7 March 2025
During this year’s Harvest Parade, Executive Mayor Jeremy Fasser made a promise to visit some of our farms to witness firsthand the dedication, skill and passion that drive Stellenbosch’s renowned wine industry. Yesterday morning, at the break of day, the mayor and his team honoured that promise by joining workers at the iconic Lanzerac Wine Estate.
There, he experienced the hard work that goes into growing, tending to and harvesting grapes – an effort that fuels an industry deeply embedded in the heritage and economy of our region. As the mayor quickly learned, “Jy moet jou storie ken, en weet waar om te knip, anders kan ‘n vinger dalk verlore gaan.” The skill and speed of our farmworkers are unmatched and the camaraderie of harvest season adds to the special spirit of winemaking in Stellenbosch.
However, this vibrant industry now faces a serious threat. Stellenbosch Municipality stands in firm opposition to the proposed increases in wine excise taxation, which endanger the sustainability and competitiveness of one of South Africa’s most vital economic sectors.
We fully support South Africa Wine in their response to National Treasury, outlining the severe consequences these proposed changes could have on the wine sector and the thousands of livelihoods it sustains.
Stellenbosch is the heart of the Cape Winelands and Africa’s largest wine-producing region, renowned for its rich heritage, world-class wines and breathtaking landscapes. This industry is not just a source of local pride – it is a massive economic driver, employing thousands of residents and attracting hundreds of thousands of visitors from across South Africa and the world each year. Wine tourism, along with production and exports, contributes significantly to job creation and the local economy, sustaining businesses, families and communities. Everything must be done to support this vital industry so it can thrive, rather than hamper its competitiveness and growth with additional taxes that threaten its future.
Rather than stifling growth with excessive taxation, we should be working to expand the wine industry and strengthen its global competitiveness. It is particularly concerning that South Africa’s current excise tax burden already exceeds the target rate of 11% and is significantly higher than that of competitor wine-producing nations.
The wine industry is a cornerstone of the South African economy, contributing R56 billion to the GDP, creating over 270 000 jobs across the entire value chain, generating export revenue, driving tourism and fostering rural economic development. Nowhere is the importance of the wine industry and wine tourism more evident than in Stellenbosch.
We call on National Treasury to reconsider these damaging proposals and engage meaningfully with the industry to find a balanced approach that safeguards our world-class wine sector.
From Left: Justin September, Gavin Jacobs, Regina Mansdorp, Eathan Mac Donald, Franklin Hadie, Brian Javu and at the back Harriete Majoni – joined by Executive Mayor Jeremy Fasser, Deputy Mayor Mynard Slabbert, Councillor Tamryn Kumm and Councillor Rozette Du Toit.
