Richards bay: The Minister of Trade, Industry and Competition, Parks Tau, says the transformation of the South African economy is critical and that there is no room for apology in pursuing it. Tau made these remarks during a meeting with the Royal Chancellor of the Zulu Nation, Inkosi Malusi Zondi, and the Royal Economic Council in Richards Bay on Friday.
According to South African Government News Agency, the meeting discussed, among other matters, government interventions on Tongaat Hulett, ArcelorMittal, developments in the Richards Bay Industrial Development Zone, and the Department of Trade, Industry and Competition's (dtic) Incentive Schemes, with a particular focus on the Transformation Fund and the Black Industrialists Programme. The Transformation Fund is expected to mobilise R100 billion aggregated over the five-year term of the current administration through a joint effort between the government and the private sector. It will serve as a funding platform wherein inclusive growth is engineered through data, innovation, and partnership, ultimately unleashing the country's full potential. The Black Industrialists Programme is designed to accelerate the participation of black-owned businesses in the industrial economy.
Tau highlighted government's commitment to efforts to save Tongaat Hulett (THL) operations. He said the operations needed to continue, or else it would collapse the strategic agro-processing asset, and liquidation, unfortunately, threatens the entire downstream and upstream value chain, which would cause devastating economic impact. 'It is in everyone's best interest to intervene and find sustainable solutions. We believe that Tongaat can be saved, and we must do everything within our means to ensure its recovery, while also safeguarding public funds. Our investments must be deliberate and purposeful. Above all, we remain committed to putting our people first in every effort we undertake,' said Tau.
In addition, Tau said a R200 million financial support package, facilitated through the Industrial Development Corporation (IDC), has been provided as a lifeline intervention. The funding is intended to sustain operations and prevent immediate collapse, enabling THL to continue operating until at least the end of June 2026. This intervention is aimed at preserving value in the business while a longer-term solution is pursued.
Tau also mentioned that the government is committed to saving ArcelorMittal in Newcastle. He expressed optimism about finding partners and mentioned an offer to buy back the operation.
Tau emphasised his department's commitment to working with the Zulu Nation and other stakeholders to ensure the province fully participates in economic activities across all sectors. He added that continuous engagements would take place to make this a reality. The Royal Chancellor of the Zulu Nation, Inkosi Malusi Zondi, welcomed Tau's commitment and underscored the importance of saving both Tongaat Hulett and ArcelorMittal. Zondi expressed full commitment to economic empowerment and support for efforts to attract new investors and retain current ones for the benefit of the people.
Additionally, Nkosi Zondi welcomed and supported efforts to stop the liquidation of Tongaat, as it will affect small-scale growers. He also stressed the need for further engagement on the way forward should the court rule in favour of the liquidation, as this would destabilise more than one million rural livelihoods and trigger immediate non-payment to growers and suppliers.
Tau was accompanied by senior officials of the dtic, including Director-General Simphiwe Hamilton, Acting Deputy Director-General of Sectors, Dr Tebogo Makube, and the Acting Deputy Director-General of Incentives, Justice Ngwenya.