Home Regions Buoyant SA’s Wine Sector to Boost Employment & Income

Buoyant SA’s Wine Sector to Boost Employment & Income

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Buoyant SA’s Wine Sector to Boost Employment & Income

(3 Minutes Read)

Wine tourism contributed R7.2  billion to GDP in 2023, creating 34,406 employment opportunities and 80,173 jobs at wine farms and cellars. In the same year, the local industry contributed 4.1% to the world’s wine production and 4.3% to the world’s wine exports. 

From the vineyards to the bottle, the wine sector in South Africa drives economic growth, enhances rural development, and exports top-tier products worldwide, all while embodying the country’s rich agricultural heritage.

According to South Africa Wine, the country has maintained its position as one of the top wine producers globally, ranking eighth in the world, which provides support services to the wine and brandy industry. It says wine tourism contributed R7.2  billion to GDP in 2023, creating 34,406 employment opportunities and 80,173 jobs at wine farms and cellars. In the same year, the local industry contributed 4.1% to the world’s wine production and 4.3% to the world’s wine exports.

Wines of South Africa, another organization in the sector, said earlier this year that the country’s white wine “continues to win the popularity contest, with Sauvignon Blanc leading the charge, followed by Chenin Blanc and Chardonnay. Shiraz takes the lead for red wine, closely followed by Pinotage and Cabernet Sauvignon.

Key markets driving export growth include the United Kingdom, Germany, and the Netherlands, with increasing interest from China and the United States, said Rico Basson, chief executive of South Africa Wine.   The sector struggled during the Covid-19 pandemic when alcohol bans and lockdowns were in place. However, it maintained its position as a key export commodity. The industry is complex and multifaceted, and many players — from farmers, vineyard managers, cellar masters, and wine tasters to packaging specialists, distributors, sellers, and promoters — have a crucial part in the value chain.

This sector has substantial potential for driving economic growth, particularly for regions with high-quality wine production,” Basson said.

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According to a report, for every R1 million in sales revenue in the wine industry, 7.51 informal jobs are supported. The employment-to-employment multiplier of 3.15 means that for every job in the wine industry, an additional 2.15 jobs are supported throughout the rest of the economy, for a total of 3.15 jobs when including the initial job in the wine industry.