By Celani Sikhakhane
• Robert Gumede told King Misuzulu kaZwelithini that Tongaat Hulett plans to produce vehicle fuel and electricity from sugarcane to increase demand.
• Tongaat Hulett’s new bosses want to grow opportunities for black sugarcane farmers while the company works to repay its debt.
Tongaat Hulett’s new bosses want to turn sugarcane into more than just sugar.
South African billionaire Robert Gumede and his associates have told King Misuzulu kaZwelithini that they plan to expand into fuel and electricity production.
Gumede, who helped save the sugar company from liquidation, revealed the plans during a meeting with King Misuzulu in Durban on Sunday.
He said the plan could increase demand for sugarcane supplied by farmers in KwaZulu-Natal.
“Your Majesty, we aim to expand our value chain to produce ethanol fuel for vehicles and electricity,” Gumede said.
He said the electricity would be produced using sugarcane and sold to Eskom.
“This will help to expand the production and demand from your subjects,” he said.
Gumede said the new owners understood the importance of black farmers in KwaZulu-Natal and wanted to help them grow.
“We bought this company to save the Zulu nation. We do understand that KwaZulu-Natal has the highest number of black farmers more than anywhere else,” he said.
Gumede said they had brought Gavin Dalgleish from Britain on board to help develop black farmers.
Speaking on behalf of King Misuzulu, Royal Chancellor Inkosi Malusi Zondi raised concerns about what he described as a lack of government support for Tongaat Hulett.
Zondi said the company has 20,000 employees in KwaZulu-Natal while government had chosen to rescue foreign companies with more than R8-billion despite those companies employing only 3,000 workers.
Zondi and Gumede agreed that Minister of Trade, Industry and Competition Parks Tau should be brought into discussions to assist Tongaat Hulett.
Gumede also told King Misuzulu that Tongaat Hulett spends about R7-billion a year, with 40% of that spending going to the King’s subjects.
Workers, however, should not expect salary increases for now.
Gumede said the company needs to repay debt caused by corruption under its previous administration.
But he told King Misuzulu that the new owners want workers to benefit through shares in the company.
Pictured above: Tongaat Hulett’s new bosses met King Misuzulu kaZwelithini in Durban to discuss plans aimed at boosting production by black sugarcane farmers.
Image source: Zulu Royal Kingdom
