Sugar Industry Amendments Must Prioritise Transparency, Competition and Long-Term Sustainability

Statement by Mlondli Mdluli MP – DA Deputy Spokesperson on Trade, Industry & Competition:

The recent amendments gazetted by Minister Parks Tau to the governance arrangements of the South African Sugar Association (SASA) and the sugar industry agreement represent an overdue development for a sector that anchors rural livelihoods, particularly in KwaZulu-Natal and Mpumalanga. The Democratic Alliance (DA) will monitor the implementation of these amendments to ensure that households do not bear the costs of the DTIC’s slowness to act.

The inclusion of the South African Farmers Development Association (SAFDA) in decision-making structures alongside SA Canegrowers is a welcome step towards greater representation within industry governance. Broadening participation, particularly of emerging and small-scale growers, is essential if the sector is to become more inclusive and resilient.

However, these reforms raise several critical considerations that the DTIC and industry must address transparently.

Firstly, these reforms must be properly surveilled to ensure that households and businesses downstream of sugar manufacturing are not left with the bill. While mechanisms such as the reinstatement of carry-over stock and adjustments to local market redistribution may offer improved finances in the short term, they must not come at the expense of healthy competition and the welfare of consumers. Any measures that influence the industry’s supply or prices must be carefully scrutinised to ensure they do not shift undue costs onto South African households and downstream industries, or subsidise inefficient processes.

Secondly, the timing of these amendments against the backdrop of the ongoing crisis at Tongaat Hulett underscores the structural fragility within the sector. Governance failures, market distortions, and delayed policy certainty have compounded this instability. Policy responses from the Minister must therefore move beyond reacting to crises, as has been the case in the steel and ferrochrome sectors, and instead focus on long-term competitiveness, attracting investment, and boosting exports.

Thirdly, allowing the industry to cooperate on prices demands robust and transparent oversight from the Competition Commission. While collaboration in distressed sectors can be justified in crises, safeguards must be maintained to prevent anti-competitive outcomes that hurt consumers and disrupt the market.

The sugar industry supports tens of thousands of jobs and sustains many rural communities. Its future cannot depend solely on regulatory adjustments or government protection. It requires structural reform, improved productivity, reliable infrastructure, and a policy environment that balances grower sustainability with fair market outcomes.

As the DA, we will continue to exercise oversight to ensure that:

• industry governance reforms promote inclusion and accountability;
  regulatory interventions are transparent and pro-competitive; and
  government policy strengthens, rather than shields, the sector’s long-term viability.

South Africa needs a sugar industry that is competitive, inclusive, and sustainable, one that supports livelihoods without compromising economic efficiency or consumer interests.