More than 20 years ago farmer Mbukeni Nyembe planted his first hectare of sugar cane on a parcel of land in Pongola, KwaZulu-Natal. Over the years his farm has expanded to 10ha, with the money he has earned from selling cane putting his 14 children through school.
However, a number of factors in recent years have threatened the sustainability of their businesses, including the inflow of cheap sugar imports that have driven down their profits, as well as the recent looting and violence in KwaZulu-Natal, which has resulted in R84.5m in revenue losses for growers.
However, there has been little to no evidence produced by the government to date that shows the tax has had the desired effect on obesity levels. In fact, the SA National Health & Nutrition Examination Survey released in May revealed that more than half of South Africans gained weight over the past year, largely due to the socioeconomic impact of the Covid-19 lockdowns.
Most of these job losses have been in communities living in rural areas, where poverty levels are highest. The report also highlighted that thesugar farming sector’s output had declined by a cumulative R414.2m by 2019 as a result of the sugar tax , while the sugar processing sector’s output had declined by a cumulative R772.1m by 2019.
Why is sugar tax necessary again? NannyState
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