SOUTH AFRICA – The South African Cane Growers Association (SA Canegrowers) has announced the successful disbursement of over US$53.65M in transformation funding over the past five years, reaching its targeted investment goal.
Despite facing challenges, this funding has played a crucial role in supporting more than 21,000 small-scale growers and their farm workers in the sugar industry.
In January 2024, the South African Sugar Association distributed nearly US$9.44 million in dedicated transformation funding, bringing the total disbursed to small-scale and black growers, as well as land reform beneficiaries, between 2019/2020 and 2023/2024 to more than US$53.65M.
Growers have contributed 64% to these payments, which have been distributed biannually over the five-year period.
Andrew Russell, Chairperson of SA Canegrowers, said, “Through these payments, the industry has been able to help the most vulnerable absorb the shocks caused by drought and floods, cheap sugar imports, the Health Promotion Levy, Covid-19, and the ongoing crisis in parts of the milling industry.”
The funding commitment aligns with the objectives of the Sugarcane Value Chain Masterplan, whose first three-year phase concluded in 2023. Industry stakeholders have collaborated to conceptualize a framework for the second phase of the Masterplan, aimed at sustaining and diversifying the industry for the future.
As Parliament resumes, SA Canegrowers has highlighted the critical need for government support. This includes prioritizing locally produced sugar in procurement and reconsidering plans to increase the ‘sugar tax,’ which contributes to industry hardships.
Andrew Russell reiterated SA Canegrowers’ commitment to preserving and expanding opportunities in the industry, particularly for young, black, and women growers.
He added, “But to achieve this, we have to overcome the challenges the industry faces and work together with all industry stakeholders – especially government – to create a policy environment within which new growers can find a foothold and build sustainable livelihoods.”
Looking ahead to the imminent State of the Nation Address and Budget Speech, SA Canegrowers urged President Ramaphosa and Finance Minister Enoch Godongwana to announce critical measures to protect the one million livelihoods supported by the sugar industry, including the suspension of the Health Promotion Levy.
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