The 2021 edition of African Business is the second issue of this useful guide to business and investment on the continent. The positive reception accorded the inaugural edition in 2020 was encouraging and we are optimistic that this publication and future issues will continue to meet the need for timely and relevant information in an exciting time for African business.
African Business 2021 has articles on recent trends plus overviews of the key economic sectors on the continent and regional and country profiles. There is an in-depth analysis of the implications for trade on the continent of the introduction of the African Continental Free Trade Area agreement (AfCFTA) and an article on the growth and importance of exploration for minerals, gas and oil.
Neighbours Namibia and Botswana feature in an article on how cooperation can drive economic growth and an opinion piece focusses on the role that digital technology can play not only in the financial sector, but in the driving progress in a broader sense.
African Business 2021 is a unique guide to business and investment in Africa.
African Business 2021 is published by Global Africa Network Media (Pty) Ltd
Global African Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and Nigerian Business. See other recent publications here.
Artist impression of the MMSEZ. Image supplied by Limpopo Economic Development Agency (LEDA)
What locational advantages does the MMSEZ enjoy?
The Musina-Makhado SEZ is located in the vicinity of the Beit Bridge Border Post which is one of the busiest ports of entry to South Africa and a gateway to the South African Development Community (SADC) countries.
The MMSEZ has the potential to become an inland intermodal terminal, facilitated by its anchoring position along the North-South Corridor, and directly connecting to the country’s major ports through both N1 road and the Johannesburg-Musina railway line, for the trans-shipment of sea cargo and manufactured goods. Musina and Makhado municipalities are located in the Vhembe District.
What industries will be established at the SEZ?
An energy and metallurgical complex will include the following plants:
Coal Power, Coke, Ferrochrome, Ferromanganese, Pig Iron, Carbon Steel, Stainless Steel, Lime, Silicon-Manganese, Metal Silicon and Calcium Carbide.
This will be complemented by the logistics hub, agro-processing centre, light-to-medium manufacturing industries, SMME Incubation Centre, retail centres, hotels and residential amenities.
What is planned for the early phases?
The planning phase has been complex. A rigorous and diligent planning process was undertaken which involved pre-feasibility, feasibility, licence application, operator appointment, stakeholder engagement, environmental impact assessment, clusters analysis, internal and external infrastructure master planning, entity corporatisation, etc.
Despite the lengthy environmental impact assessment process affecting the Energy and the Metallurgical Cluster (South Site), we are confident that the light-to-medium industrial park, to be located in the North Site of the SEZ, will be operational by the end of 2021. Our infrastructure roll-out plans are unfolding smoothly.
What are the longer-term plans for the SEZ?
The MMSEZ is an economic development tool which aims to promote national economic growth and exports by using support measures in order to attract targeted foreign and domestic investments, research and development and technology transfer.
We are looking forward to creating a minimum of 50 000 job opportunities in the next 10 years through this initiative and to turn around the economic fortunes of the Limpopo Province. All these investment opportunities will lay a solid foundation for the envisioned futuristic Smart City and smart economy.
When the High-Speed Train between Johannesburg and Musina comes to fruition, that will add impetus to the MMSEZ.
How is pollution being mitigated?
The MMSEZ SOC is committed to environmental and biodiversity protection. We fully appreciate and respect the Paris Agreement and our country’s commitment to ecological sustainable development and are already taking all reasonable measures to mitigate environmental concerns such as global warming, pollution, biodiversity loss, water scarcity and possible threats to food security.
Substantial research is being conducted to mitigate such risks which will include the deployment of the best carbon capture and storage (CCS) technology to mitigate the greenhouse gas emissions.
Specialist studies on climate change and pollution have been conducted to mitigate potential negative impacts. With regard to water scarcity, efforts are being made to avoid tapping into the already stressed water resources by exploring various innovative engineering options, including cross-border water-transfer schemes.
Will construction of the SEZ infrastructure be done by local companies?
Local empowerment is at the centre of the MMSEZ business model. We are already at an advanced stage of completing a comprehensive Enterprise Development Strategy and the development of an SMME Incubation Centre.
