The newly appointed executive director of the South African Sugar Association, Sifiso Mhlaba, has hit the ground running. His vision is on sustainability and job creation and he is hopeful that with the right mindset, fortunes can change for the ailing sugar industry.
Despite a hectic and tight schedule, Mhlaba said he appreciates the great support he has received from many quarters within the industry, government, and the broader agricultural and business community.
Food For Mzansi caught up with Mhlaba to understand what he intends to do differently and to paint a picture of the state of affairs in the sector.
Tiisetso Manoko: Since taking over the reins as the executive director, what have you been busy with in the commodity you are in?
Sifiso Mhlaba: We continue to be extremely concerned about the continued devastating impact of the sugar tax (health promotion levy – HPL). Since its introduction in April 2018, the levy has had serious ramifications for the industry: a multibillion-rand revenue loss, thousands of job losses, and the permanent closure of two mills in KwaZulu-Natal.
Our research on some of the identified product diversification opportunities – such as sustainable aviation fuel, polylactic acid and bioethanol – has shown that the two-year moratorium on HPL increases is insufficient to reach the commercialisation phase.
Hence our appeal to the government to extend the moratorium to 2030 to allow for enough time to diversify. Furthermore, the extension to 2030 will be in line with the lifespan of the master plan, which ends in the same year (2030). Furthermore, the extension to 2030 will be in line with the lifespan of the master plan, which ends in the same year (2030).
What is your vision for the sugar industry amidst the growing local and global challenges?
The Sugarcane Value Chain Master Plan for 2030 is central to the sustainable industry that we envision. The master plan was put in place in a phased approach to ensure the sustainability of the sugar industry.
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Two of the apex priorities of the sugar industry are optimisation of the local market and coming up with clearly defined diversified solutions. Phase one of the master plan achieved the following: the target for year 1 was to exceed 150 000 tons – achieved, and the target for year 3 was a total increase of 300 000 tons – achieved.
We are optimistic that phase two of the master plan will bring about a thriving industry and usher in policy coherence among government departments. We are currently engaging all stakeholders regarding the finalisation of phase two.
In pursuit of sustainability, the industry is embarking on a transition from the sugar industry towards a sugarcane-based value chain that produces multiple products from the cane stalk.
What do you think were the lost opportunities in 2024 that the industry did not take up and how do you see the year 2025?
As the industry, we have been very hard at work and believe that ongoing discussions around phase two of the master plan will bear fruit soon. We are thankful to have had opportunities to engage key stakeholders such as parliament (including the portfolio committee on trade, industry and competition), government ministries/departments and other key stakeholders).
For an industry like sugar which relies on different departments, how important is collaboration and avoiding working in silos?
Government, in particular, is key in creating a conducive environment for the industry to thrive, and for product diversification, which is critical for the sustainability of the industry, to become a reality.
I plan to build more collaborative relationships with all the key stakeholders throughout the value chain including the department of trade, industry and competition, and parliament.
Also, importantly, we are on a journey to diversify and produce more products from the cane stalk. This will require engagement with stakeholders that are not traditionally sugar industry stakeholders.
Going into the new year, what will be your message to the industry?
We are on the brink of the “Reimagined Sugarcane Industry Strategy” whose pillars include diversification, innovation and transformation. All hands on deck! We need to work together, move in the same direction, and always put the interests and sustainability of the industry first.
Particularly for the 25 000 cane growers, the 12 mills that operate throughout the deep rural areas and the million livelihoods that depend on the industry.
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