In a pivotal development for the sugar industry, the South African Farmers Development Association (Safda) has successfully resolved an impasse concerning transformation interventions funding. This agreement, reached in collaboration with SA Canegrowers, ensures the continuation of crucial support measures for sugar farmers across the country.
The transformation interventions, originally introduced in November 2018 and championed by SAFDA, have been instrumental in fostering industry-wide transformation.
These initiatives were initially funded through a dedicated R1 billion allocation over five seasons, equating to over R200 million annually. Contributions to this fund are sourced from levies imposed on all stakeholders within the sugar industry.
Despite the expiration of the initial five-year plan at the conclusion of the 2023-2024 season on 31 March 2024, the SASA Council has approved an extension for one additional season (2024 to 2025). This extension aims to sustain ongoing support while facilitating strategic discussions on long-term transformation strategies beyond the original mandate.
Dr Siyabonga Madlala, executive chairman of Safda, expressed gratitude for the resolution, highlighting the collaborative efforts that led to this positive outcome.
“I must appreciate your support and the fight that you put up for what is yours,” he remarked, acknowledging the leadership of SA Canegrowers chairperson, Higgins Mdluli, in achieving this agreement.
The agreement ensures that delayed disbursements, totalling R238 987 000 for the current season, will proceed promptly. This allocation will support farmers who have been awaiting these funds to continue their operations effectively.
“This agreement marks a significant step forward in ensuring the sustainability and growth of our farms,” Madlala affirmed. Safda looks forward to leveraging this renewed commitment to drive future transformation initiatives that will benefit the entire sugar industry.
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