Sugar crisis: Local industry recovery boosted by Budget reprieve on sugar tax

24 February 2021

SA Canegrowers welcomes the decision to maintain the health promotion levy (or ‘sugar tax’) at its current rate. Although we had called for a reduction in the sugar tax, Minister Mboweni’s budget adds no additional obstacles to the sticky path ahead for the industry’s recovery and the one million livelihoods that depend on our industry.

What is critical now is that the other commitments made in the Sugar Industry Masterplan are implemented as soon as possible. The SA Canegrowers have consistently called for the completion of a socio-economic impact assessment study on the impact of the sugar tax. This will enable government and industry to analyse the need and efficacy of any tax or supposed health promotion levy from a factual basis.

A draft report has been commissioned. It is essential that this report be finalised without further delay.

A survey conducted in the first year of the sugar tax found that the sugar industry had lost in excess of 9 000 jobs in the cane growing sector alone. A comprehensive report should also include the impact on other affected industries including the sugar-sweetened beverage industry which have suffered similar devastating job losses.

Our collective priority right now must be the preservation of the 65,000 direct jobs that the local sugar industry supports, and the survival and growth of the 21,581 small-scale growers in the industry who create economic opportunities in deep rural areas where they are most needed.

All South Africans were encouraged by President Ramaphosa to buy local sugar during his State of the Nation Address. This call has come at a critical time for our industry and economic recovery, and SA Canegrowers have put all efforts towards our Home Sweet Home campaign to make it easy for consumers to buy local and support our local growers. Minister Mboweni’s reprieve will boost these efforts.

SA Canegrowers will continue to work with all government and industry stakeholders to ensure the successful implementation of the Sugar Industry Masterplan. The stakes could not be higher. One million livelihoods depend on our diligent work with all role-players to revitalize the local sugar industry.

Issued by KabeloKgobisa on behalf of SA Canegrowers, 24 February 2021