Sugar Industry: Competition Act Block Exemption for Master Plan Phase 2

Posted 13 August 2025 Written by Acts Online
Category Trade

Brought to you by SA Legal Academy: The Department of Trade, Industry & Competition has gazetted a block exemption under the Competition Act, No. 89 of 1998, to facilitate the implementation of Phase 2 of the South African Sugar Value Chain Master Plan.

In terms of section 10(10) of the Competition Act, No. 89 of 1998, the Minister has issued the Sugar Industry Master Plan Phase 2 Block Exemption. This regulatory framework follows the release of a draft version in May 2025 and is effective immediately for a duration of five years. The exemption is designed to enable industry-specific collective agreements and collaborative practices that support the objectives of the 2021 sugar industry value chain master plan.

The block exemption permits certain collaborative activities that would otherwise be restricted under sections 4(1) and 5(1) of the Act, provided they are aimed at:

  • Restructuring the industry to ensure long-term commercial sustainability;
  • Supporting and integrating small-scale and black sugarcane farmers into the value chain;
  • Increasing domestic market share for locally produced sugar; and
  • Protecting the industry against the impact of sugar imports.

The notice also prescribes specific responsibilities, limitations, and procedural requirements for industry participants. Any collaborative practices or agreements undertaken under this exemption must be formally reported to the Competition Commission to ensure compliance and transparency.

What this means for you, your business, or your clients

  • For yourself: Monitor the Competition Commission’s register of exempted agreements to track industry-wide collaborative trends and regulatory precedents.
  • For your business: Ensure that all collaborative activities within the sugar value chain are documented and reported to the Competition Commission within the prescribed timeframes to maintain immunity from prosecution for restrictive horizontal or vertical practices.
  • For your clients: Advise clients on the specific categories of collaboration permitted, such as those targeting small-scale farmer support or import protection, while ensuring they do not exceed the scope of the Phase 2 Master Plan.

Originally published at https://legalacademy.co.za/news/read/sugar-industry-master-plan-phase-2-block-exemption-gazetted

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