Local enterprises will undoubtedly enjoy preference in a variety of opportunities throughout the project development phases, including infrastructure roll-out.
With whom is the Limpopo Provincial Government partnering in the creation of the SEZ?
Each SEZ project is regarded as a national asset located in a particular province. Such national assets are expected to attract foreign direct investment and technology transfer. This model warrants public and private partnerships at all levels.
The Limpopo Provincial Government has partnered with the national government through the Department of Trade, Industry and Competition (dtic), an international operator from China, Vhembe District and local municipalities, particularly Musina and Makhado municipalities, and the business fraternity to implement the MMSEZ.
Where does the SEZ fit in regional strategies?
The location of the Musina-Makhado Special Economic Zone makes it an ideal regional integration initiative. The SADC Industrialisation Strategy (2015-2063) emphasises the pursuit of targeted and selected industrial policies to create conditions for higher rates of investment by the public and private sectors to enable crucial sectors to prosper, especially value-adding manufacturing. The recently signed Africa Continental Free Trade Agreement (AfCFTA), promises to redefine trade relations among African states and beyond.
The Musina-Makhado SEZ is well positioned to play a regional integration role in SADC and to take up opportunities that are presented by the AfCFTA.
Lehlogonolo Masoga has more than 19 years of experience as an administrator and public servant, most recently as Deputy Speaker of the Limpopo Provincial Legislature and MEC for Roads and Transport.
Lehlogonolo served on the Limpopo Youth Commission. He holds three master’s degrees: Governance and Public Leadership (Wits), Development Studies (Limpopo) and an MSc in Leadership and Change (Leeds Beckett University, UK). He has diplomas in human resources and humanitarian assistance and is currently a registered PhD candidate in Administration.
Our company was started in 1988. We buy all our raw material from local suppliers and our products are 100% manufactured in South Africa. Our work force is also employed from the local community and are further trained in house. We take pride in our products and our aim is to supply quality shoes that last at a competitive price.
In the past five years, the African markets have experienced positive growth. One of the main contributors to the growth of the African economy is the sports industry. If you install the Betway Mobile app, the sports action from Africa will impress you listed on the app. After being overlooked for a while, the African sports industry’s development has attracted the attention of major companies worldwide.
The Sports Industry in Africa at a Glance
Basketball is developing
In the recent past, the NBA’s growth highlighted the true potential of Africa’s sporting industry. As we speak, a Basketball African League (BAL) was established in 2019. This was a result of years of dedication from the industry, which started as Basketball Without Borders.
In 2017, an NBA Africa Academy was set up in Senegal, and it eventually evolved into commercial interest areas. In 2016, the league signed a multiyear contract with Econet Media to air more than 500 NBA and WNBA games every season.
The 12-team BAL became the first professional league the NBAowned and operated outside the USA. This is a clear sign that Africa’s sports market and the local talent can spur the association’s growth.
The NBA boss, Adam Silver, stated that the league was committed to using basketball as an economic stimulus to offer new opportunities in technology, sports, and media in the African continent. Statistics suggest that the African middle-class population will reach 1.1 billion by 2050.
It is also estimated that there will be 690 million smartphones in Africa by 2050. This offers a considerable broadcasting potential for the NBA. Betting industry giants like Betway will also relish an opportunity to tap into this potential.
Football remains the Real Deal
Even as basketball continues to establish a solid local fanbase, football remains the most loved sport in Africa. Each African country has a national league with hundreds of teams playing. The best teams from each league usually compete in the Confederation of African Football (CAF) tournament.
Nevertheless, African football fans remain huge admirers of European football. This love for top European leagues has forced broadcasters to find innovative ways of cashing in on the viewership. Besides, betting companies like Betway have a massive following in the continent because they offer fans a chance to bet on their favorite teams.
Sports leisure activities
The market for daily sport leisure activities is also on the rise in Africa. Activities like motorcycling, biking, cycling, and marathons are slowly becoming prevalent. For instance, there is an emerging leisure motocross and riding scene in Kenya that usually culminates in a national tournament.
