Trade, Industry and Competition on safeguarding Tongaat Hulett, the sugar sector, and related jobs

The Department of Trade, Industry and Competition (the DTIC notes the latest developments relating to Tongaat Hulett Limited (THL), including the pending liquidation proceedings currently before the courts.

Minister Parks Tau is acutely aware that the sugar industry remains under pressure due to difficult trading conditions, both domestically and internationally.

Tongaat Hulett is a systemically important player in South Africa’s sugar value chain. The liquidation of the company would have far-reaching and devastating consequences for the sugar sector, particularly in KwaZulu-Natal, where the industry underpins thousands of jobs, small-scale farming livelihoods, rural economies and related downstream industries. The collapse of this ecosystem would deepen economic distress in already vulnerable communities and undermine years of investment in transformation, industrial capability and agricultural development.

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. Government will intensify its engagements with all stakeholders, including the Industrial Development Corporation (IDC), labour, growers, financiers, investors and affected communities, to explore solutions that ensure the survival of the company and the long-term sustainability of the sugar sector.

These engagements are guided by government’s broader policy objectives of:

• Protecting jobs and livelihoods, particularly in rural and peri-urban areas;
• Safeguarding small-scale and emerging farmers who depend on the sugar value chain;
• Preserving industrial and agricultural capacity critical to food security and regional economies; and
• Ensuring accountability, transparency and good governance in all processes.

The dtic reiterates that it will respect the independence of the courts and the legal processes currently under way. At the same time, government will continue to play its role in facilitating constructive dialogue, supporting credible rescue initiatives, and ensuring that public interest considerations remain central to the outcome. Further updates will be provided as engagements progress.

Enquiries:
Kaamil Alli
Ministerial Spokesperson
Cell: 082 520 6813
E-mail: KAlli@thedtic.gov.za

Bongani Lukhele
Director: Media Relations
Cell: 079 5083 457
E-mail: BLukhele@thedtic.gov.za

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