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Zimbabwe's sugar giant gets rescue deal
5 hrs ago | Views
A consortium of Zimbabwean and Pakistani investors has officially taken over Tongaat Hulett Zimbabwe, offering renewed optimism for one of Zimbabwe's most strategic agro-industrial players. The acquisition follows a debt-to-asset swap deal that saw the group assume control of Tongaat Hulett Limited, the company's South Africa-based parent, which has been under business rescue since September 2022 due to severe financial distress.
The new owners, operating under the Vision Group banner, now control the country's two major sugar mills—Triangle and Hippo Valley—which have a combined annual processing capacity of 3.5 million tonnes of sugarcane.
Vision Group director Rutenhuro Moyo outlined the consortium's immediate focus on stabilising operations and reviving stalled growth initiatives.
"The company has faced significant disruption, which has delayed key capital programmes," Moyo said. "We believe there is a real opportunity to grow yields, increase the area under cane, and introduce innovations such as the production of by-products like carbon dioxide."
Gavin Dalgeish, CEO of Vision Sugar, emphasised the group's long-term investment outlook and commitment to regional agricultural development.
"We are an 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," said Dalgeish.
Tendai Masawi, CEO of Tongaat Hulett Zimbabwe, welcomed the takeover, saying it had removed major constraints that had plagued operations for years.
"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," said Masawi.
The Vision Group's acquisition extends beyond Zimbabwe's borders, encompassing strategic sugar assets in South Africa and Mozambique, positioning the group as an emerging regional agri-processing powerhouse.
Industry analysts say the deal could mark the start of a "new, sweeter chapter" for Zimbabwe's sugar sector, which has long struggled under financial pressure and outdated infrastructure.
The move is expected to unlock fresh investment, create new jobs, and restore Zimbabwe's competitive edge in the global sugar market.
The new owners, operating under the Vision Group banner, now control the country's two major sugar mills—Triangle and Hippo Valley—which have a combined annual processing capacity of 3.5 million tonnes of sugarcane.
Vision Group director Rutenhuro Moyo outlined the consortium's immediate focus on stabilising operations and reviving stalled growth initiatives.
"The company has faced significant disruption, which has delayed key capital programmes," Moyo said. "We believe there is a real opportunity to grow yields, increase the area under cane, and introduce innovations such as the production of by-products like carbon dioxide."
Gavin Dalgeish, CEO of Vision Sugar, emphasised the group's long-term investment outlook and commitment to regional agricultural development.
"We are an 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," said Dalgeish.
Tendai Masawi, CEO of Tongaat Hulett Zimbabwe, welcomed the takeover, saying it had removed major constraints that had plagued operations for years.
"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," said Masawi.
The Vision Group's acquisition extends beyond Zimbabwe's borders, encompassing strategic sugar assets in South Africa and Mozambique, positioning the group as an emerging regional agri-processing powerhouse.
Industry analysts say the deal could mark the start of a "new, sweeter chapter" for Zimbabwe's sugar sector, which has long struggled under financial pressure and outdated infrastructure.
The move is expected to unlock fresh investment, create new jobs, and restore Zimbabwe's competitive edge in the global sugar market.
Source - NewsDay