In South Africa, the e-commerce Sports and Outdoor segment estimates for 2020 were 429-million USD, while the industry is also expected to grow at an 11.6% annual rate through 2024. Local marathons are also flourishing.
Bottom Line
The African continent has realized that sports activities offer an opportunity to diversify its economy. As a result, African governments are looking for innovative ways of tapping into this potential. Many experts believe that if the African continent can properly commercialize its sporting action, it has the potential of lifting many out of poverty.
Tshepo Molusi, CEO of T3 Diamonds, Premium Diamond & Jewellery Factory
Company History
T3 Diamonds is a registered diamond cutting and polishing as well as jewellery designing and manufacturing company based in Kimberley and it is 100% black owned. Rough diamonds are sourced from South Africa and the surrounding Southern African countries which are processed in our local facility in Kimberley.
T3 Diamonds was established with the intention of revolutionizing the diamond and jewellery industry through beneficiation of minerals that are sourced from Kimberley and the Northern Cape as well as the rest of the Southern African region (SADC). Our team of experts evaluate, sort, cut and polish them.
Diamond cutting is not only an art, but also a very exact science, which needs to be planned with mathematical precision.
Each diamond is unique, no two diamonds are the same (in rough form), which is just part of what makes this glittering gem so spectacular – from its formation deep within the Earth’s crust billions of years ago to the moment you showcase its beauty in the form of a polish diamond and stunning jewellery creation.
Vision
To grow the market share both locally and internationally by producing world class certified polished diamonds and luxury jewellery goods.
Mission
Establish a global presence by delivering locally produced South African designed and manufactured authentic diamonds and jewellery products with the use of credibly sourced minerals.
Values and Principles
To deliver a quality service to our diverse clients locally, nationally and internationally with particular emphasis on the following principles:
Integrity
Quality
Transparency
Professionalism
Innovation
Accountability
Service Offering
Diamond cutting and polishing
Jewellery design and craftsmanship
Trading in rough diamonds
Certified loose stones
Custom made diamond jewellery
Investment stones
Jewellery design and manufacturing
Our custom jewellery will exceed your perception of beauty. We design our jewellery in the state of the art jewellery factory with the latest technology. We are located at the Kimberley Diamond and Jewellery Centre.
We take pride in our ability to capture your vision and to create unique pieces of jewellery that showcase our craftsmanship as well as your unique style. All our design sketches are done to scale, which ensures that you get exactly what you are looking for.
Our diamonds and jewellery
All of our loose diamonds are graded by GIA, EGL, IDL, DIA. Working with these laboratories alongside our own expertise means we can get the most value, beauty and brilliance out of a diamond.
All the way through the manufacturing process from planning to polishing, the level of detail required is unsurpassed, meaning the difference between a beautiful and brilliant diamond compared to a lifeless stone.
Diamond rings
Our team understands the importance of the correct diamond selection to suit an engagement ring’s design and occasion.
All our jewellery is custom made in either 18ct/9ct white or yellow gold, or silver.
Diamond cutting and polishing
Everyone understands the importance of a diamond’s cut. We analyze each stone to reveal the best cut suited to each stone so that the beauty of the stone can be enhanced and the value be maximized. Our expert diamond planners mark the diamond rough by considering the clarity, size and crystal direction of the stone so that the maximum potential of the stone can be extracted.
T3 Diamonds is able to deliver the best cut and polished diamonds to our clients across the world using the latest design technologies, years of diamond expertise, and streamlined processes. We offer manufacturing and consulting services by trained and qualified professionals in diamond manufacturing.
Explore our diamond inventory and get a glimpse into the quality of diamonds that we produce.
Worldwide exporting
We are export-ready and have qualified in all the necessary exporting training and skills through the Northern Cape Department of Economic Development and Tourism.
We are an ISO 9000 institution and deliver high standard quality products with guaranteed value for money.
Contact T3 Diamonds – Premium Diamond & Jewellery Factory
Please contact T3 Diamonds via the form below:
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On 5 February 2021, the U.S. Consulate General in Cape Town and the Western Cape government jointly launched a Trade and Investment Promotion Partnership which will build on the momentum of the existing economic relationship to promote shared prosperity and economic development.
