Unathi Matshongo
South Africa not only boasts some of the best wines in the world, but is also the global leader in ethical certification, environmental sustainability and traceability in the wine industry. A recent study showed that the South African wine industry not only provides the most employment opportunities in the Western Cape, but also makes a significant contribution in terms of corporate social investment (CSI) and enterprise development.
The wine and brandy industry is currently in the implementation phase of the Wine Industry Strategic Exercise — a collaborative effort to craft a strategy towards a competitive and sustainable future for the industry. This process entails 10 projects, including a learning and development plan, technology and innovation strategy, land reform and transformation plan, as well as a social compact involving industry, government and labour.
Macro-economic impact
A report by Conningarth Economists for the industry body South African Wine Industry Information and Systems, released in 2015, showed that the wine industry supports 289?151 employment opportunities in South Africa. The report highlighted that with a labour to capital ratio of 4.64, capital is applied more effectively in terms of employment creation than in the case of general agriculture (4.54) or the national economy (2.94). This is particularly relevant in terms of Minister of Rural Development and Land Reform Gugile Nkwinti’s commitment to intensive agriculture and off-farm development.
Ethical and environmental certification
The South African wine industry is recognised as the global leader in certification systems. The Wine and Spirits Board’s Wine of Origin certification scheme provides traceability for every bottle of certified wine, which is particularly valued in China, where counterfeiting is rife.
South Africa also boasts homegrown schemes for both environmental and ethical certification. The Integrated Production of Wine scheme now certifies that 93% of South African wine is produced in an environmentally sustainable manner. According to the Biodiversity and Wine Initiative, more than 140 000 hectares of natural vegetation is preserved by the wine industry.
In terms of ethical certification, South Africa has raised the bar in broader ethical certification through the Agricultural Ethical Trade Initiative, Wieta. More than 20 000 farmworkers benefit from this ethical audit scheme, which assures that wine is produced ethically and that workers are treated fairly in terms of health and safety and labour legislation. South Africa also represents more than 60% of the total wine production under the international ethical certification scheme, Fairtrade.
Fixing the voids
With almost 40% of South African wine being Wieta certified, this audit scheme not only assures ethical and legal compliance, but also highlights the voids where investment and development is required. This according to Phil Bowes, manager of transformation and development at VinPro — the organisation that represents more than 3 500 wine grape producers and cellars — who says that Wieta’s audit results can inform other initiatives.
One example is the Industry Association for Responsible Alcohol Use, which strives to reduce alcohol-related harm through combating the misuse and abuse of alcohol. Through collaboration with the VinPro Foundation, several qualified social workers address socioeconomic issues in four wine regions. An independent 2014 survey of industry CSI revealed that the wine industry spent more than R38-million on at least 232 CSI projects. The majority of these projects involved training and education.
The full success circle
In November 2015 Unathi Mantshongo was appointed to co-ordinate the initiatives of VinPro’s transformation and development division, along with Bowes. She is responsible for overseeing the implementation of funded initiatives aimed at promoting and accelerating transformation throughout the wine value chain, with a key focus on enterprise development.
Unathi’s own career is a success story worth celebrating. She was a recipient of a Department of Agriculture, Forestry and Fisheries bursary at Stellenbosch University’s Department of Viticulture and Oenology.
As a qualified viticulturist from the Eastern Cape, today she is respected in the industry and is completing a full circle by enabling other success stories of enterprise development and transformation in the wine industry.
Land reform and enterprise development
There are currently at least 52 black economic empowerment projects and 30 black-owned brands in the South African wine industry, amounting to about 2 500 hectares of vineyards. One of the more recent developments entails a 100 hectare development in the Northern Cape. Orange River Cellars injected over R70-million for soil preparation and the planting of young Chenin Blanc vines into this project.
Developments such as the Brandvlei and Clanwilliam water schemes could potentially unlock more than 12 000 hectares of irrigation with black ownership, which could utilise existing infrastructure and partner with existing cellars and businesses.