South Africa's International Trade Administration Commission has raised the import duty on newsprint from zero to 5%, after Sappi sought protection for its Ngodwana Mill against cheap imports. The tariff, which applies to newsprint in rolls or sheets, will be reviewed after three years. Canada supplied 47.2% of South Africa's newsprint imports in 2024/25, ahead of Brazil at 19.8% and Norway at 18.3%, as Sappi's domestic market share fell from 60.8% in 2021/22 to 51.1% in 2024/25.
Why this mattersThe tariff shields South Africa's only newsprint mill as digital migration and global overcapacity squeeze margins, but raises input costs for printers and publishers.
- Itac raised the import duty on newsprint, in rolls or sheets, from duty-free to 5%, reviewable after three years
- Sappi's Ngodwana Mill is the only operational newsprint facility in South Africa and the Southern African Customs Union
- Ngodwana has annual capacity above 570,000 tonnes, of which newsprint is 110,000 tonnes, about 20%
- Import volumes rose 13% a year on average in 2021-25; in 2024/25 Canada supplied 47.2%, Brazil 19.8% and Norway 18.3%
- Domestic capacity utilisation fell from 68.5% in 2021/22 to 46.1% in 2024/25; market share fell from 60.8% to 51.1%
- Ngodwana contributed USD 0.6bn (ZAR 9.9bn) to Mpumalanga's GDP in 2025 and supports 1,500 direct and 5,000 indirect jobs
Tetra Pak has commissioned its USD 1.2m (ZAR 19m) PolyAl processing plant in Germiston, Gauteng, which separates polyethylene and aluminium from used beverage cartons after paper fibre is recovered by Mpact. Manufacturing partner Timber Plastics converts the recovered material into outdoor furniture, roof tiles and pipes, supporting Tetra Pak's target of lifting South Africa's carton recycling rate to 40% by 2030 from 33% currently.
Why this mattersThe plant gives South Africa a domestic processing route for a carton residual stream that previously had none, backing collection targets set by industry scheme Petco.
- The PolyAl plant in Germiston, Gauteng cost USD 1.2m (ZAR 19m) and has now been commissioned.
- The plant separates polyethylene and aluminium layers from used beverage cartons after paper fibre recovery.
- Manufacturing partner Timber Plastics converts recovered PolyAl pellets into outdoor furniture, roof tiles and pipes.
- Mpact recovers the paper fibre from the cartons at its own mill before the PolyAl is processed.
- South Africa's carton recycling rate has risen from 8% in 2023 to 33% currently, with Tetra Pak targeting 40% by 2030.
- The CSIR has supported development of end-use applications including roof tiles and pipes positioned as alternatives to cement and HDPE products.
Mpact has sold its industrial property in Paarl, Western Cape, for USD 11.4m (ZAR 185m) to Inofort, a joint venture between Inospace 5 and Fortress Real Estate Investments, through subsidiary Mpact Paarl Property. Proceeds will go towards settling existing debt under Mpact's portfolio optimisation strategy. The 29,541 sq m site remains leased to Sinica Versapak, the former Mpact Versapak tray and film business, until October 2029.
Why this mattersThe disposal releases capital from a non-core asset while the site stays leased to Sinica Versapak to October 2029, preserving rental income.
- Mpact sold its Paarl, Western Cape property for USD 11.4m (ZAR 185m) via subsidiary Mpact Paarl Property.
- Buyer Inofort is a joint venture between Inospace 5 and Fortress Real Estate Investments, acquiring the site as a going concern.
- The 29,541 sq m property had a net book value of USD 5.48m (ZAR 89.2m) at end-December 2025.
- The property generated rental income of USD 1.20m (ZAR 19.6m) in the 2025 financial year.
- Proceeds will go towards settling existing debt as part of Mpact's portfolio optimisation strategy.
- Sinica Versapak leases the site under a five-year agreement expiring October 2029.
South Africa's trade minister Parks Tau has ordered the International Trade Administration Commission (Itac) to review tariff protection for the domestic pulp and paper sector against rising import penetration. The review follows separate requests from Sappi and Mondi for tariffs on newsprint and office paper imports, and comes after Mpact issued retrenchment notices in its carton board business. Itac will assess import injury, exchange rate movements and the effect of US trade policy before recommending measures.
Why this mattersTariff protection would reshape competitive conditions for South African paper producers against cheap imports and a stronger rand.
- Trade minister Parks Tau ordered Itac to review the paper and paper products tariff structure on 18 September 2026.
- Sappi asked earlier in 2026 for a 5% tariff on newsprint imports, warning the local print industry risks extinction without it.
- Mondi has sought trade protection against cheap office paper imports, including for its Rotatrim brand.
- Itac will also investigate an import surveillance system; representations are due by 15 October 2026.
- A government notice states more than USD 2.03bn (ZAR 33bn) has been invested in the sector over the past seven years.
- Mpact issued retrenchment notices in its carton board business earlier in 2026, citing cheap imports and a stronger rand.
Tetra Pak has invested ZAR 19 million in an automated carton-recycling machine at its Johannesburg facility, separating aluminium and polyethylene from cartons to produce pellets for roof tiles, pipes and furniture. The company aims to raise South Africa's carton recycling rate from 33% to 40% within two years. The plant is operated by manufacturing partner Unique Timber Plastics in Heriotdale and will create 24 direct jobs, with recycler Mpact and producer-responsibility organisation Petco exploring applications for the recycled pellets.
Why this mattersLocal mechanical recycling capacity for cartons cuts landfill volumes and virgin material use, and could template circular supply chains for other multinationals in Africa.
- Tetra Pak invested ZAR 19 million in an automated carton-recycling machine at its Johannesburg facility
- The machine separates aluminium and polyethylene from paperboard cartons to produce pellets for roof tiles, pipes and furniture
- Tetra Pak aims to lift South Africa's carton recycling rate from 33% to 40% within two years
- The plant is operated by manufacturing partner Unique Timber Plastics in Heriotdale and will create 24 direct jobs
- Local recycler Mpact and industry body PRO Petco are exploring applications for the recycled pellets
- Petco's members include Coca-Cola, PepsiCo, Tiger Brands and Tetra Pak itself
- Cartons processed are typically 70 percent paperboard, 25 percent polyethylene and 5 percent aluminium composite
- South African carton recycling rose from 8 percent in 2023 to 33 percent today, ahead of the 40 percent target
South African packaging producer Mpact and power trader Enpower Trading have reached financial close on a five-year renewable-electricity power purchase agreement. Enpower will supply about 30 GWh a year of solar power to Mpact's Eskom-connected mills, wheeled from Phase 2 of the SunCentral project near De Aar, with supply expected to start in December 2026.
Why this mattersThe deal shows a converter using grid wheeling to cut Scope 2 emissions and hedge power costs, a template other South African packaging plants may follow.
- Mpact and Enpower Trading reached financial close on a five-year renewable PPA.
- Enpower will supply about 30 GWh/y of renewable electricity to Mpact.
- Power is sourced from Phase 2 of SolarAfrica Energy's SunCentral solar project near De Aar, Northern Cape.
- Supply is expected to begin in December 2026.
- Mpact expects the PPA to avoid about 30,000 t/y of CO2 emissions.
- Initial supply will serve Mpact's Eskom-connected mills, with potential extension to municipally connected sites.
