The South African government has introduced a 5% customs duty on most imported newsprint, effective 16 October 2026. The tariff amendment was signed by finance minister Enoch Godongwana and published by the South African Revenue Service. The move follows a recommendation from the International Trade Administration Commission (Itac), which backed Sappi’s request to protect the newsprint machine at its Ngodwana mill in Mpumalanga.
Sappi applied for the duty in March 2026, arguing that its Ngodwana facility, the only operational newsprint plant in South Africa and the Southern African Customs Union, faces sustained losses. The company cited falling global demand for newsprint, excess worldwide capacity and a flood of low-priced imports as the main pressures. Itac’s investigation confirmed that the local industry’s production, sales, capacity utilisation (the proportion of the plant’s total output that is actually used) and market share have all declined, leaving it at a significant price disadvantage.
Impact on Sappi and the broader market
According to Itac’s findings, Sappi’s share of the domestic newsprint market fell from 60.8% in the 2021/22 financial year to 51.1% in 2024/25. At the same time, capacity utilisation dropped from 68.5% to 46.1%. The Ngodwana mill can produce 110 000 tonnes of newsprint a year, roughly one-fifth of the mill’s total output, and supports about 1 500 direct jobs. The duty is intended to level the playing field for the plant, protect those jobs and keep newsprint production onshore.
The tariff will be reviewed after three years, giving the government a window to assess whether the protection has stabilised the plant’s performance. If the duty is lifted early, Sappi could face renewed pressure from cheaper imports.
What the duty means for importers and publishers
Not every import is subject to the new charge. Newsprint arriving from the European Union, the United Kingdom, the European Free Trade Association, the Southern African Development Community and the African Continental Free Trade Area remains duty free. Imports that fall under the general rate, as well as those from the South American trade bloc Mercosur, now attract the 5% levy.
Canada supplied 47.2% of South Africa’s newsprint imports in 2024/25, Brazil 19.8% and Norway 18.3%. Under the new schedule, Canadian paper will pay the duty, Brazilian imports are covered by the Mercosur rate and therefore also pay 5%, while Norwegian paper remains exempt.
For newspaper publishers, the duty translates into higher input costs. A typical newspaper that sources 10 000 tonnes of newsprint annually could see its raw material bill rise by roughly R5 million, assuming an average import price of R100 per tonne. Those additional costs are likely to be passed on to advertisers or result in further reductions in print runs, a sector already grappling with declining circulation.
Broader industry context
The newsprint sector has been in long-term decline. Publishers have shut down or trimmed large numbers of print titles, and many have shifted to digital platforms. The duty is therefore a targeted intervention rather than a blanket support for a thriving market.
Stakeholders will be watching the three-year review closely. If the duty succeeds in stabilising Sappi’s Ngodwana machine, it could set a precedent for similar protective measures in other declining manufacturing sectors. Conversely, if the levy proves ineffective, it may prompt calls for broader industry reform or further trade policy adjustments.
For businesses that rely on imported newsprint, from publishing houses to packaging firms, the new duty adds a cost variable that must be factored into budgeting and supply-chain decisions. Companies may explore alternative fibres, negotiate longer-term contracts to lock in prices, or consider local sourcing where feasible.
Overall, the 5% duty represents a calculated attempt by the government to preserve a strategic manufacturing asset and the jobs it supports, while acknowledging the structural challenges facing the newsprint market.
