FSA celebrates another successful year of business

*Changing of the guard (L-R) Mike Peter (Executive Director FSA), outgoing FSA Chairperson Andrew Mason and incoming FSA Chairperson Buhle Msweli. Photo: Samora Chapman*

FSA’s 22nd Annual General Meeting was held once again at the Fern Hill conference Centre in Tweedie in May, and was attended by a record number of members, forestry sector stakeholders and key office bearers from several government departments.

Andrew Mason handed over the FSA chairmanship to Buhle Msweli of the Small Growers Group as per FSA’s rotation policy, which has served the organisation well over the years. Duane Roothman of Sappi will serve as Vice-Chair for the year ahead.

In his opening address, FSA Executive Director Mike Peter, shared the good news that the Forest Sector has improved its BBBEE rating and achieved Level 3 for the first time, and that gender transformation efforts are bearing fruit in that women entering forestry programmes at tertiary education institutions in 2024 outnumbered men – also for the first time.

He also lauded the fact that the forest Sector’s engagement with stakeholders through the Public Private Growth Initiative (PPGI) is bearing fruit as the barriers impeding the progress of the Sector have been removed. However he cautioned that the hard work is not done as the sector needs to build on the opportunities thus created.

There were two excellent keynote presentations that kept attendees interested and provided fascinating perspectives on the road ahead for South Africa in general and the forest sector in particular. The meeting was held just a few days before South Africa’s general elections on May 29, and there was plenty of speculation as to what lies ahead for the economy and the country as the election results will have a massive bearing on the trajectory of our future.

*Dr John Endres, Chief Executive Director of the Institute for Race Relations, presented the keynote address. Photo: Samora Chapman*

The keynote presentation by Dr John Endres, Chief Executive Director of the Institute for Race Relations, appropriately titled ‘On the Edge’, provided a snapshot of the decline that has occurred across all South Africa’s economic indicators since 2008. This has resulted in low economic growth, fewer jobs, declining investment and the average South African is poorer as a result.

He said that the level of investment in the South African economy is way below what is required to turn the economy around because investors do not trust the direction that government policy is taking. Moreover the fact that almost half the people in South Africa are now receiving Social Grants coupled with an extremely narrow tax base, means that the South African economy is vulnerable and confidence is at an all-time low.

*Katy Johnson (FSA), Khosi Mavimbela (Executive Director Forest Sector Charter Council) and Julia Rees (Dargle Poles). Photo: Samora Chapman*

However our democratic processes still work and the looming General Election provides a glimmer of opportunity for political change. We may be entering a period of coalition politics which will be marked by volatility and an increasingly ineffective government, he said. The positive side of this coin is that it gives more space to the private sector to step in with solutions.

“The most successful political parties of the future will be the ones that manage coalitions the best,” he concluded.

Steven Ngubane of the Industrial Development Corporation provided info on the state development finance institution’s commitment to provide development finance for SMMEs engaged in the Agriculture and Agribusiness value chain, which includes forestry. He said the IDC plans to invest R1.4 billion in this sector over the next four years through their blended finance model. This model can be tailored to suite forestry which is a primary, low value and long term business.

*Incoming FSA chairperson Buhle Msweli (right) thanks the IDC’s Steven Ngubane for his presentation. Photo: Samora Chapman*

This model employs a 60:40 equity to credit ratio. This translates to an effective interest rate of 9% on finance packages up to R100 million, or 12% on packages up to R200 million.

Steven said that recipients of IDC finance packages are also required to invest their own funds in the enterprise, to ensure that they are fully committed to making it work.

After the business of adoption of the minutes from the 2023 AGM and the audited financial statements for the year ended 2023, attendees and guests were able to socialise and network at a vibrant cocktail after-party.

