FORESTRY AND POVERTY ALLEVIATION

1. FORESTRY AND POVERTY ALLEVIATION Presentation to the Portfolio Committee on Water Affairs and Forestry 23 May 2007

2. contents… • INTRODUCTION • FOREST POLICY AND LEGISLATION • FORESTS AND POVERTY ALLEVIATION • FORESTS AND DEVELOPMENT • POLICY PERSPECTIVE • CONCLUDING REMARKS DWAF/FORESTRY

3. for noting… The Cabinet meeting of 16 May 2007 noted that the Social Sector is finalizing an Antipoverty Strategic Framework to be tabled at the July Cabinet Lekgotla

4. introduction i/ii… POVERTY, is characterised by the inability of individuals, households or entire communities to command sufficient resources to satisfy basic needs

5. introduction ii/ii… • Eradication of poverty and under-development is a challenge facing the world today, South Africa is no exception • The main challenge for this government is to halve poverty and unemployment by 2014 • Forestry has the potential to contribute to poverty alleviation • Forestry’s potential is threatened by the spread of HIV/AIDS, estimate 39% of the forestry workers may be infected

6. policy and legislation i/iii… • White Paper on Sustainable Forest Development (1996) • National Forestry Action Programme (1997) • National Forest Act no 84 of 1998; • National Veld and Forest Fire Act no 101 of 1998; • National Veld and Forest Fire Act no 12 of 2001; and • Forestry Laws Amendment Act no 35 of 2005

7. policy and legislation ii/iii… • the sustainable management and development of forests; • and provide social measures for protection of certain forests and trees; • sustainable use of forests for environmental, economic, educational, recreational, cultural, health and spiritual purposes; • community forestry; • greater participation in all aspects of forestry and the forest products industry by persons historically disadvantaged by discrimination;

8. policy and legislation iii/iii… 2003 strategy ‘ Forests are managed for people, the need to create an enabling environment for economic and social development through sustainable forest management at local level’. DWAF’s role was redefined from forest manager to a forest regulator putting people at the centre of forest development

9. forests and poverty alleviation… Questions: • just how important are forests for poverty alleviation; • can forests and woodlands help lift people out of poverty; • or are they mainly useful as gap-fillers and safety nets preventing extreme hardship?

10. forests and poverty alleviation… benefits: • subsistence and informal trade; • the supply of basic needs; • a saving of cash resources; and • a buffer or safety-net during times of misfortune

11. the supply of basic needs… Firewood, building poles, medicinal plants, and edible fruits are all critical to the livelihood of the rural poor. Estimated that over 80 percent of rural households use fuelwood as their primary source of energy.

12. a saving of cash resources… Saving of scarce cash: forest resources are collected to meet daily needs for energy, shelter, medicine and food Scarce cash resources are then used to secure other household needs, as well as helping to accumulate the necessary asset base for a more secure livelihood, including the education of children, investment in agricultural tools, and capital for income generation activities

13. a buffer or safety-net during times of misfortune… During times of adversity many rural households turn to forest resources for subsistence use or as a means to generate income The safety-net function of forest resources is temporarily variable, (there is little information regarding its prevalence throughout rural communities)

14. forests and development … • The commercial forest sector • Economic contribution of forests • Non- timber forest products • Households and livelihoods (already addressed) • Forest enterprise development

15. the commercial forest sector… Business opportunities: For small-scale entrepreneurs, small growers, contractors and saw millers. There is more than 30 000 small growers, 240 small saw millers and 300 independent contractors, of which half are black emerging contractors. Pulp and paper industry has created more than 10 000 income opportunities for waste paper vendors.

16. economic contribution of forests Importance to the national economy, and to large numbers of poor people living in remote rural areas. Forest management generates about 170,000 jobs (this range from permanent, contract and informal workers). The majority of the jobs created are low skilled based and concentrated in rural areas where there is high unemployment. Contributes about 1,1% to the total Gross Domestic Product of the Republic of South Africa and 1,4% to the total formal employment; this is comparable to other large sectors of the economy. (Sub-sectors: plantation forestry, sawmilling, pulp and paper, treated poles, charcoal, & firewood)

17. non- timber forest products… examples: marula beer sellers, woodcarvers, timber small-growers, medicinal plant collectors or fuelwood vendors, a large number of people earn relatively small amounts of income but it is still important as it can be used to settle debts or make payments that do not occur frequently, such as school fees, the purchase of agricultural implements, or household improvements

18. forest enterprise development The benefits of forest products are not only restricted to household use and the substitution of cash items with “free” forest goods. Forest products are also traded extensively and contribute to rural household incomes. The commercial forest sector offers significant business opportunities for small-scale entrepreneurs, particularly for small growers, contractors and saw-millers

19. policy perspective… • Policy measures can further boost the contribution of Forest resources to reducing poverty. • The department will continue to promote forest policies that are people centred to ensure that poor people in forest areas must have a much greater say in decisions regarding the use of forest resources. • In areas where forests are central to livelihoods, the main objective of forest management should be meeting their needs in a sustainable way. • It is critical that forest social and economic development opportunities are ‘included’ in Provincial Growth and Development Plans as well as municipal Integrated Development Plans. • Forest-based poverty alleviation programmes should not be carried out in isolation, but must be part of an overall Rural Development Strategy of the National Government.

20. concluding remarks i/v… Implementation of: • State forest transfers and forestry-related land reform • Broad-based Black Economic Empowerment in the Forest Sector • Community Forest Management (woodlands, small indigenous forests and woodlots) • Forest Products Innovation • Management of Ecological Services (climate change, soil & water conservation) and providing information on the ecosystem services value attached to South Africa’s forests, including the fraction of the benefits captured exclusively or primarily by rural communities.

21. concluding remarks ii/v… • Working with other government departments to encourage multipurpose land use in forests and woodlands, on State, private and communal lands, so that benefits and opportunities from the full range of resources are optimized from any piece of land. • Strengthening and developing initiatives on improving access rights for rural communities with a concerted strategy to improve opportunities for the poorest to benefit from both private and state forest resources. • A review of the legal provisions regulating the subsistence harvesting of forest produce is required to make legal use possible and accessible to the rural poor.

22. concluding remarks iii/v… • Developing and clarifying the roles and responsibilities of all tiers of government, and local structures, particularly traditional authorities, in protecting and regulating sustainable use of forest resources. • A long-term fuelwood strategy, which takes into account the predicted 2,5 million rural households remaining without electrical supply for the next twenty years, needs to be developed and implemented. • National statistics are required to record the significance of subsistence use of forest produce and services by the rural (and urban) poor. (studies commissioned in Gauteng and Bushbuckridge)

23. concluding remarks iv/v… • Acknowledging the role of women in forest development through proactive gender policies in all DWAF strategic initiatives. • Research on the appropriate yields that can be harvested without damaging natural population levels for a number of important plant species is urgently required. • Support needs to be provided to the small-scale tree growers and sawmilling industry in securing log supplies and a strategy developed for the saw timber segment of the sector generally, in order to meet the rising and projected increase in demand. • Supporting charcoal joint ventures, for example the remaining DWAF plantations in the Eastern Cape and Limpopo contain extensive areas of hardwood suitable for charcoal manufacture.

24. concluding remarks v/v forests for people THANK YOU