Structural reforms are opening doors and South Africa’s forestry sector is leading the way

May 24, 2025

The 23rd Forestry South Africa AGM provided fascinating insights into how the public and private sectors are chipping away at the structural reforms and investments required to spark an exciting phase of growth and development in forestry and other key economic sectors.

Keynote speaker Rudi Dicks, who is head of projects in the Office of the President and leads Operation Vulindlela, has played a key role behind the scenes in driving these reforms. His presentation provided a welcome dose of optimism that was echoed by other speakers at the AGM.

Operation Vulindlela Phase 2

Operation Vulindlela is a joint initiative between the Presidency and the National Treasury aimed at accelerating the implementation of structural reforms and supporting economic recovery in South Africa.

Rudi, a former trade unionist who once participated in a demonstration at the mill gate, said that 91% of Operation Vulindlela Phase 1 reforms have been completed or are progressing well.

R500 billion in new investments has been unlocked through these reforms – R33 billion of which has come from the forestry sector.

Significant progress has been made in the energy space, where the lifting of the cap on private-sector energy generation opened the gates for private-sector participation. The pipeline of private investment in renewable energy projects will deliver an additional 22,500MW of electricity into the grid, said Rudi.

Cutting back on excessive red tape has resulted in a 51% reduction in the cost of data for a 1.5 GB bundle. Of particular interest to forestry stakeholders is the number of days it takes to obtain a water use license has been reduced from 300 days to 90 days.

The economic reforms programme spearheaded by Operation Vulindlela could boost South Africa's economic growth to 3.5% by 2029, according to independent modelling by the Bureau for Economic Research.

The focus areas for Operation Vulindlela Phase 2 include further reforms in the energy sector, improving efficiencies, and providing opportunities for private sector participation in the logistics sector (freight rail and ports). Additionally, the plan aims to reform the visa system to boost tourism and establish a secure and reliable water supply infrastructure.

In the years ahead, the Operation Vulindlela team will expand to new areas, including:

  • Creating dynamic and integrated cities to enable economic activity
  • Strengthening local government and improving service delivery
  • Developing public digital infrastructure to serve as a driver of inclusive growth.

"We need to sustain the momentum of the economic reforms to achieve more rapid and inclusive growth," concluded Rudi. He stated that the partnership between the government and the private sector is crucial to the success of the initiative.

Mondi’s Project Masilela

Mondi has launched Project Masilela. It involves the construction of a massive biomass-to-energy plant at its Richards Bay mill. The plant will utilise wood, sawdust, and forest residues, including above-ground stumps, and can produce 90MW of clean, green energy. It replaces three old coal-fired boilers and will reduce Mondi's reliance on the grid, enabling electricity to be fed back into the grid.

The project will significantly increase the 200,000 tons of fibre that Mondi currently sources from small-scale growers, who are becoming increasingly essential links in its supply chain.

"Bioenergy is not just a sideline project for Mondi; it is a strategic move," said guest speaker Sandile Ngcobo, Public Affairs and Transformation Director for Mondi SA. "The time has come to look at forests in a different way – not just in terms of timber and fibre."

"Government has opened the door. Mondi has taken the gap," commented Andrew Mason on Mondi's biomass-to-energy initiative.

EucXylo Open Air Labs

Prof David Drew presented an update on the EucXylo programme. EucXylo is the Hans Merensky Research Chair in Advanced Modelling of Eucalyptus Wood Formation at Stellenbosch University.

The programme includes intensive monitoring of trees using cutting-edge technology, as well as the exciting IMPACT Open Air Lab (OAL), which utilises AI to power big data analytics. The EucXylo team will be able to provide access to curated data from intensive monitoring of a large number of trees growing in outdoor super-sites.

The first 10ha OAL site has been established at Lourensford Wine Estate near Somerset West in the Western Cape. A second site is being established at the University of Pretoria.

Dave said collaboration with other research institutes, universities and forestry stakeholders will be a hallmark of the project.

Some of the exciting new technologies to be deployed include a low-cost tree response monitoring system, an AI-powered rhizotron to understand root dynamics, a sap-flow monitoring system, a digital 'e-nose' to detect early signs of tree stress, and the development of a digital forest twin to enhance forest management practices.

Forestry graduates

FSA Executive Director Michael Peter reported that R20 million in funding has been received from the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) to support FSA's unemployed forestry graduates programme.

It seeks to assist forestry graduates in finding jobs or starting their own businesses. This project, led by FSA's Norman Dlamini, has 190 forestry graduates on its books, with half of them having been assisted in finding jobs so far.

Water use licences

Outgoing FSA chair Buhle Msweli announced that total timber sales recorded by FSA members for the year were just below record levels despite the challenges of forest fires, frost damage, and snowstorms, among others.

He also highlighted the significance of the Constitutional Court victory regarding the use of water resources, which ended the long-standing dispute between FSA and the Department of Water and Sanitation, threatening the legality of 20% of the country's forestry resources. This judgement provides legal clarity to plantation owners regarding water use licenses. It allows them to switch between genera without having to reduce the planted area under trees.

Incoming FSA EXCO chair Duane Roothman of Sappi congratulated Buhle on his chairmanship of FSA over the past year. "Buhle has been exceptional, open-minded, courageous and astute." This is a result of the industry building for the future, he said.

FSA Office Bearers for 2025/26:

Large Growers Group

Duane Roothman (SAPPI) (FSA Chairperson) 
Themba Vilane (Mondi)
Sean Brown (Merensky)
Itumeleng Langeni (MTO)
Sibalo Dlamini (SAFCOL)
Dietmar Schroeder (TWK)
Pieter de Wet (PG Bison)
Gerald Stoltz (York Timbers)
Mark Armour (co-opted)

Medium Growers Group

Andrew Mason- KZN (FSA Vice Chairperson)
Murray Mason- KZN / Southern Cape
Heiner Hinze - Mpumalanga / Limpopo
Danny Knoesen - ordinary member

Small Growers Group

Buhle Msweli- KZN Provincial Chairperson
Rejoice Shozi - KZN Deputy Chairperson
Johannes Maponya - Limpopo Provincial Chairperson

Copyright: All photos by Samora Chapman, courtesy FSA

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