Govt reiterates efforts to protect sugar sector amid pending Tongaat Hulett liquidation

The Department of Trade and Industry has reiterated its commitment to efforts aimed at protecting the sugar sector and jobs amid the pending liquidation of sugar producer Tongaat Hulett.

This follows concerns of the imminent collapse of the 134-year-old company after another failed attempt to rescue the business.

Tongaat Hulett’s closure could devastate KwaZulu-Natal’s local economy and put thousands of livelihoods across operations in South Africa, Eswatini, Zimbabwe and Mozambique.

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The sugar giant’s business rescue practitioners have now filed for provisional liquidation following a breakdown in funding talks and new demands from the Vision Consortium.

Trade and Industry spokesperson Kaamil Alli said it will join others who are making a case to oppose the liquidation.

“Government remains firmly of the view that liquidation should be a measure of last resort, particularly where there are reasonable prospects of rescuing a strategically important enterprise in a manner that protects jobs, sustains productive capacity and preserves value for the broader economy."

“In this context, the DTIC believes that Tongaat Hulett remains capable of being stabilised and restructured through a sustainable solution that balances the interests of workers, growers, communities, creditors and the country. Accordingly, the DTIC, 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,” Alli added.