STRATEGIC TRADE PROTECTION ONE OF FOUR PILLARS OF PHASE TWO OF THE MASTER PLAN

Cedric Mboyisa

Following the granting of the block exemption, the sugar industry and social partners have made significant progress towards the finalisation and adoption of phase two of the Sugarcane Value Chain Master Plan to 2030.

Above:  Trade, Industry and Competition Deputy Minister Zuko Godlimpi with industry leadership.

This comes in the wake of the recent Executive Oversight Committee (EOC) meeting held at KwaShukela, Mount Edgecombe, to discuss the modalities around the master plan. The meeting was chaired by Trade, Industry and Competition Deputy Minister Zuko Godlimpi. “Phase 2 of the master plan presents both opportunity and urgency. The recent surge in subsidised sugar imports threatens the livelihoods we have worked together to protect – reinforcing why our four pillars merit immediate activation: responsible pricing, strategic trade protection, product diversification and small-scale grower support, and balanced food policy,” said Rex Talmage, Vice-Chairperson of the South African Sugar Association.

He added: “Our shared targets are clear: maintaining more than 1.55 million tons of local offtake, predictable pricing, and sufficient Dollar-Based Reference Price protection. Maintaining the HPL (Health Promotion Levy) moratorium is critical to creating a sustainable path for the value chain. We must appreciate the Department of Trade, Industry and Competition’s interventions thus far. The Competition Act exemption provides our framework with critical implementation opportunities.”

The EOC meeting was attended by industry representatives (leadership), downstream users and organised labour. The involvement of labour in phase two has been hailed and welcomed as labour was conspicuous by its absence in phase one, which expired on 31 March 2023. All parties agreed in principle to the framework for phase two and the signing of the master plan, pending the finalisation and resolution of critical outstanding issues. One of these issues include a counter-application (to ITAC) by BEVSA to reduce the tariff, an action which is at odds with efforts aimed at ensuring the sustainability of the industry, especially during a period in which sugar imports have reached a crisis point.

“We are ready to diversify, transform, and contribute to South Africa's economic resilience. The foundation is strong. The framework is agreed. The moment for decisive action has arrived—and the sugar industry stands ready. The industry's inflection point is upon us. We must decide whether future generations will remember us as pioneers who ushered in an era of prosperity and sustainability. Together, we must ensure thriving rural communities and livelihoods. Dialogue has always made us unique as South Africa, a beautiful and diverse rainbow nation,” said Talmage.