TO THE PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES

23 JUNE 2015

BRIEFING BY THE DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES

PRESENTATION LAYOUT

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CONTENT ITEM CONTENT ITEM1. Forestry Map of South Africa 12. The policy and legislative framework

2. Acronyms used 13. Main challenges and constraints

3. The Context: Commercial and Indigenous Forests

14. Transformation imperatives and successes

4. Defining Key terms used 15. Support to community plantations

5. Purpose of the presentation 16. Afforestation

6. Background on Forestry 17. Post settlement support

7. Status of DAFF commercial plantations 18. Water licensing and water rights

8. Indigenous forests and woodlands 19. Resolution of land claims over SFL

9. DAFF role and responsibilities 20. Forestry Amendment and NRM Bills

10. Forestry livelihood services 21. Strategic Interventions

11. Problem Statement 22. Closing remarks

FORESTRY MAP OF SOUTH AFRICA

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ACRONYMS

• CARA Conservation of Agricultural Resources Act 1983 (Act 43 of 1983)• CAT A Category A Plantations• CAT B Category B Plantations • CAT C Category C Plantations or Woodlots• EIA Environmental Impact Assessment • FED Forestry Enterprise Development• GDP Gross Domestic Product• HA Hectares • NFA National Forests Act 1998 (Act 84 of 1998)• NVFFA National Veld and Forest Fires Act 1998 (Act 101 of 1998)• NWA National Water Act 1993 (Act 36 of 1998)• NEMA Environmental Management Act 1998 (Act 107 of 1998)• PIC Public Investment Corporation • RLCC Regional Land Claims Commission• SAFCOL South African Forestry Company• TUP Temporary Unplanted Area• SIP 11 Strategic Infrastructure Project

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THE CONTEXT: COMMERCIAL AND NATURAL FORESTS

•

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DEFINING KEY TERMS (CONTINUED)

• Afforestation - the planting of new forests on land which historically has not been covered by forests.

• Natural forests - multi-layered vegetation units dominated by trees, whose combined strata have overlapping crowns (75% and more), and where grasses in the herbaceous stratum are generally rare.

• Plantation - a group of trees cultivated for the exploitation of wood, bark, leaves or essential oils in the trees.

• Thicket - is a closed shrub land to low dense woodland dominated by evergreen, sclerophyllous or succulent trees, shrubs and vines, many of which have stem spines. It is often almost impenetrable, is generally not divided into strata, and has little herbaceous cover.

• Savanna - a grassland ecosystem characterised by dispersed indigenous trees (mixed communities of typical savanna trees, shrubs, grasses and herbs). 

• TUP - Plantation areas that  were clear-felled and have not been replanted yet.

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PURPOSE

To brief the Portfolio Committee on Agriculture, Forestry and Fisheries on:

• Forestry plantations under the Department of Agriculture, Forestry and Fisheries

(DAFF) management;

• Assistance provided to community plantations; and

• Coordinated activities between the Department and the Departments of Water

Affairs and Sanitation (DWS), the Department of Rural Development and Land

Reform (DRDLR) to address challenges associated with access to water rights and

unresolved land claims on forest land.

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BACKGROUND

• Forestry comprises commercial plantations, natural/indigenous forests, woodlands

and trees outside forests.

• Forestry is a rural based activity with potential to contribute to development of rural

economies.

• The forestry sector is a major contributor to the South African economy through its

well developed and diversified forest products industry.

• According to Forestry South Africa, currently Forestry contributes 25.5% to

agriculture Gross Domestic Product (GDP) ( 2013).

• Forestry supports manufacturing subsectors such as sawmilling, paper and pulp

production, mining and construction.

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BACKGROUND (CONTINUED)

• DAFF manages 60 200 hectares ha of planted plantations.

• DAFF also enforces the relevant Acts and checks compliance therewith. This is

done through the Regional offices.

• The Department (DAFF) is involved with Forestry Enterprise Development (FED)

through supplying technical help and marketing assistance to small growers.

• Since 2014, DAFF is also investigating the role of Agro-Forestry in local household

food security.

