THE Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, has hailed the signing of Phase Two of the Sugarcane Value Chain Master Plan to 2030, which will focus on product diversification and securing jobs.
At the signing ceremony in Durban this week, Godlimpi said transitioning from a sugar-based to a sugarcane-based industry was among the priorities of Phase Two of the Master Plan.
“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,” said the deputy minister.
He said the signing ceremony signalled the end of the notion that the sugar industry was in perennial crisis. He stressed 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 investment in technology and operations. There is a need for government and social partners to improve their value offering to make the sector productive and effective,” he emphasised.
Godlimpi pointed out that the retention of black small-scale growers was a critical element of the Master Plan.
“Phase One has reinforced small-scale growers as being foundational to the industry.
“Phase Two will cement this position and ensure the sustainability of these growers,” he said.
Godlimpi shared insights from the week spent visiting different sugar mills in the province, which sparked 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. The week proved highly insightful and has left me with a more optimistic outlook on the industry’s future,” he added.
Rex Talmage, acting chairperson of the South African Sugar Association (SASA), said the resolution of several outstanding matters 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 this process. Their presence at this table is not a courtesy but a necessity,” said Talmage.
Talmage said at the end of February 2026, deep-sea imports exceeded 197 000 tonnes for the 2025/26 season, representing revenue losses of approximately 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, the ability of the Master Plan to deliver on its promise is fundamentally constrained. An adequately calibrated reference price is not a narrow tariff matter, but the enabling condition upon which every other commitment we make today depends,” he said.
