Sihleza Community ready to plant trees

Forestry is catching on in the Umzimkulu district of southern KwaZulu-Natal, with another community forestry project about to kick off.

Peter Nixon of Rural Forest Management shows stakeholders where the Sihleza community will start planting later this year. The neighbouring Zintwala plantation is visible in the background.

The Sihleza community is poised to establish a 345ha plantation on the hills around their villages. After years of preparatory work, including undertaking an EIA, obtaining a water use permit from the Department of Water Affairs, securing strategic partners and mobilising funding for the project, the excited community is ready to start planting in November or December this year.

SA Forestry magazine attended the first Sihleza Project Steering Committee meeting recently. It was held in a tiny forestry office at the Zintwala community forestry project, which is situated right next door to the Sihleza project. Most of the key stakeholders and partners were present, including members of the Sihleza Development Company, Sappi Forests, Rural Forest Management (RFM) and Rural Forestry Development, the IDC, Umzimkhulu Municipality and the provincial Department of Economic Development and Tourism.

Members of the Sihleza community approached RFM in 2003 to assist them in developing their own forestry business. In 2006, Sihleza obtained a planting permit and permission to cultivate the land. However, due to lack of funding, the RFM team of Peter Nixon and Themba Radebe, was unable to take this process forward until some years later when finance was obtained from the IDC to assist with the facilitation phase of the project.

In 2012, RFM applied to the DEDT Gijima Fund, for a R3,2m grant for Sihleza with the IDC and Sappi as loan funding partners, Sappi as an off-take partner, and RFM as the Business Development Consultant. In February 2013, Sihleza’s application was approved, giving the community the green light to go ahead with the project.

Plans are to establish 345ha of eucalyptus on the slopes above the community villages.

The model for the project is similar to that used in both the Umgano (Mabandla community) and Zintwala projects, and involves the establishment of a community trust as custodians of the project and a (Pty) Ltd company to run the forestry operation. In the case of Sihleza, the Community Trust has a majority shareholding in the company, while Sappi and IDC, who have provided loans to the community for the purposes of establishing the plantation, also have shares in the business. These shares provide security for the loans, and the shares will be sold back to the Sihleza Community Trust once the loans have been repaid.

Peter Nixon and Themba Radebe of RFM will provide technical and management support to the Sihleza forestry project. James Ballantyne of RFD provides development support to the community.

A key component of the project throughout has been the support that has come from the community’s traditional leadership, without which such a project is not possible.

The Sihleza Forestry Company will employ community members to do all the forestry work including establishment, maintenance, fire prevention and eventually harvesting. According to Peter Nixon they will be planting eucalyptus, including E. grandis, E. dunnii and G x N. The majority of timber harvested will be sold as pulp to Sappi, and the balance will be for other markets, including transmission poles.

Once harvesting begins, a timber transport company will be contracted to haul the timber from plantation to market. However, Peter is busy negotiating with Transnet Freight Rail in an effort to revive the freight rail service from Donnybrook, which would result in huge savings for the community forestry projects in the district.

The close proximity of the Zintwala forestry project has been an inspiration to the Sihleza community, and some of the community members have gained forestry experience through their involvement in that project.

The Zintwala community operates a 320ha eucalyptus and wattle plantation, which is now in rotation. It was established soon after the Mabandla plantation in 1998, with RFM providing technical and management support.

Like the Mabandla Forestry Project, there are many other exciting projects which have sprung up around the core forestry business, such as a honey project and now, a Land Care project being supported by the Department of Agriculture, where additional members of the Zintwala Community are to be employed to rehabilitate areas of overgrazing and erosion and eradicate alien weeds from within the community area, and to fence off certain areas to control grazing within the community.

