Website Links www.siyaqhubeka.co.za

CONTENTS

EXECUTIVE SUMMARY ...... 2 1 INTRODUCTION...... 6 1.1 BACKGROUND...... 6 1.2 STRUCTURE OF THIS REPORT ...... 6 1.3 ACKNOWLEDGEMENTS...... 6

2 OBJECTIVES AND APPROACH...... 7 2.1 OBJECTIVES...... 7 2.2 APPROACH ...... 7 2.3 STUDY AREA AND KEY STAKEHOLDERS...... 7

3 OVERVIEW OF THE OPERATION ...... 11 3.1 BASIC INFORMATION ON THE OPERATION ...... 11 3.2 EXISTING SOCIAL MANAGEMENT SYSTEMS...... 12 3.3 EXISTING COMMUNITY SOCIAL INVESTMENT INITIATIVES ...... 13 3.4 COMPLIANCE WITH ANGLO AMERICAN CORPORATE POLICY REQUIREMENTS ...... 16

4 OVERVIEW OF NEIGHBOURING COMMUNITIES ...... 17 4.1 INTRODUCTION...... 17 4.2 AGE AND GENDER STRUCTURE...... 17 4.3 EDUCATION...... 18 4.4 HOUSING...... 18 4.5 ACCESS TO WATER...... 18 4.6 AVAILABILITY OF SANITATION INFRASTRUCTURE...... 19 4.7 AVAILABILITY OF ELECTRICITY...... 19 4.8 ACCESS TO TELEPHONE INFRASTRUCTURE...... 19 4.9 WASTE REMOVAL SERVICES ...... 19 4.10 HEALTH STATUS...... 20 4.11 INCOME AND AFFORDABILITY ...... 20 4.12 EMPLOYMENT PROFILE ...... 20 4.13 ECONOMIC SECTOR PARTICIPATION...... 20

5 ECONOMIC BENEFITS OFFERED BY SIYAQHUBEKA...... 21 5.1 INTRODUCTION...... 21 5.2 EMPLOYMENT...... 21 5.3 VALUE ADDED...... 24

6 ISSUES RAISED BY STAKEHOLDERS...... 25 6.1 POSITIVE ISSUES RAISED...... 25 6.2 NEGATIVE ISSUES RAISED ...... 25

7 ASSESSMENT OF ISSUES AND IMPACTS...... 27 8 MANAGEMENT RESPONSES TO ISSUES RAISED...... 28 9 INDICATORS AND MONITORING...... 33 9.1 STANDARD SEAT KEY PERFORMANCE INDICATORS...... 33

10 ADDITIONAL ACTIVITIES TO BE CONDUCTED BY SIYAQHUBEKA...... 34 ENQUIRIES & GLOSSARY...... 34 ANNEXURE A: ASSESSING COMPLIANCE AGAINST ANGLO POLICIES AND PRINCIPLES...... 35

1 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA EXECUTIVE SUMMARY

INTRODUCTION The company also paid a total of R1.2 million (US$187,840) in taxes and other payments to the public This report presents the findings of a Socio-economic sector in 2004. SiyaQhubeka’s value added for 2004 Assessment Toolbox (SEAT) study undertaken for amounted to R9,832,000 (US$1.5 million). SiyaQhubeka Forests (Pty) Ltd (SiyaQhubeka), a commer- cial forestry enterprise located on the Zululand coastal plain of KwaZulu-Natal, South Africa. The report is also EXISTING SOCIAL MANAGEMENT part of the formulation of a strategic community develop- SYSTEMS AND COMMUNITY ment and social investment (SI) programme developed for SOCIAL INVESTMENT INITIATIVES SiyaQhubeka. The SEAT process was carried out from SiyaQhubeka has a number of key processes in place that March 2004 to December 2004. assist with the management of social issues relating to their operations. These include: the establishment of a OVERVIEW OF THE OPERATION Community Social Investment Department; the facilitation of Community Liaison Forums with communities in the SiyaQhubeka is a partnership between Mondi Business study area; the implementation of Participatory Rural Paper South Africa (an integrated pulp, paper and packaging Assessments to identify key needs; and Multiple Resource group), black empowerment entity Imbokodvo Use (MRU) activities, which allow the plantations to be Lemabalabala Holdings (I.L. Holdings) and government used for a wide range of other economically and socially structures. Mondi Business Paper South Africa (the majority beneficial purposes (e.g. bee keeping and livestock shareholder) forms part of Anglo Paper and Packaging, a grazing). DWAF also monitors SiyaQhubeka’s social division of Anglo American plc, one of the world's largest responsibility activities, as part of their 70-year lease mining and natural resource groups. SiyaQhubeka was the agreement with the State. SiyaQhubeka’s Forestry first black empowerment company (other than a community Stewardship Council certification also requires a compre- trust) to acquire shares in a significant forestry enterprise in hensive approach to managing environmental and social South Africa. issues. SiyaQhubeka’s three plantations (St Lucia, KwaMbonambi SiyaQhubeka has a wide range of CSI initiatives. These and Port Durnford), comprise 22,500 plantable hectares, range from firewood collection and brick-making initiatives, and stretch from Nyalazi in the north to Port Durnford in to bee farming, vegetable gardening and school class- the south. The St Lucia plantation borders largely on the room extensions. One of SiyaQhubeka’s flagship projects Greater St Lucia Wetland Park, a registered World is Fukamela, the objective of which is to facilitate the Heritage Site and one of South Africa's oldest game growth and commercial development of small and reserves. Land under SiyaQhubeka plantations is currently medium sized businesses in the forestry and wood rented from government, through the Department of Water processing industries. Affairs and Forestry (DWAF). The three estates are planted to gum and pine. COMPLIANCE WITH SiyaQhubeka has an annual turnover of R135.8 million1 ANGLO AMERICAN CORPORATE (US$20.9 million). The company outsources most of its POLICY REQUIREMENTS plantation activities such as silviculture, harvesting and transport to local enterprises. The total employment SiyaQhubeka undertook a self-assessment of performance generated by SiyaQhubeka is 1,451. This includes: 29 in relation to social and economic aspects within key Anglo permanent employees; 1,263 indirect employees (through policies and principles. SiyaQhubeka rated themselves as contractors and suppliers); 27 people employed by its implementing all social and economic actions required by community social investment (CSI) activities; and 132 induced employees. A total of 5,796 people are dependent upon SiyaQhubeka for their livelihoods. 1 Comparative values are calculated at R/US$ exchange rate of 6.5.

2 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA these policies and principles – albeit in a way that is specific ISSUES RAISED to the local context. SiyaQhubeka’s highest area of perform- BY STAKEHOLDERS ance was against Anglo’s Management Principles, where management scored themselves as implementing and Public consultation was conducted as part of the SEAT reviewing all actions required. study and associated formulation of the strategic commu- nity development and SI programme. A number of key issues were identified during this process. These are OVERVIEW OF outlined below. NEIGHBOURING COMMUNITIES

