President Cyril Ramaphosa and the government must take immediate and effective action to ensure that allegations made by the US relating to South Africa supplying arms to Russia are thoroughly investigated.
This is the call made by Vinpro — which represents close to 2,600 South African wine producers, cellars and industry stakeholders — and Wines of South Africa (WoSA), an organisation responsible for export promotions of South African wine.
The organisations said the immediate market reaction to the allegations made by the US ambassador in South Africa Reuben Brigety on Thursday was a dramatic fall of the rand against the dollar, indicating how seriously the international markets considered these claims.
Reuben told journalists in Pretoria that the Russian ship that docked at Simon's Town naval base in December left South Africa loaded with weapons.
Vinpro and WoSA believed the government's response was unsatisfactory and brought intense uncertainty that will put the country's economy — already reeling under load-shedding which is expected to shrink GDP by as much as 2% — under even more pressure.
“This is something South Africa and especially the wine industry cannot afford right now.”
They said these allegations, if true, would have a significant negative affect on the economy, and might jeopardise South Africa's trade relationships, especially its much-needed continued access to US markets created under the Africa Growth Opportunity Act (Agoa), which will be renegotiated soon.
The organisations said wine exports were a much-needed lifeline for the wine industry.
“South Africa annually exports R10.5bn worth of wine to more than 125 countries and the US is one of the top five with wine exports to the value of R800m in 2022.
“However, it is not only the R57m value of the Agoa agreement that can be negatively affected.”
The organisations said the allegations might also pose a risk to the wine industry in terms of tourism, continued wine exports and the country's reputation as a credible role-player in the international trade environment.
“Vinpro and WoSA urgently call on President Ramaphosa and the government to take immediate and effective action to ensure that these allegations do not build any further momentum and are thoroughly investigated and completed, thereby protecting South Africa and the wine industry, and our collective economic interests, at all cost.”
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Wine industry bodies call for probe into Russian ship saga
Vinpro and WoSA say arms-dealing allegations caused rand to weaken
Image: Esa Alexander
President Cyril Ramaphosa and the government must take immediate and effective action to ensure that allegations made by the US relating to South Africa supplying arms to Russia are thoroughly investigated.
This is the call made by Vinpro — which represents close to 2,600 South African wine producers, cellars and industry stakeholders — and Wines of South Africa (WoSA), an organisation responsible for export promotions of South African wine.
The organisations said the immediate market reaction to the allegations made by the US ambassador in South Africa Reuben Brigety on Thursday was a dramatic fall of the rand against the dollar, indicating how seriously the international markets considered these claims.
Reuben told journalists in Pretoria that the Russian ship that docked at Simon's Town naval base in December left South Africa loaded with weapons.
Vinpro and WoSA believed the government's response was unsatisfactory and brought intense uncertainty that will put the country's economy — already reeling under load-shedding which is expected to shrink GDP by as much as 2% — under even more pressure.
“This is something South Africa and especially the wine industry cannot afford right now.”
They said these allegations, if true, would have a significant negative affect on the economy, and might jeopardise South Africa's trade relationships, especially its much-needed continued access to US markets created under the Africa Growth Opportunity Act (Agoa), which will be renegotiated soon.
The organisations said wine exports were a much-needed lifeline for the wine industry.
“South Africa annually exports R10.5bn worth of wine to more than 125 countries and the US is one of the top five with wine exports to the value of R800m in 2022.
“However, it is not only the R57m value of the Agoa agreement that can be negatively affected.”
The organisations said the allegations might also pose a risk to the wine industry in terms of tourism, continued wine exports and the country's reputation as a credible role-player in the international trade environment.
“Vinpro and WoSA urgently call on President Ramaphosa and the government to take immediate and effective action to ensure that these allegations do not build any further momentum and are thoroughly investigated and completed, thereby protecting South Africa and the wine industry, and our collective economic interests, at all cost.”
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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