DEPARTMENT: AGRICULTURE, FORESTRY & FISHERIES Portfolio Committee on Water and Environmental Affairs Briefings on the Budget & Strategic Priorities: 2009/10 10 June 2009 Forestry Branch

REALIGNMENT OF DEPARTMENTS & IMPLICATIONS Interdepartmental Task Teams established (DEAT, DWAF, NDA) Work stream Teams established: Organizational Scoping HR Staff Audit Infrastructure & assets Finance & budgets ICT systems Organizational design Legal & policy matters Labour relations Change management & communications Draft work plan in place Draft MoU re: Working relations and accountability prepared

FUNCTIONS TO BE TRANSFERRED (DWAF TO AGRICULTURE) … I/II Forestry (Programme 4 – Vote 34): Forestry Oversight Sustainable Forest Management Forests and Fire Regulation and Governance Forestry Enterprise Development & Livelihoods Forest Technical and Information Services State Forest Transfer and Regulation State Forest Administration and Oversight Forestry Management and Support Forest Charter Implementation Unit

FUNCTIONS TO BE TRANSFERRED (DWAF TO AGRICULTURE) … II/II Forestry Resources: Forestry resources consisting of Savannas (woodlands), indigenous (natural) and Commercial plantations Indigenous Forests cover 492 700 ha of which 186 069 are directly managed by DWAF Commercial plantations 1,3 million ha of which 62 012 directly managed by DWAF (Value: R495 975 457) Present complement of 5 126 posts (3 487 filled; 78 at National office & 3 409 in Regional offices – high vacancy rate due to previous restructuring) Budget for 2009/10 is R485 600 (excl. Progamme 1)

TRANSFER - CHALLENGES Challenges to be addressed through Work streams Integration of National (Forestry, commercial) & Concurrent (both Agriculture and Natural Forests, conservation) competencies IT systems (ARIVIA) – service level agreements and transfer of systems Support Services (historical KZN & Limpopo had own staff) Alignment of legislation – delegations Departmental policies and procedures

The Forestry Branch Activities of the branch contribute to the following Strategic priorities of Government: Speeding up growth and transforming the economy to create decent work and sustainable livelihoods. Comprehensive development strategy linked to land and agrarian reform and food security. Strengthen skills and human resource base. Pursuing Africa advancement and enhanced international cooperation. Sustainable resource management and use

The Forestry Branch Strategic Goal Strategic objectives Sustainably managed plantations, indigenous forests and woodlands that provides optimal social, environmental and economic benefits To ensure the sustainable management of all natural forests, woodlands and plantations through the implementation of the National Forests Act, 1998 To reduce incidents of veld, forest and mountain fires through the implementation of the National Veld and Forest Fire Act, 1998 To improve the contribution of the Forest sector to skills development in order to address development and growth of the sector To enhance awareness raising and information sharing to raise the profile of the forestry sector To accelerate the transformation and growth of the forestry sector in line with the targets of the Forestry sector BBBEE Charter To increase the contribution of greening, participatory forest management and community forestry in improving livelihoods and addressing poverty eradication

OVERVIEW OF THE SECTOR - FORESTRY Forestry Resources – Three main components: Savannas (Woodlands) The potential area is in the region of 39 million hectares Approximately 9,2 million people live around these areas and depend on them for goods and services Indigenous (Natural) Forests Indigenous Forests cover about 492 700 hectares Almost three-quarters of this forest type is conserved either as declared State forests / within formal protected areas Access and harvesting of products is provided

OVERVIEW OF THE SECTOR - FORESTRY Forestry Resources (continued): Commercial Plantations (Category B and C) Plantations cover approximately 1,3 million ha of SA land area (private and state owned) Over 80% of plantations are found in 3 provinces: Mpumalanga, KwaZulu-Natal & Eastern Cape Plantations provide direct employment for about 76,000 people with over 1.7 million dependents 170 000 direct jobs in forest & forest product industry Plantation forests produce ± 22 million m3 commercial roundwood worth R5 billion annually Investment in the Forestry (Trees) Industry is about R 17.4 billion (2007) and R21.8 billion in Forest Products (Pulp, Sawmilling, etc) Some environmental costs associated with plantations are recognized, 82% of the plantation area is certified by independent third party schemes

OVERVIEW OF THE SECTOR - FORESTRY Economic Benefits from Forest Resources Commercial forests contribute R22 billion annually to the GDP Employs ±170 000 people in the formal sector, including the pulp & paper industries Over 80% of rural households depend on firewood as their energy source Estimated that the value of forest goods and services derived from the natural forests and woodlands is about R17 billion annually

