The South African Sugar Association (SASA), on behalf of the sugar industry in the country, welcomes Finance Minister Enoch Godongwana’s announcement in his Budget Speech that there will be no changes to the devastating Health Promotion Levy (HPL).
“We are relieved that the sugar tax moratorium has been extended to allow us more time to robustly pursue identified product diversification opportunities such as bioethanol for fuel blending, sustainable aviation fuel, polylactic acid and cogeneration,” said SASA Chairperson, Advocate Fay Mukaddam. Working together with government, the industry is currently in the scoping and pre-feasibility stages of its diversification endeavours. The Finance Minister’s decision is in line with President Cyril Ramaphosa’s assertion in his recent State of the Nation Address that localisation, diversification, digitisation and decarbonisation are crucial drivers of the industrial policy aimed at ensuring economic growth.
“We are truly grateful to the minister for listening to our cries, for the rural livelihoods depended on his decision. We are now going to move with speed to ensure that diversification is one of the key pillars of Phase Two of the all-important Sugarcane Value Chain Master Plan to 2030. We are moving from a sugar-based to a sugarcane- based industry. The Reimagined Cane Industry Strategy is the game-changer. Even more importantly, is the complete support of government to make product diversification a reality,” concluded Advocate Mukaddam.
The industry is also concerned about the prevalence of the non-communicable diseases (NCDs) in the country, and it is a matter that needs to be taken seriously. However, a simplistic approach will not work as this is a complex matter. What is needed is a holistic and measured approach, not a punitive mechanism which demonises certain food substances such as the case with sugar. As such, the yet-to-be-released results of the total dietary intake study, which was conducted by government, are key in determining what is contributing to NCDs. A science-based approach is critical in seeking to find effective and lasting solutions. For now, there continues to be no credible studies showing that the sugar tax has led to the intended decrease in obesity and diabetes.
ISSUED BY SASA EXTERNAL AFFAIRS DIVISION
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