At the launch event, Western Cape Minister of Finance and Economic Opportunities, David Maynier, and U.S. Acting Consul General in Cape Town, Will Stevens, pledged to deepen cooperation and coordination to promote and increase bilateral trade and investment through various engagements, events, and high-level interactions.
The partnership will leverage the decades of innovative trade and investment promotion through the Western Cape’s agencies such as Wesgro, and the services, resources, and expertise of 17 U.S. government agencies to support U.S. and African businesses, and the African Growth and Opportunity Act (AGOA), which allows duty-free exports of more than 6,500 goods from Africa to the United States.
Speaking at the launch, Minister Maynier said, “The United States is a key tourism and business market for the Western Cape, and the biggest source of foreign direct investment for the Western Cape, so I am excited about the potential for further investment and economic growth for both regions through the Trade and Investment Promotion Partnership.”
Acting Consul General Stevens said, “The trade and investment promotion partnership builds on our strong relationship with the Western Cape and the U.S. government’s commitment to increasing our already robust trade and investment. The partnership also reflects the U.S. private sector’s increasing interest in investing in the Western Cape and the potential for further expanding bilateral trade.”
The economic relationship between the United States and the Western Cape is robust and growing. The Western Cape’s diverse and dynamic economy attracts investment from U.S. companies—big and small—and the United States has been the top foreign direct investor in the Western Cape for many years. U.S. companies have invested in the province, have created tens of thousands of jobs, offer training and skills development, and support local communities through outreach and humanitarian programs in the Western Cape.
Bilateral trade between the United States and the Western Cape is increasing. Over the last 20 years, trade has risen by 335 percent and is currently valued at approximately 17 billion Rand annually. In 2020, bilateral trade grew despite the COVID-19 pandemic. This growth included a 68 percent increase in citrus exports and a 78 percent increase in wine exports to the United States. Hundreds of companies in the Western Cape export to the United States as part of this reciprocal trade. Western Cape companies are also setting up operations in the United States or forming commercial partnerships with U.S. companies.
Renewable and self-sustaining mini- and off-grid solutions serve as alternatives to traditional grid connections to achieve energy-access goals for remote communities.
These revolutionary solutions will be discussed and showcased at the upcoming 13th annual Africa Energy Indaba virtual event from the 1st – 5th March 2021 which will provide the latest insights, trends and applications to ultimately increase energy access across the continent.
Several exciting dialogues will be exploring what is needed to meet the rapidly growing need for energy access in Africa, learn more about the African market and prospective business opportunities in the energy space; regional integration; the importance of decentralised energy solutions, the disruptive business models, the need for innovative financing solutions, and the digitization of the energy sector.
Access to energy and the rate at which Africa is realising this, will be amongst the dominant themes of the event. This leading energy gathering comprises a high-level, strategic summit will be focusing on energy access, finance, renewables as well as transmission & distribution thereof.
The landscape and population distribution of the African continent underscores why major power plants are unable to reach and serve all areas. As many of these regions are located so far from other urban centres, extending a country’s main electrical grid remains unaffordable. This leads us to the interim solution of investigating energy access and planning in an integrated manner, which includes incorporating smaller “mini-grids” that operate independently from the main grid and off-grid systems in isolated regions of the continent.
Implementation of these solutions could also prove viable in regions where it remains unfeasible to spread the national grid, owing to issues such as topography or low population density. The International Energy Agency (IEA) has forecasted (in Africa Energy Outlook 2014) that 70 percent of new rural electricity supply in Africa will be provided by independent systems and mini-grids by 2040. The GMG MDP, SE4All, SEFA and ESMAP are playing their parts in reducing costs, as well as contributing to technological innovations and improvements in GMG expansion. All this is set to verify that up to two thirds of this power supply will be powered by renewable sources.
A high-level strategic gathering that brings together leading industry players, including local and international mining companies, users and investors, the PGMs Industry Day will tackle all the critical industry issues in a frank and open discussion.