For the purposes of the SEAT study, and the development Positive issues of the strategic community development and SI The positive issues raised relate to the aesthetic value of programme, the study area has been identified as those the plantations and their contribution to local tourism; the communities that fall within a 5km radius of SiyaQhubeka’s impact of aforestation on the prevention of soil erosion and St Lucia, KwaMbonambi and Port Durnford plantations. associated water pollution; the wide range of non-timber products that benefit local communities (e.g. use of non- Comparisons within the overall study area show that saleable timber for building purposes and honey harvesting); settlements within the 5km radius of Port Durnford have a the role of the Community Liaison Forums in identifying and relatively higher standard of living and that, on the whole, addressing key issues and concerns; and the benefits asso- those within the 5km radius of St Lucia are generally the ciated with SiyaQhubeka’s CSI activities, employment of worst off in accessing basic services and infrastructure. local residents, and development of small and medium Some key characteristics of the study area are: sized forestry operations through its Fukamela initiative. Q The lowest levels of education are found in settle- ments near St Lucia where nearly 40% of the Negative issues population older than 20 years of age has not completed any form of schooling. The negative issues are grouped under a number of key Q A high proportion of households at both St Lucia headings: employment, access to resources, safety and KwaMbonambi are using water directly from issues, and community and environmental issues. rivers for household purposes, while more than 80% of households in the Port Durnford area have Employment access to piped water. Issues around employment relate to: (a) the employment of Q The vast majority of households in the study area non-local employees, resultant in-migration and strain on settlements are either reliant on pit latrines or do community relations and tensions developing between resi- not have access to any form of ablution facilities. dents; (b) the use of non-local and non-historically disadvan- Q In the settlements around the St Lucia site, nearly taged South Africans (HDSA) contractors, with concerns that 60% of households do not have access to elec- SiyaQhubeka does not offer adequate support for the local tricity for lighting purposes, compared to 86% of emerging contractors; (c) increased mechanisation and households in Port Durnford that do have access associated unemployment; and (d) dissatisfaction with to electricity. Mondi’s talent management and career development Q A formalised waste removal system is largely programme, particularly around the lack of clarity regarding absent within the study area settlements. who and how candidates are selected. Q HIV/AIDS levels are reportedly very high within the overall study area. Q The vast majority of households in the study area Access to resources earn less than R1,600 (US$246) per household Issues around access to resources relate to: (a) livestock per month, ranging between 66% of settlements owners prevented from grazing in young plantations to in the Port Durnford area to 73% in the St Lucia prevent damage to the trees – this restriction is perceived area. as depriving local residents of traditional grazing rights; (b) Q As many as 72% of the economically active as a result of land claims in the study area, local residents population in the St Lucia area is classified as are set to earn monthly rentals off the land currently leased unemployed. by SiyaQhubeka – however, delays in this process are

3 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA undermining the local benefits of the plantations and are contractors to employ labour only from communi- causing frustration among residents; and (c) there have ties adjoining the SiyaQhubeka plantations. In been problems with forest fires in the plantations, a result of addition, only contractors with a minimum of a honey hunters starting fires to smoke out the bees. 25% Black Economic Empowerment (BEE) part- nership will be appointed. These BEE partners Safety issues need to be sourced from the Zululand coast area. Q Regarding increased mechanisation, a social Safety issues relate to: (a) criminal activities (including rape) impact study is currently being done to evaluate in the plantations since the trees provide cover for criminals; the impact of mechanisation, and to propose (b) a fatality in 2004 as a result of the use of heavy machinery suitable mitigation measures. used in the plantations; and (c) concerns about heavy trucks Q SQF’s CEO will review Mondi’s talent manage- that drive along local roads, associated safety concerns, ment programme in consultation with the transfor- and increased noise and dust levels. mation committee and take action accordingly.

Community and environmental issues Access to resources

Community and environmental issues relate to the lack of Q In order to ensure that grazing is compatible with infrastructure in the settlements within the study area, and plantation activities, livestock owners will be concerns about soil disturbance during road construction educated about grazing capacity and the impacts and maintenance. of over-grazing, before their permits are issued. A grazing management programme will also be developed. This involves determining stocking ASSESSMENT OF levels for areas and monitoring grazing levels to ISSUES AND IMPACTS prevent over-grazing and associated impacts. Four issues have been identified as being the most signif- Q The SiyaQhubeka CEO will consult with govern- icant. These were identified based on the SEAT criteria for ment regarding the resolution of land claims and significance, plus the frequency with which stakeholders associated delays in rental of land currently have raised the issue. These issues are: under plantations. DWAF and Land Commission personnel will also communicate with local resi- Q the need to increase the participation of local resi- dents on this issue. dents in the contracts awarded by SiyaQhubeka; Q In order to ensure the on-going, sustainable use of Q the need to finalise land claims associated with non-timber products, SiyaQhubeka will imple- the land rented by SiyaQhubeka; ment the latest version of the Multiple Resource Q the need to address the impact of HIV/AIDS on Use (MRU) strategy that has been developed for the labour force; and implementation across Mondi’s forestry operations Q the need to address the high levels of unemploy- and SiyaQhubeka. In this regard, the establishment ment in the study area. of formal honey projects has already assisted in decreasing the problem of forest fires started by MANAGEMENT honey harvesters. RESPONSES TO ISSUES RAISED Management responses have been developed for all issues Safety issues identified during the SEAT study. Some of the most signifi- Q A full-time security company has been employed cant of these are outlined below. A target date of December to patrol the SiyaQhubeka plantations to address 2005 has been set for most management measures. criminal activities in the plantations. Q SiyaQhubeka’s Safety, Health and Environment Employment issues (SHE) officer will monitor and enforce compliance Q In response to concerns regarding employment with safety measures to help prevent accidents of non-local employees and use of non-local associated with forestry operations. The SHE and non-HDSA contractors, SiyaQhubeka will officer will also monitor and enforce compliance impose contractual conditions that require with vehicle specifications to address the

4 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA dangers of large trucks on local roads. Timber will Q Regarding the impact of HIV/AIDS on the local not be off-loaded at the mill if there is non-compli- workforce, SiyaQhubeka will be offering assistance ance with vehicle specifications. to at least two groups of community peer educa- tors, and will continue with the HIV/AIDS awareness Community and environment issues and education programme by participating in Q SiyaQhubeka will partner with local and provincial municipal initiatives. All HIV-positive SiyaQhubeka government in addressing priority needs among employees are provided with treatment. Where the local population. government treatment is easily available, Siya- Q SiyaQhubeka’s Environmental Officer will monitor Qhubeka is facilitating the use of these facilities. and enforce compliance with road construction/ maintenance, in order to minimise any associ- ADDITIONAL WORK TO BE DONE ated impacts. Two additional actions need to be carried out as part of the overall SEAT study. These are: (a) completion of a detailed monitoring plan for the issues that have been identified; and (b) development of local key performance indicators to help measure the success of the management measures suggested in this report.

Qakwini Zulu Dancers perform at a Cultural Day held at their school.

5 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 1 INTRODUCTION

1.1 BACKGROUND Q Section 5 provides an overview of the key This report is part of the formulation of a strategic community economic contributions made by SiyaQhubeka; development and social investment (SI) programme devel- Q Section 6 identifies and discusses the issues oped for SiyaQhubeka Forests (Pty) Ltd (SiyaQhubeka), a raised by stakeholders during the SEAT consulta- commercial forestry enterprise located on the Zululand tion process; coastal plain of KwaZulu-Natal, South Africa. SiyaQhubeka Q Section 7 prioritises the issues raised during consists of three plantations – St Lucia (formerly Nyalazi and consultation; Dukuduku), KwaMbonambi and Port Durnford. Q Section 8 provides an outline of recommended SiyaQhubeka is a partnership between Mondi Business actions and management responses; Paper South Africa (an integrated pulp, paper and pack- Q Section 9 lists the various indicators that were aging group), black empowerment entity Imbokodvo developed from the SEAT study; Lemabalabala Holdings (I.L. Holdings) and government Q Section 10 outlines the additional activities that structures. Mondi Business Paper South Africa (the majority SiyaQhubeka needs to undertake in order to shareholder) forms part of Anglo Paper and Packaging, a complete the SEAT study; and division of Anglo American plc, one of the world's largest Q Section 11 provides contact details for key mining and natural resource groups. Anglo Paper and SiyaQhubeka staff, and for further information on Packaging, operating under the Mondi name, is an inte- SEAT. grated paper and packaging group with operations and 1.3 ACKNOWLEDGEMENTS interests in Europe, South Africa, Asia and the Americas. The operations manufacture pulp, graphic papers, pack- SiyaQhubeka would like to express its gratitude to the aging papers, board and converted packaging, as well as numerous parties that were involved in the undertaking of solid wood products. the SEAT study, and without whose assistance the assessment would not have been possible. We would With Mondi Business Paper South Africa as the main particularly like to thank the management of SiyaQhubeka, shareholder (65% ownership), SiyaQhubeka adopted Dr Vukani Sibeko (local consultant), K2M Technologies Anglo American plc’s Socio-Economic Assessment (Pty) Ltd, Environmental Resources Management (ERM), Toolbox (SEAT) process to assist in the identification of the and all the external stakeholders who put time aside to main issues and impacts associated with their operation, share their views and concerns with us. We hope to thank and to aid the collection of information required for the you for your time with actions on the ground. development and implementation of their community development and SI programme.