• The DAFF is working towards certification of three plantations by 2018 with the first

one in 2016. The plantations are Hlokozi in KwaZulu-Natal, Katberg in the Eastern

Cape and Voorspoed in Limpopo.

 

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BACKGROUND (CONTINUED)

Sub-Sector Number of Employees Total Employment

Direct (Silviculture activities & processing)

Indirect (related sectors, e.g. ecotourism, training, etc)

Forestry 62,100 30,000 92,100

Pulp and Paper 13,200 10,800 24,000

Sawmilling 20,000 10,000 30,000

Timber Board 6,000 n/a 6,000

Mining Timber 2,200 n/a 2,200

Other (charcoal, fire control, etc)

11,000 n/a 11,000

Total: 114,500 50,800 165,300

Direct Jobs in Forestry =62,100

Indirect Jobs in Forestry (165 300 less 62 100

=103,200

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• In 2012 the sector created 165,300 jobs across the value chain.

BACKGROUND (CONTINUED)

• Forest coverage in South Africa is quiet minimal compared to other countries, but the output is high when compared with other land use types.

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BACKGROUND (CONTINUED)• The forest products industry ranks among the top exporting industries in the

country – maintaining a positive trade balance.

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BACKGROUND (CONTINUED)

• Of the total land area 122.3 million ha; only 1,268,433 ha or 1% is used for forestry plantations.

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• The area of land under plantation has declined from 1.5 million ha in 1997/98

to 1.2 million ha in 2012/13.

BACKGROUND (CONTINUED)

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48.1%

20.1%11.3%

6.9%

3.5%

10.0%

Corporate Commercial Farmers Corporate (Ex Safcol)

SAFCOL State/ Municipalities Small Growers

STATUS OF DAFF COMMERCIAL PLANTATIONS

REGION NUMBER OF PLANTATIONS

AREA B + C TUP RATE STAFF COMPLEMENT

VALUE (million)

EASTERN CAPE 64 Category C16 Category B = 80

27646 9231 963 R300,2

KWAZULU-NATAL 2 Category C8 Category B = 10

26286 10964 512 R220,9

MPUMALANGA 1 Category B = 1(Injaka)

1905 1905 Included with Limpopo

R0

LIMPOPO 9 Category C3 Category B = 12

4168 156 597 R42,9

OTHER REGIONS 1 Category C (Mooifontein in NW)

202 0 108 R1,07

TOTAL Category C= 76Category B = 28

60 209 ha 22 258 ha (37%)

2180 R565 million

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INDIGENOUS FORESTS AND WOODLANDS

• Indigenous forests cover about 492 700 ha.

• They are classified into seven (7) groups namely: Southern Afrotemperate Group,

Northern Afrotemperate Group, Northern Mistbelt Group, Southern Mistbelt Group,

Scarp Group, Northern Coastal Group and Southern Coastal Group.

• Provincial distribution is as follows: Eastern Cape- 46%, KwaZulu-Natal- 29%,

Western Cape- 13%, Mpumalanga - 7% and Limpopo - 5%.

• DAFF manages about 189696 ha of indigenous forests across the country.

• Woodlands cover between 29 and 39 mil hectares.

• The main DAFF role is conservation planning and compliance promotion.

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INDIGENOUS FORESTS AND WOODLANDS (COMMUNITIES AND USES OF FORESTS)

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DAFF ROLES AND RESPONSIBILITIES

• Develop national norms and standards for indigenous forest management.

• Management of State-owned indigenous forests.

• Rehabilitation of degraded forests in line with Outcome 10 on protection of

environmental assets and natural resources.

• Conservation planning for indigenous forests and woodlands.

• Ensure compliance with National Biodiversity Management Frameworks.

• Forest assessment, monitoring and reporting (national and international).

• Integrated environmental management.

• Enforcement of the National Forests Act, 1998 and National Veld and Forest Fire

Act, 101 of 1998.

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FORESTRY LIVELIHOODS FROM INDIGENOUS FORESTS AND WOODLANDS

• About 80% of rural households use fuelwood as their primary source of energy.

• About 28 million people use traditional plant medicine.