FORESTRY SECTOR CHALLENGES … I/II Land Reform – Tenure Security; Post settlement support to communities; Transfer of plantation forests to communities Profiling the Forest Sector – Emphasize the contribution that forestry makes towards rural development Timber Shortage in the country - Shortage can be expected to affect government’s intentions to achieve a 6% economic growth rate Research Development and Innovation - Forest sector R&D activities require more resources including addressing the declining skills base Climate Change – Climate Change will have significant impacts on forestry in South Africa, at the same time forestry could offer meaningful mitigation and adaptation possibilities

FORESTRY SECTOR CHALLENGES … II/II Access to Funding - Forestry is a business that requires large amounts of capital to be invested over a long rotation period, Skills Shortage in Forestry Sector - Shortage of critical, scarce and core skills as well as shortcomings in the Forestry Sector Forestry Protection – Threats from fires, pests & diseases. Forestry and Regulatory Environment – Forestry as land use excessively regulated (water licenses; environmental authorisations; land use change; labour) Monitoring and Evaluation – Improve measurement mechanisms and corrective actions

LEGAL & POLICY FRAMEWORK - FORESTRY White Paper on Sustainable Forest Management National Forest Action Programme (1996) Implementation of National Forests Act, 1998 (Act No 84 of 1998) National Veld and Forest Fire Act, 1998 (Act No 101 of 1998 Forestry Sector BBBEE Charter (2008) Forestry 2030 Roadmap (draft)

FORESTRY INSTITUTIONS Forest Sector Charter Council (3 yr term) National Forestry Advisory Council (3 yr term) SAFCOL(MDPE) – category A plantations

KEY PRIORITY AREAS - FORESTRY (MTSF) 1. STRATEGIC PRIORITY: Sustainable resource management and use Ensure the sustainable management of all natural forests, woodlands and plantations through the implementation of the National Forests Act, 1998 Reduce incidents of veld, forest and mountain fires through the implementation of the National Veld and Forest Fire Act, 1998 STRATEGIC PRIORITY: Strengthen skills and human resource base Improve the contribution of the Forest sector to skills development in order to address development and growth of the sector,

KEY PRIORITY AREAS - FORESTRY (MTSF) STRATEGIC PRIORITY: Speeding up growth and transforming the economy to create decent work and sustainable livelihoods Accelerate the transformation and growth of the forestry sector in line with the targets of the Forestry sector BBBEE Charter Enhance awareness raising and information sharing to raise the profile of the forestry sector

KEY PRIORITY AREAS - FORESTRY 4. STRATEGIC PRIORITY: Pursuing Africa advancement and enhanced international cooperation Strengthening of regional integration of Forestry issues Regional (SADC) collaboration on Sustainable Forest Management – Ratification and implementation of SADC Protocol on Forests Forestry International Relations Strategy Framework developed and implemented Cross-border MoU’s on forestry issues concluded with neighboring countries 5. STRATEGIC PRIORITY: Comprehensive (rural) development strategy linked to agrarian reform and food security Transfer or release of state assets to appropriate agencies / government departments / land beneficiaries Increase the contribution of greening, participatory forest management and community forestry in improving livelihoods and addressing poverty eradication (mitigation and adaptation measures for climate change)

STRATEGIC PLAN - INTERVENTIONS Support for forestry development enterprises (financial and non-financial means, extension, associated skills) and leverage existing government mechanisms for security of timber and pulp supply Implement the Forest Sector Charter (role of SoEs) Emphasize sectoral partnerships and intergovernmental frameworks to address threats from fires, pests and diseases Enhance cooperative governance/intergovernmental relations matters relating to land reform affecting forestry for sustainable rural development

STRATEGIC PLAN - INTERVENTIONS Consolidate/alignment of the forest research agenda including the development of an integrated Forest Resources Assessment and Monitoring System to improve decision making. Address concurrent sustainable forest management responsibilities (conservation of forests in a changing world) Implement the four global objectives on sustainable forest management (non-legally binding instrument)

CONCLUSIONS 1/2 Global objective 1 Commitment to work globally, regionally and nationally to achieve (by 2015): Global objective 1 Reverse the loss of forest cover worldwide through sustainable forest management, including protection, restoration, afforestation and reforestation and increase efforts to prevent forest degradation; Global objective 2 Enhance forest-based economic, social and environmental benefits, including by improving the livelihoods of forest dependent people;

CONCLUSIONS 2/2 Global objective 3 Increase significantly the area of protected forests worldwide and other areas of sustainably managed forests, as well as the proportion of forest products from sustainably managed forests; Global objective 4 Reverse the decline in official development assistance for sustainable forest management and mobilize significantly increased, new and additional financial resources from all sources for the implementation of sustainable forest management.