WeeklySA_AdminINTERESTS: Serious concerns over possible economic fallout with the United States, one of its biggest markets…
By Len Maseko
South Africa’s wine industry has called on President Cyril Ramaphosa and Government to take immediate and effective action to ensure that allegations relating to the country supplying arms to Russia were thoroughly investigated.
The call was made today by Vinpro and Wines of South Africa (WoSA), both warning against the possibility of the allegations building “a further momentum” leading to dire consequences for the local wine sector “and our collective economic interests”.
Vinpro is a non-profit entity representing close to 2 600 local wine producers, cellars and industry stakeholders. The organisation liaises closely with Government and industry role players on issues that have an impact on the profitability and sustainability of its members and industry as a whole.
On the other hand, WoSA is a not-for-profit entity responsible for export promotions of South African wine in key international markets.
In a joint statement released today, Vinpro and WoSA said: “The immediate market reaction to the allegations made by the United States of America’s Ambassador in South Africa relating to South Africa supplying arms to Russia, was a dramatic fall of the rand against the dollar, indicating how serious the international markets consider these claims”.
Their statement follows US ambassador to South Africa Reuben Brigety’s dramatic revelations at a media conference yesterday, at which he claimed that a Russian ship Lady R, which docked at the Simon’s Town base on December 6 last year, had picked up weapons in South Africa.
Brigety further said he was confident that the Russian ship under United States sanctions had taken the weapons abroad, suggesting the transfer was not in line with Pretoria’s stance of neutrality in Russia’s war against Ukraine.
In response to the allegations, Ramaphosa announced the appointment of a judicial inquiry to lead a probe to establish the facts around Brigety’s claims.
Both organisations believed the Government’s response had been “unsatisfactory and brings intense uncertainty that will put our economy – which is currently reeling under the enormous impact of load shedding, and which is expected to shrink by as much as 2% of the GDP growth forecast – under even more pressure. This is something South Africa and especially the wine industry cannot afford right now”.
In a new turn later in the day, the Department of International Relations and Cooperation (Dirco) said, after a meeting with Brigety today, the ambassador had “admitted that he crossed a line” and “apologised unreservedly” after he said a Russian ship had picked up weapons in South Africa.
Brigety had been summoned earlier today by the department, which “expressed the government’s utter displeasure” over his conduct and statements.
“We conveyed our displeasure with his conduct and he admitted that he crossed the line and apologised unreservedly,” Dirco said.
Meanwhile, South Africa is the ninth largest wine producer in the world, crafting approximately four percent of the world’s wine, and contributing more than R55 billion to the country’s GDP. It employs 269 069 people across the value chain, of which 80 173 work on farms and in cellars. Generally, South African business’s fears stemmed from the allegations’ possible negative economic impact, especially on the country’s access to US markets under the Africa Growth Opportunity Act (AGOA), which is due to be renegotiated soon.
“However, it is not only the value of the AGOA agreement of R57 million of benefit that is currently in place that can be negatively affected,” Vinpro and WoSA said. “These allegations may also pose a risk to the wine industry in terms of tourism, continued wine exports and our reputation as a credible role-player in the international trade environment. Wine exports are a much-needed lifeline for the South African wine industry”.
Annually, South Africa exported R10.5 billion worth of wine to more than 125 countries worldwide, with the USA positioned as one of its Top 5 wine markets – valued at R800 million in 2022.
In terms of Global Export-Import Trade Data of 209 countries, compiled by international trade data group Volza, South Africa exports most of its wine to the United States. Wine export shipments from South Africa to the US stood at 28 300 last year – all commissioned by 563 South African exporters to 563 United States buyers, according to Volza.
POP-UP BAR
JAMESON’S
POP-UP BAR
The Jameson Distillery on Tour, a whiskey immersion experience for enthusiasts and novices alike, is setting up its pop-up bar at the rooftop of Joburg’s Hyde Park Corner shopping mall from May 18 to 28.
The interactive experience reveals the process behind creating the world’s smoothest triple-distilled Irish whiskey. South Africa’s finest music acts will be on the line-up to entertain guests while enjoying the spirit amid laid-back ambience, serenaded by soulful tunes on weekdays, and high energy tracks over the weekend.
The experience is packed with explosive sensory moments, rich flavours. Grab a bite to eat at one of Hyde Park Corner’s many restaurants or enjoy a more casual meal from the sensational food trucks at the event. Tickets via Computicket cost R249.
Dates for the experience are May 18 to May 21; May 25 to May 28. Thursdays opens from 17h30 to 23h00;
Fridays from 15h30 to 23h00; Saturdays from 15h30 to 23h00; and Sundays from 13h30 to 21h00.
Published on the 98th Edition
