• IDC remains non-committal on further funding for Tongaat Hulett, stating any additional support would require rigorous assessment aligned with its developmental mandate
• Government (dtic) and other state organs will oppose liquidation, viewing it as a last resort, and are intensifying stakeholder engagements to pursue a sustainable rescue
• SA Canegrowers warns of cascading economic consequences across the sugar value chain, with the collapse of Tongaat Hulett threatening thousands of livelihoods

Harare- The Industrial Development Corporation (IDC) says that it is not in a position to commit to additional financial support for the embattled sugar conglomerate Tongaat Hulett at this juncture.

This follows the company's business rescue practitioners (BRPs) filing an application with the KwaZulu-Natal High Court on February 12, 2026, to discontinue rescue proceedings and initiate provisional liquidation after exhausting all viable options.

The IDC emphasized that any future funding deliberations would undergo stringent evaluation aligned with its developmental mandate, fiduciary duties, and the stewardship of public resources, pending clarity from ongoing judicial processes.

Importantly, Tongaat Hulett's Zimbabwean subsidiary, Hippo Valley Estates Limited, remains safe and unaffected. As independent legal entities with separate management, finances, assets, and contracts, these Zimbabwean operations are ring-fenced from the South African liquidation process. Hippo Valley has publicly affirmed its financial robustness, operational continuity, and commitment to obligations, with no direct legal or financial impact from the parent company's troubles.

The Industrial Development Corporation (IDC) is a national development finance institution established in 1940. Wholly owned by the South African government, it provides debt, equity, and other financing to promote industrial development, economic growth, job creation, and empowerment, particularly in strategic sectors like agriculture, manufacturing, and black-owned enterprises while adhering to commercial viability and developmental mandates. The IDC has been involved with Tongaat since 2022, providing post-commencement funding during business rescue to support continuity, though it remains non-committal on further assistance pending court clarity.

This development shows the deepening crisis within South Africa's sugar sector, where Tongaat Hulett serves as a linchpin entity. The Department of Trade, Industry and Competition (dtic), alongside other state organs, has declared its intent to oppose the liquidation application, advocating instead for sustained efforts to forge a resilient resolution.

The dtic's stance reflects broader governmental priorities, including job preservation in rural economies, support for small-scale farmers integral to the sugar value chain, maintenance of industrial and agricultural infrastructure vital for food security, and the enforcement of transparency and governance standards.

Compounding the complexity, former bidder RGS Group Holdings from Mozambique has reportedly signalled its participation in the court proceedings to contest the liquidation, though confirmation remains pending. This intervention echoes RGS's prior unsuccessful legal challenge against Tongaat's business rescue plan.

Meanwhile, SA Canegrowers, representing over 28,000 growers nationwide, has issued warnings to high-level government officials, including President Cyril Ramaphosa and key ministers, highlighting the potential for widespread economic fallout across KwaZulu-Natal, Mpumalanga, and the national food system should Tongaat collapse.

The IDC reiterated its collaborative role since Tongaat's entry into business rescue in October 2022, noting substantial post-commencement financing provided to sustain operations and protect stakeholders amid revelations of historic accounting malfeasance that eroded approximately R12 billion in shareholder value.

The corporation maintains its dedication to stakeholder dialogues and lawful pathways toward sustainability, even as the BRPs attribute the liquidation push to the expiration of critical sale agreements with the Vision Group, rendering the rescue plan untenable.

In parallel, the dtic has pledged to escalate engagements with a spectrum of parties including the IDC, labour unions, financiers, growers, investors, and communities to avert liquidation and bolster the sugar industry's long-term viability.

Government views liquidation as an absolute last resort, favouring restructuring that equilibrates creditor interests with national economic imperatives.

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