President Cyril Ramaphosa's government takes decisive action to prevent the liquidation of Tongaat Hulett and ArcelorMittal, aiming to protect thousands of jobs and foster economic growth in South Africa. In Picture: KZN Transport MEC Siboniso Duma.
Image: Supplied
In a bid to prevent the loss of thousands of jobs, President Cyril Ramaphosa has deployed Ministers Parks Tau and Dr Sputla Ramokgopa to engage with key stakeholders regarding the potential liquidation of Tongaat Hulett and ArcelorMittal South Africa.
The engagements have resulted in the development of targeted measures that form part of a broader strategy to ensure sustainable economic growth and job creation in South Africa, particularly in KwaZulu-Natal.
During his recent State of the Nation Address (SONA), Ramaphosa emphasised that the government’s immediate priority is fostering an environment conducive to business development, aimed at generating employment opportunities for women and young people. This aligns with the rollout of the Economic Reconstruction and Recovery Plan, launched in 2020, which includes initiatives to support small business growth and strengthen infrastructure investment.
Recognising the critical situation in the sugar industry, particularly at Tongaat Hulett, the Department of Trade, Industry and Competition (DTIC) has expressed its intent to challenge the company’s liquidation process.
In a statement, the DTIC said: “Liquidation should be a measure of last resort, particularly where there are reasonable prospects of rescuing a strategically important enterprise in a manner that protects jobs.” The department believes that with effective intervention, Tongaat Hulett can be stabilised and restructured, preserving value for the broader economy and safeguarding thousands of jobs.
Siboniso Duma, KwaZulu-Natal MEC for Human Settlements and Transport, welcomed the ministers’ intervention, noting its potential to preserve economic stability and secure employment. “Clearly, the provincial economic growth of 1.8% in 2025, above the national average, affirms the strong foundation laid by previous administrations,” he said.
If liquidation proceeds at Tongaat Hulett, an estimated 15,000 jobs could be lost, with significant consequences for small-scale sugarcane growers, many of whom are Black farmers operating in rural areas. The efforts to avert liquidation have received widespread support, including from King Misuzulu.
Meanwhile, ArcelorMittal South Africa is also under scrutiny. Minister Tau is exploring an alternative investor strategy designed to ensure sustainable capitalisation, which could save over 3,400 jobs at the company’s Newcastle operations. Additionally, Dr Ramokgopa, Minister of Electricity and Energy, is coordinating initiatives to bolster the company’s energy supply as part of its rehabilitation plan.
Duma highlighted the public’s demand for practical solutions over political disputes. “The people of this province want leaders who create opportunities for economic growth,” he said.
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