*L-R: Vusi Dladla of NCT, Norman Dlamini (FSA), Tebogo Mathiane (Department Forestry, Fisheries & Environment), Freddie Humphreys (Land Bank) and Steven Ngubane (IDC). Photo: Samora Chapman*

FSA Executive Committee 2024/25
Ex Large Growers Group
Duane Roothman (SAPPI) (FSA Vice-Chairperson)
Themba Vilane (Mondi)
Sean Brown (Merensky)
Itumeleng Langeni (MTO)
Sibalo Dlamini (SAFCOL)
Ferdie Brauckmann (TWK)
Penwell Lunga (PG Bison)
Gerald Stoltz (York Timbers)
Mark Armour (co-opted)

Ex Medium Growers Group
Andrew Mason - KZN MGG Chair
Murray Mason - KZN / S Cape
Heiner Hinze - Mpumalanga / Limpopo
Graeme Freese - Past MGG Chairperson
Danny Knoesen - Ordinary Member

Ex Small Growers Group
Buhle Msweli - KZN Provincial Chairperson (FSA Chairperson)
Musa Mcwensa - KZN Deputy Chairperson
Fhatuwani Netsianda - Limpopo Provincial Chairperson

*Small-scale growers attended the FSA AGM in numbers. Photo: Samora Chapman*

Dave Everard (forestry consultant and former Sappi Forests Environmental Manager), Hlengiwe Ndlovu (Sappi Forests Environmental Manager) and John Scotcher (environmental consultant for FSA). Photo: Samora Chapman

*Linda Vilakazi (Mondi) and Sandile Nkosi (Sappi Khulisa). Photo: Chris Chapman*

*FSA’s Stefan Links and Ronald Heath. Photo: Samora Chapman*

*L-R: Katy Johnson (FSA), Roger Poole (NCT) and Jacqui Meyer (Timber Pesticide Working Group). Photo: Samora Chapman*

NEW PEST ALERT

In Jan 2024 a new pest was discovered to be attacking Acacia mearnsii trees in KZN. It has been identified as a weevil, Melanterius species...

Communities taking over management of state plantations

*DFFE Minister Barbara Creecy (centre) and Deputy Minister Makhotso Sotyu (left) hand over the signed Community Forestry Agreement to Inkosi Silinga.*

The Minister of Forestry, Fisheries and the Environment, Barbara Creecy, and Deputy Minister Makhotso Sotyu, handed over the management of three plantations to Eastern Cape communities at a function held at Butterworth in April.

The plantations – Mission (79 ha Eucalyptus), Nqamakwe (160 ha Eucalyptus, 35 ha wattle) and Mgomanzi (105 ha Eucalyptus) – were handed over to the Tobotshane, Amahlubi and Amazizi traditional councils following the signing of Community Forestry Agreements with the Department of Forestry, Fisheries and the Environment (DFFE).

In the past three years, the department has facilitated the transfer of 27 plantations, totalling 6 210 hectares, in the Eastern Cape, Limpopo and KwaZulu-Natal, as part of the implementation of the Forest Sector Masterplan.

“This is a milestone that requires commitment not only by government, but by industry and the communities taking over these plantations,” said Deputy Minister Sotyu at the handover function.

Deputy Minister of Forestry, Fisheries & the Environment Makhotso Sotyu addresses the gathering at the plantation handover function.

“Government, through the DFFE is expected to provide post settlement support to the communities, ranging from technical to financial support where possible. The industry is expected to support these communities through investments that will ensure that the plantations are managed sustainably.

“The communities on the other hand are expected to ensure that they protect these plantations and manage them for the benefit of all, which is why we have the Traditional Councils taking centre stage in the process,” she said.

The Deputy Minister encouraged the communities to take responsibility for managing these plantations seriously as they represent “a legacy for them and their generations to come”.

*Inkosi Nyhila signs the CFA for the Mission and Toboshane plantations.*

Role of traditional leaders
In her address Minister Creecy thanked the Traditional Councils for their support in facilitating the handover of the plantations, and outlined the broader strategy for transforming the forest sector.

“I would like to begin by thanking the traditional leaders present here today for their support and collaboration during this process. Inkosi Bikitsha, Inkosi Nhyila and Inkosi Silinga and their respective traditional councils were a key part of the establishment and finalisation of the community forestry agreements. Numerous engagements and consultation sessions were held with the traditional councils to tailor agreements best suited to the conditions of the relevant communities, which will maximise benefits and ensure the sustainability and continued prosperity of the plantations.”

She said that the support given by the royal houses demonstrates the vital role traditional leadership plays in facilitating government initiatives, making collaboration and project success more attainable.

*Minister of Forestry, Fisheries & the Environment, Barbara Creecy, delivered the keynote address at the handover.*

“DFFE has been actively pursuing community forestry agreements with various communities nationwide. These legally binding agreements are designed to ensure the sustainable management of community forests for the economic, social and environmental benefit of the communities involved.”

