The Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, and acting deputy director-general of sectors at the dtic, Dr Tebogo Makube, addressing stakeholders in Durban, KwaZulu-Natal on Friday.
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South Africa’s sugar industry is set to accelerate efforts to diversify beyond traditional sugar production following the signing of Phase 2 of the Sugar Cane Value Chain Master Plan to 2030, with stakeholders placing innovation and new product development at the centre of the sector’s future.
The agreement, signed in Durban under the oversight of Deputy Minister of Trade, Industry and Competition Zuko Godlimpi, marks a renewed commitment by government, industry and labour to reposition the sector as a more dynamic and sustainable contributor to the economy.
Godlimpi stated that the second phase of the master plan signals a turning point for the industry, moving it away from a prolonged period of instability towards a more growth-oriented trajectory.
Central to this shift is a strong focus on diversification, particularly into higher-value products such as biofuels and other industrial outputs derived from sugarcane.
“The department is 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 investment in technology and operations,” Godlimpi said.
He emphasised that diversification would require significant upgrades to existing capabilities, including the adoption of new technologies and improved efficiencies across the value chain. This, he said, would help reduce past value losses while creating new industrial opportunities and future-focused jobs.
“We want to get to a point where people don't only see sugarcane as an agricultural product but also as an engineering product.”
A key pillar of the second phase is ensuring inclusive growth, particularly through the continued support of black small-scale growers.
Godlimpi stressed that their retention remains critical to the sustainability of the sector, with Phase 2 expected to further entrench their role as foundational participants in the value chain.
“The retention of black small-scale growers is a critical element of the Master Plan. Phase One has reinforced small-scale growers as being foundational to the industry. The retention of black small-scale growers is also critical to the master plan. Phase Two will cement this position and ensure the sustainability of these growers,” he said.
Industry leaders echoed the importance of diversification in securing the sector’s long-term viability.
Rex Talmage, acting chair of the South African Sugar Association, said the master plan provides a clear pathway for transformation while safeguarding jobs.
“We look forward to the plan taking the industry to the year 2030 and transforming positively, retaining and creating more jobs; we are all committed to the process,” he said, adding that collaboration between stakeholders, including organised labour, is essential to achieving these goals.
However, he cautioned that structural challenges remain, particularly around trade dynamics.
Deep-sea sugar imports exceeded 197,000 tons for the 2025/26 season by the end of February, resulting in estimated revenue losses of R1.5 billion.
“With the Dollar-based Reference Price unchanged since 2018, an adequately calibrated reference price is not a narrow tariff matter, but it is the enabling condition upon which every other commitment we make depends,” Talmage said.
He also noted that an appropriately calibrated tariff regime is crucial to support the industry’s broader commitments, with the International Trade Administration Commission of South Africa playing a key role in this process.
The South African Farmers Development Association (SAFDA) also welcomed the continuation of the master plan, describing it as a vital mechanism for aligning stakeholders and ensuring the long-term sustainability of the sugar value chain.
Executive Chairman of SAFDA, Dr Siyabonga Madlala, said Phase 2 must prioritise unlocking diversification opportunities, particularly in light of shifting global dynamics.
“Phase 2 must unlock diversification opportunities. The crisis in the Middle East opens an opportunity for the sugar industry to produce bioethanol for our country.”
SAFDA concluded that they are ready to participate fully in the second phase of the Master Plan that will be facilitated by the respected and experienced public sector executive, Nhlakanipho Nkontwana.
“This phase will be focusing on issues of trade protection, small-scale grower master plan, unlocking diversification opportunities, amongst others.”
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