Against the backdrop of soaring PGMs prices, key stakeholders will discuss the huge potential of this sector. Chaired by Bernard Swanepoel, some of the crucial issues to be addressed include:
The outlook for platinum group metals globally
The supply and demand fundamentals affecting the market
Producers’ strategies for future production, supply, investment, modernization and energy
Potential growth opportunities and new projects
The role of PGMs producers in Zimbabwe in the global market
Investors’ perspectives on the PGMs industry
Future markets and applications
The specific role of PGMs in the hydrogen economy
And more…
Speaker highlights will include CEOs of PGMs mining companies and other industry leaders such as:
Nico Muller, CEO, Impala Platinum
Natascha Viljoen, CEO, Anglo American Platinum
Neal Froneman, CEO, Sibanye-Stillwater
Marna Cloete, President & CFO, Ivanhoe Mines
Stephen Forrest, Executive Chairman and Principal Consultant, SFA Oxford
Huw Daniel, CEO, Platinum Guild International Hong Kong Limited
Kevin Eggers, Partner, AP Ventures
Wilma Swarts, Director of PGMs, Metals Focus
And many more…
The full programme and list of speakers will be announced shortly. Keep checking on the website for further announcements: www.pgmsindaba.com
The Port of Durban handles containers, automotive imports and exports, break-bulk and agricultural commodities (Credit: TNPA)
Almost a third of South Africa’s manufactured exports are produced in KwaZulu-Natal. A number of domestic and international manufacturers are either buying into the province or building new facilities in order to export finished goods.
The Mara Group’s R1-billion investment in a smartphone factory at the Dube TradePort is the latest in a string of inward investments that KwaZulu-Natal has received. This includes expenditure of more than R1.2-billion by Arçelik, the Turkish owner of Defy, at the company’s three South African plants (two of which are in the province) and R4.5-billion by Nyanza Light Metal in a titanium dioxide pigment plant at Richards Bay.
The Special Economic Zones (SEZs) at Richards Bay and King Shaka International Airport (the Dube TradePort) are key components of the strategy of attracting investors to the province. Dube TradePort attracted R7-billion between 2012 and 2019 and the same amount is expected to accompany the development of Phase 1A and Phase 1F of the Richards Bay Industrial Development Zone (RBIDZ).
Two investors in 2019 were edible oils manufacturer Wilmar Processing SA, which is investing more than R1-billion in a plant, and Elegant Afro Line, which will spend about R900-million on its chemicals plant.
There are plans to establish a clothing and textiles SEZ in the province to build on the province’s established strength in the sector and an automotive supplier park will be in operation by 2021. Toyota and Bell Equipment play a big role in the automotive sector while the Engen Oil Refinery is a strategic asset.
A solid base for future growth
The province’s existing infrastructure, good soils and fine weather provide a solid base for future growth. KwaZulu-Natal already has significant capacity in heavy and light manufacturing, agri-processing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s busiest highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior.
Sappi’s dissolving pulp mill at Umkomaas south of Durban (below) is one of the province’s most significant industrial sites as it produces huge quantities of a material that is used in viscose staple fibre, which in turn is used in clothing and textiles. Together with production volumes from Sappi’s mill in neighbouring Mpumalanga province, the company is the world’s largest manufacturer of dissolving pulp. Sugar, tourism and forestry and paper are other important sectors driving growth and employment in KwaZulu-Natal.
In his 2020 State of the Province address, Premier Sihle Zikalala listed the sectors which are to be targeted for investment in the future. These are:
Aloe processing
Bio-ethanol
Renewable energy
Fish processing
Innovation hubs
Oceans Economy
KwaZulu-Natal has a long coastline that stretches from Port Edward in the south to the iSimangaliso Wetland Park in the north. The province’s contact with the sea has brought obvious benefits: fishing, fine beaches enjoyed by millions of tourists and two great ports.
These ports export vast quantities of minerals (mostly through Richards Bay) and manufactured goods (Durban) and serve as an important conduit for imports of all sorts. The Richards Bay Coal Terminal exports massive quantities of coal while the Port of Durban is the busiest port in Africa.
