The seven-year facility is set to finance the final phase of Gledhow’s comprehensive modernisation programme, following its successful emergence from business rescue in early 2025 under new ownership. The investment will restore and upgrade a strategically important agro-processing asset in KwaDukuza, KwaZulu-Natal, strengthening the resilience of the local sugar value chain and safeguarding thousands of rural livelihoods.
Founded in 1879, Gledhow has long played a central role in the sugar economy of KwaZulu-Natal. A core component of this new investment is a major sustainable energy transition. Through the modernisation programme, Gledhow will shift from coal-based energy to a bagasse-based system, using sugarcane by-products to generate power for its operations. This transition will significantly reduce greenhouse gas emissions and improve energy efficiency, positioning the mill as a more sustainable, circular agro-industrial operation.
CMS South Africa’s involvement in this landmark transaction highlights the firm’s deep legal expertise in complex corporate restructurings, project finance, and environmental, social and governance (ESG) driven initiatives.
“We are exceptionally proud to have played a part in this transformative transaction,” says Muzi Kubeka, lead advisor and Director in the Banking, Finance, Projects and Energy at CMS South Africa. “This investment from FMO does more than just secure the long-term viability of a historic South African enterprise - it drives a massive shift toward sustainable energy by transitioning the mill away from coal. For CMS, supporting a project that balances economic revival, job security for thousands of smallholders and land-reform farmers and clean energy innovation perfectly aligns with our vision as a future-facing firm.”
Beyond its environmental impacts, Gledhow plays an important role in supporting rural communities through its extensive sourcing network, procuring sugarcane from a mix of commercial growers, land reform projects, and small-scale farmers. By strengthening the mill’s operations, the funding anchors localised demand and sustains employment in a region where economic opportunities remain limited.
The CMS South Africa team advising on the transaction was led by Kubeka, with support from Senior Associate Andrea McKaiser-Walbrugh, and included Pieter van Welzen, Julius Wako, Manesha Motee, Kanya Xundu, Ntombizodwa Mashinini, Kagiso Mahlangu, Fhumulani Denga and Dehal Jivan. This cross-border, multi-jurisdictional transaction drew on the strength of our teams across South Africa, CMS Daly Inamdar Advocates (Kenya) and CMS Prism (Mauritius).
