The Portfolio Committee on Trade, Industry and Competition welcomes the agreement reached between the Industrial Development Corporation (IDC), the business rescue practitioners of Tongaat Hulett and the Vision Group, for Tongaat Hulett to exit business rescue and maintain its operations.

The agreement preserves an estimated 250 000 jobs across the sugar value chain and gives hope to thousands of workers, sugarcane growers, suppliers and rural communities whose livelihoods depend on the sustainability of the sugar industry.

This is the outcome that the committee called for when it met on 2 June 2026. The committee had urged government and the private sector to work together to save Tongaat Hulett, protect jobs and preserve a strategic industry that is central to rural economic development.

The committee welcomes the demonstration of decisive leadership by the IDC. At a time when uncertainty threatened the future of Tongaat Hulett and the broader sugar industry, the IDC stepped forward to facilitate a solution that prioritises industrial capacity, economic stability and jobs preservation. The committee also recognises the role played by the Vision Group in reaching an agreement that provides a credible path towards stabilising and rebuilding one of the oldest and most important companies in the southern African sugar sector.

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While welcoming the agreement, the committee emphasises that the rescue of Tongaat Hulett must be accompanied by accountability for the events that led to the company's collapse. The committee remains firmly of the view that individuals responsible for fraud, and corporate and financial misconduct at the company must face the full consequences of their actions.

The committee further calls on the IDC and the Vision Group to ensure that broad-based black economic empowerment is embedded in the next phase of the transaction to facilitate inclusion and real economic transformation. In this regard, the participation of sugarcane growers and workers must form an integral part of the future ownership and governance arrangements of the business. The long-term sustainability of the sugar industry depends not only on financial stability but also on meaningful inclusion of those who daily contribute to the success of the company and the industry as a whole.

The committee also reiterates its call on the government to accelerate the implementation of the Sugar Value Chain Master Plan. The progress achieved under the first phase of the Master Plan has demonstrated that coordinated action between government, labour, growers and industry can deliver positive results. However, it is important to note that challenges remain which require the government's interventions, including protection against unfair sugar imports, support for small-scale growers, funding certainty and the development of a competitive biofuels industry; and investment from the private sector, particularly for industry diversification.

Chairperson of the committee Mr Mzwandile Masina said, "Government must continue to work with all stakeholders to secure the future of the industry, expand opportunities for growers and workers, and unlock new avenues for growth and diversification."

The committee will continue exercising oversight over developments at Tongaat Hulett and the implementation of the Sugar Value Chain Master Plan to ensure that jobs and the interests of workers, growers, communities and the broader economy remain protected.