Robert Gumede tells King Misuzulu of plans to turn sugarcane into fuel and electricity

South African businessman Robert Gumede has outlined ambitious plans to transform Tongaat Hulett's sugar operations by producing ethanol fuel and generating electricity from sugarcane.

Gumede, whose Vision consortium took control of the 134-year-old sugar producer in June, met with King Misuzulu kaZwelithini in Durban on Sunday to explain his plans for the struggling sugar giant.

The businessman told the Zulu monarch that Tongaat Hulett intends to diversify beyond traditional sugar production by converting sugarcane into ethanol for vehicles and generating electricity for sale to Eskom and eThekwini Municipality.

According to Gumede, the expansion could significantly increase demand for sugarcane and benefit thousands of growers across KwaZulu-Natal.

KwaZulu-Natal remains the heartland of South Africa's sugar industry, with thousands of small-scale farmers supplying the province's mills. The Zulu monarchy also has significant influence through the Ingonyama Trust, which administers large portions of land in the province where many cane growers operate.

Vision Sugar plans to expand its grower base from about 17,500 farmers to more than 30,000. It also aims to double the approximately 50,000 jobs currently linked to the business.

The company's diversification strategy is expected to focus on three main areas.

Bagasse, the fibrous residue left after sugarcane is crushed, could be used to generate electricity for the national grid and eThekwini Municipality. Carbon dioxide produced during sugar processing could also be converted into medical oxygen and industrial gas for the beverage sector.

In addition, sugarcane could be processed into ethanol for blending with petrol.

The plans align with South Africa's recently signed sugar master plan, which targets the introduction of a 4.5% ethanol blend in petrol and seeks to make use of the country's annual sugar surplus.

The move comes as the local sugar industry faces growing pressure from cheap imports and declining sugar prices.

Tongaat reportedly suffered significant losses last year, while large volumes of imported sugar entered the South African market during the first months of the 2026/27 season.

Gumede's Vision consortium took control of Tongaat following a business rescue process involving billions of rand in debt owed to several banks.

The consortium is now positioning the company for a major turnaround, with plans to strengthen its footprint across South Africa and the broader southern African region.

Gumede has also reportedly expressed interest in acquiring Illovo Sugar, a move that could dramatically reshape South Africa's sugar industry by placing more than half of the country's sugar milling capacity under one owner.

For now, however, Gumede's message to King Misuzulu was focused on the potential for sugarcane to become more than just a source of sugar — but also a driver of fuel production, electricity generation and job creation in KwaZulu-Natal.