The South African sugar industry is in a critical situation amid alarming data showing an almost twofold increase in sugar imports during the first five months of 2026 compared to the same period last year. This influx of imported sugar is displacing local products from store shelves, forcing food and beverage manufacturers to increasingly rely on foreign supply sources, which raises serious concerns about the sustainability of local agriculture.
The industry body SA Canegrowers has strongly appealed to the Minister of Trade, Industry and Competition, Parks Tau, demanding decisive action. They insist on the immediate finalization of an updated tariff mechanism that aligns with current market conditions, emphasizing that this is necessary for the survival of the local sugar industry.
The International Trade Administration Commission (ITAC) is currently assessing whether the existing sugar tariffs reflect a competitive environment, following an application submitted by the industry over 18 months ago. However, the wait for action has been prolonged. According to the South African Revenue Service (SARS), 94,984 tonnes of sugar were imported between January and May 2026. This sharply contrasts with the 55,213 tonnes that entered the market during the same months in 2025. It should be noted that in the previous year, 2022, imports for this period amounted to only 1,491 tonnes, indicating a fundamental shift in the market influenced by weakened tariff protection.
The consequences of this import surge for domestic sales are worrying. According to the South African Sugar Association, from April 1 to June 30, local sales dropped to 255,015 tonnes, representing a loss of over 45,000 tonnes compared to last year. This sharp decline points to a destructive trend: before the tariff system began to fail, monthly sales peaked at 428,422 tonnes, leading to a massive loss of nearly 175,000 tonnes over just a few seasons.
Highlighting the severity of the situation, Higgins Mdluli, chairperson of SA Canegrowers, stated: 'Every tonne of local sugar displaced by imports is a direct blow to the producer's income, the mill's viability, and the stability of the rural community. The scale of what we are witnessing now is nothing less than a crisis.' Most of the sugar entering the South African market comes from countries such as Brazil, India, and Thailand, where producers benefit from generous government subsidies and integrated ethanol regimes that allow them to sell surplus sugar on global markets at prices lower than those of local producers.
Unfortunately, South African consumers are gaining no benefit from this influx of cheap sugar; every imported bag of sugar replacing a domestic one jeopardizes jobs, family incomes, and the survival of rural communities, all without lowering grocery prices. The structure of the South African sugar industry dictates that any unsold sugar must be exported, further complicating the already distorted global market. This, in turn, reduces the local industry's ability to profit from crushed and milled sugarcane, leading to a projected price decrease of more than 10% per tonne compared to last year, which currently stands at around 6,600 rand as of July.
Mdluli added: 'Every week of delay in adjusting the dollar base price costs the industry hundreds of millions of rand in lost sales. We are not asking for a special regime—we demand the correct application of the existing tariff mechanism to ensure a level playing field.' He also noted that 'the South African sugar industry supports over a million livelihoods, most of which are in the rural areas of KwaZulu-Natal and Mpumalanga, where sugarcane cultivation often serves as the sole source of stable income and economic activity for entire communities. Allowing it to be undermined by unfair imports due to a simple administrative change in tariffs would be unthinkable.'
Residents of South Africa are facing rising inflation, increased food prices, and soaring electricity tariffs, yet the issue of the country's water crisis remains underestimated.
South Africa ranks 33rd globally in terms of aridity. The Food Indaba 2026 conference, themed 'Water and Food Systems,' was held this week. During this event, experts, scientists, and stakeholders from various sectors discussed ways to prevent the depletion of the country's water resources.
Deshni Pillay, Head of the Nature, Climate, and Energy Portfolio at the UN Development Programme in South Africa, noted that the water crisis has gone beyond simple water scarcity and has begun affecting the cost of food on tables. Pillay recalled the 'Day Zero' situation in Cape Town in 2018, when the threat of the water supply running out was real.
She explained that people tend to think a water crisis only begins when the water stops flowing, whereas in reality, it starts with rising food prices. Although the consequences of water bankruptcy may be unnoticed now, farmers are the first to feel the difficulties when they have to drill deeper wells, pumps require more effort, and yields decrease due to limited water access.
