Latest News & Developments
Tongaat Hulett demonstrates commitment to South Africa's sugar industry with a R460 million investment in facility upgrades, supporting over 25,500 jobs and processing sugarcane from 15,000 black farmers. The company's business rescue process shows positive progress as it prepares for the 2025/26 season.
The Durban High Court has dismissed RGS Group's attempt to halt Tongaat Hulett's business rescue implementation, paving the way for Vision Group's R8. 2 billion recovery plan. The ruling marks a significant milestone in the sugar giant's path to financial stability
“It is important to note that most product diversification opportunities are still at scoping and prefeasibility stages,” said SASA CEO, Sfiso Mhlaba.
Calls have been made on the government to increase sugar tax so it can properly improve health, but the industry warns of job losses
The improved headline earnings was largely due to gains in Groceries and Baking, and a partial recovery of the additional levy raised by the South African Sugar Association (SASA) in the 2023 financial year, on the Sugar business unit, as a result of Tongaat Hulett and Gledhow suspending payment of their industry obligations.
The interim CEO, Rob Aitken, would continue to be part of the Vision Group leadership, and further announcements are expected to be made in due course.
In our last edition, 26 January 2025, we published an opinion piece with the headline, Rational Discussion Needed about Sugar Tax from Andrew Russell, the vice chairperson of SA Canegrowers, who was writing in his personal capacity. Below is a response from the Healthy Living Alliance (HEALA) who were cited in the opinion piece that was published.
Heala advocates for urgent discussions on hunger and food insecurity in South Africa, highlighting the need for policy reform and the expansion of the Health Promotion Levy to combat child hunger and improve public health.
Industry stakeholders, led by the South African Farmers Development Association (SAFDA), expressed enthusiasm for Godlimpi’s proactive approach.
Engelbrecht said this restraint was a positive development for the broader agricultural and allied industries as it supported stability and job security at a time when rural and urban businesses alike were striving to maintain sustainable employment levels.
SA Canegrowers is also calling for greater consultation on the tax’s socio-economic effects and a comprehensive study on the causes of obesity and poor health in South Africa.
South African sugar industry stakeholders have united in an urgent appeal to Finance Minister Enoch Godongwana, calling for a halt to the Health Promotion Levy ahead of the Medium-Term Budget. The industry warns of devastating job losses and economic impact if the levy continues or expands.
HEALA’s stance on the proposed sugar tax increase has ignited a debate between public health advocates and South African cane growers, highlighting the tension between health initiatives and economic impacts on rural communities.
Central to the controversy is the assertion from HEALA and its allies that the introduction of the sugar tax has not led to job losses in the sector.
While soda purchases declined, consumers redirected their spending to other products, raising concerns over the real impact on jobs.
SA Canegrowers and the South African Farmers Development Association have made an appeal to President Cyril Ramaphosa to scrap sugar tax or extend the HPL moratorium.
The drier weather meant they could face restrictions in future when in fact they need to extend their irrigation schedules and given that irrigation systems rely on Eskom-provided electricity, years of steep price increases have had an impact on the already tight margins these growers can achieve for their product.
But in the six years since the introduction of the tax, there is not one single study that has proved the tax has had any effect on rates of diabetes and obesity.
Tongaat Hulett shareholders had two options: vote for the debt to equity swap and retain 2. 7% of the JSE-listed shares, or reject it. They chose the second option, which left them empty-handed.
This comes as the majority of shareholders of Tongaat Hulett on Friday voted against the proposed debt-to-equity conversion that would have handed a 97. 3% controlling share of the company to the Vision Group.
Business mogul Robert Gumede is poised to finally take over the embattled sugar giant, Tongaat Hulett Limited (THL).
THL lenders or the banks were owed over R8 billion by THL when THL went into business rescue. Vision entered into a full and final debt-purchase agreement executed in January, 2024 with THL’s lenders, which was irreversible and to which the lender group had been very supportive.
Tongaat and the BRPs now have one calendar month to deliver their notice of appeal to the Supreme Court of Appeal.
The liquidation or unbundling of Tongaat Hulett would devastate these small-scale farmers, destabilise rural economies, and exacerbate unemployment in areas where job opportunities are already scarce.
With so much at stake, it’s up to shareholders to vote with their conscience, stand up to Vision, and pick the best deal for not only themselves, but also for THL creditors, employees, and the thousands of people dependent on the business.