Across South Africa’s sugarcane-producing regions, small-scale farmers are playing an increasingly important role in advancing sustainable agriculture and supporting the country’s transition toward a greener economy. In Jozini, KwaZulu-Natal, farmers, technical experts, United Nations agencies and industry stakeholders gathered for a workshop led by the United Nations in South Africa, with technical support from United Nations Industrial Development Organization and backing from the Joint SDG Fund. The discussions focused on strengthening the resilience, inclusiveness and sustainability of the sugarcane industry amid rising climate and economic pressures.
The initiative forms part of broader United Nations efforts to support a just energy transition in South Africa that combines environmental sustainability with economic inclusion. Rural communities across the country continue to face challenges linked to unemployment, energy insecurity and climate vulnerability, making the transition to low-carbon development closely connected to livelihoods and local economic opportunities.
South Africa’s sugar industry has experienced a sharp decline in the number of small-scale growers over the past two decades, falling from approximately 50,000 farmers to around 25,000. Rising production costs, structural inequalities and limited access to markets and financing have contributed to this decline. At the same time, the industry is under growing pressure to reduce emissions, modernize operations and adapt to climate change impacts.
Participants at the workshop explored ways to transform these challenges into new opportunities by promoting regenerative agriculture, climate-smart technologies, renewable energy solutions and innovative financing approaches such as green finance and carbon credits. A key outcome of the discussions was the development of a roadmap aligned with South Africa’s Sugarcane Industry Master Plan, aimed at creating a more diversified, competitive and sustainable sugar sector.
One of the major proposals emerging from the workshop was a decentralized processing initiative designed to convert sugarcane waste into renewable energy products including electricity, ethanol and bio-oil. The project could reduce emissions while generating additional income streams for farmers, supporting local economic growth and improving energy access in underserved communities. Technologies such as gasification and anaerobic digestion were highlighted as important tools for turning agricultural waste into valuable energy resources.
Despite the sector’s potential, many smallholder farmers continue to face barriers related to financing, infrastructure and technical support. Through the Joint SDG Fund initiative, government institutions, financial organizations, industry representatives and farming communities are working together to identify scalable solutions that can both lower emissions and expand economic opportunities for rural producers, women and youth.
The workshop also reflected a broader shift in development strategies, showing how climate action and rural economic development can reinforce one another through coordinated investments, innovation and partnerships. Plans are now underway to develop pilot projects in Jozini and Nkomati, Mpumalanga, to further explore sustainable sugarcane processing and renewable energy generation.
For many farmers, the transition carries direct economic importance. Rising electricity costs, climate-related heat stress and declining profitability are increasing pressure on farming communities. Farmers believe that converting sugarcane waste into energy could help lower operational costs, improve livelihoods and create better opportunities for future generations.
