The immediate liquidation threat facing Tongaat Hulett has been removed, easing concerns over disruption to South Africa's sugar value chain.
An agreement between the Industrial Development Corporation (IDC) and the Vision consortium resulted in the withdrawal of the liquidation application against Tongaat Hulett and provides a pathway towards implementation of the business rescue plan, Vision's ownership of the company's assets and its eventual exit from business rescue.
When the liquidation application first came before the court in April, the matter was adjourned to June 17 after the IDC agreed to provide an additional R200 million in funding, increasing its financial support to R2.5 billion. At the time, the funding was expected to remain available until June 30.
However, following discussions between the parties, the IDC agreed to continue providing post-commencement finance until the end of September. The agreement provides for Vision and the IDC to work towards a restructuring solution that would result in the IDC becoming a shareholder in Vision companies in South Africa, Zimbabwe, Mozambique and Botswana.
Judge Rithi Singh subsequently agreed to the withdrawal of the application to place Tongaat Hulett into provisional liquidation.
Industry welcomes reprieve
SA Canegrowers welcomed the agreement, saying it had averted the immediate threat of liquidation and protected an estimated 250 000 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 supplying sugarcane growers rely on Tongaat,” said SA Canegrowers chairman Higgins Mdluli.
Tongaat Hulett operates three sugar mills and South Africa's largest standalone white sugar refinery.
South Africa produces an average of two million tonnes of sugar per season, according to the South African Sugar Association. The country exported an estimated 600 000 to 800 000 tonnes of sugar in 2025, generating export revenue of approximately R6.2 billion.
He said Tongaat Hulett's mills had continued operating during the business rescue process, supported in part by IDC funding.
Canegrowers also called on the industry to address the continued influx 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,” Mdluli said.
