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Forest Governance and Timber Trade Flows Within, to and from Eastern and Southern African Countries

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Forest Governance and Timber Trade Flows Within, to and from Eastern and Southern African Countries Forest Governance and Timber Trade Flows within, to and from Eastern and Southern African Countries South Africa Study February 2014 Timber Trade Flows within, to and from East African Countries, South Africa Study 1 | Page Table of Contents ABBREVIATIONS 5 BACKGROUND 7 EXECUTIVE SUMMARY 8 1. INTRODUCTION 11 1.1 GENERAL BACKGROUND 11 1.2 FOREST SECTOR CONTRIBUTION TO THE SOUTH AFRICAN ECONOMY 11 2. THE FOREST SECTOR 13 2.1 INDIGENOUS/NATURAL FORESTS 15 2.2 SAVANNAH WOODLANDS 16 2.3 PLANTATIONS 17 3. CITES 20 4. THE FOREST ADMINISTRATION 21 5. THE REGULATORY FRAMEWORK FOR TIMBER PRODUCTION AND HARVESTING, PROCESSING, TRANSPORT AND MARKETING 23 5.1 THE LEGAL FRAMEWORK FOR THE SECTOR 23 5.2 OTHER INSTITUTIONAL STAKEHOLDERS 24 Ministry of Water and Environmental Affairs (MWEA) 24 Inter‐ministerial Institutions 25 Conservation Authorities 25 South African Revenue Services (SARS) 25 Forestry Research 25 5.3 MAIN ACTORS 25 5.3.1 Commercial Plantation Forestry Companies 25 Commercial Timber Farmers 25 State‐owned plantations 26 Micro‐growers 26 5.3.2 Private Owners of Indigenous Forests 26 5.3.3 Local Communities 26 5.3.4 Industry Associations 26 5.3.5 Timber importers/merchants 26 5.3.6 Indigenous Hardwood Users 27 5.3.7 Forest Certification Bodies 27 5.3.8 Civil Society (NGOs, Academia, etc.) 27 5.4 THE LEGALITY ASSURANCE SYSTEM 27 5.5 TIMBER TRACKING 28 5.6 REQUIREMENTS FOR THE EXPORT AND IMPORT OF FOREST PRODUCTS 28 Exports 29 Imports 29 5.7 LAW ENFORCEMENT 30 5.8 INFORMATION AND MONITORING SYSTEMS 30 5.9 CERTIFICATION 31 5.10 TRANSPARENCY IN THE SECTOR 32 5.11 FLEGT ACTIVITIES TO DATE 32 5.12 REDD+ 33 6. THE FUEL WOOD MARKET 34 6.1 DOMESTIC FUEL SOURCES 34 6.2 CHARCOAL 35 7. FOREST UTILIZATION 36 7.1 INDIGENOUS FOREST 36 7.2 SAVANNAH WOODLANDS 37 7.3 PLANTATIONS 38 Timber Trade Flows within, to and from East African Countries, South Africa Study 2 | Page 8. THE FOREST INDUSTRY SECTOR AND DOMESTIC TIMBER MARKET 39 9. THE TIMBER TRADE 43 9.1 EXPORTS 45 9.2 IMPORTS 45 10. TRENDS AND KEY ISSUES 47 10.1 CONTINUING TRANSFORMATION OF DAFF INTO POLICY AND REGULATION AGENCY 47 10.2 INCREASING ATTENTION TO LAND AND LABOUR RIGHTS IN THE PLANTATION SECTOR 47 10.3 LACK OF HUMAN AND FINANCIAL RESOURCES FOR THE MANAGEMENT OF INDIGENOUS FORESTS AND WOODLAND 47 10.4 LACK OF CAPACITY IN OTHER GOVERNMENT AGENCIES FOR OVERSIGHT AND LAW ENFORCEMENT 47 10.5 IMPENDING INTRODUCTION OF EXPORT OF INDIGENOUS HARDWOODS 47 10.6 REPORTING OF FORESTRY STATISTICS 48 10.7 LACK OF CONTROLS FOR IMPORT AND EXPORT OF TIMBER 48 10.8 SOUTH AFRICA AS A CONSUMER OF ILLEGAL TIMBER 48 10.9 SOUTH AFRICA AS A CONDUIT FOR ILLEGAL TIMBER 48 11. ANECDOTAL INFORMATION ON VOLUMES OF UNDOCUMENTED AND ILLEGAL HARVESTING AND TRADE, MAJOR TYPES OF ILLEGAL LOGGING CASES 49 12. STAKEHOLDER PERCEPTIONS OF ILLEGAL LOGGING, CHALLENGES AND THE WAY FORWARD 51 13. CONCLUSIONS AND RECOMMENDATIONS 52 CONCLUSIONS 52 RECOMMENDATIONS 53 14. REFERENCES 54 ANNEXES 57 ANNEX 1: LIST OF PROTECTED TREES SPECIES UNDER THE NATIONAL FORESTS ACT 1998 (ACT NO 84 OF 1998). 57 ANNEX 2: SOUTH AFRICA’S TRADE IN SELECTED GROUPS OF WOOD‐BASED PRODUCT (2000‐2011, BY PARTNER COUNTRY) 59 List of Tables TABLE 1: MAIN FOREST TYPES OF SOUTH AFRICA AND THEIR AREA (2009) ........................................................................... 15 TABLE 2 STATE AND PRIVATE OWNERSHIP OF INDIGENOUS FORESTS, BY AREA AND PROVINCE (2010) ...................................... 16 TABLE 3 DISTRIBUTION OF WOODLANDS BY PROVINCE (2010) ......................................................................................... 17 TABLE 4 PLANTATION OWNERSHIP: MAIN PLANTATION COMPANIES IN SOUTH AFRICA AND THEIR AREAS (2012) ........................ 19 TABLE 5 PLANTATION OWNERSHIP: SUMMARY OF THE PLANTATION AREAS MANAGED BY DAFF (AS AT 31 MARCH 2012) ............. 20 TABLE 6 CURRENT IMPORT TARIFFS FOR SELECTED TIMBER AND TIMBER PRODUCTS (2012) ................................................... 29 3 TABLE 7 ROUNDWOOD SALES FROM PLANTATIONS IN 2008/2009; M : ............................................................................. 38 TABLE 8 STRUCTURE OF SOUTH AFRICAN WOOD PROCESSING INDUSTRY 2000‐2009 ........................................................... 41 TABLE 9 SPECIES COMPOSITION IN THE INDUSTRIAL TREE PLANTATIONS 2000‐2009............................................................. 41 List of Figures FIGURE 1 PROVINCES OF SOUTH AFRICA ....................................................................................................................... 12 FIGURE 2 FORESTRY RESOURCE MAP (2009) ................................................................................................................ 