A Zintwala village with part of their plantation behind. Forestry is the first business enterprise that this community has become involved in. The plan is that it should provide a springboard for further business and development projects.
Members of the Sihleza Forestry Project Steering Committee are looking forward to establishing their own plantation on the hills above their village. Left to right (back row): Xolani Jikazi, Joseph Cwele, Grattar Mahlaba, Dumile Cwele, Nonzuzo Hlotshane, iNkosi Nombulelo Ngwadla, Ntombekhaya Hlotshana. Left to right (front): Mzingisi Mahlaba and Sibonelo Cwele.

*Published in June 2014

Comparing community forestry in South Africa and Tanzania

Community-owned forestry as the basis for conservation and development: Village Forest Reserves in southeastern Tanzania.
by Jeanette Clark [Forests Consultant | forests@mweb.co.za]

The Village Natural Resource Committee at Liwiti. Photo by Jonas Timothy.
Evaluating harvestable Mpingo. Photo by Anne-Marie Gregory.

In South Africa, there are a growing number of commercial forestry enterprises owned and controlled by local rural communities. The Mabandla community-owned forestry plantation in Umzimkhulu is one of the best-known examples and has been featured several times in SA Forestry magazine. Village-owned forestry businesses are also on the rise in rural Tanzania and provide the opportunity for interesting comparisons and contrasts with those in South Africa. I recently visited remote rural villages in the Kilwa District of southeastern Tanzania that are members of an FSC Group Scheme based on the sustainable harvesting of miombo woodlands. In this article, I aim to share some of the interesting features of the Tanzanian community-owned forestry operations, and draw attention to similarities and differences between them and plantation-based community forestry projects in South Africa.
Village forest reserves in Tanzania

Tanzania is unique in southern and east Africa in having a legal and administrative basis for full village ownership and control of both land and forests, a legacy of Julius Nyerere’s Ujamaa and rural development policies of the 1970s. Unlike rural villages elsewhere in Africa, Tanzanian villages can register and form corporate entities through elected village councils. Registered villages can thereby take transfer of village land, forests and other assets and start commercial enterprises. Tanzanian law makes provision for the establishment of village government through elected Village Councils, and for full collective ownership of village land, including natural forests and woodlands.

The 2002 Forest Act further made provision for Village Councils to demarcate Village Land Forest Reserves (VLFR) and to make legally binding by-laws to manage these forests. An elected Village Natural Resource Committee (VNRC) is charged with managing the forest reserves.

Mpingo FSC Group Scheme
In the Kilwa District of southern Tanzania, a local NGO, the Mpingo Conservation and Development Initiative (MCDI), provides support to a number of villages running commercial forestry enterprises based on sustainable harvesting of indigenous woodlands. Of the 15 villages supported by MCDI, eight are now FSC-certified and make up the MCDI FSC group scheme. Mpingo is the Swahili name for Dalbergia melanoxylon, the African blackwood, one of the main species commercially harvested in these woodlands.

The eight Group Scheme members together own and manage over 100 000ha of miombo woodlands. The area of woodlands owned by each of the group scheme members varies in extent. The smallest is at Kikole, 454 hectares, and the largest, at Nanjirinji, 61 505 hectares. The Mpingo group scheme started in 2009 and membership is gradually increasing as sustainable harvesting systems are developed and implemented in the villages supported by MCDI.

The miombo woodlands in the area contain a number of valuable indigenous hardwood species with an established place in international markets (see sidebar article on page 22). A key element of the support provided by MCDI is to link its members with lucrative niche markets overseas. One such market is that for FSC certified timber for making musical instruments. Mpingo itself (African blackwood) is highly sought after for the manufacture of flutes, clarinets, bagpipes and other instruments. The villages also sell timber to local markets, mostly as standing timber.

Timber as a sustainable revenue source for local development
The Village Forest Reserves of southeastern Tanzania combine low impact sustainable harvesting of selected high value timber species with forest conservation. At the same time, revenue is generated for local development. In Tanzania, all revenue generated from Village Land Forest Reserves accrues to the village itself.

