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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
It became a widely familiar concept during the COVID-19 pandemic, where global disruptions prevented companies from operating or fulfilling contracts or orders.<\/p>\n\n\n\n
According to Jojo, revised pricing was issued to customers at the end of March. <\/p>\n\n\n\n
It said that, while it is trying to honour “special deals” in place for April, it warned that volumes will be carefully managed.<\/p>\n\n\n\n
Jojo started as a small operation in the 1970s, but gained national interest in 2012 amid a severe drought in the country.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
South Africans have flocked to alternative water solutions amid a wider collapse of service delivery by local governments and municipalities. <\/p>\n\n\n\n
Neglected infrastructure and unchecked water leaks have left areas of the country without water for weeks, months or even years.<\/p>\n\n\n\n
Meanwhile, rising bills from municipalities seeking to raise revenue have also forced households to seek alternatives, such as boreholes and water tanks.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
“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.<\/p>\n\n\n\n
This includes polymer, paraffin, and diesel. “These materials remain closely linked to crude oil prices, ethylene supply, and international logistics,” it said.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The spike in diesel prices from 1 April 2026 has also put pressure on its distribution costs.<\/p>\n\n\n\n
“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.”<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Some of the increases\u2014the lowest of which is 12%\u2014have taken immediate effect, with others planned to kick in later in the month.<\/p>\n\n\n\n
Notably, the group warned that further price increases could be on the way, even before the introduction of additional fuel levies.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
This includes airlines, security companies, couriers and ride-sharing platforms. <\/p>\n\n\n\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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