Industry organizations, the South African Farmers Development Association (Safda) and the South African Canegrowers Association (SA Canegrowers), have settled their disagreement concerning transformation funding within the sugar industry.
Urgent Meeting and Common Ground
The South African Sugar Association (SASA), an industry body, convened an urgent meeting to resolve the impasse. Advocate Fay Mukaddam, the independent chairperson of SASA, reported that the organizations found common ground on the transformation funding issue.
All parties, including the South African Sugar Millers’ Association (Sasma), have now reached a consensus on allocating the R238.9 million budget for the current fiscal year, ending on March 31, 2025.
Five-Year Transformation Plan and Extension
Over the past five years, as part of a five-year transformation plan, SASA has allocated R1.12 billion to transformation interventions/initiatives, primarily benefiting black small-scale growers.
The SASA five-year transformation plan, which concluded in the 2023/24 season, has been extended to 2024/25 with a budget of R238.9 million.
Reflection and Commitment to Collaboration
Mukaddam reflected on the situation, saying, “In retrospect and upon honest reflection, we realize the confrontational approach could have precipitated an industry crisis. We have, therefore, agreed that going forward, any disagreements stemming from differing views or positions, which are natural and bound to occur, need to be handled more constructively.”
“There is now complete alignment in terms of transformation funding,” she added.
Industry leaders are now committed to working collaboratively to advance the sector’s interests and prioritize the Reimagined Cane Industry Strategy.
Additional Commitments and Acknowledgements
Industry leaders are resolute in their commitment to leverage the proposed second phase of the industry master plan to ensure concerted efforts by all stakeholders. These efforts aim to optimize the local market, accelerate product diversification, permanently resolve the sugar tax issue, strengthen trade protection, and solidify the foundational role of small-scale growers in the sector.
Mukaddam expressed gratitude to Safda executive chairperson Dr. Siyabonga Madlala, SA Canegrowers chairperson Higgins Mdluli, and Sasma chairperson Rolf Lutge for their crucial roles in resolving the deadlock and acting in the best interests of the industry and its stakeholders.
Regret over Public Discourse
“All the industry leaders regret the language and tone of the discourse that entered the public domain regarding the transformation funding stalemate,” Mukaddam concluded.