Hopes that Sona will grant relief to ailing sugar industry

President Cyril Ramaphosa will on Thursday deliver his Sona amid high expectations from industry players, with cane growers urging him to table a rescue plan for the country’s ailing sugar industry.

Difficulties within the sugar industry have seen KwaZulu-Natal-based sugar giant, Tongaat Hullett — SA’s biggest sugar producer — seek business rescue.

The import of cheap sugar, floods and the country’s poor economic performance accompanied by crippling power outages, have created havoc within the sugar industry.

ALSO READ | Sugar industry set to lose R723 million

Sugar industry’s role in SA’s economy
Given that the industry played a key role in the country’s economy, the SA Canegrowers Organisation said Ramaphosa has a duty to use his Sona to spell out government’s plans to protect the industry.

“Where the president leads, government will follow. He must therefore make clear the importance of the sugar industry in particular, and of rural economies in general.”

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“SA Canegrowers is therefore calling on President Ramaphosa to use his Sona to highlight the measures that government is taking to match the industry’s commitment to saving South African growers, businesses and jobs.”

Government action steps should include scrapping the job-killing HPL (health promoting levy), reiterating its commitment to procuring only locally produced sugar and ensuring departments are complying; and providing short-term relief to growers to mitigate the impact of load shedding, including a higher diesel rebate and tax incentives for alternative energy sources.
In the past, SA Canegrowers said, the government outlined plans to assist the industry but did not follow through.

ALSO READ | SA Canegrowers want sugar tax scrapped

IFP national assembly chief whip, Narend Singh, concurred with the SA Canegrowers, saying the party was concerned the Sona was being used for “empty promises”.

South Africans are fed up with government’s bold plans which end up not being implemented.
What they expect from the president is not simply an acknowledgement of the problems — they want solutions.
Since becoming the country’s president four years ago, Ramaphosa has been using the Sona to reassure citizens that government was working to end power and water outages, revive the economy, create jobs and root out crime and corruption.

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However, a section of the population, including opposition parties, are now convinced that government was merely paying lip service to the country’s challenges.

Plans to disrupt Sona
The EFF has since announced that it is planning to disrupt Thursday’s Sona.

However, Singh told The Witness that the IFP would not be part of any attempts to disrupt the Sona.

The IFP will listen to what the president says and, at the appropriate time, respond to his speech. So, we don’t see the point in disrupting the president’s speech. As the IFP, our position is that anyone wanting to disrupt the Sona should do so outside Parliament.
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DA leader, John Steenhuisen, said the DA will also not join political parties planning to disrupt today’s Sona.

South Africans are tired of disruption. They’re wanting to see some progress on delivery. And they’re going to be looking at Sona to try to find some hope that there is going to be a way out of this.
According to a statement issued by Parliament, Ramaphosa was scheduled to deliver his Sona at 7 pm on Thursday.