Business

Iconic company in South Africa declares force majeure

Staff Writer

 ·15 Apr 2026

Iconic South African water tank supplier Jojo has declared force majeure, telling customers it has been forced to raise prices by 31% in response to the global energy crisis.

Force majeure is a common clause in contracts which essentially frees parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

It became a widely familiar concept during the COVID-19 pandemic, where global disruptions prevented companies from operating or fulfilling contracts or orders.

According to Jojo, revised pricing was issued to customers at the end of March.

It said that, while it is trying to honour “special deals” in place for April, it warned that volumes will be carefully managed.

Jojo started as a small operation in the 1970s, but gained national interest in 2012 amid a severe drought in the country.

It has since become a multi-million rand household name as South Africa’s water crisis deepened and more consumers moved toward independent water solutions.

South Africans have flocked to alternative water solutions amid a wider collapse of service delivery by local governments and municipalities.

Neglected infrastructure and unchecked water leaks have left areas of the country without water for weeks, months or even years.

Meanwhile, rising bills from municipalities seeking to raise revenue have also forced households to seek alternatives, such as boreholes and water tanks.

However, thanks to the war in the Middle East and the resultant disruption to petrochemical supply chains and surge in prices, consumers have received another kick in the teeth.

“Continued conflict in the Middle East has disrupted global petrochemical supply chains, reducing the availability and increasing the cost of key raw materials used in our manufacturing process,” Jojo said.

This includes polymer, paraffin, and diesel. “These materials remain closely linked to crude oil prices, ethylene supply, and international logistics,” it said.

Jojo said that the price of LLDPE, a polymer used in its products, shot up by 50% from 1 April 2026, placing pressure on the group’s production costs.

The spike in diesel prices from 1 April 2026 has also put pressure on its distribution costs.

“In light of these increases, we regret to inform you that JoJo is declaring ‘force majeure’ and will be implementing a price increase of 31% effective 1 April 2026.”

Jojo joins other wholesalers and suppliers of water tanks and plumbing-related raw materials, who have increased prices by 12% to 30% in response to higher costs associated with the war in the Middle East.

According to plumbing group PlumbGo, many of its suppliers have also reported increases in the raw materials used in the plumbing space, a direct result of shortages.

Some of the increases—the lowest of which is 12%—have taken immediate effect, with others planned to kick in later in the month.

Notably, the group warned that further price increases could be on the way, even before the introduction of additional fuel levies.

This echoes similar responses by other industries and services that consume a lot of fuel in their operations, which also added surcharges to be covered by customers.

This includes airlines, security companies, couriers and ride-sharing platforms.

It is expected that more of these surcharges will be added in the coming weeks, with South Africa facing another round of record price hikes for petrol and diesel.