This is unlike other countries in the region where logging companies pay concession fees (or bribes) to the District or National government, and local villagers have no say and do not benefit directly from timber harvesting. I remember interviewing an elderly woman in a village in Zimbabwe some years ago who complained about what she perceived as the theft of her trees. One morning she had awoken to the sound of chainsaws. A logging company, granted a concession by the District Council, was busy felling the indigenous hardwood trees she had been protecting along the boundary of her home field. When she went to the Council offices to demand financial compensation, they had laughed at her, she said.

This not-uncommon scenario has been turned around in Tanzania, where villagers themselves own and control their timber resources, and benefit directly from timber sale revenues. The Nanjirinji village, for example, has used the revenue generated from timber sales since joining the scheme in 2012 to construct new market and primary school buildings as well as upgrade village water supplies.

Comparing Community Forestry in South Africa and Tanzania
Locally controlled forestry. Community-owned plantation enterprises in South Africa have several elements in common with the Village Forest Reserves in SE Tanzania. The central element in common is community ownership and control. Also common is that forestry is being used as a catalyst for community development. At Mabandla, the revenue from plantation timber sales is used to start other resource-based enterprises that will generate further employment and revenue for the local villagers. The Mpingo model is to leverage additional revenue from the forests, through increased timber sales, securing higher prices and trading in other markets, in particular, those in carbon credits. Although still at the planning stage, models predict annual revenue from carbon markets of up to USD $0.5 million for the largest village forests.

Development support partners. The support of committed and skilled professionals is of critical importance to the success of enterprises in both countries. At Mabandla, Rural Forest Management cc (RFM) has been providing technical and managerial support since inception. In Kilwa, the Mpingo Conservation and Development Initiative (MCDI) plays the same role. There is one interesting difference, RFM is a for-profit company and the Mabandla business pays in full for support services they receive, whereas MCDI is an NGO that receives donor funding to support their operations. Both partners are however moving in the direction of mixed model for financing their support services: a percentage-of-revenue fee paid by the community forestry businesses, supplemented by grant/donor funding. RFM has recently set up an NGO, Umsonti, for the purposes of broadening their support to community-owned forestry businesses in South Africa. In both cases, the support provided by the development partners has been key to attaining FSC certification. In both cases also, priority is being given to developing technical and managerial capacity within the communities.

Distribution of benefits. A key issue in community-owned businesses is the distribution of benefits, and forestry projects are no exception. In forestry, the main benefits are access to employment and direct revenue from the business. At Mabandla, the forestry company employs village residents to carry out all silviculture and harvesting operations. Wages and working conditions are in line with industry norms and legal standards. The Mabandla Trust is responsible for identifying people to work for the company. Rather than spread the work opportunities more widely, they have opted to provide secure employment to the few. The Trust’s vision is however to provide additional employment opportunities through a number of other community-owned businesses.

In Tanzania, a rather different approach to employment is followed. Firstly, forestry operations differ from those in plantations and are confined mainly to forest protection and harvesting. The Village Natural Resource Committee (VNRC) members themselves do most of the forest management and protection work; including marking boundaries, forest protection patrols and supervision of harvesting operations. The VNRC members pay themselves a fixed daily rate for approved forest management work they do (work plans are approved at quarterly Village General Assembly meetings). The remuneration rate, whilst not excessive, is considerably higher than labour rates in the area and the minimum wage in the country. It is an issue that has potential to become divisive, and that MCDI has taken note of. All timber is sold standing, and buyers employ local people to fell timber using two-person crosscut saws (under Tanzanian law, no chainsaws are allowed in the forest), stacking and loading. In some cases buyers make use of their own workers. The VNRC at Nanjirinji said they did not want to risk losing customers by insisting on the use of local labour. As markets build up and become more secure, this condition may be introduced.

When it comes to revenue sharing, in both countries, profits are mainly ploughed back into further development in the area. Elected representatives (the Trust at Mabandla and the Village Councils in the case of the Mpingo villages) are responsible for decisions about disbursement of profits. General Assembly meetings provide a mechanism for oversight by the community at large. Of course, these structures are not infallible or watertight in preventing abuses and there remains a need for external checks and balances. In both cases, the support partners pay a key role in this regard.

