By Celani Sikhakhane
- Businessmen Robert Gumede and Peter Moyanga say they bought struggling sugar company Tongaat Hulett for about R4 billion to stop liquidation and protect 20,000 jobs.
- The new owners say they want to support thousands of small scale farmers, especially black farmers in KwaZulu-Natal who depend on the company for income.
South African businessman Robert Gumede and Zimbabwean billionaire Peter Moyanga say they have stepped in to save sugar company Tongaat Hulett from collapse.
The two businessmen told King Misuzulu kaZwelithini and Prime Minister Reverend Thulasizwe Buthelezi that they have bought the troubled company for about R4 billion.
Tongaat Hulett had been facing liquidation after years of financial problems.
Gumede said they decided to buy the company to protect about 20,000 jobs and thousands of small scale farmers who depend on the sugar industry for their livelihoods.
Many of the farmers who supply the company are black farmers in KwaZulu-Natal.
Gumede said they answered a call from the Zulu royal family to help save the company.
“Your Majesty we heard your call through your Royal Chancellor Inkosi Malusi Zondi that you want Tongaat Hulett to be saved because it is a main source of income to many of your subjects,” he said.
“Let us assure you that we have managed to do that. We bought this company without any loan. It is money from our own pockets.”
He said their plan is to make sure black farmers become the majority of suppliers to the company.
Gumede said the deal also includes taking over the company’s debt, which is about R12 billion.
He said Tongaat Hulett’s problems are mainly in South Africa and blamed corruption by previous management for the crisis.
According to Gumede, the company’s operations in Botswana, Mozambique, Zimbabwe and Kenya are still stable.
He said these businesses together employ about 18,000 people, making the company one of the biggest employers after government.
The new owners also want to expand the business. One of their ideas is to produce electricity from the company’s operations and sell the power to Eskom.
Moyanga is known in business circles for becoming one of the first black owner operators of McDonald’s franchises in South Africa.
Early franchise owners like Moyanga helped turn struggling restaurants into strong businesses.
President Cyril Ramaphosa later bought the entire South African McDonald’s chain in 2011 before selling it to MSA Holdings in 2016.
Pictured above: Robert Gumede and Royal Chancellor Inkosi Malusi Zondi.
Image source: Zulu Royal Kingdom
