Tongaat Hullett and Enterprise Development
Posted by Daniel Makhura on 13 October 2017 11:15 AM SAST
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Tongaat Hulett believes that enterprise development and transformation in agriculture are some of the most powerful vehicles avaliable to the company to contribute to nation building, transformation and BBBEE. Enterprise development has occurred, for example, through the sale of businesses to new black shareholders. Major BEE transactions concluded by the company include the listing and unbundling of Hulamin with a BBBEE equity participation element, the sale of Corobrik Klerksdorp Brick Factory and Supervision Food Services.
Tongaat Hulett has identified transformation of the agricultural sector in the countries within which it operates as a key imperative for long-term sustainable growth. Building on the strong platform which was established through the sale of some 11 871 hectares of Tongaat Hulett sugar cane land to 98 BEE medium scale farmers in South Africa since the commencement of the sugar operation’s programme in 1995 to transfer sugar cane farming skills and farms to previously disadvantaged emergent farmers, the company has implemented a number of models, which vary from country to country.
This land redistribution programme forms a major component of the company’s Enterprise Development Programme and is supported by the South African Department of Agriculture, the Department of Land Affairs and the Sugar Industry. The sale of farms to medium scale farmers equates to about 50 percent of the company’s land holdings in South Africa, compared to the Government’s target of 30 percent for transfer to black farmers by 2015. The focus in South Africa has been on the post settlement aspect of the land reform process for sugar cane land supplying its mills. This entails working with the claimant communities in order to assist them with business management and the development of successful farming practices, both during the transitional period prior to the settlement of the claim and once the claimant community have taken ownership of the land. In addition to the mentoring and support services provided to emergent farmers, Tongaat Hulett Sugar plays a leading role in the land reform initiative (Inkezo) of the South African Sugar Industry.