South Africa’s Ministry of Trade, Industry and Competition has announced it will oppose the liquidation of sugar producer Tongaat Hulett, warning that the move could have severe consequences for jobs, farmers, and the country’s sugar industry.
The 134-year-old Tongaat Hulett, one of South Africa’s largest sugar millers, has the capacity to process around 2 million metric tons of sugarcane annually. The company employs thousands across operations in South Africa, Zimbabwe, Mozambique, and Eswatini.
Minister of Trade, Industry and Competition, Parks Tau, said in a statement that while the ministry does not have the legal authority to block liquidation, it can participate in hearings and support efforts aimed at finding a viable resolution.
The ministry’s stance follows the announcement by Vision Group, the company’s lead secured creditor, that attempts to rescue Tongaat Hulett, which began in 2022 after major accounting irregularities were uncovered, had failed. Vision argued that provisional liquidation would protect the company’s assets, maintain operational stability, and safeguard the livelihoods of those dependent on the sugar producer.
“The 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,” Minister Tau said.
About 250,000 grower and supplier jobs linked to cane production in KwaZulu-Natal and Mpumalanga provinces are at risk, along with 2,600 direct jobs within the company itself.
A provisional liquidation hearing is scheduled for February 27, raising concerns over the stability of South Africa’s sugar supply chain and the economic pressures on rural communities that rely on the company.
Minister Tau described Tongaat Hulett as a “systemically important player” in the sugar value chain and expressed optimism about its potential restructuring and stabilization, emphasizing the importance of protecting both employment and the broader agro-industrial sector.
Tongaat Hulett’s situation highlights the wider challenges facing South Africa’s agricultural and industrial sectors, particularly in managing corporate governance, debt restructuring, and the preservation of jobs in historically significant industries.
Founded in 1892, Tongaat Hulett is one of Southern Africa’s oldest and most prominent agro-processing companies. Headquartered in KwaZulu-Natal, the group has long been a central player in the region’s sugar industry, operating sugar mills and refineries in South Africa, Zimbabwe, Mozambique and Eswatini. Beyond sugar production, the company has historically been involved in property development and land management.
Tongaat Hulett’s financial troubles deepened in 2019 after it revealed significant accounting irregularities that overstated its assets and profits. The scandal triggered a sharp collapse in its share price, regulatory investigations and a loss of investor confidence. The company subsequently embarked on a lengthy business rescue process in 2022 aimed at restructuring its debt, stabilising operations and securing new investment.
The sugar producer is considered systemically important because of its role in the broader value chain. It supports thousands of small-scale and commercial cane growers, particularly in KwaZulu-Natal and Mpumalanga, provinces where sugarcane farming is a major source of rural employment. Industry estimates suggest that hundreds of thousands of indirect jobs — including farm workers, transport operators and suppliers — depend on the stability of large millers such as Tongaat Hulett.
South Africa’s sugar sector has also faced mounting pressures in recent years. These include rising input costs, unreliable electricity supply, cheap sugar imports, and competition from alternative sweeteners. The government has previously introduced measures such as the Sugar Master Plan to stabilise the industry, promote local procurement and protect jobs.
The potential liquidation of Tongaat Hulett has therefore raised concerns about disruptions to the sugar supply chain, the viability of cane growers who rely on the company’s milling capacity, and the economic health of rural communities.
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By signalling opposition to liquidation, the trade ministry is positioning itself in favour of restructuring or alternative rescue mechanisms that could preserve production capacity and employment, while maintaining stability in a sector regarded as strategically important to South Africa’s agro-industrial economy
