The importance of the Forestry industry in South Africa
Forest products contribute about R34.5 billion to the economy, making it a very important industrial sector – not just of our economy at large, but also of local economies as well as rural development and job creation.
The Department of Agriculture, Forestry and Fisheries (DAFF) is the custodian of South Africa's forest resources, which cover over 40 million ha of the country's land surface area. An amount of R1,2 billion from the department's budget has been allocated to forestry and natural resources management.
How the industry contributes to the economy
Forest products contribute about R34.5 billion to the economy, or about 0,6% of the GDP. In 2018, export value increased by 13%, from R26 billion to R29 billion. The forest sector (forestry and forest products) contributes about 1% to the GDP. In terms of regional GDP, forestry in KwaZulu-Natal contributes 4,4%; in Mpumalanga 3,7%; in the Eastern Cape 0,6%; and in Limpopo about 0,6%.
In 2015, pulp products were the most important exports (R5 890 billion or 43% of the total), followed by paper (R4 707 billion or 34%), solid wood products (R2 680 billion or 19%) and other products (R555 million or 4%). Woodchip exports, mainly to Japan, accounted for 52% (R1 407 billion) of total solid-wood product exports.
How do the above numbers benefit the local people?
The forest sector employs around 165 900 workers and provides about 62 700 direct jobs and 30 000 indirect jobs. Forestry provides livelihood support to 652 000 people of the country's rural population. The pulp and paper industry provides about 13 200 direct and 11 000 indirect employment opportunities.
Some 20 000 workers are employed in sawmilling, while 6 000 are employed in the timber board industries and 2 200 in the mining timber industries, with a further 11 000 workers employed in miscellaneous jobs in forestry.
The DAFF contributes to eradicating poverty through the Forestry Livelihoods Programme. Firewood, construction poles, medicinal plants and edible fruits are all critical to the livelihoods of the rural poor. The department develops human resources through the forestry-sector skills development initiatives, and promotes employment through commercial forestry activities such as forestation and downstream activities. The integration of forestry programmes into provincial and municipal development plans will also support the Plant a Million Trees Campaign.
How will the sector add to economic growth?
In terms of the economic growth and development that forestry offers, the department is working closely with other government structures in the Eastern Cape and KwaZulu-Natal, to fast-track the afforestation licensing process. In the Eastern Cape, funds have been secured to assist communities with the processes of environmental impact assessments – a prerequisite preceding any afforestation activity.
Afforestation is taking place in rural areas where there are few other viable opportunities for job creation and economic activity. The development of these additional raw material resources will attract greater processing capacity in the form of sawmills, board mills, chipping plants and treatment plants, which will lead to broad economic growth. An additional R500 million a year could be generated from such plantations.
Forestry land vs agricultural land
In an effort to address the issue of competing land use between agriculture and forestry, the department developed a strategy on agro-forestry. Agro-forestry is a practice that integrates forestry and agriculture on the same piece of land, with socio-economic and environmental benefits. This strategy was expected to ensure household food security and increase the country’s fibre resources.
Protecting our forestry industry
In terms of veld fires, the department was amending the National Veld and Forest Fire Act of 1998. These policy measures and interventions are intended to enhance the resilience of agricultural and food production systems; contribute to the reduction of the greenhouse gas emissions; and intensify agricultural and forestry production while safeguarding food security and creating job opportunities. The programme prioritises work on fire-fighting programmes such as the Working on Fire Programme and encourages the establishment of fire-protection associations (FPAs).