Despite having local production capacities, South Africa imports significant volumes of tomato paste, leading to a prolonged negative trade balance for the country. Industry experts and government officials insist that this problem must be urgently addressed through localization of production, infrastructure investment, and targeted policy support.
During a recent webinar on the tomato paste value chain, hosted by the Department of Agriculture in collaboration with the National Agricultural Marketing Council (NAMC), participants discussed structural obstacles, global imbalances, and practical steps needed to revitalize the local processing sector.
Dr. Moses Lubinga, manager of Agro-Food Chains, highlighted the sharp contrast between South African production and global figures. He noted that China leads in global tomato production, accounting for 32.72% of the world's volume, while South Africa ranks 42nd, producing only 0.27%.
Lubinga observed that although global tomato production has grown since 2020, South Africa has seen a sharp decline over the same period due to the Covid-19 pandemic and other operational difficulties. Given that local processing volumes remain minimal, he emphasized the need for a decisive change, citing trade data showing that the country imports significantly more tomato paste than it exports.
Referencing industry opinions on 'hot' and 'cold' processing methods, he raised the question of why products that could be processed locally continue to be imported, insisting that localization should be the priority.
Unpacking the root causes of this deficit, economics lecturer Mike De Clercq from the University of Cape Town presented findings from a study conducted in late 2024 and early 2025 for the Department of Trade, Industry and Competition (DTIC) and the Industrial Development Corporation (IDC). The study surveyed producers and industry stakeholders to determine why local production lags behind consumption.
De Clercq noted that despite the obvious potential to increase tomato paste production, the country maintains a severely negative trade balance. He stressed the importance of thorough examination: 'Why are we not producing more than we consume in South Africa?'
A SWOT analysis of tomato paste processors identified internal strengths, such as existing local production capabilities, but also pointed to high production costs as a serious weakness. While increasing tariff protection presents an opportunity, threats remain in the form of import competition and price pressure.
Regarding government policy, De Clercq identified a strong multi-institutional structure supporting the industry but warned against excessive reliance on tariffs and rebates without alternative protective measures. He highlighted the potential opportunity to include tomato paste and related value-added products in local government procurement, while pointing to future tariff reductions under the African Continental Free Trade Area (AfCFTA) as a potential threat.
To enhance competitiveness, the following policy recommendations were proposed during the session: expanding demand through the development of export markets, introducing a zero VAT rate for canned beans in tomato sauce, and studying dual-use processing models for tomato and fruit concentrates to reduce costs.
Other measures included managing the entry of new processors to prevent overproduction, improving the efficiency and transparency of the import duty rebate system, facilitating access to affordable financing, and stimulating product differentiation.
Addressing agricultural science, Dr. Mariette Trotter, acting senior research manager at the Agricultural Research Council (ARC), spoke about agro-processing trials conducted using germplasm from breeding programs. These initiatives aim to extend tomato shelf life, demonstrate crop potential in product development, and promote colored tomato varieties to smallholder farmers interested in processing.
Trotter added that selecting the right tomato varieties is critical for processing efficiency. Key characteristics include high soluble solids content (Brix), high lycopene content, firm fruit texture, determinate growth habit, and strong disease resistance.
Meanwhile, Dr. Joshua Magomani, an agricultural economist from the Department of Agriculture, described measures aimed at agricultural processing value chains. He reported that the department is actively working to eliminate major bottlenecks in the sector, including lack of capital access, absence of adequate technology, shortage of technical and entrepreneurial skills, inadequate warehousing and farm infrastructure, inconsistent raw material supply, and compliance with mandatory standards.
According to Magomani, government intervention strategies focus on four main areas: entrepreneurship support, enterprise development through access to finance and markets, industry research and technology transfer, and infrastructure investment.