Pillay emphasized that water bankruptcy does not develop instantaneously. Similar to financial bankruptcy, it begins subtly: small deficits accumulate, natural resources are depleted, warning signs are ignored, and suddenly the entire system fails. The most dangerous aspect is that most people do not realize the approaching catastrophe until the very last moment.
The first signs of water bankruptcy are often not empty reservoirs, but an expensive loaf of bread, reduced harvests, factory closures, or a monthly decrease in a family's grocery basket. Pillay explained that the link between these phenomena is often not established because water is an invisible component of everything, even though every meal starts with it.
When water reserves decline, crop yields fall, food prices rise, farmers' incomes decrease, agricultural jobs disappear, nutrition worsens, and poverty and inequality deepen. Pillay cited the example of Cape Town, stating that food security is impossible without water security. This lesson is now manifesting across South Africa, including water supply disruptions in Gauteng, infrastructure problems in eThekwini, and recurring droughts in several provinces, which degrades the ecological state of critical catchment areas.
She concluded that South Africa's water challenge is not just a climate change issue, but also an infrastructural, ecological, managerial, and developmental one. Water bankruptcy threatens the future prosperity of the nation, affecting not only households and farms.
Pillay noted that despite the grim picture, there is hope. Various steps are being taken across South Africa: communities are restoring traditional methods, catchment areas are being rehabilitated, nature-based approaches are being implemented, and investments in climate resilience are being made. She stressed that healthy ecosystems are vital ecological infrastructure requiring more sustainable management.
The expert highlighted the importance of collaboration with communities involved in water conservation. Pillay stated that the future is shaped upstream, and efforts should be directed there. She clarified that the history of water bankruptcy is less about scarcity and more about the choices and decisions made by policymakers regarding the management of the future, food production, and investment in the economy.
Pillay added that South Africa is not starting from scratch: farmers nationwide are adopting sustainable practices, scientists are improving forecasting and developing early warning systems, and municipalities are beginning to explore new approaches to water scarcity. Businesses are investing in innovation, but most importantly, citizens are demanding change. Solutions exist, and everyone needs to unite to ensure decision-makers have the necessary knowledge to achieve water and food security.
According to a new study by the Bureau of Economic Research (BER), the difficulties faced by South African municipalities are due to weak governance and inefficient financial management, rather than a lack of funds. The report asserts that significant reforms at the municipal level are necessary to achieve faster economic growth.
BER found that municipalities continue to receive about 75% of their operating income from their own tax bases, but they are increasingly unable to collect funds owed by residents and businesses. By December 2025, municipalities were owed R234.7 billion in unpaid consumer debt. Furthermore, municipalities had debts to Eskom amounting to R70.1 billion and to water utilities amounting to R25.9 billion, creating serious pressure on cash flow and hindering infrastructure investment.
This report was published two weeks after Finance Minister Enoch Godongwana suspended national government transfers to 69 municipalities due to governance and financial administration failures, signaling a tougher stance from the National Treasury. BER welcomed Godongwana's decision to freeze transfers to underperforming municipalities, noting that it demonstrates the National Treasury's willingness to use its constitutional powers to improve governance, despite political tensions ahead of next year's local government elections.
The report also supported reforms within Operation Vukhelindela 2.0 and the current review of the White Paper on Local Government, but warned of risks associated with attempting to implement too many changes simultaneously, deeming that 'a shorter, clearly prioritized list of high-impact changes is likely better than a long list.'
Key recommendations from BER include strengthening intervention powers under Section 139 of the Constitution, as current interventions have become a 'revolving door rather than a recovery mechanism.' It also suggests granting appointed administrators greater authority, including the ability to assume the functions of municipal managers and financial directors, to revive non-functioning municipalities. BER called for isolating municipal electricity and water services within financially sustainable models, professionalizing the appointment of senior municipal officials, reviewing the local government funding model, and completely overhauling the municipality classification system.
