Why South Africa cannot afford to further weaken its sugar industry

FOREIGN-funded activists are urging Finance Minister Enoch Godongwana to increase the sugar tax on soft drinks to 20% in the February 2026 Budget.

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THE sugar tax has been proven to do is destroy thousands of jobs, says the author.

(I SUPPLIED)

These groups misleadingly argue that a higher Health Promotion Levy (or sugar tax) is a necessary public health intervention, claiming it will reduce diabetes-related costs and ease pressure on the healthcare system.

Yet after almost eight years of such advocacy, there is still no clear evidence that the sugar tax has reduced obesity or diseases associated with excess weight gain. Nor has it been accompanied by meaningful investment in preventative healthcare, screening, or treatment.

What the tax has been proven to do is destroy thousands of jobs, suppress demand for locally produced sugar whilst driving beverage producers to look at buying sugar imports from countries that heavily subsidise their industries instead. Scrapping the sugar tax will not resolve every challenge facing the sector. But continuing to burden the industry with the tax while failing to address unfair imports and weaknesses in trade protection will only accelerate job losses and farm closures.

Any further increase in the sugar tax would therefore be imposed on an industry already under severe strain.