The masterplan to revitalise the forestry, pulp and paper, sawn timber, board products and utility poles and treated products industries, received the stamp of approval in September last year. It is, writes Joy Crane, a huge business that has to be nurtured.
The forestry sector contributes almost 25% to South Africa’s agricultural GDP, and with its contribution of 4,5% to total manufacturing, forestry products rank among the top five contributors within manufacturing. In less than 10 years, export earnings have almost trebled, with the sector providing a positive trade balance of close to R10-billion.
The Masterplan for the Commercial Forestry Sector in South Africa 2020 – 2025, is a high-level action plan and is just one of several diverse sector masterplans initiated by the Department of Trade, Industry and Competition.
In this case, the Department of Environment, Forestry and Fisheries is the lead department with oversight over the masterplan and its implementation. Further down the value chain, the government and the South African Furniture Initiative are finalising the Furniture Industry Masterplan for implementation from March 2021.
The plans encourage sector growth, investment, job creation and competitiveness. From the government’s point of view, it is a re-imagined industrial strategy for South Africa. Thanks to its catalytic role and impact on the national and rural economies, the forestry value-chain is also prioritised under the Public-Private Growth Initiative that reports to President Cyril Ramaphosa.
Michael Peter, the executive director of Forestry South Africa, is a member of the initiative. He says that “through consistent attention to the process, we were able to ensure that the masterplan has at its core, the same commitments of both the public and private sectors.”
Industry participants involved include forestry players, Sawmilling South Africa, the South African Wood Preservers Association, and the Paper Manufacturing Association of South Africa.
The goal is “to increase investment, jobs and competitiveness, underpinned by greater inclusivity in the forestry sector”. The plan identifies seven key focus areas:
- Expanded forestry resource and maintenance/protection.
- Illegal timber and crime-related activities.
- Research, development, innovation and skills development.
- Key inhibitors.
- Institutional development.
The standout constraint is the lack of new afforestation and the need to remove the impediments to bringing more land under commercial forests. Investments and growth in the sector will not happen without afforestation.
The plan also comments that the pulp and paper industry with its two dominant, listed companies, Sappi and Mondi, far outweigh the other sub-sectors. “These vertically integrated companies impact the entire value chain. It will be their actions that will significantly affect the achievement of the goal and targets agreed for the masterplan.”
There are governance and institutional arrangements and capacity to implement and measure and evaluate the effectiveness of the plan. Successful delivery also requires sufficient budget commitments from the government and business in a time of severe Covid-19 financial constraints.