• Over 65% of the plant material comes from forest species.

• Approximately 1/3 of medicinal plant material is tree bark.

• Rural poor are more dependent on forest resources for survival (State of the

Forest Report 2009).

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PROBLEM STATEMENT

• The forestry sector is currently facing several challenges impeding government

objectives, specifically economic growth, employment creation and rural

development. These challenges include:

Low afforestation rate due to the cumbersome licensing process.

Under investment in long-rotation timber such as sawlogs.

Dominance by a few big vertically integrated forestry operations.

Risks associated with climate change and variability manifesting through fires,

pests and diseases.

The slow pace of transformation since the gazetting of the Transformation

Charter.

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PROBLEM STATEMENT (CONTINUED)

Climate change that results in varying temperatures and unreliable rainfall.

Heavy dependence of rural communities who live adjacent to forests is

putting pressure on indigenous forests and woodlands.

Unsustainable harvesting methods which cause degradation and

desertification through loss of area afforested.

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POLICY AND LEGISLATIVE FRAMEWORK

• The White Paper on Sustainable Forest Development (1996) states that

government should withdraw from direct management of state plantations.

• It also states that the state should re-position itself as a forestry sector leader and

regulator.

• The National Forests Act of 1998 provided for certain rights to communities and

individuals. These rights of include: access and use, subject to the provisions of

the Act.

• Through this Act, communities or individuals could enjoy rights through lease

agreements, licences, servitudes, community forestry agreements and / or other

agreements.

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POLICY AND LEGISLATIVE FRAMEWORK (CONTINUED)

• The Forest sector Transformation Charter was gazetted in 2009 with the objective

of growing the sector while ensuring transformation.

• While the White Paper highlights the role of the state as a regulator, the National

Development Plan (NDP) provides space for being an enabler for economic

growth, rural development and employment creation.

• Forestry interventions such as afforestation and rehabilitation of plantations feature

in the agricultural policy action plan and seek to address economic development

and job creation.

• Rehabilitation work in plantations such as maintenance of roads and construction

of fire breaks, contribute to Strategic Infrastructure Project (SIP 11) on Agricultural

Logistics and Infrastructure.

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POLICY AND LEGISLATIVE FRAMEWORK (CONTINUED)

• These initiative contribute to the Medium -Term Strategic Framework through

Outcome 4 on creating decent employment through inclusive economic growth.

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MAIN CHALLENGES AND CONSTRAINTS

• Limited opportunity for expansion of the forestry estate due to the cumbersome

licensing process and the withdrawal of strategic partners support by forestry

private companies due to economic downturn resulting in delays in planting.

• Challenges with the recommissioning process in Mpumalanga and Western

Cape.

• The negative impact of climate change, forest fires, pests and disease.

• Under investment in the forestry sector, especially the exclusion of forestry in

the funding mechanisms within the department.

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MAIN CHALLENGES AND CONSTRAINTS (CONTINUED)

• Challenges related to the management of State forests can be summarised as

follows:

Ageing and fragile workforce.

Deteriorating working and living conditions.

Budget limitations for operations (including Supply Chain Management

procedures).

Ageing infrastructure.

Illegal clearing of trees/ forests.

Afforestation licenses still take a long time before they are issued.

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MAIN CHALLENGES AND CONSTRAINTS (CONTINUED)

There is no standards set in terms of time that it will take to process a licence.

The Departmental funding mechanisms do not provide for forestry. MAFISA

funding framework reviewed to include forestry.

CHALLENGES REGARDING THE RESOLUTION OF LAND CLAIMS

• The process of finalising land claims takes long and this has unintended consequences

of:

communities not receiving the rental money they are entitled to.

communities ending up being in conflict with the company that is operating state

forest land – thus increase in number of fires in the plantations thereby a risk to the

investment.

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TRANSFORMATION IMPERATIVES AND SUCCESSES

• To address government obligations under the Forest Sector Transformation Charter the

government is in the process of transferring the Mbazwana State plantations to the

Mabaso, Mbila and Manzengwenya communities. The transfer is at an advanced stage

with the following milestones achieved:

The trust has been established (Tembe, Mbila and Mabaso).