Credit: TNPA
Oceans Economy
However, planners want to massively increase the economic benefits that the ocean can bring. An Oceans Economy Review Workshop has come up with a range of sub-sectors that can help grow the provincial economy and invite foreign direct investment:
Marine transport and manufacturing
Offshore oil and gas exploration
Aquaculture
Marine protection and ocean governance
Small harbours
Coastal and marine tourism
Strategies to grow the Oceans Economy dovetail with ongoing projects to boost the capacity of the province’s ports and to explore for gas and oil in the Indian Ocean. If oil rigs were to start visiting the KZN coastline on a regular basis, the ship-repair industry would grow exponentially.
The Oceans Economy is one of the focus areas that has been chosen by national government to be part of Operation Phakisa, a focused, goal-driven attempt to jump-start a specific economic sector. Overall, Phakisa intends creating a million jobs by 2033 and injecting R177-billion into national GDP.
The decision to build a cruise-ship terminal at the Port of Durban is a good example of the kind of decision that is in line with an “Oceans Economy” approach.
Photo credit: Viking Ocean Cruises, Photo by Philip Wilson
Geography
The mixed topography of the province allows for varied agriculture, animal husbandry and horticulture. The lowland area along the Indian Ocean coastline is made up of subtropical thickets and Afromontane forest. High humidity is experienced, especially in the far north, and this is a summer rainfall area. The centrally-located Midlands is on a grassland plateau among rolling hills. Temperatures generally get colder in the far west and northern reaches of the province.
The mountainous area in the west – the Drakensberg – comprises solid walls of basalt and is the source of the region’s many strongly running rivers. Regular and heavy winter snowfalls support tourist enterprises. The Lubombo mountains in the north are granite formations that run in parallel.
Regions
KwaZulu-Natal has 10 district municipalities and a metropolitan municipality, the most of any province in South Africa. In economic terms, the province offers diverse opportunities.
Southern region
This area is the province’s most populous. The city of Durban has experienced booms in sectors such as automotive, ICT, film and call centres. The promenade now reaches all the way to the harbour and the Point development will benefit. Major investments are taking place at the Port of Durban with the current centrepiece being the Durban Cruise Terminal. The Container Terminal is also undergoing an extensive overhaul.
Durban’s conference facilities are well utilised, but many opportunities still exist in chemicals and industrial chemicals, food and beverages, infrastructure development and tourism. Further south, plans are in place to upgrade Margate’s airport and Port Shepstone’s beachfront.
Western region
Also known as the Midlands, this is a fertile agricultural region which hosts the popular annual Royal Show. It produces sugar cane, fruit, animal products, forestry and dairy products. Pietermaritzburg is the provincial capital and home to a major aluminium producer along with several manufacturing concerns, including textiles, furniture, leather goods and food. The city has good transport links along the N3 national highway, excellent schools and a lively arts scene. The Midlands Meander is a popular tourist destination.
Eastern region
Although most of this area is very rural, Richards Bay is one of the country’s industrial hotspots because of its coal terminal, port and aluminium smelters. The Richards Bay Industrial Development Zone (RBIDZ) is a major economic node in itself and with the possibility of a power plant being built, the RBIDZ could become an energy hub. Mining is an important sector in this region.
The other major urban centre is Empangeni which has several educational institutions. The King Shaka International Airport is adjacent to the Dube TradePort, a Special Economic Zone (SEZ) which is attracting investors.
Northern region
The economic powerhouse is Newcastle in the north-west: coal mining, steel processing and manufacturing are major activities. Some old coal mines are being reopened by new coal companies to cater for the country’s power stations’ demand for the fuel.
Game farms, trout fishing and hiking are part of an attractive package for tourists, and Zululand is a popular destination for cultural experiences. The region is rich in Anglo-Boer War history which includes battle sites such as Islandlwana and Rorke’s Drift.
As one of the oldest agricultural industries in the country, which supports the livelihoods of 269 000 employees, generates R55-billion in revenue for the economy and builds a strong brand reputation as a unique asset for the country, the South African wine industry has become part of our cultural and economic fabric.
During the past year our industry has worked tirelessly to be part of the solution when our country found itself in the grip of the deadly Covid-19 pandemic. This included collaborating with government and proactively implementing preventative measures from farm to retail to safeguard the lives and livelihoods of the people working throughout our value-chain and the broader community.
Despite continuous engagement with government to curb the spread of the virus through the implementation of a risk-adjusted approach to re-opening the economy and addressing the social ills of alcohol abuse through a social compact, our proposals were not taken into account when the third ban was introduced on 28 December 2020. Government has also not been transparent with us on justifying the continued ban, nor did they give any explanation or clarity on the timeline for a review of this ban. This makes planning and contingency plans impossible.
This proudly South African industry, which also strongly relies on tourism and hospitality, now finds itself in a dire position after a ban of 19 weeks since March 2020. This resulted in a loss of more than R8-billion in direct sales and the possible closure of cellars and producers, threatening 27 000 jobs and putting the most vulnerable in our communities in a poverty trap which will have far reaching socio-economic outcomes that will place an even greater strain on our healthcare system.
Furthermore, with the 2021 harvest commencing this week, the industry now has more than 640 million litres of stock of which 300 million is uncontracted. This poses a material risk of insufficient processing and storage capacity for the new harvest and threatens the sustainability of the wine industry.
While we share government’s concern over the devastating effect of this pandemic and support meaningful measures to flatten the curve, we do not support the continued outright ban on the sale of wine while alternative interventions are available to mitigate risks.
Faced with the devastating impact that the third ban has had on the wine industry, Vinpro was left with no choice but to approach the Cape High Court.
Vinpro is not saying a liquor ban may not be justified when hospitals and particularly trauma units are under pressure. However, we believe that not only has the wrong level of government been dealing with the retail sale of liquor during the national state of disaster, but government has used and maintained nationwide bans which are overbroad, unnecessary, unjustified and, indeed, counter-productive.
A more flexible, nimble approach is needed, based on credible empirical data, where the provincial executive should be empowered to deal with the retail sale of liquor for the rest of the pandemic, because provincial authorities are normally responsible for regulating the sale of liquor and in charge of healthcare and provincial hospitals, thus they are better equipped to manage the delicate balance between lives and livelihoods.
Although the liquor ban is intended to ensure that hospitals have the capacity to treat those who become ill, the pandemic affects provinces differently at any given point in time and capacity requirements in hospitals will therefore differ across the country. Despite this, government has never differentiated between provinces when it comes to implementing or lifting of the liquor ban. Instead, a nationwide ban has been imposed and then again lifted, without regard for the circumstances in individual provinces.
Urgent interim relief will be sought which would afford the Premier of the Western Cape the power to adopt deviations to enable off- and on-consumption sale of liquor in the province. Ultimately similar relief will be sought in respect of other provinces. The matter is set down for hearing on 5 February 2021.
Vinpro is relieved that the numbers of new infections, active cases and hospital admissions are now dropping fast across the country, but particularly in the Western Cape. In these circumstances, the liquor ban is simply no longer justified in the Western Cape. Accordingly, to the extent that the situation does not change for the worse, and if the liquor ban is still in force in the Western Cape by 5 February, the Western Cape High Court will be asked to invalidate Minister Dlamini-Zuma’s ban in the Western Cape with immediate effect.
As honest brokers, we strongly believe in the power of a shared vision where we have the same objectives – a healthy and prosperous South Africa.
We will continue our support of government in the fight against Covid-19, while working for the economic survival of our sector and the people who rely on it for their livelihoods.
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Substantial research is being conducted to mitigate such risks which will include the deployment of the best carbon capture and storage (CCS) technology to mitigate the greenhouse gas emissions.
Lehlogonolo Masoga has more than 19 years of experience as an administrator and public servant, most recently as Deputy Speaker of the Limpopo Provincial Legislature and MEC for Roads and Transport. 
Explore our diamond inventory and get a glimpse into the quality of diamonds that we produce.
