COVID-19: How the pandemic had a profound impact on SA’s packaging industry

The COVID-19 pandemic has had a profound impact on the packaging industry in South Africa, with manufacturers facing significant challenges in maintaining employee health and safety, as well as managing disruptions to the supply chain. Raymond Dube, Managing Director at Nampak Liquid Carton, shared insights into how his company navigated through the difficult times and the changes they implemented to adapt to the new normal. Dube highlighted the measures they put in place to ensure the safety of their employees, such as sanitizing surfaces, temperature checks, and enforcing mask-wearing and social distancing protocols in their facilities. However, the alcohol ban in South Africa led to a shutdown of their sogan beer cutting facility, resulting in a significant revenue loss for the business. Despite this, their food packaging division continued to operate as an essential service. The revenue loss during the alcohol ban period impacted the company's finances, with a 40% decline in revenue by the end of September 2020. While the reduced capacity due to the ban did not result in layoffs, employees were placed on leave until production resumed. Dube emphasized the importance of supporting their workforce through challenging times and revealed their plans to reach full production capacity by March 2021. As the industry adapts to the changing landscape, the rise of e-commerce has brought about new challenges for packaging manufacturers. The increased focus on hygiene and health safety has necessitated stringent measures in packaging production. Dube highlighted the need for robust packaging that can withstand transportation and consumer handling, as well as the shift towards online shopping leading to a demand for heightened packaging standards. Consumers are now more cautious, often sanitizing products before bringing them into their homes, necessitating further precautions in packaging design. Looking ahead, the future of the packaging industry is expected to undergo significant transformations in response to the new pandemic-driven norms. The Africa Continental Free Trade Area presents a promising opportunity for manufacturers to explore new markets and reduce tariffs in intra-African trade. While Nampak Liquid Carton has existing export customers in countries like Malawi and Burkina Faso, they have yet to fully leverage the potential of the free trade agreement. However, Dube expressed optimism about the future prospects of expanding their export operations under the Africa Continental Free Trade Area, signaling a potential avenue for growth for the company.