Sappi Calls for Strategic Tariff Intervention to Safeguard South Africa’s Newsprint Industry

Leading global paper and pulp producer Sappi has formally applied to the International Trade Administration Commission of South Africa (Itac) for the introduction of a 5% tariff on imported newsprint. This measure is aimed at protecting the sustainability of South Africa’s last remaining newsprint production facility and preserving critical industrial capacity.

Sappi’s Ngodwana Mill in Mpumalanga is currently the only operational newsprint manufacturing site in South Africa and the broader Southern African Customs Union. The company warns that continued inflows of low-priced imports—often from regions with structural overcapacity—pose a significant threat to the viability of local production.

“Without appropriate intervention, South Africa risks losing its domestic newsprint capability entirely,” said Graeme Wild, CEO of Sappi Southern Africa. “This is not just about one facility—it is about protecting jobs, supporting the local economy, and maintaining industrial resilience in a strategically important sector.”

The global decline in newsprint demand, largely driven by digital transformation, has intensified competitive pressures. However, newsprint remains a vital medium in developing markets like South Africa, where digital access is not yet universal.

The Ngodwana Mill contributes approximately R9.9 billion annually to Mpumalanga’s GDP and supports around 1,500 direct and 5,000 indirect jobs. Its newsprint production capacity of 110,000 tonnes plays a crucial role in supplying local publishers with high-quality paper suited for demanding printing processes.

Sappi emphasized that the requested tariff is not protectionist, but corrective—intended to level the playing field against artificially low-priced imports that undermine fair competition.

The broader manufacturing sector is also experiencing similar pressures. Recent developments in the cartonboard industry, including potential job losses due to import competition, highlight the urgent need for forward-looking industrial policies.

“We urge policymakers to take a balanced and strategic approach,” Wild added. “South Africa must avoid becoming a dumping ground for low-cost imports while ensuring the long-term sustainability of its manufacturing base.”

The application is currently under review by Itac.