Impact of the Sugar-Sweetened Beverage Tax on the South African Sugar Industry

Abstract

The purpose of this study was to explore the impact of the sugar-sweetened beverage tax on the South African sugar as well as navigating power dynamics within the sugar industry. The study was guided by a qualitative research approach involving key sugar industry stakeholders. The sugar-sweetened beverage and power differentials amongst key sugar industry stakeholders has negatively impacted the South African sugar industry which is already beset by various challenges. The sustainability of the sugar industry has been threatened, forcing industry stakeholders to consider alternatives for survival. Public policies should be better informed before implementation, especially for industries pivotal to the economic welfare of developing countries. Furthermore, the sugar industry in South Africa needs to become more resilient to withstand similar shocks in the future. The study demonstrates how well-intentioned public policies often lead to unintended and disruptive consequences. In situating itself against the background of a developing country, the study further highlights how such consequences can be more severe in such contexts.