Tongaat Hulett, once one of South Africa’s flagship agricultural companies, is fighting for survival in the Durban High Court.

The outcome matters to thousands of sugarcane farmers and mill workers across KwaZulu-Natal and Mpumalanga whose jobs depend on the company staying operational.

How we got here

Tongaat Hulett entered business rescue in October 2022 after an accounting scandal destroyed roughly R12 billion in shareholder value. Former management misstated the company’s accounts for years.

Vision Sugar, a consortium led by IT billionaire Robert Gumede, moved in as a secured lender. Vision bought the debt claims of all 13 banks exposed to Tongaat, acquiring R11.74 billion in claims. Gumede says his group has committed about R4 billion to the rescue.

The dispute

On 8 February 2026, Vision issued a formal demand for immediate repayment of the full R11.7 billion. Four days later, the business rescue practitioners filed for provisional liquidation.

Investigative outlet amaBhungane described the sequence as a “deliberate detonation.” Vision rejected that characterisation.

Gumede says Vision wants to convert a portion of its debt into equity to stabilise the balance sheet. He described the acquisition as a “masterly deal” and said Vision is committed to saving the business.

The IDC and the South African government disagree with the liquidation path. The IDC, which previously paid about R900 million to settle a revolving credit facility, has gone to court to oppose the application.

President Ramaphosa has called for urgent action to protect jobs in the sugar industry.

What is at stake

Tongaat Hulett once produced roughly 70% of South Africa’s white sugar. Its mills employ thousands directly. Tens of thousands of small-scale sugarcane farmers supply those mills.

Liquidation would trigger job losses across the supply chain and leave KwaZulu-Natal’s sugar belt without its anchor employer.

What happens next

The Durban High Court adjourned the liquidation hearing to a later date, buying time for all parties to engage. The adjournment resolves nothing.

The core question is whether Vision’s debt-to-equity plan can work, or whether the company is beyond rescue.