‘Adding value to South Africa’s Indigenous Knowledge and Plant
Biodiversity through Scientific Innovation’
Marthinus Horak
CSIR Enterprise Creation for Development
www.csir.co.za www.csir.co.za
Contents
• Background
o South Africa’s knowledge and biodiversity resources
• Rural agro-processing enterprises: lessons from the trenches
o Essential oils and medicinal plant demonstration projects funded by
Department Science and Technology
• Conclusions
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Background information
• The CSIR: o Is a leading technology development institution
o Contributes to socio-economic development of the country through knowledge creation and knowledge application activities
o Contributes to national imperatives of job creation, rural development, human capital development and meeting of basic needs.
• Enterprise Creation for Development (ECD): o Utilizes science and technology solutions to address poverty and
underdevelopment
o Sources technology from CSIR units and other participants in the National System of Innovation
‒ Currently implementing a portfolio of DST-funded essential oil and medicinal plant (EO&MP) projects aimed at demonstrating agro-processing businesses in favour of socio-economically excluded, rural communities.
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South Africa’s plant biodiversity
• 24 500 plant species occur in South Africa
o Approximately 10% of plant species known to man
o South Africa represents only 2% of land surface area of the world
o Many endemic species
o Nine unique vegetation types
• Plants occur in highly diverse ecosystems
o Adapted to extreme climatic conditions
o Many species evolved and survived for millennia
o Developed sophisticated chemical defence mechanisms
‒ Potential source of biologically active metabolites
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South Africa’s indigenous knowledge systems
• Local Traditional Healer practices:
o A long history of traditional use of indigenous plants to treat human ailments
o More than 200 000 Traditional Healers are active throughout the country
o Approximately 70% of South Africans regularly consult a Healer
• Knowledge of medicinal value of indigenous plants
o not yet leveraged for the benefit of sustainable development in South Africa
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National System of Innovation
• Indigenous plant species have been researched by botanists, taxonomists, plant ecologists, etc. at many universities and research institutes during the past 60 years
• Natural product chemists, pharmacologists, etc. have contributed significantly to mankind’s understanding of biologically active substances from plants since the second world war
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South Africa’s competitive advantage
Unique
Plant Biodiversity
Indigenous
Knowledge System
National System
of Innovation
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Harnessing South Africa’s competitive advantage
Biodiversity
Scientific
Innovation
Indigenous Knowledge Systems
Research findings, publications, technology packages, patents
New enterprises that cultivate and process indigenous plants with fragrant, cosmetic, medicinal and/or nutritional value
‘Innovation chasm’
Focus area for CSIR Enterprise
Creation for Development / DST
Sustainable Livelihoods partnership
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Why focus on Essential Oils and Medicinal Plants ?
• Lucrative global markets
• South Africa does not yet participate significantly in these markets, despite our access to resources:
o Heritage of indigenous knowledge on the medicinal use of plants
o History of scientific research at local research institutes and universities
o The diverse climatic regions supports EO&MP species
• EO&MP products o shelf-stable
o high-value
o low volume
• EO&MP - opportunity for on-farm value-addition through processing of harvested crops
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CSIR-DST EO&MP sector objectives
• Develop the EO&MP sector:
o Identify suitable EO&MP products
o Identify technical production hurdles, source and implement technology solutions
o Create market linkages for locally produced EO&MP products
o Develop sector protocols − land and water use
− environmental issues
− biodiversity access and benefit sharing
• Enterprise creation projects to facilitate participation of developing rural farmers
• Commercialize novel, locally invented EO&MP products
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ECD Conceptual Framework
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CSIR ECD
(Enterprise Creation for Development)
Donor Agencies and Private Sector
Government Departments
Knowledge Generation Institutions
Beneficiaries:
• Communities
• Enterprises
• Individuals
Stakeholders (NGOs, Agencies, Service Providers etc.)