Funding from the jobs fund for refurbishment and operations totalling

R100 million.

• The Department assisted with the application for funding from the Jobs Fund. The

Department is contributing towards the ‘own contribution’ required from applicants by

the Jobs Fund.

• The matter is being considered towards finalisation.

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TRANSFORMATION IMPERATIVES AND SUCCESSES (CONTINUED)

• The model could be replicated elsewhere for the transfer of State plantations.

• The leasing of the Category A plantations has resulted in the accumulation of lease

rental money that the Department has kept in a public investment account.

• DAFF has established the Kabelo Land and Restitution Trust that is responsible for the

collection, investment and disbursement of rental money to the rightful land reform

beneficiaries.

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TRANSFORMATION IMPERATIVES AND SUCCESSES (CONTINUED)

• The first disbursement of R86.4 million was done to eight communities in the EC

during the year 2011. Those are:

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No. Name of community Amount Paid

1. Mkhwanazi (KZN) R 24,574,296.89 2. Ngunjini (KZN) R 8,406,339.34 3. ST. Paul (KZN) R 9,592,453.89 4. Qolombana (EC) R 1,925,975.00 5. Gqogqora (EC) R 10,122,245.00 6. Western Shores (KZN) R 28,185,818.17 7. Ndzimankulu (KZN) R 3, 645,159.85 GRAND TOTAL R 86,452,288.14

SUPPORT TO COMMUNITY PLANTATIONS

• The Department developed the afforestation strategy in order to support new entrants

and participants to the market.

• The strategy is also aimed at addressing the expansion of forestry plantations to

address the country ‘s timber demands.

• The support is focused on two areas:

Growers needing support to establish plantations (Afforestation).

Existing Growers( Post settlement Support).

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AFFORESTATION

• Afforestation has potential to create jobs and stimulate local economic development,

especially in rural areas. This can be achieved through primary and secondary

production industries.

• However, afforestation is regulated under the National Water Act (NWA) 1998,

Conservation of Agricultural Resources Act (CARA) 1983 and the National

Environmental Management Act (NEMA) 1998. The requirements of these regulations

must be met before afforestation can take place.

• License applications by individuals, communities and industry have been taking long

time leading to the frustrations by applicants, who in some instances withdraw their

applications leading to low afforestation rate.

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AFFORESTATION (CONTINUED)

The other issues faced by communities and individuals include affordability to pay

for the costly Environmental Impact Assessment (EIA). In order to address the

challenges faced by communities and industry the Department made an effort to

speed up the process by conducting studies to assess the afforestation potential in

the whole country excluding the Western Cape where the potential would have

been insignificant.

Results for afforestation studies.

Mpumalanga -10 000 ha (provided water trading can be done)

• Limpopo - 6 000 ha ( provided water trading can be done)

• KwaZulu-Natal - 39 000 ha

• Eastern Cape- 100 000 ha

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AFFORESTATION (CONTINUED)

• The Department has set up the National Afforestation Technical Task Team to deal

with bottlenecks affecting community afforestation and similar forums have been

set up in the Eastern Cape and KwaZulu-Natal to deal with same and other forestry

development matter.

• After the Afforestation studies were concluded, the Department funded the

Environmental Impact Assessments for the Eastern Cape province for an area of

13000 ha. This resulted in Records of Decision issued for an area of 10500 ha. The

amount spent was about R4.2 million.

 

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AFFORESTATION (CONTINUED)

• In the current financial year the Department will fund and conduct Environmental

Impact Assessments in KwaZulu-Natal for an area of 5000 ha

• Once the Records of Decision are issued, this will pave the way for afforestation

licenses and subsequent plantings.

 

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POST SETTLEMENT SUPPORT

• The Branch Forestry and Natural Resources Management is developing a strategy for Forestry Post Settlement Support.

• The strategy will focus on (extension and advisory services, funding mechanisms, training and incubation programmes).

• In addition the Department is finalising the affforestation protocols document. This

is a document aimed at ensuring that there is fairplay between big established

industries and small growers. A draft document is in place.

