JOHANNESBURG - There has been a positive reaction to the announcement of a rescue package aimed at saving sugar giant Tongaat Hulett.
The last-minute lifeline comes after business rescue practitioners confirmed a deal with the Industrial Development Corporation (IDC) and the Vision Group.
The Congress of South African Trade Unions (COSATU), which welcomed the announcement, said the move could result in more than 200,000 jobs along the value chain being saved.
In a statement on Wednesday, COSATU Parliamentary Coordinator Matthew Parks said the potential liquidation of the massive South African company and cornerstone of the KwaZulu-Natal and Mpumalanga economies would have been a blow the country simply could not afford.
"Whilst the details of the turnaround package announced by the Industrial Development Corporation (IDC) and Vision must still be broken down in full, this announcement gives hope and comfort to the 250,000 workers and their families, communities and SMMEs along the entire value chain," he said.
Parks said it is critical that the turnaround plan be premised on saving all 250,000 jobs, especially as the country continues to battle a high unemployment rate.
The Portfolio Committee on Trade, Industry and Competition also welcomed the announcement.
The committee’s Media Officer, Faith Ndenze, said: “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 job preservation.”