Employment and Labour Minister Nomakhosazana Meth has welcomed an agreement which clears a pathway towards stabilising Tongaat Hulett and securing the future of the sugar industry value chain.
The agreement, concluded between the Industrial Development Corporation (IDC), Tongaat Hulett's business rescue practitioners and the Vision Group, is expected to preserve approximately 250 000 jobs across the sugar industry value chain.
In a statement on Thursday, Minister Meth commended the decisive intervention by the IDC and acknowledged its leadership in extending post-commencement finance and its commitment to restructuring this support into equity.
The Minister said the move would strengthen the company's capital structure and position it for sustainable recovery.
“This landmark agreement marks a pivotal turning point following a prolonged period of uncertainty, including the imminent risk of liquidation. The decision by all parties to pursue a collaborative solution that preserves operations and protects value across the ecosystem is both timely and commendable,” Meth said.
She added that the IDC's intervention demonstrated its commitment to supporting industrial capacity.
“The agreement is of profound importance to the broader economy, as it is expected to preserve approximately 250 000 jobs across the sugar industry value chain, including workers, growers, suppliers, and dependent communities in South Africa and the region.
“This intervention not only protects livelihoods but also ensures continuity in a strategic sector that underpins rural economies and regional trade,” the Minister said.
According to the Minister, the participation of Vision Group as a long-term investor further strengthens the prospects for recovery.
She said Vision Group’s commitment to invest in operations, support growers and suppliers, and restore stability to the business signals renewed confidence in the sector and creates a platform for sustainable growth.
Meth also welcomed the withdrawal of the liquidation application, saying it clears the way for the implementation of the approved business rescue plan and reinforces the shared objective of stabilising the company and enabling its successful exit from business rescue.
“This agreement underscores the power of strategic partnerships between the public sector, private investors, and key stakeholders in addressing complex economic challenges. It reflects a collective commitment to safeguarding productive assets, transforming industries, and driving inclusive growth across the Southern African region.”
Meth reiterated government's support for initiatives aimed at strengthening industrial resilience, protecting jobs and promoting investment in key sectors such as agriculture and agro-processing.
“The preservation of Tongaat Hulett is not only a corporate turnaround, but it is a critical step towards securing food systems, sustaining rural economies, and advancing economic transformation,” she said.
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Government, the Minister said, will continue working closely with all stakeholders to ensure the successful implementation of the agreement and to support the long-term stability and competitiveness of the sugar industry. – SAnews.gov.za
