Tongaat Hulett has been pulled back from the brink of liquidation after its business rescue practitioners reached an agreement with the Industrial Development Corporation (IDC) and Vision Group to keep the 134-year-old sugar producer trading and proceed with its sale.

The agreement, reached on Wednesday, clears the way for the implementation of the company’s business rescue plan and the transfer of the company to Vision Group, while giving the debt-laden sugar producer access to further funding as the transaction is completed.

The business rescue practitioners withdrew their liquidation application in the Durban High Court after the agreement was concluded.

Under the deal, the IDC will extend post-commencement finance support to Tongaat Hulett until the end of September 2026 and convert its funding into equity as part of the rescue transaction. The IDC will become a significant shareholder in Vision operating companies across South Africa, Zimbabwe, Mozambique and Botswana.

Vision Group is expected to provide funding required to settle creditor claims, including obligations linked to the South African Sugar Association, and conclude new sale agreements for Tongaat Hulett’s South African operations and regional interests.

Tongaat Hulett has been in business rescue since 2022 after years of financial distress because of accounting irregularities. Its possible liquidation raised alarm across the sugar industry, with thousands of jobs, growers, suppliers and rural communities dependent on its mills and refinery.

SA Canegrowers welcomed the agreement, saying it removed the immediate threat of liquidation and brought relief to growers, workers and communities that rely on the company.

“This agreement is a significant milestone in securing the future of the modern South African sugar industry. With the liquidation of Tongaat Hulett off the table, we hope that its mills and refinery can now focus on operating without interruption. More than 17,500 supplying sugarcane growers rely on Tongaat,” SA Canegrowers chairman Higgins Mdluli said on Wednesday.

Tongaat Hulett operates three sugar mills and the country’s only standalone white sugar refinery, supplying sugar used in food and beverage manufacturing, including beverages, biscuits and confectionery.

The sugar industry supports more than one million livelihoods, from growers and mill workers to transporters, suppliers and manufacturers.

Tongaat Hulett’s mills had continued operating during the uncertainty, partly because of bridging finance provided by the IDC.

The growers’ body said the industry now needed to focus on longer-term stability, including the pressure placed on local producers by imported sugar.

“As a unified industry, we can also address other immediate challenges facing us, especially the still persistent flood of imported sugar into South Africa. Unfairly subsidised sugar from countries such as Brazil and Thailand is currently displacing locally produced sugar from retailers and food and beverage manufacturers. This affects growers and local millers alike – including Tongaat Hulett,” Mdluli said.

INSIDE POLITICS

The post Tongaat Hulett saved from liquidation as IDC, Vision strike rescue deal appeared first on Inside Politic.

The sixth South African Investment Conference (SAIC), set to take place in Johannesburg next week, has attracted 31 countries, with the number expected to rise to as many as 45 as Middle Eastern countries currently affected by the war in Iran confirm their participation and investment announcements, subject to flight availability and other logistical considerations.

This emerged during a briefing held by the Department of Trade, Industry and Competition (DTIC) on Monday to outline final preparations for the event, which will be held at the Sandton Convention Centre.

Trade and Industry Minister Parks Tau said the event, established by President Cyril Ramaphosa in 2018, has been an “unqualified success”, having attracted R1.56 trillion—about 26% more than its initial five-year target of R1.2 trillion. The conference now targets R2 trillion over the next five annual editions.

“More than 31 countries, representing international delegates, are making their way to our shores. Their growing interest to participate in the 6th South Africa Investment Conference is an illustration that the world sees us as a gateway to Africa, and the ideal place to invest and partner with a developing country that is shaping the world we live in,” Tau said.

“Our message today is clear: South Africa is open, South Africa is ready, and South Africa is an investment destination of choice.”

Tau described the new five-year investment cycle as “ambitious” and grounded in the conference’s strategic pillars to invest, build partnerships, and advance shared prosperity.

“We live in a world of competing demands for capital. Every nation is making the case for why it deserves investor attention. We are making ours, not with promises alone, but with proof.”

The minister noted that, for investors, South Africa offers “compelling, high-return sectors backed by policy certainty and strategic infrastructure.”

On the state of readiness, Tau said “every key milestone has been met”, with preparatory work building on the G20 summit held last November, and acknowledged the City of Johannesburg as the host metro.

He highlighted South Africa’s competitive edge, including a technology sector poised for growth in fintech and digital infrastructure, renewable energy driven by the Just Energy Transition, and a strong agro-processing and manufacturing base to service continental and global markets—all underpinned by a constitutional democracy and an independent judiciary.

Yunus Hoosen, head of investment promotion at the DTIC, said about R600 billion of the R1.5 trillion pledged so far has flowed into the South African economy.

This includes a new factory by Procter & Gamble to manufacture Pampers, as well as the first phase of a new platinum mine in Mokopane, Limpopo.

Luis Felipe Avellar, Africa Operating Unit President of Coca-Cola, outlined the company’s 100-year history in South Africa. He cited a new study showing that in 2024, Coca-Cola contributed R51 billion and supported 87,000 jobs in the South African economy.

Avellar said each direct job supports ten jobs in the value chain, with the company spending R25 billion on the procurement of local goods and services.

Boitumelo Mosako, CEO of the Development Bank of Southern Africa (DBSA), a sponsor of the conference alongside the Industrial Development Corporation (IDC), said the institution supports the R2 trillion target.

She said the DBSA’s role is to translate high-risk, public-mandate infrastructure projects into bankable opportunities.

“The target is a State vision, but it is up to everyone to make it happen,” said Mosako.

The DBSA has mobilised R23 billion to support bulk water infrastructure projects aimed at addressing the water supply crisis affecting various parts of the country.

Tau said the war in the Middle East will impact long-term investment decisions, adding that South Africa could play a key role in logistics and supply chains as countries search for alternative routes following disruptions linked to the closure of the Strait of Hormuz.

He described trade relations with the United States as “fluid”, noting that nothing has changed since South Africa tabled an improved trade deal to stave off punitive tariffs.

However, he said the Supreme Court of the United States had since declared the tariffs illegal, while President Donald Trump announced investigations into about 60 countries, including South Africa, over alleged unfair labour practices.

Tau said South Africa is now awaiting the terms of trade under the new investigation.

INSIDE POLITICS

The post Investment Conference set to attract 31 countries, targets R2 trillion in next five years appeared first on Inside Politic.