 

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POST SETTLEMENT SUPPORT (CONTINUED)

• A guideline/toolkit has been developed to support small growers and other

producers. Forestry advisory services in the regions have been trained on the use

of this guideline and it is being rolled-out to the beneficiaries.

• The guideline provides for best practice operations and how to obtain the

necessary documentation and approvals before starting with afforestation.

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WATER LICENSING AND WATER RIGHTS

• The Department has established an Intergovernmental Committee to deal with

water licensing issues. Currently the committee is comprised of DAFF, Department

of Water and Sanitation, Department of Trade and Industry, the Forestry Industry

and Industrial Development Corporation as a Development Finance Institution.

• When a need arise other crucial Departments like Rural Development and Land

Reform are invited to the Committee to deal with Community Resolutions and other

land related matters.

• The National Water Act 1998 provides for water trading between land owners. This

provision makes it possible for land owners to trade water and the Department of

Water and Sanitation administers the process.

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WATER LICENSING AND WATER RIGHTS (CONTINUED)

• Water trading is being at the National Afforestation Technical Task Team meeting

and water rights issues will be discussed in future quarterly meetings of DAFF/

Department of Rural Development and Land Reform and Department of Public

Enterprises.

• Discussions at the National Afforestation Technical Task Team and the future

engagements with Departments of Rural Development and Land Reform and

Public Enterprises will ensure that matters of water rights.

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RESOLUTION OF LAND CLAIMS ON STATE FORESTS LAND

• In 2001, Cabinet took a decision to restructure State owned plantations.

• State owned plantations grouped into five (5) packages.

• Business on the four (4) packages sold through a tender process and State land was leased for a period of seventy (70) years.

• The fifth package is being managed by the South African Forestry Company (SAFCOL).

• State entered into a Notarial Deed of Lease Agreements with the following companies:

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RESOLUTION OF LAND CLAIMS ON STATE FORESTS LAND (CONTINUED)

Company Name Province Date of Lease Extent (ha)SiyaQhubeka Forestry (Pty) Ltd

KwaZulu-Natal 2001 21.956

Singisi Forest Products (Pty) Ltd

Southern KZN and Northern Eastern Cape

2001 76.563

Amatola Forestry (Pty) Ltd

Eastern Cape 2005 25.313

MTO Forestry (Pty) Ltd

Western Cape 2005 106.432

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RESOLUTION OF LAND CLAIMS ON STATE FOREST LAND (CONTINUED)

• The Lease Agreements are administered by DAFF on behalf of the State with the

following undertakings:

• The companies pay an annual rental for the use of the land.

• DAFF has established the Kabelo Land and Restitution Trust that is responsible

for the collection, investment and disbursement of rental money to the rightful

land reform beneficiaries (as stated above).

• The rental money is currently invested with the Public Investment Corporation

(PIC) with a balance of R304 168 493.00 (30 March 2015).

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RESOLUTION OF LAND CLAIMS ON STATE FOREST LAND (CONTINUED)

Settlement framework for land claims on SAFCOL ( category A plantations)

• The manner in which claims on the leased land are to be settled is captured in the

lease agreements(clause 18 & 19).

• The terms of settlement are as follows:

When a claim is settled against the leased land, government shall procure that

the provision of the lease agreements continue to apply on the claimed land by

entering into an appropriate head lease agreement with the land claimants.

Government will pay the lease rentals collected from the private companies to

the land claimants.

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RESOLUTION OF LAND CLAIMS ON STATE FOREST LAND (CONTINUED)

The resolution of land claims is the responsibility of the Regional Land claims

Commissioner(RLCC).

DAFF is having quarterly engagements with the RLCC to track down progress on

forestry land claims and to assist with information where necessary.

Settlement framework for claims on DAFF category B & C plantations

When a claim is settled on DAFF plantations, government shall transfer ownership

of the plantation assets to the claimants.

Government shall also assist the land claimants with the preparation of business

plans for plantation management.