14 FIGURE 3 DISTRIBUTION OF THE MAIN INDIGENOUS FOREST TYPES OF SOUTH AFRICA ............................................................. 16 FIGURE 4 OWNERSHIP OF SOUTH AFRICA’S PLANTATIONS ................................................................................................ 18 FIGURE 5 ORGANOGRAM OF THE DIRECTORATE OF FORESTRY AND NATURAL RESOURCES MANAGEMENT (2011) ........................ 22 FIGURE 6 MAP SHOWING THE LOCATION OF INDUSTRIAL TREE PLANTATIONS, INDIGENOUS FORESTS AND THE MAJOR PROCESSING MILLS .................................................................................................................................................................. 39 FIGURE 7 MAP OF SOUTH AFRICA’S TRADE IN WOOD‐BASED PRODUCTS, BY RWE VOLUME (2011) .......................................... 43 FIGURE 8 OVERVIEW OF SOUTH AFRICA’S TRADE IN WOOD‐BASED PRODUCTS, 2000‐2011 (BY RWE VOLUME) ........................ 44 FIGURE 9 IMPORTS OF VPA CORE PRODUCTS ................................................................................................................. 59 FIGURE 10 EXPORTS OF VPA CORE PRODUCTS ............................................................................................................... 60 FIGURE 11 IMPORTS OF OTHER TIMBER SECTOR PRODUCTS ............................................................................................... 61 FIGURE 12 EXPORTS OF OTHER TIMBER SECTOR PRODUCTS ............................................................................................... 62 FIGURE 13 IMPORTS OF PAPER SECTOR PRODUCTS .......................................................................................................... 63 FIGURE 14 EXPORTS OF PAPER SECTOR PRODUCTS .......................................................................................................... 64 FIGURE 15 EXPORTS OF LOGS ..................................................................................................................................... 65 Timber Trade Flows within, to and from East African Countries, South Africa Study 3 | Page FIGURE 16 EXPORTS OF FUEL SECTOR PRODUCTS ............................................................................................................ 66 Timber Trade Flows within, to and from East African Countries, South Africa Study 4 | Page Abbreviations B‐BBEE – Broad‐Based Black Economic Empowerment CBD – Convention on Biodiversity CITES – Convention on Trade in Endangered Species CSIR ‐ Council for Scientific and Industrial Research DAFF – Department of Agriculture Forestry and Fisheries DEA – Department of Environmental Affairs DFID – Department for International Development (British Government Aid Agency) DWA – Department of Water Affairs DWAF – Department of Water Affairs and Forestry (predecessor to DAFF until 2009) EKZNW ‐ Ezemvelo KwaZulu Natal Wildlife (provincial wildlife service of KwaZulu Natal) EWT – Endangered Wildlife Trust (conservation NGO) EIA – Environmental Impact Assessment EU – European Union FAO – Food and Agriculture Organisation of the United Nations FCPF – Forest Carbon Partnership Fund (World Bank managed REDD fund) FES – Forest Economics Services FLEGT – Forest Law Enforcement Governance and Trade FNRM – Forestry and Natural Resources Management (Division of DAFF; aka Forestry Branch). FPA – Fire Protection Association FSA – Forest South Africa – national commercial forestry association FSC – Forest Stewardship Council GARP – Governance of Africa’s Resources Programme GDP – Gross Domestic Product GFRA – Global Forest Resources Assessment (of FAO) GoC – Government of China IUCN – International Union for the Conservation of Nature and Natural Resources KZN – KwaZulu Natal Province NCT – National Timber Growers Cooperative NEMA – National Environmental Management Act of 1998 NFA – National Forests Act of 1998 NGO – Non‐governmental Organisation NTFP – Non‐Timber Forest Product NWA – National Water Act of 1998 NVFFA – National Veld and Forest Fires Act of 1998 PCI&S – Principles Criteria Indicators and Standards Pers. Comm. – Personal Communications PFM – Participative/Participatory Forest Management REDD – Reduced Emissions from Deforestation and Forest Degradation RSA – Republic of South Africa RWE – Roundwood equivalent (volume estimate for processed wood products in terms of original roundwood) Timber Trade Flows within, to and from East African Countries, South Africa Study 5 | Page SABS – South African Bureau of Standards SADC – Southern African Development Community SAFCOL ‐ South African Forestry Company Limited (public enterprise managing plantations and mills) SAFRI ‐ South African Forest Research Institute SAIIA – South African Institute of International Affairs SANParks – South African National Parks (conservation parastatal) SAPS – South African Police Service SARS – South African Revenue Service TTP
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