For the first time in several years, there is genuine reason to believe Tongaat Hulett can recover. The withdrawal of the company’s provisional liquidation application, the extension of the Industrial Development Corporation’s (IDC‘s) post-commencement funding facility, and the conclusion of a binding heads of agreement between the IDC, Vision and Tongaat Hulett have fundamentally changed the outlook for the business. Together, these developments have restored a credible pathway for implementing the adopted business rescue plan.Getting to this point has required an extraordinary collective effort. Employees have remained committed through prolonged uncertainty. Growers have continued supplying cane. Government institutions, lenders, investors and the joint business rescue practitioners have all played an important role in creating the conditions for recovery. In Zimbabwe, our business has returned to expected levels of profitability, and our team in Mozambique continues to drive the recovery from the recent floods.We now have an opportunity to rebuild, especially in South Africa. But business rescue is only the beginning of that journey. While it creates the opportunity to recover by stabilising a business and providing the funding needed to move forward, it cannot create demand for locally produced sugar or shield us from market conditions. Ultimately, the success of any business rescue depends on whether the business can compete, generate revenue and rebuild sustainable cash flow.That is why our greatest challenge today is no longer the business rescue process itself. It is the unprecedented surge in imported sugar entering the South African market. That is why the outcome of the current review of South Africa’s dollar-based reference price (DBRP) and the speed with which tariff adjustments respond to market conditions have become central to whether this recovery can succeed.Over the first two months of the current sugar season alone (April to May 2026), approximately 45,000t of deep-sea sugar entered the domestic market, as well as 62,000t from Eswatini. These figures combined are almost half the volume imported during the entire previous sugar season. If this trend continues unabated, deep-sea imports alone could reach approximately 450,000t this season, around double the level seen in 2025.The sugar industry has experienced similar conditions before. Import volumes at these levels contributed to significant job losses and the closure of two sugar mills in 2018. That experience showed how sustained import pressure can weaken local producers and the wider agricultural economy.For Tongaat Hulett, the impact is already being felt. Domestic sales of locally produced sugar during April and May were approximately 18,000t lower than in the same period last year and more than 30,000t below industry projections. This reduction in domestic sugar sales translates directly into lower revenue, weaker cash generation and increasing pressure on the commercial assumptions underpinning Tongaat Hulett’s recovery.The fact is that a company under business rescue can restructure its debt, secure funding and attract investors, but it must still earn sufficient revenue to sustain itself. Recovery ultimately depends on selling products, generating cash, and operating in a market where local businesses have a fair opportunity to compete.The South African sugar industry is structurally in surplus, and trade policy should be developed around this surplus disposal and prohibiting imports along with the essential pricing stability safeguards for local downstream users. With the exception of an extreme drought year, the locally grown sugar cane processed in South African mills and refineries has always been capable of meeting local market needs.Time is another important factor. The sugar already imported into South Africa is expected to take between 18 and 24 months to move through the market. That period overlaps almost exactly with our business rescue recovery horizon. Even if stronger protection were introduced tomorrow, the imports already in the country will continue affecting trading conditions for much of the period during which we are working to restore the business.That is why the current International Trade Administration Commission’s (Itac’s) review of South Africa’s DBRP matters so much. The DBRP determines the reference price below which imported sugar attracts a tariff. It has remained unchanged for 12 years despite significant changes in global markets. Even if stronger protection were introduced tomorrow, the imports already in the country will continue affecting trading conditions for much of the period during which we are working to restore the business.Tongaat Hulett supports the South African Sugar Association’s submission to Itac to increase the DBRP to $905 a tonne because we believe that represents the minimum level required to restore a sustainable operating environment for local producers.The DBRP review should also be complemented by urgent interim and safeguard measures capable of addressing exceptional import pressure before further commercial harm is done.However, the level of the tariff is only part of the solution. South Africa also needs a more responsive tariff adjustment mechanism. At present, lengthy delays between changes in world sugar prices and the implementation of tariff adjustments allow significant volumes of imported sugar to enter the country before protection takes effect. By the time tariffs are adjusted, much of the commercial damage has already been done.Importantly, this is not an argument against competition, nor is it a call for permanent protection. Competition only works when businesses compete on fair terms. South Africa already has the capacity to meet domestic sugar demand through local production. Too often, the short-term price advantage associated with imported sugar does not translate into a commensurate benefit for consumers, while the local consequences are immediate and measurable: displaced production, weaker revenues across the sugar value chain, pressure on jobs and declining investment in rural communities. Tongaat Hulett directly employs around 2,670 people, supports approximately 25,000 jobs and contributes about R9.3bn to South Africa’s GDP every year. Behind those numbers are families, growers, contractors, transport operators and communities whose livelihoods depend on a sustainable domestic sugar industry.Over the past few months, we have shown what can be achieved when stakeholders work together. We have stabilised the business, secured funding and restored a credible path towards recovery. That progress should not be undermined by market conditions that are within our ability to address.The next phase of Tongaat Hulett’s recovery will depend less on legal processes and more on commercial performance. Creating a fair and sustainable trading environment is therefore not simply about supporting one company. It is about ensuring that the considerable effort already invested in preserving Tongaat Hulett is given the best possible chance of success.We remain confident in the future of our business. But confidence alone will not complete a business rescue. What we need now is a fair trading environment, the opportunity to compete fairly, rebuild our market and complete the recovery that so many people have worked hard to make possible.• Dalgleish is group CEO of Tongaat Hulett.