1.2 STRUCTURE OF THIS REPORT

This document reports on the results of the assessment and is structured as follows:

Q Section 2 sets out the approach and objectives of the SEAT process, in particular identifying how the approach was applied at SiyaQhubeka; Q Section 3 provides an overview of the operation at SiyaQhubeka, including basic information about the operation, their current social management and community investment programmes; Q Section 4 provides an overview of the study area and associated settlements;

6 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 2 OBJECTIVES AND APPROACH

2.1 OBJECTIVES Box 2.2 Key phases in the SiyaQhubeka SEAT process The objectives of SiyaQhubeka’s strategic community development and SI programme was to develop a • Phase 1: Scoping comprehensive and integrated delivery programme • Phase 2: Profile operation, communities and aspects consisting of objectives, strategies, targets and individual • Phase 3: Synthesis projects aligned with the development initiatives of a range • Phase 4: Management strategy of roleplayers within the study area. These objectives are • Phase 5: Implementation programme aligned with the key objectives of the SEAT process, as • Phase 6: Monitoring outlined in Box 2.1.

Box 2.1 SEAT objectives 2.3 STUDY AREA

• To identify the key social and economic impacts and AND KEY STAKEHOLDERS issues which need to be managed; The SiyaQhubeka plantations stretch from Port Durnford in • To be a useful resource in developing a Community the south to Nyalazi in the north, with the main office situ- Engagement Plan; ated centrally at the Mondi Business Paper South Africa • To provide a planning tool for managing the opera- mill in Richards Bay. SiyaQhubeka’s northern plantation tion’s social and economic impacts, including social borders on the Greater St Lucia Wetland Park, a recently investment; and proclaimed World Heritage Site. The study area consists • To gather and collate data for corporate social of two components: reporting purposes, as well as development of indi- Q The three SiyaQhubeka estates of St Lucia, cators that are relevant to local conditions. KwaMbonambi and Port Durnford; and Q Forty-four communities and settlements that fall within a 5km radius of each of the SiyaQhubeka 2.2 APPROACH plantations (referred to as the ‘study area settle- ments’). These settlements, by virtue of their loca- The SEAT process was carried out from March 2004 to tion relative to the SiyaQhubeka operations, could December 2004. The approach taken for the assessment potentially benefit from the overall community was in line with the five key steps outlined in the SEAT development and SI programme. process. However, to ensure that the requirements of SiyaQhubeka’s strategic community development and SI The communities and settlements within these spheres of programme were also met, the resulting process consisted influence are presented in Table 2.1, and depicted in the of six phases. These are defined in Box 2.2. map on page 10.

7 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 2.1 Study area settlements

Potential beneficiary settlements Potential beneficiary settlements Potential beneficiary settlements within within 5km buffer of St Lucia site within 5km buffer of KwaMbonambi site 5km buffer of the Port Durnford site

Makhambane Ntshingimpisi Msasandla Shikishela Nzalabantu Kwashodisa Phondweni Emhlanzini Nyembe Mfekayi Velabandla Port Durnford Qakwini Mankwathini Mahunu Dukuduku Nhlabane Ongoye Honeydale Ezindebeni Mangezi Nkudusi KwaMbonambi Khandisa Ezwenelisha Mandlazini Sikhalasenkosi Mzingazi Esikhawini J Sokhulu Eniwe Ndabayakhe Uzimgwenya Gobandlovu Mkhobosa 1 Mkhobosa 2 Ngwenyeni Umzingwenya Dube Ndinama Amadaka Ndleleni Mabuyeni Madlangala

8 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA The local and district municipalities within which the three Box 2.3 List of stakeholders sites and its surrounding communities are located are summarised in Table 2.2 below: AFFECTED PARTIES • Neighbouring communities Table 2.2 Local and District • Tenant communities Municipalities within the study area • Resident workforce

SiyaQhubeka Local District • Contractors Plantation Municipalities (LM) Municipalities (DM) • Employees and their families • Non-neighbouring communities impacted by the St Lucia Mtubatuba LM Umkhanyakude DM operation (e.g. by dust, noise, traffic and visually) Hlabisa LM INTERESTED PARTIES KwaMbonambi Mbonambi LM Uthungulu DM uMhlathuze LM • Welfare and service organisations and groups • Non-governmental organisations (international, Port Durnford uMhlathuze LM Uthungulu DM national and local) • Community-based organisations • Local business and associations (including Most of the study area settlements are located in areas suppliers) under the control of Traditional Authorities. It would thus • Religious groups be important for the successful implementation of the • Indigenous groups community development and SI programme to establish a • Trade unions sound working relationship with the leadership of the following Traditional Authorities: AUTHORITIES

Q Mpukunyoni-Mkhwanazi Tribal Authority • National government Q Mbonambi Tribal Authority • Provincial government Q Sokhulu Tribal Authority • Municipalities Q Mkhwanazi Tribal Authority • Traditional authorities Q Zungu-Madlebe Tribal Authority Q Dube Tribal Authority

Box 2.3 provides a list of the broad categories of stake- holders relevant to the SiyaQhubeka operations. A detailed list of stakeholders was compiled as part of this study.

9 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 10 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 3 OVERVIEW OF THE OPERATION

3.1 BASIC INFORMATION employees and outsources most of its plantation activities, ON THE OPERATION such as silviculture, harvesting and transport, to local enterprises which, in turn, collectively employ more than In October 2001 Safcol (South African Forestry Company 1,263 people. Ten of these contractors are black Limited) privatised its KwaZulu-Natal commercial forestry empowered and collectively employ 283 people. A total of assets comprising plantations that were established by the 5,7961 people are dependent upon SiyaQhubeka for their government as early as the 1920s. The successful bidder, livelihoods. SiyaQhubeka Consortium, acquired the landholdings, some 26,451 hectares, in an empowerment transaction Gum and pine are planted on the three estates, with land valued at R100 million (US$15,384,615)1. use as summarised in Table 3.1 below:

Together as SiyaQhubeka Consortium, Mondi and I.L. Holdings hold 75% of SiyaQhubeka, with Mondi holding Table 3.1 Land use at SiyaQhubeka 61.8% and I.L. Holdings 13.2%. Government, through Land use Hectares Safcol, the National Empowerment Fund and employees, Pine 5,854 holds 25% of the shares. I.L. Holdings counts traditional leaders and black businessmen among its shareholders, Eucalyptus 15,870.5 and was the first black empowerment company, other Other 37.5 than a community trust, to acquire shares in a significant Open Area (non-commercial) 4,689 forestry enterprise in South Africa. Total 26,451 ha Mondi will reduce its shareholding to 51% by facilitating the acquisition of a further 10.8% equity by small-scale black timber farmers, traditional leaders and neighbouring SiyaQhubeka management believes that the future of communities. SiyaQhubeka Forests lies in Eucalyptus pulpwood. Coastal Zululand offers the best sites in the country (if not SiyaQhubeka’s three plantations (St Lucia, KwaMbonambi the world) for the growth of Eucalyptus pulpwood and also and Port Durnford) comprise 22,500 plantable hectares, offers the largest market for this commodity. and stretch from Nyalazi in the north to Port Durnford in the SiyaQhubeka’s primary focus will therefore be eucalyptus south. The St Lucia plantation borders largely on the Greater pulpwood plantation forestry. Its objectives are to convert St Lucia Wetland Park, a registered World Heritage Site and environmentally sensitive areas to conservation, and to one of South Africa's oldest game reserves. This represents convert its remaining productive areas in coastal Zululand an extraordinary association between the forestry sector to Eucalyptus pulpwood. and a high priority conservation area.

