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PRESENTATION TO THE PORTFOLIO COMMITTEE ON WATER AFFAIRS AND FORESTRY

Gay Mokoena and SAWMILLING SOUTH AFRICA

11 March 2008

Contents

Matters directly affecting Sawmilling South Africa

Matters affecting communities around timberlands and sawmills

Introduction to Sawmilling South Africa

Conclusion

Sawmilling South Africa

Established in late 2007

This represents 74% of the formal sector

Sawmilling SA is a successor to SALMA

Currently recruiting the emerging sector. Output of 4 800m3 p.a. exempted from subscription fees

Currently made up of some 38 sawmills throughout the country

Objectives of Sawmilling South Africa

To create unity of purpose and identity among its members

To promote the sawmilling industry by way of providing a formal voice

To promote sustainable growth of the industry, particularly for emerging

To promote and encourage education and training in the industry

To collect,analyse, exchange and disseminate information

To promote interests of all saw millers; big and small in the RSA

Objectives of Sawmilling South Africa (cont)

To represent the interests of members to public and private bodies

To seek affiliation with any other sawmilling, forestry and industry bodies

To promote and facilitate free competition in all spheres of the industry

Issues facing Saw Millers

The threat of imports for the local industry

Impact on the local building industry

Short supply of raw materials

An opportunity to involve communities in afforestation

Komatiland sawlog marketing policy

Issues affecting communities

Access to land for forestry:

Current institutional arrangements don’t promote entrepreneurship (Ownership)

Should create incentive for members and forestry companies to invest

Ensure accountability of any management e.g. audits

Distribute benefits in a transparent and fair manner

Communities often feel excluded as members have no influence (e.g. voting)

Afforestation of previously disadvantage areas also an opportunity

Communities need real benefits rather than corporate social investment projects

Issues affecting communities (cont)

Commercialisation of Komatiland is an opportunity for BBBEE

Building of infrastructure such as dams could promote other industries

Decentralization of forestry functions essential

Conclusion

Sawmilling SA satisfied with recognition by Government

Sawmillers are quite keen to work with communities.

In an environment that respects corporate governance

Where decision making is efficient, equitable and sustainable

With coordinated support from Govt and NGO sectors

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Thank you

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