Minister B Creecy: Launch community forestry agreements and handover ceremony of Mission, Nqamakwe and Mgomanzi plantations to Tobotshane, Amahlubi and Amazizi traditional councils

Butterworth, Mnquma Local Municipality, Amathole District Municipality, Eastern Cape Province
23 April 2024

Programme director
Deputy Minister of Forestry, Fisheries and the Environment, Ms Makhotso Sotyu,
Deputy Minister of Human Settlements, Ms Pamela Tshwete,
Deputy Minister of Agriculture, Land Reform and Rural Development, Ms Nokuzola Capa,
Executive Mayor of Amathole District Municipality Cllr Anele Ntsangani,
Executive Mayor of Mnquma Local Municipality Cllr Tunyiswa Manxila-Nkamisa,
Chief Whip for Portfolio Committee Forestry, Fisheries and the Environment, Hon Ms Nqabisa Gantsho,
Member of the Portfolio Committee Forestry Fisheries and the Environment Hon Mr Ndumiso Capa,
Spokesperson of the Amathole Local House of Traditional Leaders, Chief Ndabele Bangisizwe Mtoto,
Inkosi Bikitsha, 
Inkosi Nhyila,​
Inkosi Silinga,
The Tobotshane, Amahlubi and Amazizi communities,
Representatives from the forestry industry,
Distinguished guests,
Members of the media

Ladies and gentlemen

Today marks the historic launch of the nineteen (19) community forestry agreements (CFAs) signed with various traditional councils across the country and the official handover of the Mission, Nqamakwe and Mgomanzi plantations to the Tobotshane, Amahlubi and Amazizi traditional councils here in Butterworth.

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.

The support given by the royal houses underscores the vital role traditional leadership plays in facilitating government initiatives, making collaboration and project success more attainable. Siyabulela.

The forestry industry manages 1.2 million hectares, contributes 1% to South Africa's gross domestic product annually and employs 149 100people. However, as with the rest of our economy, the sector has historically excluded the majority of our population.

Due to our history as a country ownership of forestry is fragmented, and governed under different arrangements. State-owned forestry plantations face a number of challenges that act as obstacles to the growth of the sector. As stated, transformation remains a challenge, as well as ensuring that beneficiation schemes reward communities for their stake in managing plantations.

Sourcing new markets for forestry products also remains a challenge, particularly for forestry products such as viscose, a cotton alternative, that can open new revenue streams for foresters.

Accessing such markets will mean that a number of plantations that are essentially dormant will need to be cleared of alien vegetation and protected against fire risk through the maintaining of firebreaks.

Another problem has been illegal occupation on state plantations where forestry land is being utilised for agriculture and housing, diminishing the area of plantations and affecting the potential for job creation in these areas.

The Department of Forestry, Fisheries and Environment (DFFE), through policies such as the Forestry Sector Masterplan, aims to transform the industry, not only in terms of ownership, but to also transform the ways in which communities benefit from their stewardship of our forestry resources.

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 sector masterplan.

This comprehensive blueprint, approved for implementation in November 2020, serves as a guiding framework for the growth, investment, and transformation of the forestry sector. The masterplan emphasises the importance of transferring plantation resources to empower communities and foster sectoral development.

The masterplan has 6 key focus areas (KFAs) to ensure that its objectives are achieved. Key focus area 1 which deals with expanded forest resources, maintenance and protection – aims to ensure that all forestry areas are brought back into production. Key focus area 2 focusses on transformation and involves the empowerment of communities living in and around plantations to be capacitated in order to manage the assets and participate meaningfully in the market.

The department's contribution to the two key focus areas is ensuring that the DFFE plantations are transferred to communities through implementation of section 29 of the National Forests Act, 1998.

The community forestry agreements are an important milestone towards community empowerment and sustainable forestry practices, underscoring government's commitment to inclusive development and environmental stewardship.

The masterplan addresses the challenge of dealing with maintenance of the areas under production and dealing with crime on plantations, be it either illegal occupation or timber theft. Through the masterplan, 151 000 hectares have been identified for new afforestation. Production in these new areas will open more market opportunities whilst addressing additional fibre requirements by the sector.

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.

The 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 the beneficiation of communities and that previously disadvantaged communities are included in the forestry value chain, the masterplan aims to increase share of SME procurement in the industry.

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.

Now, as the communities gathered here today are about to enter community forestry agreements with the department, there are a number of requirements that need to be adhered to ensure that the forestry resources are sustainably managed, and communities can reap the benefits:

• Firstly, traditional councils, on behalf of the communities, are expected to manage the community forests sustainably to sustain potential yields of their economic, social and environmental benefits.
• To ensure investment opportunities, an operating company 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.
• Any changes of land use are not permitted unless approved by the minister responsible for forestry.
• As and when the operating company is in place, it must be owned by the community and procurement of a strategic partner must be in a transparent and fair bidding process. The selection process should involve the Department.

All of these measures are to be undertaken to protect the forestry resources, instil transparency, and provide that the operating companies, once established, remain going concerns. Recognised third-party rights, such as fuelwood collection for subsistence purposes, are subject to regulations set by the traditional councils in consultation with the DFFE.

Ladies and gentlemen

Government's support does not end with today's handover ceremony. The partnership between communities, traditional councils and the department is crucial to maintaining the viability of the plantations, and the prosperity of those who manage them.

A comprehensive post settlement support programme encompassing capacity building, business support, technical and regulatory support has been established to facilitate successful community ownership and management of the plantations.

The support will take many forms. This includes donation of seedlings, planting and blanking, access to mapping tools, regulatory support to adhere with environmental legislation, assistance in marketing and financing, and linking beneficiaries with strategic partners.

Thus, the benefits of a CFA can be fully enjoyed by all members of their respective communities.

I want to emphasise that this process will require patience. Just as a tree takes time to grow, for its roots to dig into the earth, and for its branches to spread, the benefits of the CFA's to their communities will be realised over time.

Immediate benefits will be the jobs created through the management of the plantations, for example either through clearing of alien vegetation, planting seeds, or the income from the selling of forestry resources such as wood and pulp. In the long-term communities will benefit from skills training and investment into their plantation infrastructure from strategic partners. 
Today's milestone marks a significant step towards addressing the challenges faced by the forestry sector, fostering collaboration and ensuring its sustainable development. I commend all stakeholders who have worked diligently over the past three years under the guidance of the deputy minister.

Additional CFAs are set to be concluded in the current financial year, with ongoing assessments of investment proposals from potential partners. The call for proposals issued last December invited investors to submit investment proposals for strategic partnerships with communities, including for the management of all plantations including Mission, Mgomanzi and Nqamakwe Plantations.

My sincere gratitude also goes to the role players and stakeholders whose dedication and efforts have made this initiative a reality. While negotiations and associated processes may have been protracted and complex, our shared commitment to empowering our communities has borne fruit.

The transfer of plantations aligns with the objectives of the Commercial Forestry Sector Masterplan and I urge the forestry industry and labour representatives to continue their support in ensuring that these communities thrive.

In the words of the late Wangari Maathai, environmental activist and the first African woman to win the Nobel Peace Prize,

When we plant trees we plant the seeds of peace and hope.

I thank you