Sugar stakeholder body SA Canegrowers has hailed the agreement between the Industrial Development Corporation (IDC) and the Vision consortium as a milestone for the industry.

Wednesday’s agreement marked a significant step toward rescuing Tongaat Hulett Limited (THL) after the Durban High Court granted its Business Rescue Practitioners (BRPs) permission to withdraw the company’s provisional liquidation application.

The June 17 agreement outlines a pathway to implement a formal business rescue plan, with Vision set to take ownership of THL’s assets once the process is complete. New funding will ensure operations continue in the short term.

For hundreds of thousands of people dependent on the sugar industry, the development brings much-needed relief.

“This agreement is a significant milestone in securing the future of the modern South African sugar industry,” said SA Canegrowers chairman Higgins Mdluli.

“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.”

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Tongaat Hulett remains a cornerstone of the local sugar sector, operating three KZN mills and the country’s largest standalone white sugar refinery.

“We would like to thank the government, especially the Department of Trade, Industry and Competition, and the IDC, for recognising the significance of the sugar industry to the national economy,” said Mdluli.

He added that continued mill operations were partly sustained through bridging finance from the IDC.

“This agreement reflects the IDC’s commitment to supporting an outcome that safeguards productive capacity, protects livelihoods across the sugar value chain and creates a credible platform for long-term recovery,” said IDC CEO Mmakgoshi Lekhethe.

“Our role is aligned to our developmental mandate: to preserve industrial capability, support jobs and enable sustainable economic participation in sectors that are important to South Africa and the region.”

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Despite the progress, challenges remain. Mdluli warned of the ongoing impact of cheap imports.

“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,” said Mdluli.