Ninety percent of the land under SiyaQhubeka plantations is currently under land claims from four local community groups. These claims are expected to be finalised by March 2006. In the interim, SiyaQhubeka is renting the land from government, through the Department of Water Affairs and Forestry (DWAF). This rental is being paid into a special account, and will be paid over to the landowners once the land claims have been resolved.

SiyaQhubeka has an annual turnover of R135.8 million 1 This is calculated as total no. employees (SiyaQhubeka plus contractors) x average family size x average proportion of family (US$20.9 million), currently employs 29 permanent income derived from SiyaQhubeka.

11 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Aerial view of SiyaQhubeka plantations.

3.2 EXISTING SOCIAL Community Liaison Forums

MANAGEMENT SYSTEMS Community Liaison Forums (CLF) have been established SiyaQhubeka has a number of key processes in place with most communities in the study area. These CLFs have which assist with the management of the social issues monthly meetings which allow for complaints and issues of relating to their operations. These are described in more concern to be raised and feedback provided. There are six detail below. Community Liaison Forums currently in the study area (two in each plantation area). Establishment of Community Social Investment Department NGO Steering Forum

A community social investment (CSI) department has been A Non-governmental Organisation (NGO) Steering Forum established to ensure the considered management of has been established in the KwaMbonambi area, in asso- social and community issues in SiyaQhubeka’s area of ciation with key local industries (SiyaQhubeka, Richards influence. This includes the development of a vision, Bay Minerals and Sappi), community representatives and mission, annual objectives and associated plan, and the local government officials. The focus of this forum is to appointment of three dedicated personnel, namely, one identify key local needs that can be jointly addressed by transformation manager, one community engagement members of the forum. facilitator, and one community relations officer. The progress of this department is closely monitored by DWAF. DWAF monitoring of social responsibility

SiyaQhubeka has a 70 year lease agreement with the government, through DWAF. As part of this rental agree-

12 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA ment, DWAF monitors SiyaQhubeka’s social responsibility Multiple resource use activities. SiyaQhubeka is required to submit a bi-annual SiyaQhubeka recognises its role as custodians of the land report which outlines their social responsibility activities, on which surrounding communities and other stakeholders including: a list of stakeholders and consultation activities; have legal and customary rights. It is a stated aim to ensure minutes of meetings held; local economic development that these rights are upheld safely and on a sustainable activities initiated by SiyaQhubeka; the status of its rela- basis. In this regard, a number of Multiple Resource Use tionship with local communities; and community benefits (MRU) activities are carried out by local residents within the derived from SiyaQhubeka, etc. An annual audit is also plantations. The concept behind MRU is that land being carried out by DWAF. used for one purpose (e.g. forestry) can also provide a wide range of other economically and socially beneficial FSC certification purposes. In the case of SiyaQhubeka, these uses include:

SiyaQhubeka has Forestry Stewardship Council (FSC) Q cattle grazing; certification. FSC requires a comprehensive approach to Q firewood collection; managing environmental and social issues and therefore Q use of non-saleable timber for building purposes; serves as a key driver in the management of social issues and relating to SiyaQhubeka’s operations. Q bee farming and honey harvesting.

Participatory rural appraisals These are discussed in more detail in Section 3.3.

Participatory rural assessments have been carried out in 3.3 EXISTING COMMUNITY SOCIAL each of the communities within the study area. Working INVESTMENT INITIATIVES with community members, SiyaQhubeka plays a role in Table 3.2 provides a list of the CSI projects currently facilitating the identification of priority needs, identifying carried out by SiyaQhubeka. One of their flagship projects local resident/s to champion the priority need/s, and to is Fukamela, an incubator programme established by I.L. assist in the development and implementation of associ- Holdings, which fosters sustainable enterprise develop- ated action plans. As a facilitator, SiyaQhubeka helps by ment within the forestry and timber product sectors (see putting local champions in touch with relevant government Box 3.1 below for more details). departments and officials and helping the local communi- ties establish partnerships with service providers, etc. The Box 3.1 Details of Fukamela Participatory Rural Appraisals will be followed up with The core objective of Fukamela is to create an environ- additional assessments to check on progress made ment based on capacity building, which facilitates the against identified actions. growth and commercial development of small and medium sized businesses in the forestry and wood Transformation committee processing industries. In line with its ethos of fostering A Transformation/Equity Committee has been set up to economic empowerment, Fukamela focuses primarily address transformation issues within SiyaQhubeka. on the development of enterprises where the equity and operational control of the enterprise is in the hands of On-going risk management historically disadvantaged South Africans (HDSAs). Fukamela, established as a commercial company, takes SiyaQhubeka has an internal process in place for the on- equity stakes in the small and medium enterprises going identification and assessment of risks pertaining to (SMEs) that it develops and supports. The programme their operation. These risks are identified by a multi-disci- establishes and administers a fund that is used to plinary committee comprised of representatives from the finance these small business ventures. The programme operation’s various departments. Management objectives is managed by Hahisa (Pty) Ltd, in partnership with the and plans are then developed to prevent and control all SiyaQhubeka Forests team. known risks. "Fukamela", derived from Zulu, means "to incubate or brood, specifically referring to a chicken on a clutch of eggs".

13 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA S E : I i R h Y t A a N I n A C I a : z M F a l o E k u W N o h 5 2 5 0 5 O E h 5 1 1 1 1 2 K 2 5 H B 1 7 T ) R A E Y / P 5 0 0 0 0 0 $ 4 8 4 9 1 5 0 0 0 S 9 0 4 5 8 3 , , , , 3 3 , 1 , U 1 7 1 ( 2 2 6 1 5 2 T S : i O h ) t C a R . n A X a E z O : 3 0 5 5 5 Y o R a / 4 2 0 3 5 5 6 5 7 l k 6 0 6 8 9 9 7 1 2 P P u o , , , , , 3 4 0 3 P h h 2 6 , 6 , , 1 , 5 R 1 4 9 ( 1 A 1 4 1 3 K T 1 d d g e e n n d r s k h 0 a e e o t a 0 t m 0 l i 2 t p t 0 n o 3 w b s x i n r i t c i g 2 s f a e o – g r e n j g n , l s s i i e h e e n o s e g v i n r t a t l d p e s k n m u o . t l t i o i . s e i d 0 i y t o p y e a e v a t e i s e r 2 i r r y a t s h n k u t h i e T t n u c y s r n q r s d s s , u . e e i i . e r t j l h t a e a e e l i t a d t c u c o i m c b y r b p e p e g c u e n e a o r j w j l m y a t p f e n . d j i a d o s o t s p o o o a r r o r l k e o e e s e r c a e r u t i p a p i p m h n r e p s s o p r e c e e T a o f t e m s e m g i v u h n e . s t - h v a e i n t a s a s v L i u r i k a g i T n h e h u k a c o t c n n d h . i i u s 5 i T t o a i h u r o S n r 1 n . n m h s L l s n b m o e n p – s m e c s i a e a l - t i d i t h u r a g a r u k a t e s m r r i m S a r i u e e t c n u f e o o d o i i g i t f – d o t n r s t n c m n c e a t T i n a n a n o b s , o s c g l u . a r y e o m p e e a n d f a p t c k m s r r i c d s n a n p i c i e g f u . d e d n d o o a r u a , x o h r n o t e p v e u l o i l p t t o s k t c o o l a r f o b r d s s p f n n e c m l a b a u i . e r i e e n o n e ) w e e b a r j p u t 0 m m e d c c n e h 4 t u i t r O l u m o 0 b , l a e o d c r p r i c 0 h h e . t a s p 6 e e c D e e i l e c p p 0 d s a l g e Q o i h h m c R t l l t a w e n 2 c r r i a z n y s e e s ( o e t i x a o m e s y o a i l u o e m h i v c 0 t d o r t o y n n o b P m g y e m 0 S t n e h b c t r a y u d a 0 i t n 1 , r t D a h e i n e a m 0 v t w i e , s d 0 s m o i ) c h g n o 5 c f w t e t h f p e d n e 1 i e n a c m n a r k s R a b o t e c a o l r e r i h , t m d o f l u u a f f t a e t u M e e e e c n o d p o r o o h d c t s s s h e e l D a n n t h p o g t r r t e u r u u u s f n a a o t r u r n u y s r o r y u i g t c e t t c o s r e f r n n i a d o e o s n o n f m E e ( p i h l u n h n m n w w g t a t P e s f n t t o c f u a . y d d o o o n v r r f n i s t o u n s a b o i n n h ’ ’ a m u o l d a y h c n e t o i h e a a r s s t e r e p l o o t o n c o y g m v l e e ) l o i h i a c l d t i i o f l e a t i o p n r r w a s d e d f n a e i c i o t c i n u w c a a t e u n n m a r i i d m l f u r k u i e t t i g y e n a Y e c c r l r e m z a o e s v i i u d i b t n v e i i ) r i f f i f T m a p t a l h o t o a d I t s l d a e e n c t a r r p p o n s h u c m s V e n n n o m p e I p o u w a p i a k e g a o s d a e e i t t m s s s T D u s c e y w t n a h w b b d e o o s f n l s C a t l e r e h r e r D y e i a n e h r r f a r o t a o a r e n k h t A p i r w h i o s o o a t e w t s v h c t l o s l f f c o d n M h t h a F , c a g o o h a r 0 t t s i d l r r d p i u i n n n a t n e n O r a g 3 i n i s o u n a d e e n f e w h e o u n i n a d n e m p p a t i i n i p d d h h o t N y s r , i r p i r r o t a r a s s c a a a c o i m o l r s u r d a a O o n i e e n t I k k k t c a h T e g o t n g g o o m r p o w d i e e e T i n . a n p a n b r c t w o e l i a t , e e b b b r P o l l e d o h a c s a i f I a f y i p i d d u u u t m g t h t b b g u u o u o e i i d r e e l R r h h h ( a e n a a T d n g r t l d n e a d n i i t t d c i e a C i f e . Q Q Q s t s l p r o n a e e u d v o v n a i a a a S a n e s c p o i h c e a g g q h i o e y y y e d v o E e i i e i a e r f f e e i s r c x o r h w n n o V ( S i C D V a R S P t o I t a a S h t b p e f o e l e L l b y r A b a t y I t k r a a e t e c g C s o d d n e g o n m e n l i P O i o s o g ( e t s a t b i S o m v e r r m l H s ) ) i r v C u u e i e A w T a a a c Y a l g o n h e C e S e e u a N T F t a r l n r d r f a I i y b i : E a f n n u a a n b h o e N l 2 n w l z n a o l a e . l i e a M g a d o r a a o U m i t p a i i e r 3 k T B m z t k u a g c e c b n n k e o t m M m a S a e o l f n u b y u e e e l a u N i i b n l l k E e k u E n e d L M e d d n s k r l u r e u b l o r r w V o C t b a a a c h ) O u h h r a a h a o a ) i e i N i S g L M M B & ( I g M T C V ( Q r T ( D K P m

