The South African Farmers’ Development Association (SAFDA) says it is working to ensure that sugar producer Tongaat-Hulett continues operating despite business rescue practitioners filing for provisional liquidation.
The application has placed thousands of jobs and the livelihoods of cane growers at risk. The more than 130-year-old company has struggled financially since an accounting fraud scandal emerged in 2019.
Tongaat-Hulett processes nearly 30% of South Africa’s sugar output, with production in KwaZulu-Natal valued at billions of rand. SAFDA chairperson Dr Siyabonga Madlala said engagements with investors and stakeholders have provided assurances that operations will continue.
Madlala urged farmers and employees to remain calm, saying discussions with Vision Group, investor representatives and the Industrial Development Corporation (IDC) indicate a commitment to rescuing the company. He added that the liquidation process is funded and that mills are expected to open on schedule, with payments to farmers anticipated at the end of March.
He warned that a shutdown would have severe economic consequences for several KwaZulu-Natal towns, including Melmoth, Gingindlovu, Matigulu and Tongaat, as well as industrial activity linked to the company’s refinery in Merebank.
SAFDA said it remains hopeful that a solution will be reached to stabilise the company and protect jobs across the sugar value chain.