South African century-old sugar company faces liquidation, with approximately 300,000 jobs potentially at risk

According to a report by South African media on the 20th, Tongaat Hulett, a domestic sugar industry giant founded in 1892, is facing a liquidation crisis, which could disrupt the country’s sugar supply chain and impact approximately 300,000 jobs.

It is reported that the company’s commercial rescue plan, launched in 2022, failed due to the inability to reach a restructuring financing agreement. Currently, relevant parties have applied to the court for temporary liquidation of the company. Previously, the company was exposed to financial fraud involving about 3.5 billion rand (approximately $220 million), leading to a market value loss of about 12 billion rand (approximately $750 million), and it was delisted from the Johannesburg Stock Exchange.

On March 25, 2025, at Fountaine Hill Estate in KwaZulu-Natal, South Africa, drone operators spray pesticides on sugarcane fields. Xinhua News Agency reporter Bai Ge took the photo.

As one of South Africa’s major sugar companies, Tongaat Hulett has several sugar mills in KwaZulu-Natal and other regions, and has maintained long-term supply relationships with numerous sugarcane farmers. The South African Sugarcane Growers Association said that if the company is liquidated, it will cause severe shocks to the regional economy, directly threatening about 40,000 jobs and affecting around 250,000 jobs along the related industry chain.

KwaZulu-Natal Province Governor Tamsanqa Ntuli stated that the government is actively seeking solutions to save this 134-year-old sugar enterprise and protect related jobs.

According to media reports, a large influx of low-priced imported sugar into South Africa has affected domestic sugar companies’ performance and is also considered one of the reasons for Tongaat Hulett’s impending liquidation.