14 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA S E s I ) r s y ) e R l r Y l y n l e A a l r N I h u a a A C c n u e I l a n n M F l e a n r t E i ( 3 a W ( g 0 N 4 0 0 0 O E , 0 0 5 0 5 0 5 5 & 6 B H 1 1 1 1 6 3 2 1 4 1 ) R A E Y / P 5 0 8 0 0 0 0 0 0 $ 0 0 4 4 5 5 3 6 , 0 0 0 S 9 6 6 2 2 2 1 , , 7 , , , , , 0 7 6 U 3 ( 1 4 1 2 2 9 6 2 7 4 T S O ) C R . A X 3 E O 0 5 0 0 5 5 5 0 Y R / 5 0 6 6 2 2 9 4 0 5 0 , 3 6 6 6 6 9 0 0 0 9 P P , 6 , , , , , , 3 0 9 P 5 0 0 0 4 4 9 0 , , , R 2 ( 3 A 1 1 1 1 5 4 1 5 2 r u o o b n . i m s a d . m w e t a o K a e o r r u e a t s i h s t s a i a l l g c c o n u i o f . r L h o n u t c e d e r S s g d e - l y a r i r i t . . f ) h r a s s s c o d y e e e m h i e s s s b d r s o o o u e p d p p p n h a e r r r i a s t i y u u u h r t n o o p p p i e r t l o l l t v w s a a a n c o i i i ( e a g c c c p i ) r r r e d . a r r e e e 4 m i a e p e 0 r , l m m m e . e 0 m r a d s m m m r a 2 a w r e ( u o o o c . c e g r s l s c c c y g a y k a e t t r g a i d d d t s o n n n n v i n n n s o o i o a r i a a a a e t v t p b r u r c a m d e e e o o e u f a n a s s s b s y p s r u u u t i a h o e t l l n d g h s a n n n i e o i e t e e y w d c w w w r l r n s n o o o o s m s e r f t r u ’ ’ ’ u a f e e s i s s s m y o n i t n n e e e e Z i r i i i i v r m r r r v n a e a h . o a a a r u e n i i i y m e l g c i l t p Y c c c i o l u m i i i l r r f f f T n o o o p I o a r o l m r e e e u i f o f V s e o h n n n ) I c h t s m s h c e e e s T c o a r k l l b b b d m s s o C e o a c l t e r r r o i t h A o c l y c o o o o s t a f f f g o b o r l i i l l F n O o b a h n n n n o ( r o O e h l G e e e r o u u r d c i g r d d d u h N N s r r r t n g m s c i a a a g f u O o k . s f I f r t n g g g m o m o o i T f e r d r o s t o e e e n o a P e l l l e u s n f c I b r o s b b b o i a g o u R i y a y s a a a s g b t n r s i r t t t i h C t n h a n l o a d e e e n i c e r S i g n u r t t p g g g i e a b E o o u x x s e e e i e r r i i V D P V V L P n E D f T E x e d f e o e h l L y s i b y r . A r r I s a o t a e e r t l l o e C l b v t e e u b m b o n O m g o s a e a m d r t a r t l p o e S i p m i a t a f n m e v o h e u e m T r w s e a o Y g l i l l a g a s C k S e d N K T a p e s I h o o l l o i v y : u t E t t r v s a t i d i N i o l d b 2 a y n l i s . s M n n n c b G a U z e r o y d 3 n i u e ’ o o T l y r a i i e D y n n n L r t e s e n n M t t A d t o S r t r g e e e e s a n A s a e a a l n k o a c E n d e M s e r d d d r e T i a l n n u h r r b r r r e i w w t V k z l o f s b k O o o i c z O u i a a a o i x h f a a N N I T C S g T E g M g L e D S b F D a T W d c

15 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA sustained economic benefits is also a real chal- lenge. The Fukamela model does, however, offer a successful approach to follow. Q A clear strategy needs to be developed with respect to addressing community health issues such as HIV/AIDS. Prevention, management and cure should be considered when developing CSIs to address the HIV/AIDS challenge. Q Budget should be allocated to assisting local resi- dents in improving the quality of their funding applications.

