Trade, Industry and Competition Deputy Minister Zuko Godlimpi has hailed the signing of phase two of the Sugarcane Value Chain Masterplan to 2030 and emphasised that it will focus on product diversification and securing jobs.

Phase two is intended to build on the progress made in phase one, which ensured the stability of the sugar industry, which had faced an existential crisis prior to the introduction of the masterplan in November 2020.

Transitioning from a sugar-based to a sugarcane-based industry is one of the key objectives of phase two.

“We are now reinvesting in existing capabilities and advancing the technologies needed to minimise value losses and improve efficiency. There is also a need to reposition sugarcane from being seen purely as an agricultural product to an engineered one, which can drive future employment opportunities and enable progress toward more sophisticated outputs such as fuel resources, Godlimpi said.

He added that the signing ceremony signalled the end of the notion that the sugar industry was “forever” in a perennial crisis, stressing that the Department of Trade, Industry and Competition was committed to accelerating growth and improving diversification through social impact.

“I also challenge the industry to aim for significant growth, and target an increase in South Africa’s domestic fuel production from 40% to 55% through substantial investments in technology and operations. There is a need for government and social partners to improve their value offering to make the sector more productive and effective,” Godlimpi emphasised.

Godlimpi also pointed out that the retention of black small-scale growers was a critical element of the masterplan.

“Phase one has reinforced small-scale growers as being foundational to the industry. The retention of black small-scale growers is also a critical pillar of the masterplan. Phase two will cement this position and ensure the sustainability of these growers,” said Godlimpi. 

Meanwhile, industry association SA Canegrowers also welcomed the signing of the second phase of the sugar industry masterplan and highlighted that the country's sugar industry supported over one-million livelihoods, making collaboration across the entire value chain essential to safeguarding an industry under significant strain from a high level of imports and rising input costs.

The association added that the sugar industry supported growers in KwaZulu-Natal and Mpumalanga where there were few other economic opportunities, and called on retailers and food manufacturers to prioritise locally produced sugar to reinforce support for livelihoods and rural development across South Africa.

“South Africa’s sugar industry is too important to fail. In signing the masterplan, SA Canegrowers was expressing its commitment to work alongside the government and other stakeholders to build a resilient and sustainable sugar industry.

“The second phase of the masterplan is a commitment from all stakeholders to work together, diversify and build a proudly South African industry,” said SA Canegrowers chairperson Higgins Mdluli.

Currently, growers are facing skyrocketing diesel costs and rising fertiliser costs, making it impossible to compete fairly against imports that are subsidised in their countries of origin.

Further, Godlimpi shared insights from a week spent visiting different sugar mills in KwaZulu-Natal, which ignited ideas for the future of the sugar industry.

“The purpose of the visit was to assess readiness for the upcoming crushing season, a critical factor for both industry productivity and overall business viability. I am excited about the ideas that emerged during these visits and the potential they hold for future success in the sugar industry,” Godlimpi added.

Speaking at the masterplan signing ceremony, industry body South African Sugar Association acting chairperson Rex Talmage said the resolution of several outstanding matters, in their last executive oversight committee saw the social partners engage seriously with commitment and genuine goodwill to find common ground.

“We are deeply encouraged by the active involvement of organised labour in the process. Their presence at this table is not a courtesy but it is a necessity given that what we are building as an industry rests on a powerful truth that the whole is greater than the sum of its parts,” he said.

Talmage added that, at the end of February, deep-sea imports exceeded 197 000 t for the 2025/26 season. representing revenue losses of about R1.5-billion.

“These are not abstract figures, they represent the one-million livelihoods that depend upon this industry. With the dollar-based reference price unchanged since 2018, now eight years, the ability of the masterplan to deliver on its promise is fundamentally constrained.

“An adequately calibrated reference price is not a narrow tariff matter, but it is the enabling condition upon which every other commitment we make today depends,” he said.

SA Canegrowers also pointed out that South Africa needed a fair tariff system that protected local growers from unfair competition and highly subsidised sugar prices.

Representing 1 250 large-scale growers and 29 845 small-scale growers, SA Canegrowers remains firmly committed to growing a proudly South African sugar industry.