Minister Creecy said that the Forestry Sector Masterplan is also focussed on investment in the sector, with a target of R24,9 billion to be invested, of which R8.4 billion had already been invested at the time of finalising the masterplan.

With regards to employment, the masterplan has set a target of 100,549 additional jobs in the forestry sector, the bulk of which will come from new afforestation schemes.

To ensure that previously disadvantaged communities are included in the forestry value chain, the Masterplan aims to increase share of SME procurement in the sector.

“The Masterplan will also attract investment through issuing a call for proposals for the industry to support owner-growers, and encourage commercial players to partner with communities by providing opportunities throughout the value chain,” she said.

*Inkosi Mkhatshane signs the CFA for the Ngqamakwe plantation*.

Minister Creecy noted a number of requirements that communities entering into Community Forestry Agreements need to adhere to in order to ensure that the forestry resources are sustainably managed, and communities can reap the benefits:
• Traditional councils, on behalf of the communities are expected to manage the community forests sustainably so that they can yield economic, social and environmental benefits.
• An operating company owned by the community must be established to manage and operate the plantations. This will enable transparent procurement processes for strategic partners, adherence to land use regulations and the development of comprehensive management plans.
• The revenue from the plantations should be adequately invested and surplus be distributed equitably for the benefit of the community.
• Changes of land use are not permitted unless approved by the minister responsible for forestry.
Minister Creecy said that more CFAs are set to be concluded in the current financial year, with ongoing assessments of investment proposals from potential partners.

*Inkosi Silinga signs the CFA for the Mngomanzi plantation.*

National Minimum Wage beats inflation - again

A National Minimum Wage of R27.58 per hour – effective from 1st March 2024 - has been announced by the Minister of Employment and Labour, Thulas Nxesi.

This represents a CPI + 3% increase in minimum wage, and follows a CPI + 2% increase in 2023.

This minimum wage applies to all workers in South Africa across all economic sectors – including farm/forestry workers as well as domestic workers.

The 2024 Minimum Wage means that workers in South Africa will be paid R 220.64 for a normal eight-hour day, and R 1 103.20 for a 40-hour week.

The only exceptions are:-
• Workers employed on Expanded Public Works programmes for whom the minimum wage for 2024 has been set at R15.16 per hour;
• Workers employed under Learnership agreements in terms of the Skills Development Act.

Predictably, the increase has been met with a chorus of criticism from business who claim that an above CPI wage increase is counter-productive in the current economic climate. The gist of the argument is that it will simply exacerbate unemployment as many small, medium and micro businesses will either cut their staff numbers or find other ways of reducing their wages bills, which will impact negatively on bottom rung employees at the end of the day.

Bigger businesses will in all likelihood continue to mechanise their operations and use technology innovation to reduce staff overheads. The end result will be fewer, skilled people employed at higher rates. Where does this leave unskilled school leavers seeking entry level employment in South Africa?

Many small scale tree farmers operating on communal land will not be able to afford the minimum wage, and so they will remain outside of the formal ‘legal’ economy and will continue to conduct their businesses on the economic fringes.

Commented Gerhard Papenfus of the National Employers’ Association of SA: ‘The National Minimum Wage Commission ignored the input of numerous business institutions and trade unions who warned of the dire consequences of implementing further increases, the calls for the scrapping of the National Minimum Wage, and simply proceeded with recommending the implementation of its own original proposals. The manner in which the NMWC reached its conclusion, once again, illustrates the futility of the public participation process leading up to their eventual recommendation.’

The National Minimum Wage Act does make provision for an employer or employer organisation acting on behalf of its members to apply to the Department of Employment and Labour for exemption from the NMW. This is a loophole that may yield some relief for hard-pressed employers who can demonstrate that their businesses simply can’t afford the current minimum wage, but the admin involved will be daunting.

Bell Equipment appoints Ashley Bell as new CEO

*Bell Equipment’s new CEO, Ashley Bell.*

Bell Equipment has appointed Ashley Jon Bell (41), grandson of the company's founder Irvine Bell, as the new Group Chief Executive Officer effective from 1 January 2024.

This follows the resignation in July of the outgoing Group CEO, Leon Goosen, who leaves the company after 16 years of service, five and a half spent as Group CEO.