3.4 COMPLIANCE WITH ANGLO AMERICAN CORPORATE Honey harvesters who have benefited from SiyaQhubeka’s assistance and support. POLICY REQUIREMENTS The purpose of this section is to present a self-assess- ment of SiyaQhubeka’s performance in relation to social and economic aspects within key Anglo policies and prin- An analysis of existing CSI initiatives was carried out as ciples. These are the Anglo “Good Citizenship Business part of SiyaQhubeka’s formulation of its strategic commu- Principles”, the SHE Policy, and associated nity development and SI programme. The analysis Management Principles. There are four levels at which revealed the following key findings. SiyaQhubeka could be performing. These are:

Q SiyaQhubeka management should consult more Q Level A: Implications of policies have been widely with all spheres of government. As part of considered and local responses initiated. developing this consultation strategy, Q Level B: Action plans have been developed to SiyaQhubeka should determine which authorities implement the required actions. to interact with and why. It is important that Q Level C: Actions have been implemented. SiyaQhubeka's efforts in this respect are targeted Q Level D: Actions have been implemented and and effective. Interaction with government should performance has been reviewed. also form a platform for leveraging funding and Level D is therefore the highest rating. The detailed results support from government. Sharing information of the self-assessment are provided in Annexure A. In and aligning strategies, programmes and projects terms of the assessment of performance carried out by will assist in increasing the impact on the target SiyaQhubeka management, Level C was the lowest score communities of the SiyaQhubeka CSI awarded and Level D the highest. What this means is that, programmes. at a minimum, all social and economic requirements within Q The current CSI schemes do encourage self- these Anglo’s policies and principles have reportedly been reliance. In developing future programmes, implemented, albeit in a manner specific to the context consideration should be given to leveraging within which SiyaQhubeka is currently operating. external resources to assist in the funding of CSI SiyaQhubeka’s highest area of performance was against initiatives. An element of that funding should Anglo’s Management Principles, where management target skills development within the project. scored Level D for all aspects listed (i.e. actions have been Q Securing long-term benefits from CSI projects is implemented and performance has been reviewed). challenging. In Zululand the lack of institutional capacity and local conditions result in project The management principles cover areas such as: financial benefits being of a short-term nature. While not commitment to the management of an operation’s social the case in all CSI projects, the absence of phys- issues; risk assessment and management; the setting of ical infrastructure and skills hinder project sustain- targets and indicators; compliance with relevant legislation ability. These limitations need to be addressed as and the application of international best practice; and part of SiyaQhubeka’s CSI efforts. Ensuring accurate monitoring and review.

16 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 4 OVERVIEW OF NEIGHBOURING COMMUNITIES

4.1 INTRODUCTION Table 4.1 Age Profile (2004) (%) This section provides a basic overview of the socio- economic conditions of the communities within a 5km Settlement Areas <15 yrs 15-34 35-54 >55 radius of the SiyaQhubeka operations at St Lucia, KwaMbonambi 39 38 17 7

KwaMbonambi and Port Durnford. The information St Lucia 41 36 15 8 presented in this section was sourced from the Integrated Port Durnford 35 42 18 6 Development Plans applicable to the study area.

Comparisons within the overall study area show that settlements within the 5km radius of Port Durnford have a 4.2 AGE AND relatively higher standard of living and that, on the whole, GENDER STRUCTURE those within the 5km radius of St Lucia are generally worst For all settlement areas a high proportion of the population off in accessing basic services and infrastructure. Please is younger than 15 years (see Table 4.1). This proportion is note that all numbers presented in the following tables highest in the St Lucia area, where 41% of the population have been rounded to the nearest whole number. falls within this category. The highest concentration of the young economically active population between 15 and 34 years of age is concentrated in settlements around Port Durnford (42%).

Data gathered indicates that in all three areas there are slightly more females than males.

Table 4.2 Education Profile (2004) (%)

Settlement Areas No Schooling Some Primary Completed Some Matric Higher Primary Secondary Education

KwaMbonambi 19 24 7 31 17 3

St Lucia 40 18 6 21 12 3

Port Durnford 20 14 6 28 25 9

17 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 4.3 EDUCATION Within the St Lucia study area there is a planned resettle- ment of 300 families who are currently residing informally The education profiles of the settlements around the three within the coastal forest area of Dukuduku. A negotiation sites differ quite substantially. The lowest levels of education process for the relocation of the remaining 9,300 families are found in settlements near St Lucia where nearly 40% of is also under way. The plan is to resettle all households into the population older than 20 years of age has not completed a formal settlement, where they can be integrated into the any form of schooling (see Table 4.2). Conversely, 25% of the local municipal system of planning, service provision, population around Port Durnford has completed the final maintenance and management. The need for this resettle- year of schooling (matric), with 9% having completed some ment is outlined in the Mtubatuba LM Integrated form of higher education (the comparative figures for St Lucia Development Plan. and KwaMbonambi are 12% and 17% respectively for those who have completed matric). 4.5 ACCESS TO WATER 4.4 HOUSING As indicated in Table 4.4, the area with the highest concentration of households with access to water in their A relatively high proportion of houses in the settlement yards is in Port Durnford, where 23% of the population has areas are classified as ‘brick house on separate stand’. In access to water in their dwelling and 49% to piped water Port Durnford as many as 57% of households reside in on their stands. An important aspect to note is the high brick houses on separate stands. The comparative figures proportion of households at both St Lucia and at KwaMbonambi and St Lucia are 48% and 40% respec- KwaMbonambi using water directly from rivers for house- tively (see Table 4.3). The highest concentration of the hold purposes (33% and 29% respectively). In addition, as population residing in structures classified as ‘traditional many as 24% of households around KwaMbonambi are dwellings’ (i.e. made from mud and poles) is around St reliant on boreholes for their primary source of water. Lucia (41%) and KwaMbonambi (35%).

Table 4.3 Housing Profile (2004) (%)

Settlement areas Brick house Traditional Flat Informal Informal Other on separate dwelling dwelling dwelling stand in backyard elsewhere

KwaMbonambi 48 35 6 1 6 3

St Lucia 40 41 12 1 3 2

Port Durnford 57 17 12 2 4 9

Table 4.4 Access to Water (2004) (%) V O R D S B W d Y C t C t a a e p a w o i a t o Settlement areas o v a p p h n r r m r m m e e t d i e e d n e < > l r h r l m m o r g t i 2 2 n o a ( r 0 0 i u u % g n p l e 0 0 n n ) m m i i t t y y

KwaMbonambi 5 11 12 7 24 4 3 29 1 3

St Lucia 3 10 13 15 4 7 3 33 2 2

Port Durnford 23 49 5 7 1 1 1 9 1 2

18 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA In terms of availability of piped water in the three settle- 4.7 AVAILABILITY OF ELECTRICITY ment areas, as many as 84% of households in the Port In the settlements around the St Lucia site 60% of house- Durnford area do have access to some form of piped holds do not have access to electricity for lighting water. purposes. The comparative figure around KwaMbonambi The comparative figures for KwaMbonambi and St Lucia is approximately 45%. Conversely, as many as 87% of are 35% and 43% respectively. households in the Port Durnford study area do have access to electricity for lighting purposes (see Table 4.6). 4.6 AVAILABILITY OF SANITATION INFRASTRUCTURE 4.8 ACCESS TO TELEPHONE INFRASTRUCTURE As indicated in Table 4.5, the vast majority of households in the study area settlements are either reliant on pit The majority of the population uses public telephones, latrines or do not have access to any form of ablution facil- ranging between 36% at Port Durnford and 50% at St ities. As many as 37% of households in KwaMbonambi Lucia. Moreover, a significant proportion (between 22% and 33% at Port Durnford are reliant on unventilated pit and 33%) has access to cell phones. Less than 10% of latrines (see Table 4.5). The highest concentration of the overall study area does not have access to any form of households without any form of sanitation infrastructure is telecommunication infrastructure. around St Lucia (40%) and KwaMbonambi (30%). This lack of sanitation infrastructure presents an impact on both 4.9 WASTE REMOVAL SERVICES surface and ground water, and associated health hazards. A formalised waste removal system is largely absent within the study area settlements. Nearly 95% of all households in the St Lucia area either have their own refuse dumps or no access to refuse disposal. The comparative figures around the KwaMbonambi site and Port Durnford is 76% and 66% respectively without waste removal systems. The absence of formalised waste removal services has poten- tial environmental, health and aesthetic impacts.

Table 4.5 Availability of Sanitation Infrastructure (2004) (%)

Settlement areas Flush toilet Flush toilet Chemical Pit latrine Pit latrine Bucket No (sewerage (septic tank) toilet (ventilated) (not latrine facilities system) ventilated)

KwaMbonambi 5 3 14 11 37 1 30

St Lucia 6 2 8 13 28 4 40

Port Durnford 33 3 9 12 33 2 9

Table 4.6 Availability of Electricity (2004) (%)

Settlement areas Electricity Gas Paraffin Candles Solar power Other

KwaMbonambi 58 0.34 0.92 41 0.16 0.26

St Lucia 39 0.16 0.28 60 0.31 0.60

Port Durnford 87 0.13 0.44 12 0.12 0.26

(Please note: all numbers less than 1 have been left in their original form)

19 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 4.7 Income Levels (2004) (%) 4.13 ECONOMIC SECTOR PARTICIPATION Settlement Equal to/ R1,601- R3,201- More Areas less than R3,200 R6,400 than The SiyaQhubeka plantations are situated close to R1,600 (US$ 247- (US$493- R6,400 Empangeni and Richards Bay, the main commercial and (US$ 246) US$492) US$984) (US$984) industrial centres of Zululand. The Richards Bay harbour is

KwaMbonambi 69 19 8 4 one of the largest and busiest in the country. Agriculture such as sugarcane, bananas, citrus and pineapples play St Lucia 73 18 7 3 an important part in the Zululand economy and, along with Port Durnford 66 15 10 9 forestry, form the bulk of the agriculture sector. Tourism is also a large roleplayer in the local economy. SiyaQhubeka’s links with the St Lucia World Heritage site 4.10 HEALTH STATUS are helping to ensure the growth of this industry.

Little information is available on the health status of residents The employed proportion of the economically active popu- in the study area. However, HIV/AIDS levels are reportedly lation is engaged in a wide range of economic activities. very high (about 33% of the local population, according to The dominant economic sector is “community, social and Mondi personnel). This is reflected in the noticeable decline personal services”, in which 24% of employed people in in productivity among the SiyaQhubeka and contractor Port Durnford, and 20% in St Lucia, are involved. The workforce, sharp increases in the number of sick days taken, most prominent other sectors include agriculture, forestry and increases in the number of orphans. and fishing, manufacturing, and wholesale and retail trade. The agriculture, forestry and fishing sector is particularly There are reportedly local clinics in all the settlements important to the study area settlements around St Lucia, within the study area, and hospitals in both St Lucia and as more than 15% of the employed people there are Empangeni. involved in this sector. The wholesale and retail trade sector represents employment for just under 15% of 4.11 INCOME AND AFFORDABILITY employed persons in all three areas.

The vast majority of households in the study area earn less than R1,600 (US$246) per household per month, ranging from 66% in settlements in the Port Durnford area to 73% in the St Lucia area. Furthermore, only 7% of all house- holds in the St Lucia area earn more than R3,200 (US$492) per household per month. The comparative figures for the settlements around KwaMbonambi and Port Durnford are 8% and 10% respectively. 4.12 EMPLOYMENT PROFILE Unemployment remains one of the main challenges in the study area settlements. As many as 72% of the economi- cally active population in the St Lucia area are classified as unemployed. The comparative figures for KwaMbonambi and Port Durnford are 55% and 50% respectively (see Table 4.7).

20 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 5 ECONOMIC BENEFITS OFFERED BY SIYAQHUBEKA

5.1 INTRODUCTION 5.2.1 Direct employment

SiyaQhubeka is one of the major contributors to the Direct employment refers to those people employed by economic development of the study area. This is seen in SiyaQhubeka, and is reflected as the number of people on terms of total employment and associated remuneration, the payroll expressed in full-time equivalent. The current taxes and royalties paid, value added, and procurement of total number of full-time employees at SiyaQhubeka is 29. local supplies. These different facets of SiyaQhubeka’s economic contribution are discussed in more detail below. 5.2.2 Indirect employment

SiyaQhubeka generates a total of 1,263 full-time jobs 5.2 EMPLOYMENT through its contractors and suppliers. A summary of the extent of indirect employment is provided in Table 5.1. Of The major impact of SiyaQhubeka is the creation of employ- the indirect employment, 85% is considered local. In the ment. SiyaQhubeka generates employment in four ways: context of the SiyaQhubeka plantations, ‘local employees’ direct employment at SiyaQhubeka; Q are defined by community members and management as indirect employment as SiyaQhubeka contractors Q employees who reside within the geographical jurisdiction of and suppliers; the relevant local Tribal Authority (normally within a 5km employment generated through SiyaQhubeka CSI Q radius of the different plantations). initiatives; and Q induced employment through the spending, by direct and indirect employees, on local goods and services, and through the public sector jobs supported by taxes paid by SiyaQhubeka.

Worker harvesting a tree in the plantation.

21 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 5.1 Total indirect employment

Name of contractor/Number of Off-site Staff (c) % of (d) Total off- (e) Total indirect (f) % of subcontractor/supplier (a) No. of (b) Total no. business with site employees employees employment permanent of employees the operation (b x c) (a + d) that is local on-site in company contractors Staff

1. Njonjo Construction 35 35

2. St Lucia 23 23

3. St Lucia Silvix 23 23

4. Maxim Security 49 49

5. Ukula Constructors 150 150

6. Nyathi Timber Constructors 80 80 20 16 96

7. Iningi Investment 135 135

8. Sobabili Harvesting 80 80

9. Siyathuthuka Forestry Services 32 32

10. George Field Services 6 6

11. Fukamela 130 130

12. Ithembalenkosi Harvesting 5 5

13. Technical Consultants 10 5 1 1

14. Jerry’s Enterprise 160 160

15. Siyawisa Hlathi 300 300

16. UB Civil Engineering 30 30

17. Zamimpilo Forestry Contractors 8 8

Total 1,246 90 25 17 1,263 85

22 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 5.2.3 Community social investment employment

CSI employment refers to employment generated in the region by CSI activities including local business develop- ment activities. The estimated extent of CSI employment related to the SiyaQhubeka operations is summarised in Table 5.2.

5.2.4 Induced employment

As highlighted earlier, induced employment is created through the spending, by direct and indirect employees, on local goods and services, and through the public sector Dukuduku indigenous nursery in the Khulu village. jobs supported by taxes paid by SiyaQhubeka. The induced employment generated through the SiyaQhubeka operation is 132 (this is calculated at 10% of direct, indi- rect and CSI employment).

Table 5.2 CSI employment

Name of project (a) No of (b) Average % of (c) SiyaQhubeka (d) Full-time (e) Apply beneficiaries beneficiaries’ contribution to equivalent jobs multiplier from project incomes derived establishing attributable to effect from the project project (%) SQF* CSIs (d x 1.05) (a x bx c)

1. Qhubeka Fire Wood 30 80 50 12 12.6

2. Masibambane Block Making 24 10 100 2.4 2.5

3. Thokozanathi Honey production CC 6 0 50 0 0

4. Khula Bee Farming 5 0 100 0 0

5. Mbekekazulu Vegetable Garden 15 10 100 1.5 1.6

6. Manukelana Arts & Craft 6 80 85 4 4.3

7. Silwanendlala Poultry 6 50 95 2.9 3

8. Lawn Mowing 1 50 100 0.5 0.5

9. Bhekamandla Vegetable Garden 15 10 100 1.5 1.6

10. Nkundusi Vegetable Garden 10 10 100 1 1

TOTAL 118 - - 26 27 * SQF = SiyaQhubeka Please note: the multiplier effect captures the employment generating effect of spending by beneficiaries of the specific CSI projects. The TOTAL employment generated by SiyaQhubeka’s CSI projects is therefore 27.

23 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 5.2.5 Total employment Table 5.4 Taxes and royalties paid by SiyaQhubeka The total employment generated by SiyaQhubeka is captured in Table 5.3. Description of payment to the Amount paid public sector (R) (US$) 5.3 VALUE ADDED Profits/corporation tax 11,960 1,840 Employee-related taxes that See Value added is the measure of SiyaQhubeka’s total contribu- are the responsibility of Anglo turnover tion to the economy, and is calculated using a formula as taxes shown in Box 5.1. Social security/unemployment 97,500 15,000 Based on SiyaQhubeka’s accounts, their value added for or sickness insurance taxes

2004 amounted to R9,832,000 (US$1,512,615). This is Turnover taxes 331,500 51,000 comprised of: Value added/sales taxes (pay- 780,000 120,000 Q operating profit of R9 million (US$ 1.4 million); ments net of reimbursements) Q employee costs of R500,000 (US$ 76,923); and Import/export duties NONE Q depreciation and amortisation of R332,000 (US$ 51,077). Property taxes NONE Fuel duties and vehicle NONE 5.3.1 Taxes and royalties taxation (eg road use taxes)

The objective of this section is to summarise the total Natural resource use charges (eg NONE contribution of SiyaQhubeka to public sector revenues. water abstraction or discharge This information provides an indication of the extent of fees, air pollution or carbon overall economic and social impacts of the three estates. emissions permit charges)

Environmental and safety Table 5.3 Total Employment Generated permitting costs NONE

Employment type Total number of employees TOTAL 1.22 mill 187,840 Direct employment 29

Indirect employment 1,263 As outlined in Table 5.4, SiyaQhubeka paid a total of CSI employment 27 R1.2 million (US$ 187,840) in taxes and other payments Induced employment 132 to the public sector in 2004.

