The South African sugar industry is poised for a significant transformation, buoyed by commitments from government officials to help sustain and diversify this essential sector.
During a key meeting in Durban n Wednesday, Deputy Minister of Trade, Industry and Competition (the dtic), Zuko Godlimpi, alongside Deputy Minister of Agriculture, Rural Development and Land Reform, Zoleka Capa, announced plans to bolster the sugarcane-based value chain, particularly in the economically impactful regions of KwaZulu-Natal and Mpumalanga.
Industry stakeholders, led by the South African Farmers Development Association (SAFDA), expressed enthusiasm for Godlimpi’s proactive approach.
“He has displayed an impeccable grasp of our issues. We saw this being clearly demonstrated at the Executive Oversight Committee meeting for Sugar Master Plan yesterday,” said a SAFDA representative.
“We look forward to working with the Departments of Trade, Industry and Competition; Agriculture; and Rural Development and Land Reform in driving diversification, making small-scale farmer a central focus of our value chain, continuing the transformation journey that picked momentum with the emergence of SAFDA in 2025, and making sure that all future value-add opportunities do not leave black farmers out.”
The organisation underscored its commitment to driving diversification efforts, ensuring that small-scale farmers are central to the value chain, and preventing any future value-adding opportunities from marginalising black farmers.
With an eagerness to formalise collaboration, SAFDA indicated it was ready to sign the second phase of the Sugar Master Plan, but also made it clear that moving forward would necessitate action against the Health Promotion Levy (HPL), known colloquially as the sugar tax.
This sentiment was echoed during discussions where the detrimental impacts of the HPL on the industry were highlighted.
The Sugar Master Plan aims to position the sugar industry as a catalyst for economic development and job creation in rural areas.
Godlimpi emphasised the importance of restructuring and rebalancing the industry’s operational capacity to cut costs and enhance competitiveness.
“The industry also needs to look at a diversification strategy that will enable it to tap into alternative energy sources and renewables such as biofuel that will revive and sustain the sector,” Godlimpi said.
An urgent call for extending the current sugar tax moratorium was articulated by Advocate Fay Mukaddam, chairperson of the South African Sugar Association.
“We therefore make an impassioned plea to support us on this request. The success or failure of phase two of the master plan depends on policy coherence,” Mukaddam stated, reinforcing that collective action is essential to safeguarding livelihoods tied to the sugar industry.
Since the signing of the Sugar Value Chain Master Plan, the dtic has initiated several measures, including a premium price for small-scale growers and investment in transformation efforts, with over R1.2 billion allocated to date. As the industry stands at a pivotal crossroads, the next steps will be crucial for its survival and growth.
BUSINESS REPORT
