PRESSURE FOR SA TO REDUCE ESWATINI SUGAR IMPORTS

MBABANE – While SACU member States, especially Eswatini, have raised concerns about South Africa’s master plans affecting mainly the sugar and textile industries, the neighbouring country is being pressured to go ahead with the implementation.

Eswatini is a member of the Southern African Customs Union (SACU) alongside Botswana, Lesotho, Namibia and South Africa. As the Government of South Africa produces a string of ‘masterplans’ designed to focus policy and effort into selected (and to be protected) industries, the other SACU countries are protesting that the regional body is being made irrelevant. The South African sugar cane industry claims to have experienced a sharp decline in revenue in recent years because of cheap sugar imports reportedly flooding their market. In response to this challenge, President Cyril Ramaphosa announced a value chain master plan for the industry to address transformation, job protection and product diversification.

Meeting

Minister of Commerce, Industry and Trade Manqoba Khumalo in a recent SACU Council of Ministers meeting had raised concern regarding the tone of the sectoral master plans and the implementation of trade policy directives that are coming from the Department of Trade, Industry and Competition in South Africa. “What we are observing from the tone of these sectoral master plans is the manner a local or domestic industry is now being defined. In our view a local or domestic industry is a SACU industry, whether that industry is found in one member State, in some or in all,” minister Khumalo recently shared.

While SACU members are   waiting for a review of the neighbouring country’s plans, fresh reports from South Africa suggest that the Committee on Trade and Industry is currently engaging stakeholders on implementing the sugar industry master plan. According a latest report from All-Africa, the department’s Chief Director of Agro-Processing Ncumisa Mcata-Mhlauli is said to have presented the broad objectives of the master plan. The Portfolio Committee on Trade and Industry received briefings recently from a range of key stakeholders in the sugar sector on their progress with implementing the master plan.

According to the report, the committee also asked the department about Eswatini’s ‘dumping of large amounts of sugar onto the local market.’  Mhlauli responded that political engagements were taking place with the country (Eswatini) to resolve this matter. “Mcata-Mhlauli noted that the plan should be commended for contributing towards the 15 per cent increase in local sales; 22 per cent increase in direct market penetration; and the seven per cent increase in soft-drink manufacturing and the procurement of local sugar.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: