Economic and social impact of the sugar industry
The leadership provided by the South African Sugar Association in dealing with the issue of land ownership over the past few years gives us hope. Through the collaboration of government and industry stakeholders we’ve seen a significant change in the racial distribution of land ownership and a well-balanced mix of farming systems under a variety of secure tenure forms. 

The sugar industry’s commitment to government’s target of transferring 30% of privately owned land into black ownership by 2015 is applauded. Within the last decade, approximately 18 000 hectares have already been transferred to the previously disadvantaged communities.

I remain convinced that members of the association will assist government to bring down poverty ratio. A bigger push is even more necessary given the fact that the international community predicts that Africa runs a risk of failing to meet one of the Millennium Development Goals. There is a terrifying prediction that in Africa, the goal of eradicating hunger and poverty will not be met until 2150.

Given the influence of the South African Sugar Association in the SADC region and the world over, members are well placed to provide leadership to ensure the attainment of some MDG such as:

• Eradication of extreme poverty and hunger 
• Promotion of gender equality and the empowerment of women
• Combating disease
• Ensuring environmental sustainability 
• Creating a global partnership for development

Currently South Africa, Mozambique, Swaziland and Zimbabwe produce more than four-million tons of sugar yearly, contributing over $500-million in foreign exchange earnings for the region through sugar export.

Thousands of jobs have been created, notably in Mozambique, the country that was previously ravaged by civil war. This growth demonstrates the important role the sugarcane industry plays, and will continue to play, in the eradication of extreme poverty and hunger.

Stakeholders in the sugar industry have projected the production capacity in Mozambique to grow by 100 000 tons by 2009/10. The country’s sugar industry is recovering and currently produces 28 000 tons yearly compared to the 700 000 tons it produced prior to the civil war.

The urgent need for transformation has given government the mandate to collaborate with industry stakeholders and other government in order direct socio-economic transformation. The collaboration with Swaziland and Mozambique resulted in the opening of a new 50 000-ton-capacity silo at the Maputo harbour sugar terminal towards the end of 2006. The export capacity of the three countries has been boasted significantly.

State intervention
Since the advent of democracy, the state has been intervening in order to grow the economy. The most notable intervention has been on developing sectoral programmes and social development initiatives, looking into foreign direct investment, import and export orientation and developing transport infrastructure.

During the greater part of last year and this year I have been examining the new areas of growth:  Checking where are the new things going to come from? The new businesses, the new industries. Where are the new economic opportunities?

I think that further broadening and deepening of the understanding of economic development will bring real benefits to the province. Although reforms in the infrastructure sector are beginning to yield positive results, we must continue to build our capacity. By doing so, we will be able to benchmark ourselves with the best and leap forward in this area.

Our approach appropriately seeks to raise investment in infrastructure and human development. It is essential that the resources for this effort be used efficiently and transparently not only to accelerate economic growth but to ensure that the majority of our communities benefit from this growth.

By investing in our infrastructure, such as our roads, the Dube Trade Port and our harbours – Richards Bay and Durban – we will enhance the province’s identity and distinctiveness. This will simultaneously create employment, develop human skills and generate social capital and cohesion.

Hope for jobs in the sugarcane industry
One significant challenge to be faced head-on through a strategic repositioning of our transformation agenda is the challenge of employing the million job seekers. We also have a challenge of finding employment for thousands of graduates and high school leavers every year. 

A look at the employment statistics presents a disturbing picture. Young people are the most affected and if we fail to address the problem, all the gains we have made will be reversed tremendously. So the question then really is how do we make sure – and this is the purpose of the Sugar Industry Development Indaba 2008 – that the South African sugarcane industry addresses these challenges?

There is well documented evidence which suggests that every year graduates emerge with talents far beyond those of previous years. Therefore over the next few years, as the association continues with its transformation agenda, there should be greater attention to creating opportunities for young people. Developing their education and skills will help grow and sustain the sugarcane industry. 

Contact the KZN DED:
Boyce Mntambo
Manager for Information & Communication Technology
Tel.: +27 33 264 2500
Fax: +27 86 679 6404
Email: mntambob@kznded.gov.za
Website: www.kznded.gov.za

Postal address:
Private Bag X001
Bishopsgate
4008

Physical address:
270 Jabu Ndlovu Street
Pietermaritzburg
3201