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In the latest Quest

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Forestry and rural development

Most forests are in rural areas. Cori Ham explains how forestry can play a role in rural development.

The impact of forests on people is well recognised with more than 1 billion people worldwide depending on forests for their livelihoods. We know that forests offer numerous benefits to nearby communities and society at large – wood for fires and building, employment, ecological services and even spiritual needs.

Most forests, by their very nature, are within rural areas that are often remote. These areas often have poor infrastructure, lack government services, are far from markets and jobs and offer limited opportunities to make a living. This is also the case in South Africa where forestry activities take place in some of the poorest rural areas. It is then not surprising that government has identified the forest sector as an important element of local natural resources development that can contribute to better living environments and economic opportunities. Forestry and value­adding industries have a place in local development programmes in many rural districts in the Western Cape, Eastern Cape, KwaZulu­Natal, Mpumalanga, and Limpopo Province.

Commercial forestry: an opportunity for development

South Africa’s commercial forestry industry contributes significantly to the national economy. From a resource base of approximately 1.27 million hectares of plantations it contributes approximately R 20.4 billion per annum to the national economy off a capital base of R 25 billion. To make sure that there is an equitable distribution of benefits from this industry, government recently launched a multi-stakeholder initiative to formulate a Forestry and Forest Products Sector Broad Based Black Economic Empowerment Charter (BBBEE). The goals of BBBEE fit with the goals of poverty reduction, and allow for much greater involvement of previously disadvantaged individuals (PDIs) in the economy. This occurs through through equity transfers, and also through enterprise development, employment equity, skills development and training.

Commercial forestry provides employment opportunities.

Department of Forest Science, Stellenbosch University

The most significant contribution that forestry can probably make towards the reduction of poverty is through the creation of employment and business opportunities within forestry areas. It is estimated that there are 96 500 people employed in forestry operations of which 66 500 people are formally employed, and a further 30 000 are small growers and their helpers. Plantation forestry provides 8.9% of the total number employed in agriculture and 5.6% if small growers and their employees are excluded. These beneficiaries tend to be unskilled, in low-income areas, and with few alternative opportunties to generate income.

There are also employment opportunities in secondary and tertiary processing. In 2009, there were 192 processing plants associated with plantation forestry, which provide further employment opportunities through their products.

The informal sector

South Africa is a net exporter of value added forest products, with a total export of R12.5 billion per annum. The forestry industry contributes 0.9 % to the gross domestic product (GDP) and 9.7 % to the agricultural GDP.

Sawntimber entrepreneurs.

Department of Forest Science, Stellenbosch University

But there are not only opportunities in the formal sector. In South Africa, timber outgrower schemes allow participating households to increase their income substantially. Gross annual revenue from the sale of timber by small-scale and other PDI growers is estimated at approximately R115 million per year. If you consider that 65% of the revenue from timber sales (approximately R5 million a year) is returned to the communities that grew the timber, this offers an annual average revenue per grower of R3 000 per year over the rotation period, which is often returned in lump sum payments at the end of the rotation.

Forest goods and services

Forestry provides not only jobs and income in rural areas but also the direct-use benefits of forest goods and services including supplying basic needs, saving cash resources and buffering or safety-nets during hard times. Two of the most important direct-use benefits are the supply of fuelwood to rural households and the collection of timber and non-timber forest products from forests.

In some regions of South Africa, up to 80% of rural households use wood for energy in the home, with or without other fuels. Women in these households often walk long distances to fetch firewood. The average time spent this way is estimated conservatively at five hours per household per week. Between 9 – 11 million tons of wood are used for fuel every year, of which about 6.6 million tons are estimated to be harvested from natural woodlands.  Fuelwood consumption per household in the Kentani area of the Eastern Cape for instance was estimated at 3 700 kg per annum.

The commercial role of fuelwood can also be significant when community members supplement their incomes by selling fuelwood. Sometimes this activity becomes their main source of cash – particularly for many landless rural people.

Construction

Timber for construction is also a major forest product. Up to 15 000 poles from DWAF-managed woodlots in the Eastern Cape are sold annually to nearby communities for building material. In the absence of poles from woodlots, households rely on natural forests for access to building poles. This could have a significant impact on indigenous forests when preference is given to poles from certain age classes of high-demand species.

Non-timber forest products

Non-timber forest products (NTFPs) include products used for energy, shelter, food and medicine. This allows rural households to use their limited money for other needs such as education, investment in agricultural tools, capital for income generation activities, etc.

The benefits of forest products are not restricted to household use and ‘free’ forest goods. Forest products are also traded extensively and contribute to rural household incomes.  For example:

• At least 4% of rural households are trading one or more forest products.
• There are at least 800 000 people involved in the craft industry.
• There are 15 000 people in the Eastern Cape alone dependent on small-scale sawmilling.
• There are at least 3 500 households engaged in various forms of income generation from Sclerocarya birrea fruits (marulas), supporting over 20 000 dependants.

Forestry is a major source of income and employment in some of the poorest rural areas in South Africa. The formal forestry industry, in partnership with NGOs and goverment, plays a major role in poverty alleviation in these areas.