Grave fears as liquidation rocks KZN

ONE MILLION LIVELIHOODS ON THE LINE

- SIPHO JACK

FORMER banking executive, private investor and whistleblower Dave Woollam has warned of dire consequences facing South Africa's sugar industry, particularly those on the North Coast.

His warning follows news that Tongaat Hulett (THL), a major sugar producer, is facing possible provisional liquidation after business rescue efforts collapsed.

The news sent shockwaves through the sector and caused deep concern among small-scale sugarcane farmers who sell their produce to the company. It is estimated that these farms generate R4.5 billion worth of produce annually, and if the sector were to collapse, the ripple effect could impact nearly one million lives, including farmers, related businesses, employees and dependents.

During a podcast interview, Woollam said nearly a million livelihoods hung in the balance.

With THL's future in doubt, uncertainty has intensified among affected farmers ahead of the upcoming sugar milling season, which begins at the end of March and runs through December.

Woollam said that if the sugar market faltered, the impact would result in irreversible economic destruction for the North Coast, as the industry is central to the region's financial well-being.

"If you take that four-and-a-half billion rand away, it will decimate the North Coast," he said.