Ashley is well acquainted with the company having served as a non-executive director on the Board since 2015 and has provided valuable input as a member of the Board’s Risk and Sustainability and Social, Ethics, and Transformation committees.

A qualified commercial helicopter pilot, Ashley holds a degree in business management and has previously worked for Bell Equipment after graduating in 2007 assisting with product marketing management of the Bell Articulated Dump Truck and Backhoe Loader ranges. Since then, he has jointly established and managed several successful businesses in various industries.

He co-founded Matriarch Equipment with his brother, Justin Bell in 2009. The company focused on developing innovative equipment - including the Matriarch Fastfell and Skogger - for a wide spectrum of industries and enjoyed notable success in agriculture and forestry due to its ‘customer-centric’ approach and quick turnaround of niche solutions. Bell acquired Matriarch in 2019 as part of its strategy to revitalise its presence in the agriculture and forestry industries and Matriarch products now fall under the Bell brand.

Ashley Bell introduces the Matriarch Skogger to foresters at a Focus on Forestry field day in 2017. It was developed under the Matriarch banner by Ashley and his brother Justin Bell, and is now manufactured and distributed by Bell Equipment.

Gary Bell, non-executive chairman of Bell Equipment, congratulated Ashley on his appointment. “Ashley joins a sizeable team representing the third generation of the Bell family actively engaged in the business and it’s heartening to see the next generation stepping up to play an integral role in the future of the company. Having worked closely with Ashley for several years he has all the personality traits and credentials we need, is well aligned with the Board’s strategy, and is a good fit to lead our experienced management team. I have every confidence that he will build on our family legacy with dedication and a passion for the business. On behalf of the rest of the Board, we congratulate Ashley on his appointment and look forward to working with him in his new role and contributing significantly to our continued success and growth."

Ashley Bell said: “I am fortunate to have grown up in an environment where Bell Equipment has been a central theme, and I am both honoured and excited to step up as Group CEO. I look forward to working with the entire Bell team, supported by our customers and suppliers, to ensure we execute our group strategy and make a positive impact for all stakeholders. I would like to extend my sincere thanks and appreciation to the Board for the trust and confidence they have shown in me taking on this role.”

NMU students representing Africa at international conference

(Left to right): Ronewa Sathuma and Avelile Cishe (NMU), and Irene Mathabela (DFFE Representative) at the International Forestry Students’ Symposium in Chile.

Two Forestry and Wood Technology students from Nelson Mandela University (George Campus) recently attended the 50th International Forestry Student's Symposium in Chile. This is one of the world's most prestigious forestry student events. The main aim of the event was to learn about forestry and the management of natural resources of Chile, with specific focus on the sustainability of the forest sector. Furthermore, the event was aimed at networking and exchanging ideas among different delegates from all over the world.

Delegates from over 30 countries including Germany, Czech Republic, Romania, Estonia, United Kingdom, Canada, Finland and Slovakia attended the event. NMU forestry students Avelile Cishe and Ronewa Sathuma represented South African and African students at the conference. This was made possible by funding assistance from the Nelson Mandela University, the Department of Forestry, Fisheries and Environmental (DFFE), South African Forestry Contractors Association (SAFCA), Hans Merensky, and Forestry South Africa (FSA).

Some of the topics that were discussed in the congress included the future of forestry in the world, climate adaptation strategies, forest certification systems, wood science and wood products in support of the green economy, climate-smart forest technologies, forest trade and governance, water quality, and higher education policy and development. These topics are of significant value to the South African forestry industry.

"The South African forestry industry plays a positive role in the climate debate and other global environmental concerns like that of water quality and soil degradation," said Avelile, President of the NMU Forestry Students Association, who gave a presentation at the conference about the role of forestry in solving major environmental threats.

Participating in a tree planting event at the IFSA symposium.

IFSA Symposium delegates got together for a group photo.

Avelile Cishe with the full Symposium programme.

NCT’s Top Tree Farmers of the Year

NCT’s Top Tree Farmers for 2022: Zodwa Bhengu (left) in the Small-Scale Grower category, and Gudrun and Rudolf Johannes in the Commercial Grower category.

NCT Forestry’s Tree Farmers of the Year for 2022 are Gudrun and Rudolf Johannes of Vryheid (Commercial Grower category), and Zodwa Bhengu of Matimatolo (Small-Scale Grower category).

