As the 2025 sugar season begins, the South African sugar industry faces ongoing threats from falling global sugar prices, a sugar tax, weak demand, and rising cheap imports, jeopardizing its sustainability. The sector, vital to over 1 million livelihoods, relies heavily on millers like Tongaat Hulett, a key player in KwaZulu-Natal with three sugar mills, a refinery, and an animal feeds facility. The company contributes R9.3 billion annually to South Africa’s GDP, directly employing 2,670 people and supporting 25,563 jobs in rural communities like Maidstone, Amatikulu, and Felixton, where employment opportunities are scarce.
Tongaat Hulett entered business rescue in October 2022 following financial misstatements and mismanagement, averting a liquidation that could have devastated the sugar supply chain. Such a collapse would have led to widespread job losses, financial ruin for 15,000 small-scale black sugar cane farmers, and instability across the sector, impacting transport, packaging, and agricultural input providers. The company’s mills, with a capacity to produce over 600,000 tonnes of refined sugar annually, have remained operational, providing a stable market for growers.
The business rescue process, supported by the Industrial Development Corporation’s financing, has enabled Tongaat Hulett to maintain operations and invest R460 million in off-season maintenance and infrastructure upgrades across its mills. On February 19, 2025, the Durban High Court dismissed an application by RGS Group Holdings to block the business rescue plan, allowing the Vision Consortium, led by Robert Gumede, to proceed with acquiring Tongaat’s assets. Vision has appointed Gavin Dalgleish as CEO of Vision Sugar, who will lead the company’s stabilization and diversification starting in April 2025.
This intervention not only saves jobs but also ensures the sugar industry’s continued contribution to South Africa’s economy, fostering confidence and supporting rural development amidst a challenging season.