Tongaat Hulett has taken a step towards recovery after reaching an agreement with the Industrial Development Corporation (IDC) and the Vision Group, easing fears of liquidation and offering hope for thousands of jobs.
In a joint statement released on Wednesday, the parties confirmed a deal that will allow the struggling sugar producer to continue operating while its business rescue plan is implemented.
The agreement is expected to help preserve around 250 000 jobs across the sugar industry value chain.
‘Deal a significant milestone’
Robert Gumede, Vision chairperson, described the deal as a milestone that reflects a strong commitment from black-owned businesses to support the industry. He also called for greater protection against cheap imported sugar, which he said threatens local producers.
Vision has committed to funding the settlement of creditor claims and supporting the full implementation of the business rescue plan. The company will also acquire Tongaat Hulett’s South African operations, along with its interests in Zimbabwe, Mozambique and Botswana.
“I am heartened in that 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 that is the second biggest employer in Zimbabwe and Mozambique after the government employees.
“Vision is confident to turn the fortunes of the companies and hopes the SA government shall from now on protect the jobs and industry from the dumping of foreign sugar from Brazil and Thailand. Lastly, Vision is looking forward to working with SASA, growers, labour unions, our key clients and suppliers,” said Gumede.
Liquidation application to be withdrawn
The deal comes after months of uncertainty, including a liquidation application filed with the High Court in Durban. That application will now be withdrawn as stakeholders shift their focus towards stabilising the business.
Mmakgoshi Lekhethe, IDC CEO, said the deal aligns with the organisation’s goal of protecting jobs and supporting long-term economic participation. She noted that the agreement provides a credible platform for recovery while safeguarding industrial capacity.
Under the agreement, the IDC will extend financial support to keep Tongaat Hulett trading until at least September 2026.
Part of this funding will later be converted into equity, giving the state-owned financier a significant shareholding in Vision’s operating companies across South Africa and other regional markets.
“This agreement reflects the IDC’s commitment to support 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,” said Lekhethe.
- Tongaat Hulett reached an agreement with the Industrial Development Corporation (IDC) and Vision Group, averting liquidation and enabling the continuation of its business rescue plan.
- The deal aims to preserve about 250,000 jobs within the sugar industry value chain, providing significant employment protection.
- Vision Group will fund creditor settlements, support the rescue plan's implementation, and acquire Tongaat Hulett’s South African operations plus regional interests in Zimbabwe, Mozambique, and Botswana.
- The IDC commits financial support to keep Tongaat Hulett trading until at least September 2026, with part of the funding to convert into equity, securing a significant state shareholding.
- Stakeholders focus on stabilizing the business with the liquidation application withdrawn, while Vision and IDC emphasize the need for protection against cheap imported sugar to safeguard local industry and jobs.