The candidates for these prestigious awards are nominated by NCT staff, and are assessed against sustainable plantation management principles. This year’s winners were announced at the NCT AGM in July, and received brand new chainsaws sponsored by STIHL and PMB Power Products as rewards for their forestry excellence.

Zodwa Bhengu grows a small block of wattle close to her homestead in the Matimatolo tribal area near Greytown in the KwaZulu-Natal midlands. She has been associated with NCT for over 20 years since she and her late husband Isaac started a forestry contracting business transporting timber and bark for other small-scale growers like themselves.

Wattle has proved to be an ideal crop for people living around Matimatolo, including the Bhengus, as growing conditions are good and the markets for both timber and fresh bark are located close by. Timber is marketed through NCT while the wattle bark is sold to NTE which operates a bark factory at Hermannsburg.

Proud wattle grower Zodwa Bhengu (centre) in front of her woodlot in Matimatolo, with Cliff Walton of NCT (left) and Eza Mapipa of NTE, during a Project Wattle Regen field day.

In 2018 NCT and NTE joined forces to launch Project Wattle Regen, a joint venture initiative focused on the growing of wattle which is a popular tree crop in the Greytown/KransKop area. The primary aim of the initiative is to promote sustainable forestry in co-operation with small-scale wattle growers, to increase managed hectares of wattle plantations and thereby facilitate the development of the small growers to optimize their business potential and management.

Zodwa Bhengu was one of the first local growers to join Project Wattle Regen, and she has taken full advantage of the opportunities to improve and grow her timber related businesses. She has also played an active role in sharing ideas and expertise with other programme participants at workshops and field days.

Zodwa’s 0.6 ha wattle block has been fully fenced to keep out browsing animals, and she has diverted surface run-off water into her block to improve soil moisture. Currently four years old, her plantation is immaculately maintained with no competing weeds in sight. It is kept clean both inside the compartment and around the perimeter to reduce the fire risks.

A concrete block making operation at her homestead and a taxi business is further proof of Zodwa’s never-say-die entrepreneurial spirit.

Zodwa Bhengu has dug channels to divert surface runoff water into her wattle compartment to promote tree growth.

Concrete block operation at Mrs Bhengu’s homestead in Matimatolo attests to her entrepreneurial spirit. Her well maintained wattle woodlot can be seen in the background.

Commercial forestry operation
Gudrun and Rudolf Johannes’ agriculture and forestry business started in 1993, managing a family-owned 750ha smallholding in the Dumbe area of KwaZulu-Natal. Soon thereafter they started their own harvesting contracting business, and a few years later acquired their own 630ha farm, also in the Dumbe district.

Today they manage over 2 000ha of farming land, almost half of which is used for forestry, including gum, wattle and pine.

All forestry operations are performed by their own staff except for the harvesting business which was handed over to a long serving employee.

The farms employ a total of 70 local people, with 30 permanently employed for own operations and 40 allocated to outsourced operations.

The harvested timber is marketed through NCT and Paulpietersburg Timbers. Wattle bark is sold to NTE which has a bark factory close by.

Silviculture on the farms is of a high standard with careful attention to matching the right species to the site and the market requirements.

Harvesting operations are manual, using labour to fell, de-bark and cross-cut the timber.

Gum harvesting on the Johannes’ timber farm.

The Johannes’ utilise everything including the plantation residue and even the tree stumps to manufacture charcoal in their own kilns, which is marketed through Ignite charcoal. The stumps are harvested by a contractor who uses a locally manufactured stump clipper which cuts off the stumps cleanly at ground level.

Only minimal harvesting residue is left behind in brushlines after all the usable material has been collected. These brushlines are reduced further using cool burns after rainfall events, leaving a light residue layer behind to protect the soil.

The open areas on the farms are all under maintenance phase, wetland and riparian areas have been delineated, wattle jungle and weed patches have been cleaned and rehabilitated and natural corridors between open areas have been established to promote and support biodiversity.

A healthy open corridor on the Johannes’ timber estate promotes biodiversity.

The Johannes’ contribute to local communities and have created temporary employment for local people to maintain municipal district roads and rail servitudes.

According to the NCT team that adjudicates the Top Tree Farmer awards: ‘Rudolf and Gudrun Johannes have built up a successful forestry business through hard work and an acumen for identifying opportunities. Diversification has been an important strategy in achieving this success. They have done this with a commendable social and environmental conscience.’