JOHANNESBURG – Vision Group has moved to reassure stakeholders in Zimbabwe, Mozambique and Botswana following the provisional liquidation filing of Tongaat Hulett Limited in South Africa.
The filing comes after the collapse of Tongaat’s business rescue plan in South Africa, but Vision — the company’s largest secured creditor — says the developments will not disrupt operations outside the country.
Vision holds security over shares in Tongaat’s holding companies in Zimbabwe, Mozambique and Botswana, as well as related claims. The group says this position ensures it remains central to any restructuring process, even under liquidation.
“Vision remains steadfast in its commitment to the survival and long-term viability of the broader group,” the company said in a statement, adding that it is working to shield the regional businesses from instability linked to the South African proceedings.
Operations Continue Uninterrupted
According to recent updates from Tongaat Hulett Limited and its Zimbabwean unit, operations in Zimbabwe, Mozambique and Botswana remain fully functional and legally separate from the South African process.
Vision said it has no intention of selling any of the regional businesses. Instead, it plans to stabilise operations after what it described as years of shareholder instability at the parent company level, and to unlock further growth opportunities.
Those plans include improving efficiencies in core sugar production and expanding into by-products such as animal feed, energy generation and ethanol fuel. The group indicated that this would require significant investment in sugar cane farming, with the potential to create sustainable jobs across the three countries. Vision also pledged to work closely with cane growers during the process.
Jobs and Supply Not at Risk
Vision stressed that local governance structures remain unchanged and that relationships with suppliers and banks are intact. It also sought to calm fears about employment and supply disruptions.
“No jobs are at risk in these operations as a result of the developments in South Africa,” the company said, adding that sugar supply to regional markets would continue uninterrupted.
The regional businesses form a substantial part of Tongaat’s African footprint. Zimbabwe produces approximately 640,000 tons of sugar annually, while Mozambique contributes around 340,000 tons of brown and white sugar from two estates and two mills. In Botswana, the company operates a sugar packing and distribution network.
Collectively, the operations support a significant portion of the group’s roughly 33,000 employees across the sub-continent.
Push for Control Through Liquidation
Vision, which has an exposure of R11.7 billion as the largest secured creditor, said it is engaging regulators, employees and other stakeholders in the three countries to provide assurances of continued support.
The group added that it has already secured the necessary regulatory approvals in Zimbabwe, Mozambique and Botswana and has presented detailed turnaround strategies, some of which are already being implemented.
Vision indicated that a key factor in the collapse of the South African business rescue plan was a dispute over implementation timelines.
The company had sought to prioritise the transfer of non-South African assets, arguing they were ready for immediate implementation, while South African assets required additional time.
By gaining control of the regional businesses through the liquidation process, Vision said it believes it can pursue a more transparent and structured rehabilitation strategy, positioning the operations in Zimbabwe, Mozambique and Botswana to continue playing a leading role in Africa’s sugar market.
