Zim’s sugar giant gets rescue deal 

A CONSORTIUM comprising investors from Zimbabwe and Pakistan has officially taken over Tongaat Hulett Zimbabwe after assuming ownership of its parent company through a debt-to-asset swap deal, bringing fresh hope to one of the country’s key agro-industrial sector player.

Tongaat Hulett Zimbabwe operates Triangle and Hippo Valley sugar mills with a combined processing capacity of 3,5 million tonnes of sugarcane annually.

Its parent company, Tongaat Hulett Limited, has been under business rescue since September 2022 due to financial constraints. Officials said the acquisition by Vision Group aimed to transform the company to a competitive African agri-processing giant.

Vision Group director Rutenhuro Moyo said their priority was to stabilise operations.

“The company has faced significant disruption, which has delayed key capital programmes. We believe there is a real opportunity to grow yields, increase the area under cane and introduce innovations like producing by-products such as carbon dioxide,” said Moyo.

Gavin Dalgeish, chief executive officer of Vision Sugar, stressed the long-term commitment of the group.

“We are a Africa-owned business with a strong track record in the region. Transparency, stakeholder engagement and generating sustainable returns for investors are at the heart of our approach,” he said.

Tongaat Hulett Zimbabwe’s chief executive, Tendai Masawi, expressed optimism about the change in ownership and its impact on operational efficiency.

“With the new investors on board, we are no longer hamstrung by business rescue proceedings or limited by strained bank negotiations. This opens the door to better credit terms, stronger supplier relationships, and improved cash flow,” Masawi said.

Vision Group’s acquisition not only covers Zimbabwe’s sugar operations but also includes assets in South Africa and Mozambique, signalling bold regional expansion.

If successful, this transition could mark the beginning of a new, sweeter chapter for Zimbabwe’s sugar industry.