Allowing liquidation of Tongaat Hulett will roll back the gains of the Sugar Value Chain Master Plan

While the sugar industry has shown green shoots amid the introduction of the Sugar Value Chain Master Plan, parliamentarians have warned that allowing Tongaat Hulett to collapse would undermine the gains. During the portfolio committee on trade, industry and competition meeting on Tuesday, it emerged that the first phase of the plan has seen sugar sales increase from 1.25 millions tons to 1.55 millions tons. This augured well for the proportion of purchases by downstream users. “In addition, there have been expanded efforts to support the 12 000 small-scale growers and increase transformation funding available to them. It also welcomed the finalisation of amendments to the sugar industry regulations in 2025,” the committee noted. The South African Sugar Association and the delegation from the department of trade, industry and competition were briefing the committee on the implementation of the plan. At the heart of the Sugar Value Chain Master Plan, which was signed by stakeholders in the sugar sector on 16 November 2020, is a focus on diversification. The industry stakeholders should go beyond traditional sugar production to include other products such as bio-ethanol and bio-fuels. The plan also emphasises sustainability, such as the inclusion of small-scale growers in the sugar value chain. The move aims to protect jobs and livelihoods, particularly among small-scale producers while promoting growth and new employment opportunities. The first phase of the plan, which ended in March 2025, identified stabilising the industry, job retention, trade protection, small-scale grower support, transformation and market restoration. The second phase, signed in April this year, centres on the long-term competitiveness of the sugar sector, diversification, employment retention, structural reforms, transformation and inclusive growth. Mzwandile Masina, the committee chairperson, said that given the Tongaat Hulett contribution to the economy of KwaZulu-Natal, both the private se