Statement by Abigail Moyo, spokesperson of the trade union UASA:
Tongaat Hulett’s management, stakeholders, business rescue and industry partners are making progress in saving the company and preventing more job losses in the sugar industry.
Cane sugar refiner Tongaat Hulett, currently under business rescue, has announced its selected strategic equity partner (SEP), Kagera Sugar Limited.
Kagera Sugar is a prominent sugar manufacturer based in Kagera, situated in the North Western part of Tanzania, and also owns sugar assets in the Democratic Republic of Congo and the Middle East.
The proposed transaction will comprise the acquisition of Tongaat Hulett, ensuring continuity for the operations in Zimbabwe, Mozambique and Botswana (Tongaat Sugar Assets).
Kagera Sugar is financially sound with a solid track record. Its exposure to complementary sugar assets in Tanzania and the Democratic Republic of Congo offers relevant technical and operational knowledge to assist in the turnaround of Tongaat Hulett’s South African sugar assets.
Partnering with Kagera is a practical and viable solution for Tongaat Hulett that will ensure growth and sustainability in the sugar industry and is expected to improve and retain jobs in KwaZulu-Natal which will also help protect the livelihoods of stakeholders across Tongaat’s value chain, including the group’s many small-scale growers.
