Forestry has an important role to play in the SA economy
Ronnie Kasrils
Every year we celebrate Arbour Week during the first week of September. This week-long focus on trees and forests is much more than an opportunity to celebrate the arrival of spring. It is a time to reflect on how forestry can contribute to South Africa’s development process.
Forestry is one of the few ways to make productive use of land that is not suitable for farming. It is also one of the few industries that allows us to take manufacturing into the rural areas. This in turn provides skilled jobs outside of the urban centres and also contributes enormously to infrastructure and social development.
The forest and forestry product sector employs more than 500000 people and exports products of a greater value than the fruit and sugar industries combined. Forestry then, plays an important role in rural development and the government wishes to see the industry make an even bigger contribution.
There have been those who have expressed concern about the impact of the industry on water resources and on the environment. These are certainly legitimate concerns. We have, however, put a regulatory framework in place to ensure that trees are planted only in appropriate areas. No plantation can be initiated without a permit from the water officials of my department.
Before a permit can be issued an assessment must be made of the impact of the project on water resources as well as on biodiversity and other environmental aspects. There are certain catchment areas where permit applications are now closed since the water resource cannot support further plantings.
However, in those catchments where the water is available, we encourage forestry as a form of land use since it brings economic and social returns that compare very favourably with other forms of development. I must also make it clear that not all non-indigenous trees are problem trees! Non-indigenous (or alien) trees only pose a problem where they invade natural areas and displace natural vegetation. Where they are part of a planned and controlled development, they are a welcome part of the landscape and this is recognised by the Conservation of Agricultural Resources Act.
There have certainly been instances in the past where trees have been planted in inappropriate areas and some of this will be reversed in the coming years. In the former Lebowa area of the Mpumalanga lowveld there are a number of plantations managed by my department in areas that are environmentally sensitive.
The Cabinet has now taken a decision that the 8000ha of plantation in this area will be removed over the next five to 10 years and the area incorporated into conservation management. My department is working to this end along with the Department of Environmental Affairs and Tourism and the Mpumalanga Parks Board.
In addition, the Cabinet has agreed that about 50000ha of plantation in the Western and Southern Cape will be converted to other land uses over a 20-year period. This opens up enormous opportunities for land reform and for the consolidation of conservation areas.
Other important changes taking place in the industry are in the arena of ownership. Sappi and Mondi, South Africa’s largest forestry companies have brought in foreign partners. Sappi has sold its chipboard manufacturing division to Sonae of Portugal.
Mondi has entered a joint venture with a United States company to form Global Forest Products (GFP), which will manage the saw-milling operations and the forests that serve these mills. GFP is exploring a large investment in saw-milling in Mpumalanga and the government would certainly welcome such an investment. I believe that the investments by international companies are an indication of confidence in our forest sector and in our regulatory framework.
The other major development affecting ownership is the restructuring of the state’s forest assets. The Eastern Cape North sale, which went through on August 1, saw the transfer of 60000ha of forest and a large sawmill to Singisi Forest Products.
This is a joint venture between a large community trust and Hans Merensky Holdings, with additional shareholding by employees. This was a great milestone in the history of South African forestry because it is the first time that black South Africans have become shareholders in a forestry company.
In this deal the Singalanga Trust, representing 163 communities, took ownership of 10% of the shares and will be represented on the board. Nine percent of the shares have been set aside for the employees through an employee-ownership scheme.
The sale of the KwaZulu-Natal package to the Siyaqhubeka Consortium is expected to be finalised by October 1 and will also see equity participation by communities and workers. One of our greatest challenges is to ensure that black South Africans, and rural people in particular, are brought into the ownership of forests and forestry companies.
While this has certainly been a feature of the state’s restructuring programme, it has not so far been emulated by the private companies.
Private companies have provided considerable support to small timber growers and this is highly commendable. But it does not substitute for bringing in black South Africans, and communities in particular, as equity holders. I challenge the companies to set up community trusts, which will allow the people living around the forests to have a stake in the success of the companies.
When we plant trees this Arbour Week we will not only be thinking of the importance of our natural forests, or of the way in which trees transform our urban areas. We will also be thinking of the money that grows on trees. Let us make sure that this important industry grows bigger and stronger and that all South Africans are empowered to share its harvest.
Ronnie Kasrils is Minister of Water Affairs and Forestry
Forestry sector input to the SA economy
Jobs in forestry: 74000
Jobs in primary wood processing: 60000
Jobs in secondary wood processing: 384000
Contribution of forestry to total agricultural output: 8,8%
Contribution of forest products to total manufacturing output: 9,2%
Contribution of forest and forest products to total exports: 4%
Figures as at end 1999