Thousands of jobs at risk as South Africa’s Tongaat Hulett faces liquidation

Thousands of jobs are at risk as South African sugar producer Tongaat Hulett Limited teeters on the edge of collapse. Business-rescue practitioners have moved to place the century-old company into provisional liquidation after efforts to stabilize its operations failed. The joint practitioners applied to the High Court to end the rescue process, stating that all reasonable options to save the company have been exhausted.

Rescue plan collapse deepens Tongaat crisis

The decision follows the collapse of a previously approved R11.7 billion ($737 million) rescue plan with Vision Group. Related sale agreements lapsed after Vision and the Industrial Development Corp. (IDC) failed to secure funding within the agreed deadlines, leaving Tongaat in a fragile financial position. The uncertainty has alarmed lenders, sugarcane growers, and employees, as the company directly employs thousands and supports tens of thousands more.

“It’s most unfortunate that the Vision business-rescue plan has been allowed to fail,” Vision Group member Robert Gumede said in response to questions. He added that Vision’s shareholders remain committed to saving Tongaat’s South African operations, particularly to protect jobs, investments and the livelihoods of sugarcane growers in rural KwaZulu-Natal. The IDC declined to comment, referring queries to the rescue managers.

Tongaat cites immediate solvency threat

Under the original proposal, Vision agreed to assume R11.7 billion ($737 million) of Tongaat’s debt. The amount would remain payable even if the company enters liquidation. Tongaat said it has since received a letter of demand from Vision stating that the full R11.7 billion ($737 million) is immediately due and payable — a claim the company acknowledged has serious implications for its solvency and poses an immediate threat to its survival.

The proposed restructuring centered on converting debt into equity in a bid to prevent liquidation. The debt had been taken over from Investec, Absa Group and Nedbank Group. Vision’s consortium includes Zimbabwean businessman Rutenhuro Moyo, Egyptian entrepreneur Amre Youness and Nauman Ahmed Khan, founder of Pakistan’s Almoiz Group.

Thousands employed across Tongaat value chain

Founded in 1892 and named after the uThongathi River in KwaZulu-Natal, Tongaat operates three mills capable of crushing more than 4.8 million tons of cane a year. It has sugar operations in South Africa, Botswana, Mozambique and Zimbabwe, employs thousands of workers and supports tens of thousands more through its value chain.

The company has struggled since a 2019 accounting scandal that damaged investor confidence and led to administration three years later. In 2025, Tongaat sold its Zimbabwean assets for R5.9 billion ($330 million), including Triangle Sugar and its 50.3 percent stake in Hippo Valley Estates Ltd., to Vision through a debt-to-asset swap as part of its restructuring plan.