Media statement by SA Canegrowers
April 16, 2026
Tongaat Hulett provisional liquidation hearing is a watershed moment for the bulk of South Africa’s sugarcane growers
The KwaZulu-Natal High Court hearing on the potential liquidation of Tongaat Hulett Limited will be a watershed moment for two-thirds of South Africa’s sugarcane growers. More than 18,000 growers, the bulk of whom are small-scale growers, have no other option than Tongaat Hulett mills to process their sugarcane. Should the company enter an unfunded liquidation, their farms could become economically unviable, leading to thousands of rural job losses. This year’s milling season has already opened for sugarcane growers in other regions, but growers who are served by Tongaat Hulett mills are still waiting to hear when the mills will reopen.
Tongaat Hulett Limited has been in business rescue since October 2022, but has remained operational throughout. Earlier this year, the company’s business rescue practitioners filed for provisional liquidation after the sale agreement with the Vision consortium lapsed.
Among those opposing the provisional liquidation are: SA Canegrowers, representing almost 30,000 sugarcane growers, the Industrial Development Corporation (IDC), which provided over R2.3 billion in funding during the business rescue process, and the Minister of Trade, Industry, and Competition Parks Tau.
“The liquidation of Tongaat Hulett affects the entire sugar industry, and it is a direct threat to tens of thousands of rural jobs and livelihoods. For SA Canegrowers, safeguarding these communities must come first. The cost of preserving these operations is far lower than the long-term economic and social damage of allowing a viable milling business to collapse,” said Higgins Mdluli, chairman of SA Canegrowers.
Tongaat Hulett is a key contributor to South Africa’s economy and to the stability of rural communities. Tongaat Hulett operates three sugar mills and is the country’s only standalone refiner of white sugar. White sugar is used in beverages, biscuits, and confectionary. As such, it is a cornerstone of the national sugar value chain, which supports more than one million livelihoods – from small-scale and large-scale growers to mill workers, transporters, and food and beverage manufacturers.
Should Tongaat Hulett enter unfunded liquidation, it would force the large commercial beverage and snack manufacturers to rely solely on imported white sugar, exposing the local economy even more to the instability of global sugar prices and severely threatening the viability of the entire local sugar industry.
It is important to note that Tongaat Hulett has not yet entered formal liquidation. Stakeholders, including SA Canegrowers, are actively engaged in discussions to explore options that may prevent liquidation entirely.
But, if liquidation becomes unavoidable, SA Canegrowers believe that a funded liquidation needs to be negotiated that will ensure the mills remain operational and are not left unoccupied, which opens the risk of vandalism.
ENDS
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Gerhard Mulder
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Katharine Child
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