Ramaphosa orders intervention to stop Tongaat Hulett liquidation

President Cyril Ramaphosa has directed the national government to intervene to prevent the liquidation of Tongaat Hulett, with about R16 billion set to be mobilised in a bid to protect jobs and stabilise KwaZulu-Natal’s embattled sugar producer. Tongaat Hulett, which has faced sustained financial pressure since 2019, is the subject of a provisional liquidation application brought in the Durban High Court by its business rescue practitioners (BRPs), raising fears of widespread job losses and economic fallout in rural communities. Addressing the KwaZulu-Natal Provincial Legislature, Transport and Human Settlements MEC Siboniso Duma said Ramaphosa had instructed Trade, Industry and Competition Minister Parks Tau to take charge of efforts to rescue the company.

“Minister Parks Tau was here in KZN recently, where he spent two days in meetings with Tongaat Hulett and its stakeholders,” he said. Duma said government would mobilise R16 billion to save jobs at Tongaat Hulett. KZN Premier Thami Ntuli confirmed that Ramaphosa had issued a clear directive that Tongaat Hulett must be saved.

Founded in 1892, Tongaat Hulett has been a pillar of the provincial economy, with thousands of small-scale growers relying on its milling infrastructure, logistics networks and agricultural support. Briefing the National Assembly’s Portfolio Committee on Trade, Industry and Competition, Department of Trade, Industry and Competition (DTIC) director-general Simpiwe Hamilton said the department was acting decisively to block liquidation. He said the DTIC was preparing papers to oppose the BRPs’ provisional liquidation application in the Durban High Court.

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Hamilton added that cane growers, shareholders and other stakeholders were also opposed to liquidation. “So liquidation is not an option that is being entertained by the sector,” he said.

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