FSC certification also could provide an oversight mechanism in this regard. Intra-community equity and benefit sharing is however not captured in the current FSC standard at criterion level, nor is it reflected in the draft

International Generic Indicators (IGIs). This concern was raised in the Mpingo IGI field test report to the FSC.

Village land ownership and governance. Tanzania has a legal and administrative basis that allows villages to legally own and manage land and natural resources. Elected village councils were introduced in the 1960s and replaced traditional authority structures. The village councils provide the basis for effective and democratic village level governance, quite unique in the region. Village General Assembly meetings, open to all adult residents of the village, are held on a quarterly basis. Secure tenure and effective institutions for governance are key ingredients in sustainable community forestry initiatives. In South Africa, tenure rights and governance structures are weak in the former homeland areas where much of the potential for community-owned forests exists.

Although 20 years have now passed since the first democratic elections, the South African government has yet to put in place a framework to upgrade tenure rights in the former homeland areas. The land occupied by local communities, including those at Mabandla, is still owned by the State and tenure rights of local communities are weak. The lack of formal tenure increases risk for the community and investors, and limits business transactions and access to finance. The National Forests Act does not provide for full community ownership and control of natural forests reserves. Provisions extend only as far as co-management with the State.

The lowest level of local government in South Africa is the local municipality. Local municipalities are responsible for vast areas encompassing multiple villages and towns. There are no formal democratic governance structures in place at village level equivalent to village councils in Tanzania. At Mabandla, the Chief has played an instrumental role in the success of the forestry enterprise, and works closely with an elected community Trust. In many other rural areas however, traditional authorities abuse their powers and stand in the way of effective and democratic governance at local level.

Conclusion
Community owned forestry businesses in South Africa and Tanzania are proving effective in providing local employment, a sustainable source of revenue for local economic and social development as well as promoting natural resource management and biodiversity conservation. They provide inspiration and important lessons for rural communities and their development partners throughout southern and east Africa, as well as other parts of the world.

Acknowledgements
Thanks to Marie-Christine Flechard of Soil Association Woodmark for the opportunity to join the Tanzanian IGI field test team, the Nanjirinji VNRC committee for sharing their experiences with us, and the staff of MCDI for hosting the field testing exercise and providing much of the information on which this article is based. Particular thanks to Steve Ball of MCDI for providing helpful review comments.

Mpingo – D. melanoxylon. Photo by Steve Ball.
Cross section showing heartwood, Mpingo. Photo by Anne-Marie Gregory.

Miombo woodland timber species
Dalbergia melanoxylon African blackwood, Mpingo (Swahili). Mpingo is one of the most expensive timbers in the world and is valued by the musical instrument trade because of its high density, fine texture and exceptional durability.

In addition to the flagship Mpingo, the following are highly prized timbers commonly found in south-eastern Tanzania:

The following species are also highly prized but are less common and/or have mostly been logged out:

Source: http://www.mpingoconservation.org

*Mpingo Community Development Initiative: www.mpingoconservation.org/home/
Umsonti: www.umsonti.org.za

**Published in June 2014

Umgano Sawmill taking shape

The Mabandla community of southern KwaZulu-Natal, one of the pioneers of community-owned forestry in South Africa, is taking their timber business to the next level with the establishment of a sawmilling business known as the Umgano Timber Company (Pty) Ltd.

Sawmill manager Dave Wigley and Mayford Jaca, Mabandla Community Trust Chairman, at the Umgano Timbers sawmill site.

Construction of the sawmill has already started on a site adjacent to the plantation established by the Mabandla Community Trust in 1998.

