IDC weighs more support for Tongaat

DURBAN - The Industrial Development Corporation (IDC) says it is prepared to provide additional funding to struggling sugar producer Tongaat Hulett if necessary.

The state-owned financier has already invested R2.5-billion in the company since it entered business rescue in 2022.

It's opposing efforts to place the group into liquidation.

READ | Hope for thousands as rescue plan emerges for Tongaat Hulett

IDC officials have told Parliament they are working with stakeholders to find a long-term solution before a key court hearing later this month.

The future of Tongaat is seen as critical to South Africa’s sugar industry, with more than 16,000 farmers relying on the company’s mills.

Industry leaders warn that liquidation could threaten thousands of jobs and have a devastating impact on rural economies in KwaZulu-Natal and Mpumalanga.

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