Star 2026-02-13

Tongaat Hulett has filed for provisional liquidation at the KwaZulu-Natal High Court after winning bidder, Vision Group, failed to agree financing terms with the Industrial Development Corporation (IDC), with SA Canegrowers saying the folding up of the agro-processing giant will affect cane growers, millers and the entire sugar industry value chain. Business rescue practitioners in Tongaat Hulett on Thursday said the company had now filed for provisional liquidation, saying the Business Rescue Plan adopted by shareholders, creditors and other stakeholders last year was “no longer being implementable as a result of the lapsing of the Sale Agreements” with Vision. “The adopted Business Rescue Plan, proposed by Vision and approved by creditors in January 2024, was premised on a debt to equity exchange, failing which an asset sale transaction,” said the…

The challenge facing South Africa’s automotive sector is no longer simply about recovery or resilience, but it is about the scale of the market. That was the central message from Toyota South Africa Motors (TSAM) President and CEO, Andrew Kirby, as he addressed industry stakeholders at the State of the Motor Industry on Thursday, where he delivered a stark assessment of the country’s manufacturing trajectory. While South Africa's new vehicle market showed encouraging growth last year and finally recovering above 2019 pre-pandemic levels, Kirby cautioned that the underlying structure of the industry is becoming increasingly fragile. Kirby argued that a domestic market of roughly 600,000 units remains too small to sustainably support a competitive manufacturing base. "While it's not as high as 2006 and 2007, and certainly not where they…

Upbeat President announces sweeping reforms to South Africa’s energy and logistics sectors President Cyril Ramaphosa has announced sweeping reforms to South Africa’s energy and logistics sectors, including the establishment of an independent state-owned transmission company, new private investment in the national grid and plans to introduce high-speed rail corridors. Delivering the 2026 State of the Nation Address (SONA) on Thursday night in Parliament, Ramaphosa said government is determined to create a competitive electricity market and reduce the country’s reliance on a single energy supplier. “We are now establishing a level playing field for competition so that we are never again exposed to the risk of relying on a single supplier to meet our energy needs,” he said. "By 2030, more than 40% of our energy supply will come from cheap,…

Verto’s South African Agricultural Exporters Report released on Wednesdayindicated that the South African agricultural export sector is experiencing a period of robust, horticulture-driven growth despite logistical challenges and inefficient cross-border payment systems that are steadily eroding exporter profitability. Exports are projected to exceed $13.7 billion (R218 billion) in the 2025 outlook, primarily fueled by strong demand for high-value commodities like citrus, grapes, and macadamia nuts. The report added that despite this positive momentum, the sector's competitiveness is significantly constrained by systemic inefficiencies and rising costs. “The primary deterrent is the "Achilles' heel" of logistics, specifically persistent congestion and operational delays at ports and the deterioration of rail infrastructure, which directly impacts the timeliness and cost of perishable exports. Trade policy uncertainty, notably the status of the AGOA agreement, and persistent…

South Africa’s automotive industry is at a turning point. The potential closure of a major German car plant goes beyond one factory closing. East London would feel the immediate impact, but it would expose weaknesses across the entire sector and raise concerns about the country’s manufacturing future. A national economic risk The automotive sector drives about 25% of East London’s economy. A shutdown will result in thousands of direct jobs being cut and affect suppliers, logistics, maintenance, security, and other services. Nationally, over 100,000 jobs could be at risk when the full supply chain is counted. Investments in plants, machines, and infrastructure risk sitting idle, wasting resources. Exports would drop as cars for overseas markets stop coming from South Africa. Worst of all, it could send a message to…

Global mining is at an inflection point: demand for critical minerals, underpinned by the low-carbon transition, defence spend, transport electrification and data centres is accelerating in an environment where supply is rising, metals prices are volatile and government intervention is scaling up, said BDO Audit Partner and UK Head of Natural Resources and Energy, Matt Crane. He was writing in BDO's Annual Mining Report 2024, which was released Wednesday. The report found that sustainability has moved from the periphery, to the core of mining strategy. While ESG frameworks and reporting standards are expanding, their effectiveness is however inconsistent. "Many companies still grapple with fragmented disclosures and struggle to integrate sustainability into operational decision-making," the report found. Recycling and circularity was an opportunity. Recycled minerals could generate up to 80% fewer…