of withdrawing the Tongaat Hulett liquidation application to safeguard jobs and combat foreign sugar dumping in South Africa.

Gumede, of Vision Group, one of the creditors of the company, said he was confident in turning around the fortunes of the company.

It was announced that the Durban High Court granted the joint Business Rescue Practitioners (BRPs) of Tongaat Hulett Limited leave to withdraw the company's provisional liquidation application this week. The withdrawal of the application has been welcomed by different stakeholders who stated that the company was crucial to the economy of the province.

A joint statement issued said the BRPs of Tongaat Hulett Limited, the Industrial Development Corporation of South Africa (IDC), and the Vision Group of companies have concluded a binding agreement that provides a pathway to preserve Tongaat Hulett’s business rescue, maintain trading operations, and support the implementation of the approved business rescue plan.

Gumede said: “I am heartened (by) the final negotiations and agreement to save the sugar industry, the 250,000 jobs, and the growers’ investments, where black business is stepping up to save a 134-year-old sugar group operating in the SADC region.

This is a significant milestone for Vision, a black-owned company. Vision is confident in turning the fortunes of the companies and hopes the SA government shall, from now on, protect the jobs and industry from the dumping of foreign-produced sugar from Brazil and Thailand.”

Mmakgoshi Lekhethe, Chief Executive Officer of the IDC, said: “This agreement reflects the IDC’s commitment to supporting an outcome that safeguards productive capacity, protects livelihoods across the sugar value chain, and creates a credible platform for long-term recovery. Our role is aligned to our developmental mandate: to preserve industrial capability, support jobs, and enable sustainable economic participation in sectors that are important to South Africa and the region.”

The SA Canegrowers welcomed the developments, stating that for growers, workers, and communities that depend on Tongaat Hulett, this agreement averted the immediate threat of liquidation and protected jobs and livelihoods across the sugar value chain.

“This agreement is a significant milestone in securing the future of the modern South African sugar industry. With the liquidation of Tongaat Hulett off the table, we hope that its mills and refinery can now focus on operating without interruption.

"More than 17,500 sugar cane growers rely on Tongaat. As a unified industry, we can also address other immediate challenges facing us, especially the still persistent flood of imported sugar into South Africa. Unfairly subsidised sugar from countries such as Brazil and Thailand is currently displacing locally produced sugar from retailers and food and beverage manufacturers. This affects growers and local millers alike, including Tongaat Hulett,” said Higgins Mdluli, chairman of SA Canegrowers.

The South African Farmers Development Association (SAFDA) executive chairman, Dr Siyabonga Madlala, said they received the news with excitement.

“This marks a new growth path and trajectory for its employees and growers that supplied Tongaat Hulett. We believe we are now moving towards a sustainable future, and we appreciate the growers that have stood through difficult times to continue supplying Tongaat Hulett. The future of jobs is secured, as well as the future livelihood of the farmers.”

Mafika Mndebele, the chairperson of the economic development portfolio committee in KwaZulu-Natal, welcomed the agreement reached in the Tongaat Hulett matter, saying it secures the future of the company and protects thousands of jobs across the sugar industry value chain.

“This is a major boost for KwaZulu-Natal’s economy, rural livelihoods, and investor confidence. We commend Minister Parks Tau for his leadership and all stakeholders for working together to achieve a solution that places workers and economic stability at the centre. The preservation of Tongaat Hulett is not just about saving jobs; it is about protecting communities, supporting growers, and strengthening one of our province’s key economic sectors.”

In a joint statement by Tongaat Hulett, IDC, and Vision Group on the matter, they said: “The agreement will see the IDC become a significant shareholder in Vision operating companies across South Africa, Zimbabwe, Mozambique, and Botswana, while extending post-commencement finance support to the end of September 2026.”

It concluded: “Under the agreement, the IDC will extend its post-commencement finance (PCF) support to enable Tongaat Hulett to continue trading while the transaction is implemented. The parties have also agreed to restructure the IDC’s PCF into equity at the appropriate level as part of the overall transaction framework, supporting a more sustainable capital structure on emergence from business rescue. Vision will provide the funding required to settle and address creditor claims, including the company’s obligations to the South African Sugar Association.”

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