Jobs in the sugar production sector are safe in Mozambique, SADC

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Jobs in the sugar production sector are safe in Mozambique, SADC

10:18 CAT | 31 Mar 2016

Sugar cane pantation in Moozambique. Ilovo South Africa says there are some alternatives to be considered in order to avoid any loss of production

Thousands of jobs within the Sugar production industry in the SADC Region and the rest of African continent are still safe.

This emerged during the sixth annual Africa Sugar Conference currently underway in Maputo, Mozambique.

Initially sugar producers have been concerned about possible job losses due to the drought that has hit many countries who specialises in sugar production. But Sugar exporters are going to be hit hard as sugar prices are set to be on the rise.

The International Sugar Organisation highlighted that there is not yet a reason to panic, following the severe drought that has hit many countries in the SADC Region.

Executive Director of the International Sugar Organisation, Jose Orive says it’s mainly sugar exporters will have to face the music as high temperatures and less rain falls continue to be the order of the day.

“I think the hope for countries like South Africa whose industry has been whipped like in my country Guatemala by the drought is that the prices go up. We are both big exporting countries it is important that the market improves so that we can go back to normal and re-invest to our people,” says Director of International Sugar Organisation, Jose Orive.

This year’s conference sits here in Maputo amid uncertainty about the future of global exports of Sugar.

The contract with European countries to export sugar to that part of the world comes to an end early next year. But for South Africa, it’s not the end of the world.

Larry Riddle is a Senior Manager at Illovo South Africa, he says there are some alternatives to be considered in order to avoid any loss of production.

“We need all the sugar industries in sub Saharan Africa to look at making sure they have all the regulation in place that protects their industries, from sugar farms in the European countries that is below the cost of production. I think the challenge is to get all the countries especially South Africa and the neighbouring countries to come together and look a trade framework that supports local industries,” says Riddle.

The conference continues, and is expected to consider all the issues discussed here in Mozambique.

There after a way forward for the Sugar industry in Africa will be determined and resolutions to be implemented with immediate effect.