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STATUS OF FORESTRY CLAIMS ON LEASED STATE FORESTS

Company Claims lodged Claims settled Outstanding Claims Status

Amathole 19 All not settled Researched , and valued

Singisi 10 6 approved(section 42 D issued)

Researched , and valued

MTO 1 Not settled Researched

SiyaQhubeka 4 3 approved(section 42 D issued)

1 being researched

Komatiland 24 3 approved( section 42 D issued)

Researched and valued

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STATUS OF FORESTRY CLAIMS ON DAFF MANAGED PLANTATIONS (CATEGORY B & C)

CATEGORY Claims Lodged Claims settled Outstanding claims status

B 21 3 approved (section 42 D issued) transfer process being undertaken.

Researched and valued

C 6 Not settled Researched and valued

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FORESTRY AMENDMENT BILLS

• To enhance forestry and natural resources management, the department has

gazetted the Preservation and Development of Agricultural Land Framework and

the Forestry Laws Amendment Bills.

The purpose of the National Forests Act, 1998 is to promote sustainable

management and development of forests for the benefit of all.

The National Veld and Forest Fires Act, 1998 aims to prevent and combat veld,

forest and mountain fires throughout the republic; as well as provide for a variety

of institutions, methods and practices for achieving the purpose.

The purpose of PDALF is the efficient and effective preservation and

development of agricultural Land to ensure sustainable long term food security

and job creation.

• Public consultations have already commenced on all the above.

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STRATEGIC INTERVENTIONS

• A study was conducted to investigate forestry workers conditions and

recommendations will be implemented.

• The inter-governmental forum has been established to deal with blockages to the

afforestation licensing conditions.

• More effort still needs to be put in this area of work to ensure the expansion of

forestry plantations , especially in communal areas.

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STRATEGIC INTERVENTIONS (CONTINUED)

• The Department has facilitated afforestation licences by paying for the costly

Environmental Impact Assessments.

• The implementation of sector adaptation and mitigation plans as well as the

forestry protection strategy.

• Refurbishment of forestry plantations and worker villages.

• The Department will engage in the following initiatives:

meeting with Departments of Health, Human Settlement, Education, Safety and

Security, Labour and Water and Sanitation, to resolve Forestry workers

conditions, health, housing and sanitation issues.

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STRATEGIC INTERVENTIONS (CONTINUED)

meeting with the Department of Water and Sanitation regarding measures to

avoid the lengthy period that it takes to issue afforestation licenses and the

exemption of small growers from paying water tariffs in the years of

establishment.

an intervention in collaboration with funding institutions to address

underinvestment in the forestry sector and the establishment of the forestry grant

to support small growers. More funding will need to be made available to ensure

refurbishment of state plantations and support research and development.

• A study was commissioned through the Industrial Development Corporation to

investigate the best option to roll-out re-commissioning in the Western Cape.

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STRATEGIC INTERVENTIONS (CONTINUED)

• The study recommended options which were presented to the Minister and the

preferred option that was approved by the Minister was that the re-commissioning

be put on open tender and that the area available be divided into five packages.

• It is also approved that the five packages should benefit communities.

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CONCLUDING REMARKS

• The Department through the National Afforestation Technical Task Team has

requested the authorising Department i.e. Department of Water and Sanitation to

set standards for the time required to process a license.

• Through the Task Team of the Forest Sector Transformation Charter , the

Department is exploring options to establish funding mechanisms for small growers

and other small producers in the forestry sector.

• The Department will continue to engage with the Department of Rural Development

and Land Reform , and the Land Claims Commission to streamline the finalisation

of outstanding land claims.

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CONCLUDING REMARKS (CONTINUED)

• Forestry can make a contribution towards employment creation, growth and rural

development.

• However, the following need urgent attention:

Acceleration of transformation of the sector.

Speedy processing of afforestation licenses.

Refurbishment of category B and C plantations.

Workers conditions in plantations to be addressed.

Ensure that adequate investment and funding for the forestry sector, with

particular reference to new entrants to the market.

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CONCLUDING REMARKS (CONTINUED)

“Forestry provides employment and livelihoods for a large proportion of the population – especially in developing countries – and often act as

an economic safety net in times of need” FAO, 2010

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THE FUTURE WE WANT!

Even children have an interest in Forestry

Thank You!