Agriculture, Economic Development and Tourism
Question by:
Hon Nobulumko Nkondlo
Answered by:
Hon Ivan Meyer
Question Number:
23
Question Body:
The Western Cape is the exclusive home of rooibos production, sustaining around 8 000 rural jobs, and with the US now imposing a 30% tariff on rooibos imports:
- What specific interventions are being undertaking to safeguard these jobs, especially for vulnerable rural communities, and (b) how is his Department facilitating and sup-porting rooibos producers in accessing new markets, in securing trade deals and in promoting market diversification to reduce reliance on the US amidst global protectionist moves?
Answer Body:
- Safeguarding and creating new job opportunities is a top priority of the Western Cape Government. In the second quarter of 2025, the Western Cape agricultural employment increased by 25% compared to the previous year, largely driven by the growing of crops in combination with livestock farming. The rooibos industry features approximately 300 commercial farmers, 210 small-scale farmers and about 80 Tea Courts operating on farms in the local villages. To protect these jobs, the Department actively engages in export promotion efforts and collaborates with stakeholders. Additionally, the Department also supports the national government's intervention of countermeasures introduced by the Department of Trade and Industry (DTIC) to work with the Department of Labour in exploring various strategies to promote job creation and mitigate against job losses.
- Rooibos is a niche product that is native to the fynbos biome, making it distinctly South African. In 2022, the USA was among the top 5 export markets for South African rooibos in terms of volumes. However, by 2024, the USA ranked sixth, showcasing the dynamic nature of the trade markets, but most importantly, the growing demand for rooibos. The USA remains an important market for the Western Cape, and the objective is to maintain existing trade markets, grow their share and diversify to new markets. Hence, the Department, through its export promotion events, continues to support various producers, including rooibos producers, by exposing them to new markets to ensure market access and diversification.
The Western Cape, along with other stakeholders, continues to supply timely data and analytical support to strengthen South Africa’s position in national trade negotiations. Diversification of markets to mitigate the risk associated with high tariffs in the US market is also among the strategies. This will be accelerated through the export promotion support provided by Wesgro, the Western Cape Department of Agriculture (WCDoA) and in collaboration with the industry.
Date:
Friday, September 5, 2025
