By LELETHU ZONDANI
As South Africa’s wine industry navigates rising costs, taxation and infrastructure challenges, questions about government’s role in supporting the sector are becoming increasingly important. In this Wine Wednesday article, Lelethu Zondani explores the pressures facing wine producers and why local government accountability matters far beyond the ballot box.
There is nothing quite like a good glass of South African wine, but behind every bottle is an industry navigating some rather complicated realities. From rising production costs and shrinking consumer spending to infrastructure challenges and government taxation, our wine industry has quite a few things keeping it up at night.
And with South Africa heading to the local government elections on 4 November 2026, perhaps it is time we ask: is government doing enough to protect one of our country’s most valuable agricultural and tourism industries?
The ANC’s legacy: What does it mean for the wine industry?
The ANC has been at the centre of South African government since 1994, overseeing policies that have shaped agriculture, land reform, transformation and economic development. Since the 2024 national elections, however, it has governed as part of a Government of National Unity rather than holding a parliamentary majority on its own.
The wine industry has made significant progress in international markets, with exports reaching 264 million litres in 2025 and supporting approximately 270,000 jobs directly and indirectly.
However, progress has not come without challenges. Municipal infrastructure, unreliable water services, poor road maintenance and inconsistent service delivery continue to create obstacles for businesses operating in wine-producing regions.
The Auditor-General’s 2024/25 municipal audit findings revealed that only 39 of South Africa’s 257 municipalities achieved clean audits. While these findings cannot be attributed to one political party alone, they raise serious questions about governance and accountability across local government.
For wine farms, these aren’t simply political talking points. Poor roads affect deliveries, unreliable water threatens production and neglected towns can discourage tourism investment.
Transformation and land reform also remain important conversations. Creating opportunities for historically disadvantaged farmers and emerging wine producers is essential, but meaningful transformation requires more than access to land. It needs funding, infrastructure, skills development and long-term support.
Sin tax increases: Is a bottle of wine becoming a luxury?
Let’s talk about everyone’s favourite budget announcement: sin tax.
In the February 2026 Budget, Finance Minister Enoch Godongwana announced a 3.39% increase in excise duties on wine, brandy and sparkling wine, in line with inflation. This translates to an additional 15 cents in excise duty on a standard 750ml bottle of wine.
Fifteen cents might not sound like much, but the bigger concern is the cumulative pressure of taxation, rising production costs and consumers becoming increasingly price-conscious.
The industry has previously warned that above-inflation increases could squeeze already thin profit margins, threaten jobs and encourage consumers to move towards the illicit alcohol market.
To be fair, the 2026 inflation-linked increase was welcomed by South Africa Wine as a more predictable approach to taxation. The issue is not necessarily every increase, but finding a balance between generating government revenue, addressing alcohol-related harm and keeping legitimate wine businesses sustainable.
Local elections: Why should the wine industry care?
Local government might not determine how much excise tax we pay, but it certainly influences the environment in which wine businesses operate.
Roads, water, electricity, sanitation, tourism infrastructure and municipal rates all affect the cost of doing business.
Wine tourism, in particular, has enormous potential to create employment and stimulate local economies, but attracting visitors to wine regions requires more than beautiful vineyards and excellent Sauvignon Blancs. It requires safe roads, functioning infrastructure, attractive towns and municipalities that understand the economic value of tourism.
A toast to accountability
South Africa’s wine industry has proven its resilience time and time again. But resilience should not become an excuse for businesses to continually absorb the consequences of poor infrastructure, rising costs and policy uncertainty.
As we approach the local elections, perhaps the wine industry needs to become a louder voice in conversations about economic development.
After all, wine is more than what ends up in our glasses. It is agriculture, tourism, exports, employment and livelihoods.
We cannot keep asking our wine producers to grow the industry if the environment in which they operate isn’t growing with them.
Happy Wine Wednesday kids!
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