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ESA SUPPORTS COUNTERPARTS

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MBABANE – The South African sugarcane farmer associations appeal to their government to scrap sugar tax or extend the moratorium on increases to save the sector from collapse.
In reaction to this, the Eswatini Sugar Association (ESA) expressed its support to their counterpart’s appeal. ESA Chief Executive Officer (CEO) Banele Nyamane said as ESA, they also strongly believe that the sugar tax is the wrong mechanism to address the health concerns associated with sugar. “We have developed Nucane, which is a low GI sugar to alleviate the health concern,” he said.

The SA Canegrowers and the South African Farmers Development Association (SAFDA) are extremely concerned that any increase to the already devastating sugar tax (the Health Promotion Levy – HPL) or lowering of the threshold will decimate the sugarcane growing sector, driving 25 000 cane farmers out of business and plunging hundreds of thousands of families into abject poverty.

“The Minister of Finance Enoch Godongwana gave us a two-year reprieve on any sugar tax increases in February 2023 to accord us space to diversify the industry and restructure. However, our intensive research indicates that a period of two years is inadequate for the realisation of product diversification.

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