The SA forestry and forest products sector marks 15 years of transformation
The Forest Sector Charter Council (FSCC) marks a decade and a half of overseeing and reporting the forestry and forest products sector's progress in achieving its Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice targets.
The B-BBEE Act aims to advance economic transformation and enhance the economic participation of black people in the South African economy. The FSCC was established through the Forest Sector Code. Its mandate is to oversee transformation in the forestry sector's growers, contractors, fibre (pulp and paper), sawmilling, poles and charcoal industries.
The council consists of industry, government, community and labour representatives. It reports to the ministries of forestry, fisheries and the environment (DFFE) and trade, industry and competition (DTIC). It is chaired by Nelly Ndlovu, CEO of Mondi Zimele.
Forestry South Africa (FSA), Sawmilling South Africa (SSA), and other industry bodies encourage its members to continue reporting on B-BBEE and to share their certificates and underlying reports with the FSCC. The council's annual status report is the only truly objective means of assessing transformation in the sector, and it is critical to prevent selective and biased reports or generalisations about the sector from being made.
The facts
The South African forestry and product sector contributes around R39 billion to the economy and provides employment for around 150,000 people.
Speaking at the anniversary event celebrating the progress made in 15 years, FSCC chairperson Nelly Ndlovu said transformation in the sector "has not been a finite destination but a journey, lengthy, and at times difficult. It is a process of real change".
This is evident in the industry moving from beginning at Level 6 to achieving Level 3 in 2023 and again this year.
Discussing the sector's progress, FSCC Executive Director Khosi Mavimbela noted that in 2009, it committed to improving its B-BBEE track record. "The sector, comprising several forestry landowners and producers of sawn timber, pulp and paper, and charcoal, has sought to include black South Africans through meaningful economic participation", she said.
Mavimbela noted that while there has been fluctuating and inconsistent reporting in the past, there has been a significant rise across the three categories of enterprises:
- Medium and Large Enterprises (MLEs)
- Qualifying Small Enterprises (QSEs)
- Exempt Micro Enterprises (EMEs).
Reporting MLEs grew from three in 2009/2010 to 35 in 2023/2024. In 2009/2010, five QSEs submitted reports, while the number of reporting EMEs grew from 19 to 100.
Scorecard progress
Since 2009, the number of reporting entities across the enterprise size categories has increased from 27 to 191.
The sector has made notable progress across the five B-BBEE scorecard elements between the 2009/2010 and 2023/2024 reporting periods. However, when considering the sector's overall performance, some companies have met their targets but only exceeded them in one of the five elements.
- Ownership: increased from 11.6 to 18
- Management control: 9.6 to 10.1 (when combined with employment equity)
- Skills development: 7.95 t o14
- Enterprise and supplier development (preferential procurement): 28.5 to 39
- Socio-economic development has exceeded the target score 5 by 2 points since 2009.
MLEs moved from Level 5 in 2009/2010 to Level 3 in the recent reporting period. QSEs progressed from Level 3 to Level 2, while EMEs moved from Level 4 to Level 2.
Sharing success
Several success stories of transformation and socio-economic development were championed at the 15th-anniversary event in Sandton, Johannesburg, on 9 October.
Delivering the keynote address, Bernice Swarts, Deputy Minister of Forestry, Fisheries and Environment, said, "I believe that the forestry sector has developed resilience and has often course-corrected to achieve its various milestones, not least of which being the upliftment of employees, communities, and the many stakeholders it engages.
"Because of its national reach, it plays a key role in tackling our country's triple burden of unemployment, poverty, and inequality, especially in rural areas where opportunities are scarce".
A panel discussion, chaired by Talk Radio 702 presenter Gugu Mhlungu, reviewed the milestones and considered solutions for more inclusive growth, sustainable practices, and enhanced community development.
The panellists were:
- Buhle Msweli, chairperson of FSA and a small-scale timber grower
- Jane Molony, Executive Director of the Paper Manufacturers Association
- Pumeza Nodada, DFFE Deputy Director General: forestry management
- Sandile Ngcobo, Mondi's Public Affairs and Transformation Director
They shared their thoughts and experiences on transformation and empowerment.
Grassroots upliftment
A series of videos were shared during the event. Forestry contractor Zinhle Mbuyazi explained that she took over the family business from her father, drawing inspiration from his passion for forestry. She has thrived and encourages young women not to give up. "If you have your brain and heart, you will succeed," she said.
Another example was the Komasi Woodwork Project in the rural community of Weza, KwaZulu-Natal, supported by a local sawmill. Locals learn essential woodworking skills through the initiative and refurbish desks for underprivileged schools.
She is Forestry
The She is Forestry initiative, backed by FSCC and FSA, encourages women in business and students, graduates, scientists, and contractors to share their personal stories. The videos are welcomed by girls in rural schools because they expand their horizons and inspire them to overcome self-doubt, peer pressure, and life-changing teenage pregnancy.
"You can live from the soil. You can educate your children, provide for them, and have a home. All because of the soil. The soil changes everything," said timber farmer Rejoice Shozi, who took over the family timber-growing business when her mother passed away in 2015. Shozi is one of 3,600 small timber growers who gained practical support from a corporate forestry programme.
Reflect and adapt
"FSCC sees 15 years of transformation as an opportunity to do more than simply celebrate the achieved milestones. It is the chance to reflect on the lessons learnt and adapt our approach appropriately to capitalise on the transformation opportunities ahead of us", said Makhosazana Mavimbela, FSCC Executive Director.
