The South African Farmers’ Development Association (SAFDA) says it is determined to prevent the closure of Tongaat Hulett, despite business rescue practitioners applying for the company’s provisional liquidation – a development that places thousands of jobs at risk.
Tongaat Hulett processes nearly 30% of South Africa’s sugar output, with its KwaZulu-Natal operations contributing billions of rand to the provincial economy and supporting entire rural communities.
SAFDA chairperson Dr Siyabonga Madlala said the matter is receiving urgent attention at the highest levels, expressing confidence that operations will continue and farmers will not be left stranded.
“We want to call on all farmers and employees of Tongaat Hulett to remain calm during this difficult time, because the matter is being addressed at the highest echelons” Madlala said.
“We are receiving assurances and confidence that the mills will open when they are scheduled to open, and that farmers will be paid at the end of March. This follows engagements with Vision Group and uBab’ Gumede, who have given the same undertaking as the Industrial Development Corporation (IDC), which has indicated that its mandate is to save and rescue Tongaat Hulett. The business rescue practitioners and company management have also confirmed that this is a funded liquidation process. We remain hopeful that sanity will prevail.”
Madlala warned that a shutdown would have devastating ripple effects beyond the company itself, threatening the economic survival of several towns dependent on the sugar industry.
“If Tongaat Hulett were to close, more than five towns would be severely affected, because its operations span across multiple communities” he said.
He noted that areas such as Melmoth, Gingindlovu, Matigulu, and Tongaat would bear the brunt of the impact, while the refinery located in Merebank means economic consequences would even extend into urban commercial centres.
The unfolding situation has heightened anxiety among farmers, workers, and local businesses, with stakeholders closely monitoring efforts to stabilise one of the country’s most critical agro-processing companies.
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Reuters
