Transformation in Forestry Sector

 Transformation in the Forestry Sector: briefings by Department of Agriculture, Forestry and Fisheries & SAFCOL

Committee: Agriculture, Forestry and Fisheries

Chairperson: Mr M Johnson (ANC)

Date of Meeting: 19 Jun 2013

Summary

The Department of Agriculture, Forestry and Fisheries (DAFF) briefed the Portfolio Committee on Agriculture, Forestry and Fisheries on the Forest Sector Charter Council, a Section 21 company launched in 2008. The Council’s main objective was to facilitate, oversee, encourage, monitor and report on the implementation of the Forest Sector Charter, which extended economic opportunities and benefits to previously disadvantaged black groups. The Council reported to the BEE Advisory Council, Department of Trade and Industry (Dti) and DAFF on progress on ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. The sectors were performing well in socio-economic development, enterprise development, preferential procurement and ownership. There was poor performance on management control and employment equity, and room for improvement on skills development.

The main challenges were insufficient data collection, no prescribed methods for action against non-compliance, land availability, the pace of settling forestry-related land claims, zero import tariffs, and insufficient funding.

The South African Forestry Company Limited (SAFCOL) then briefed the Committee on the SAFCOL activities and transformation initiatives. It was a signatory to the Forestry Transformation Charter and maintained a level 2 B-BBEE rating. Its strategic objectives were financial and commercial sustainability, sustainable forestry management (requirements of South African law and international independent certification), and retention and expansion of the amount of land used for forestry plantations. Its main subsidiary was Komatiland Forests (KLF) in Mpumalanga, Limpopo...