Diversification and repositioning as a resilience strategy for sugar cane Industry in South Africa after implementing a tax on sugar-containing beverages

Abstract

South African sugar industry is facing a major decline in sugar demand. The demand is decreased due to global decrease of sugar consumption, and locally coupled by the introduction of the health promotion levy and tax on sugar beverages. As a result, the South African Sugar Association (SASA) has turned to the government for assistance to develop the rescue plan of finding new income streams for the industry. Such rescue plan involves diversification into the energy market. This paper outlines different pathways that the Sugar cane industry can use to revive its industry and diversify its dwindling income. This paper will be based on a desktop literature review, to determine possible sugar cane by-products such as electricity and ethanol, different technologies used, which will contribute significantly their financial constraints and South African current policies that allows generation of electricity and ethanol from renewable energy in South Africa (SA)