The verdant vineyards of Stellenbosch, a charming wine town in South Africa’s Western Cape province, offer breath-taking, panoramic views of the rolling hills, valleys and mountain ranges fringing them.
Only that there are no tourists to marvel at them now – and perhaps will not be for a long time to come.
Like good wine, these views will stay but who will savor them?
Like every other industry on the planet, South Africa’s wine industry too, which produces some of the finest wines and spirits globally and employs millions in its tourism collaterals, has been severely impacted by the Covid-19 pandemic.
Even with the President Cyril Ramaphosa (whose leadership at this time was commended by world leaders and media) easing lockdown restrictions to Level 4 on May 1, liquor and wine sales are prohibited, and the big players say the local industry has taken a hit.
Former banking CEO and wine entrepreneur Michael Jordaan speaks about the effects the crisis has had on business.
“Local sales represent 50% of industry turnover,” says Jordaan. The export ban was lifted five weeks after the lockdown but by then, he feels “precious sales and rack space” in export markets were lost to foreign competitors. “Related wine businesses such as wine tourism or restaurants are suffering the most as income has gone to zero while many costs remain.”
The wine industry is already a high-cost, low-margin business, he adds, with industry surveys showing that only 28% of wine grape producers made a profit in 2019.
Most wineries were cash-strapped to start with, and the pandemic has left a bitter aftertaste.
“It is inevitable that many of the 290,000 jobs in the industry will be lost...” he says.
This story is from the June - July 2020 edition of Forbes Africa.
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This story is from the June - July 2020 edition of Forbes Africa.
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