National, Provincial & Local Policies, Strategies, Programmes & Instruments
Needs
Solutions
Programmes, projects and funding
Funding
Technology and knowledge
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Level of ECD involvement
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Continually decreasing CSIR
involvement, control and
responsibility
Continually increasing local
involvement, control and
responsibility
Initiate
project
Mentor
business Establish
Infrastructure Establish
production and
create market
linkages
Train staff and
embed Good
Farming and
Manufacturing
Practices
Establish
business
5 years
100% 100%
10%
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IKS and scientific research collaboration: a case study
• A consortium of Traditional Healers approached CSIR during early nineties to establish collaboration
• The aim was to scientifically validate the knowledge of Healers on the beneficial uses of various plant species
• The result was the invention of a novel insect repellent product by CSIR
• CSIR patented the use of the essential oil of Lippia javanica as an insect repellent
• CSIR entered into a benefit-sharing agreement with the consortium of Healers whereby royalties on sales are paid
• Three community-based essential oil agro-processing farms currently produce the insect repellent oil
• CSIR licensed a local entrepreneur to manufacture and distribute the mosquito repellent product
• The invention provided an opportunity to demonstrate the value of beneficiation of local natural resources and indigenous knowledge
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CSIR innovation leads to community-based cultivation of an
indigenous plant species….
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Distillation of crop to give the essential oil….
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Formulation of essential oil in candles….
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Patented mosquito and fly repellent product on the shelves of
more than 200 local stores
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DST EO&MP projects
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Geographic dispersion of
projects increases
implementation costs but
facilitates inclusive
development
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Rose geranium cultivated by Pella community,
Northern Cape
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Distillation factory
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Rose geranium essential oil production at KwaNobuhle
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Scientifically validated results allow replication of
successful cultivation and processing sites
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Telemetric weather stations
and soil moisture meters
are installed on project sites
The quality of EO&MP products are
confirmed through chemical analysis
prior to shipment to buyers
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Pilot production of Rosa damascena essential oil
at Ficksburg
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• Rosa damascena oil of Bulgarian origin certified as organic is worth
R105 000 per kilogram
o The species is suitable for very cold climates
• Project requires horticultural and engineering innovations:
o Stem grafting of imported genetic material to establish a local
propagation system
o Hydro-distillation based
on recycled engine oil as fuel
source to generate steam
Rosa damascena at Ficksburg – November 2013
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Regional collaboration: development of the
Essential Oil sector in Uganda
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• Uganda Industrial Research Institute contracted ECD to assist with
development of the Essential oil sector in Uganda
o Aim is to benefit from ECD’s experience gained while developing the
sector in SA
• Phase 3: Pilot Operation is currently underway
• UIRI staff were trained in SA and ECD staff members undertakes
project site visits in Uganda
Rose geranium crop ready for harvesting Essential oil distillation unit being installed
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Requirements for establishing an essential oil
production site
o At least 30 Ha of arable land
o Access to irrigation water
o Access to Eskom electricity
o Approximately 15 workers and one supervisor on 30 Ha
o Construction of a distillation factory on the farm
o On a well-managed farm, the financial returns from sale of oil is sufficient to
cover costs of area under cultivation and yield a profit
o Requires commitment from workers and management
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Requirements for establishing an essential oil
production site (continued)
• The project and resultant enterprise must conform to a highly involved
legislative framework: • National Environmental Management Act (Act No. 107 of 1998) (NEMA), as amended
in 2008
• National Environmental Management: Biodiversity Act (Act No. 10 of 2004) (NEMBA)
• National Environmental Management: Biodiversity: Amendment Act (2008) –
Integrated Export & Bioprospecting Permits, Material Transfer & Benefit-Sharing
Agreements (BABS Regulations)
• National Environmental Management: Air Quality Act (39 of 2004) (NEMAQA)
• National Environmental Management: Waste Act (Act No. 59 of 2008) (NEMWA);
• National Heritage Resources Act (Act No. 25 of 1999) (NHRA)
• National Water Act (Act No. 36 of 1998) (NWA) – application for a Water Use License
• Conservation of Agricultural Resources Act (Act No. 43 of 1983) (CARA)
• Occupational Health and Safety Act (Act No. 85 of 1993) (OHSA),
as amended in 2008
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Conclusions
• Agro-processing of high-value essential oils and medicinal plants
under irrigation:
o A viable opportunity for rural farmers
o Requires access to 5 -30 Ha – not a cottage industry
o Technology transfer and market access models are proven
o Wealth creation leads to job creation
But:
• Business models for enterprises on communal land not yet
proven o Management of working capital, cash flow and ongoing mentoring
remains a challenge
o Business partners may be required
• Legislative framework is stifling growth of the sector
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Thank You!