The report noted that nearly 70% of municipalities in the Free State, including Mangaung, faced transfer delays, followed by 57% of municipalities in the North West, while only three municipalities in the Western Cape were affected. BER concluded that South African municipalities are 'too important to fail,' as this is where economic growth occurs and where citizens interact most closely with the state, but warned that without clear reform priorities and stronger governance, implementation could be undermined by its own ambition.
Supply chains in South Africa are facing significant disruptions caused by geopolitical tensions and growing cyber threats. As costs rise and operational difficulties increase, businesses are forced to adapt strategically to secure their future.
Amid uncertainty, South African companies are grappling with a changing supply chain management landscape. According to the latest CIPS Pulse Survey for Q2 2026, while concerns about supply chain disruptions have slightly eased from record highs, risks associated with geopolitical instability remain substantial. Vigilance is crucial for organizations across South Africa.
The CIPS survey results indicate that procurement and supply chain professionals are experiencing an unprecedented level of anxiety. Despite a slight decrease in short-term disruption fears, long-term issues remain alarmingly high. This suggests that businesses are adapting to a 'new normal' characterized by constant global unpredictability, rather than a stable return to previous conditions.
South Africa's strong reliance on international supply chains creates a unique set of challenges. The region's heavy dependence on imported fuel, industrial equipment, chemicals, pharmaceuticals, and various manufacturing components underscores the critical need for uninterrupted logistical operations. Key sectors such as mining, agriculture, automotive, and retail rely on these global networks to maintain competitiveness.
The CIPS survey highlighted the conflict in the Middle East as the primary source of supply chain concern, confirmed by 75% of surveyed procurement specialists. Broader geopolitical tensions (67%) and the ongoing war in Ukraine (33%) exacerbate the situation. Despite geographical distance, these conflicts significantly impact South Africa by affecting freight routes, delivery costs, energy markets, and overall supplier availability.
Another emerging issue is the escalation of cyber risks. The survey showed that cyberattacks have surpassed logistics disruptions as one of the most pressing threats for procurement professionals. There is a growing realization that incidents affecting suppliers or critical infrastructure can quickly lead to operational failures, production stoppages, and delays in vital supplies.
For South African enterprises, the consequences are serious. The survey forecasts rising costs in several critical sectors, including shipping and logistics, oil and gas, mining, chemicals and pharmaceuticals, food and beverages, and sheet metal products. These increases could lead to higher transportation expenses, increased prices for imported goods, and higher food costs, potentially putting pressure on local economies.
To cope with these numerous challenges, companies are prioritizing resilience over mere cost-cutting. Key strategies for ensuring supply continuity include diversifying suppliers, extending supplier contracts, and maintaining buffer stocks. Paul Vos, Regional Managing Director of CIPS Southern Africa, warns that although some inflationary pressures have begun to ease, the operating environment for businesses remains unpredictable. He notes: 'Organizations can no longer assume that global supply chains will return to pre-crisis norms.'
Vos emphasizes the strategic advantage that resilience can offer businesses, asserting that it is vital to develop broader supplier networks and strengthen regional sources. Furthermore, improving supply chain transparency and enhancing the importance of procurement functions within organizations can lead to more robust operational structures.
Ben Farrell MBE, Global CEO of CIPS, comments that global trade is undergoing a fundamental transformation amid these challenges. He stated: 'The tectonic plates of world trade are shifting.' As regionalization gains momentum and globalization evolves, businesses that cultivate resilient regional partnerships will be best positioned to thrive.
Moreover, the survey indicates that one-third of organizations are already feeling the impact of recent changes in US tariff policy, and another 37% are closely monitoring developments, further demonstrating how uncertainty in trade policy complicates procurement strategies alongside geopolitical turmoil.
In light of these findings, Dr. John Glenn, Chief Economist at CIPS, cautions that despite a slight easing of sentiment, concerns regarding geopolitical shocks, cyber risks, and general uncertainty remain alarmingly high, exposing economies to potential operational disruptions.