Thanks to the long-term vision of the Mabandla Trust members and Peter Nixon and Themba Radebe of Rural Forest Management (who provide technical and management support to the Trust’s forestry business) some 450 ha of pine was planted on a sawlog rotation during the plantation establishment phase. This pine is now due for second thinnings, and it is this timber that will supply the sawmill’s raw material and makes the venture possible.

Umsonti Community Forestry NPO (Umsonti), a newly formed Section 21 company focusing on community development, has established a strategic partnership with the Mabandla Community Trust in Umgano Timbers. Umsonti’s directors are forestry and development specialists, some of whom have been involved in the Umgano project since the beginning. They are Peter Nixon, Themba Radebe, James Ballantyne, Mike Howard, Jeanette Clarke and Ilan Lax.

Umsonti, a not-for-profit company, successfully secured a grant from the Vumelana Advisory Fund to develop the sawmill business plan and bring the project to the point of bankability. Both the Mabandla Community Trust and Umsonti have invested capital in the venture, and the IDC came on board with a supporting loan. Construction has already begun, and second-hand sawmilling equipment has been purchased from Charles Anderson of Patula Products in Donnybrook. This includes a Woodmizer breakdown saw, a multi-rip saw, cross-cut saw and a bandsaw.

The Pine thinnings from the Mabandla plantation will supply the mill’s raw material needs for the first three years – thereafter clearfelling will begin so the flow of timber will increase going forward. Plans are in place to plant an additional 200ha of pine to secure the mill’s future raw material supply and allow for expansion of the business, according to Peter Nixon.

The initial production target for the sawmill is 150 cubic metres per month. A pallet mill will produce another 50 cubic metres/month. The sawn timber will be supplied wet-off-saw to local markets, and there are plans to value add on site. The mill will employ 17 people recruited from the Mabandla community and will be managed by local entrepreneur, Dave Wigley.

The power for the sawmill will be supplied initially by a diesel generator, but plans are in place to generate energy on site using solid waste, solar and wind-power (there is no Eskom power at the site).

Self-reliance is one of the key objectives of the business. Timber used in the construction of the Sawmill buildings is sourced from the Mabandla plantation and is treated on site.

According to James Ballantyne, Umsonti was established specifically to assist communities to address poverty and create jobs through the development of sustainable forestry and related businesses. Umgano Timbers is its first major project.

The Mabandla community forestry operation is the foundation of what has become known as the Umgano Project. It was well supported by a strong traditional leadership from the outset and created a platform for further development that now includes the sawmill, a land care programme, a cattle breeding business and conservation initiatives. A strategic partnership with Ezemvelo KZN Wildlife has seen the establishment of a 1 500ha nature reserve on Mabandla community land, which will provide a platform for eco-tourism initiatives.

The forestry, which is FSC-certified, provides an annual turnover of R12 million, and 100 full-time and another 30 part-time jobs for Mabandla community members. The plantation comprises some 850ha of eucalyptus in addition to the 450ha of pine. The Eucalyptus is supplied to Sappi Saiccor as well as the transmission pole market.

The Mabandla Community Trust has a majority shareholding in all businesses operating on the project land, in order to generate funds to satisfy the main objective of social and economic development of the greater community.

The business model focuses on entering into joint ventures with businesses or organisations able to offer a high degree of expertise, experience and business skills to ensure the success of the business ventures.

The first time SA Forestry magazine reported on the Mabandla Forestry Business was in its May/June 2008 issue. Mayford Jaca (who is still actively involved as the Trust Chairman) commented then (with obvious pride): “This plantation is like our own goldmine. There was nothing here before, but now we have work for our people”. The Umgano Timbers sawmill is the next phase in strengthening this already stable community forestry project.

Umsonto directors (left to right) Ilan Lax, Peter Nixon, Themba Radebe, Jeanette Clarke, James Ballantyne and Mike Howard.
Mabandla community member Zweli Baleni and James Ballantyne with a log cabin built using Umgano timber. The cabins are being developed by the Umgano Timbers team to be used in a community-owned eco-tourism project.

 

*Published in June 2014