1. FOREST SECTOR CHARTER COUNCIL
PORTFOLIO COMMITTEE
4 NOVEMBER 2014
MR PASCO DYANI
(CHAIRPERSON)
CONFIDENTIAL

2. PRESENTATION OUTLINE Forest Sector Forest Sector Charter
Forest Sector Charter Council
FY2012/13 B-BBEE Status report
FY2014/15 Business Plan- Priorities
CONFIDENTIAL

3. Forest Sector Uses 1% of total land (1 273 357ha)
Employs about in sawmilling, pulp & paper, timber boards, mining timber etc., (22.5% employment in Agriculture)
Provides about livelihood support
Contributes 1% National GDP & 7.7% of manufacturing GDP
Production mainly on pulp & paper and sawmilling products
Derives 70%of revenue from exports
(Information gathered from FSA Facts 2011/12)
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4. Forest Sector Charter Originates from the B-BBEE Act, No 53 of 2003
Launched in 2005, established a Steering Committee
draft Charter developed by working groups & Steering Committee
FB-BBEE draft Charter gazetted for public comments in May 2008
Published as a Sector Code in June 2009
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5. Forest Sector Charter (cont)
Main objective:
“To extend economic opportunities and benefits of Forest
Sector to the previously disadvantaged black groups”.
Scope of application
Growers
Contracting
Fibre
Sawmilling
Pole &
Charcoal sub- sectors
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6. Forest Sector Charter Council (FSCC)
FSCC known as “Council” was launched in May 2008 & operating as a section 21 Company.
Main responsibilities:
- To facilitate, oversee, encourage implementation of Charter
- To monitor & report on the Charter Undertakings
- To monitor & report on the Status report
- To publicize the Charter &
- Participates in Government, Industry & Council forums &
member of the Joint Technical Team (Dti initiative)
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7. Forest Sector Charter Council (cont)
3 strategic sessions, highlighting strategic objectives.
Foresight exercise in 2011 to craft preferred future for sector
Quarterly meetings on a annual basis.
Reporting:
The President’ B-BBEE Advisory Council,
Minister of Trade & Industry &
Minister of Agriculture, Forestry & Fisheries.
Composition – 20 Board members & an Independent Chairperson
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8. FY2012/13 B-BBEE Status FY2012/13 B-BBEE Status
An annual progress report on scorecard implementation
Fourth (4th) B-BBEE Status report
Sector Level 5 status, a level decline from previous year
Qualifying small enterprises (QSE) achieved level 3
Exempted Micro Enterprises (EME) level 4 achieved
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9. FY2012/13 B-BBEE Status FY2012/13 B-BBEE report (Cont):
Sector performing well in Socio-Economic Development (SED), Enterprise Development (ED), Preferential Procurement (PP)
Average performance in Ownership (O)
Poor performance in Management Control (MC), Employment Equity (EE) & Skills Development (SD)
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10. FY2014/15 Business Plan- Priorities
Charter Review Process
According to section 16.2(c) of the Forest Code,
Mandates Council to conduct an comprehensive review,
Review to identify achievements and shortcomings, & assess if any adjustments are required.
Charter Review Expected outcomes: Comprehensive report underlining:
Key issues & findings based on objectives of review process,
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11. FY2014/15 Business Plan- Priorities
Charter Review Expected outcomes:
Comprehensive report underlining:
Highlight of achievements, failures, modifications & adjustments required,
Obstacles and challenges to meaning implementation, and
Strategic & actionable recommendations,
Possible alternatives for effective B-BBEE implementation, monitoring & reporting.
CONFIDENTIAL

12. FY2014/15 Business Plan- Priorities
Charter Review – Progress:
Undertaken by a Service Provider,
Managed by an established steering committee (Council and
Service provider),
Stakeholder consultations undertaken,
Preliminary findings discussed by Steering Committee,
Steering Committee adopted report end of September
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13. FY2014/15 Business Plan- Priorities
Charter Review Preliminary Findings
Relevancy of Forest Code,
Lifespan of Forest Sector Code,
Mandate of Council ( Non compliance),
Representation in the Council,
Awareness in terms of the Code & the Council
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14. FY2014/15 Business Plan- Priorities
Realignment Process:
Dti Amended B-BBEE Act (Act still to be pronounced)
Dti gazetted the Revised Codes of Good Practice (CoGP, Vol: 580, No ), ( the basis for all Sector Specific Codes
Sector Councils to align Sector Codes with Amended CoGP
Realignment Process expected outcome:
Revised Forest Sector Code
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15. FY2014/15 Business Plan- Priorities
Realignment Process objective:
To align Forest Code with Revised Codes of Good Practice & B-BBEE Amendment Act
Realignment Process- Progress:
Council & Constituencies began negotiations in July
Scorecard on Ownership (O), Management Control (MC), Skills Development (SD) & Socio Economic Development (SED) adopted
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16. FY2014/15 Business Plan- Priorities
Realignment Process- Progress (Cont):
First draft devoid of ESD element reviewed by Council and stakeholders;
Final revised draft to be adopted end November
Final revised draft to be sent to Dti for 60 days public comment
Anticipated date of adoption before Transitional period end in April 2015
Gazetted Revised Forest Sector Code - 1st May 2015.
CONFIDENTIAL

17. FY2014/15 Business Plan- Priorities
FY B-BBEE Status report:
An annual progress report on scorecard implementation
Fifth (5th) report
Analyse level of compliance within the 0- 5 year targets
Objective:
Assess the status of transformation in the Forest sector
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18. FY2014/15 Business Plan- Priorities
FY Status report – Progress:
Undertaken by Service provider
Managed by a steering committee
Preliminary report discussed by Steer com end of September
Preliminary report suggest sector a level 4
Final report to be presented to Council end of November
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19. FY2014/15 Business Plan-Budget
Budgetary Implication:
Funding by 60% Government , 40% Industry
Total budget : R
PROJECT LEVEL
BUDGET F2014/2015
Charter Review and realignment process
BEE status report
Council Capacity building
ED and SED Initiatives
Communication Strategy and Plan
Web Based Portal
Outreach program
Community/ labour specific initiatives
Employee Compensation
Charter Functionality
Other Operating Expenses
TOTAL
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20. THANK YOU
CONFIDENTIAL