TOTAL 1,451

Box 5.1 Calculating value added

Value added = operating profit + employee costs + depreciation and amortisation

(Where operating profit = profit before interest, tax and dividends and net of exceptional items)

An example of a vegetable garden project.

24 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 6 ISSUES RAISED BY STAKEHOLDERS

THE CONSULTATION that was carried out as part of the causing strained relations between SiyaQhubeka SEAT process allowed for the identification of a number of and communities in the study area. This includes issues, as raised by local stakeholders. These issues are tensions around the appointment of white described below. contractors rather than their HDSA counterparts. Local residents do not feel that they have an 6.1 POSITIVE ISSUES RAISED adequate understanding of SiyaQhubeka’s tendering process, and are also concerned that Q The plantations add aesthetic value to the local SiyaQhubeka does not offer adequate support for area. This is seen as a positive contributor to emerging contractors. SiyaQhubeka management tourism. defines ‘local contractors’ as those sourced from Q Aforestation decreases soil erosion and helps within Zululand. to prevent water pollution. This results in Q Increased mechanisation: the use of mechanical improved quality of water in natural water bodies. harvesters is perceived to be resulting in increased Q The plantations provide a wide range of non- unemployment, with resultant dissatisfaction and timber products which benefit local communities. tension among local stakeholders. Incidents of These non-timber products include: cattle vandalism within the study area are potentially grazing; firewood collection; use of non-saleable linked to these tensions. timber for building; and honey harvesting. Q Mondi’s talent management and career devel- Q The SiyaQhubeka operation is recognised for the opment: employees acknowledge that this contributions it makes in terms of its CSI activities programme is aimed at providing training and (see Table 3.2), as well as the employment of local development for all levels of employees directly residents (see Section 5.2) and the development employed by SiyaQhubeka. Employees have, of small and medium sized forestry businesses however, expressed dissatisfaction about this through its Fukamela initiative. process, particularly around the lack of clarity Q The benefits of SiyaQhubeka’s monthly regarding who and how candidates are selected. Community Liaison Forums were acknowl- edged, particularly the role that they play in 6.2.2 Access to resources allowing complaints and issues of concern to be Q Access to grazing: cattle belonging to local resi- raised and addressed. dents are prevented from grazing in areas where the trees are small and therefore likely to be tram- 6.2 NEGATIVE ISSUES RAISED pled by livestock. This restriction is perceived to be depriving local residents of their rights to graze their 6.2.1 Employment issues cattle, and is a source of tension between livestock Q Employment of non-local employees: the owners and SiyaQhubeka. employment of non-local employees is lower than Q Loss of settlement and agricultural land: as 15%. However, with high unemployment levels in already mentioned, local residents are set to earn the area, if the employment of non-local staff is not monthly rentals off the land currently leased by monitored and reduced to an absolute minimum, SiyaQhubeka. However, government delays in then the influx of job seekers could result in finalising the land claims and privatising the land strained community relations, with tensions devel- has slowed the receipt of these rentals. Without oping between local and non-local residents. this remuneration, the economic benefit of the Q Use of non-local and non-HDSA contractors: plantations to local residents is limited. As a result, the appointment of non-local contractors is use of this land for plantations is currently

25 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA perceived by local residents as land lost for more 6.2.4 Community and environmental issues worthwhile purposes, namely, for settlements and Q Lack of basic infrastructure: the lack of infrastruc- agricultural purposes. These delays are causing ture in the settlements within the study area has frustrations among local residents, with the poten- been raised by numerous residents and is also tial to impact on relations with SiyaQhubeka. recognised in the municipal Integrated Q Forest fires: there have been problems with forest Development Plans. Although it is a government fires in the plantations due to honey hunters starting responsibility to address these needs, fires to smoke out the bees. This problem is, how- SiyaQhubeka recognises that as neighbours and ever, decreasing due to the management measures members of the local communities, it has an impor- that have been put in place (see Section 8). tant role to play in assisting to address these needs. 6.2.3 Safety issues Q Soil disturbance during road construction and maintenance: this results in increased soil erosion Q Criminal activities in the plantations: the planta- and river siltation/water pollution. tions, with their big trees and other vegetation, provide a hiding place for criminals, who have been implicated in the rape of pedestrians passing through SiyaQhubeka plantations. Q Accidents: there was one fatality in 2004 as a result of the use of heavy machinery in the planta- tions. This fatality will have impacts on the family unit and its ability to secure a livelihood. Q Large trucks on local roads: local residents raised concerns about the heavy trucks that drive along local roads and associated safety concerns, as well as concerns relating to increased noise and dust levels.

Take a Girl Child to Work Day event.

26 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 7 ASSESSMENT OF ISSUES AND IMPACTS

SIYAQHUBEKA has identified what it understands to be Q The need to address the impact of HIV/AIDS on the most significant of the issues raised by the stake- the labour force. With a high percentage of the holders during the SEAT consultation. For the purposes of labour force reportedly being HIV positive, this study, an issue is considered to be significant if: (a) the SiyaQhubeka and the contractors stand to lose a issue contributes to any of the risks or benefits identified in large proportion of their skilled and unskilled labour Box 7.1; and/or (b) a stakeholder perceives the issue to force. This includes both the existing labour force, have the potential to cause one or more of the effects as well as the potential local labour pool. Efforts to identified in Box 7.2. address this situation need to be fast-tracked. Q The need to address the high levels of unem- Based on these criteria for significance, plus the frequency ployment in the study area. Mondi has, as one of with which stakeholders have raised the issue, there are a its Corporate Social Responsibility objectives, a number of issues and impacts that are considered signifi- commitment to “Improving the quality of life of cant, and thus require management intervention. Of the communities through sustainable livelihood devel- issues raised, the most urgent of these are as follows. opment”. In keeping with this objective, Q The need to increase the participation of local SiyaQhubeka recognises the importance of residents in the contracts awarded by addressing the high levels of unemployment in the SiyaQhubeka. study area. Unemployment can also contribute to Q The need to finalise the land claims associated crime and social instability in settlements neigh- with the land rented by SiyaQhubeka. bouring the plantations. This could negatively Finalisation of this claim will enable residents to impact SiyaQhubeka’s relations with residents. enjoy the economic benefits of leasing the land for plantation purposes.

Box 7.1 Defining significance from the Box 7.2 Defining significance perspective of risks/benefits to SiyaQhubeka from the perspective of stakeholders

• Secure/threaten licence to operate. An issue will be considered to be significant if a stake- • Result in direct financial benefits/costs to holder perceives the issue to be one or more of the SiyaQhubeka. following. • Result in improved/strained relations with local • Not easily resolved. communities and neighbours. • To warrant direct action against SiyaQhubeka (e.g. vandalism, work stoppages, public protests, legal • Result in improved/strained relations with regulators action, press action, etc). and NGOs. • To have the potential to cause a breakdown in rela- • Enhance/undermine perceptions of business unit tions between stakeholders and the SiyaQhubeka within Anglo Group. operation. • Enable/disrupt operations. • To be causing direct impacts to quality of life or • Enhance/damage corporate reputation. levels of livelihood. • Result in improved/decreased returns to share- • To warrant out-migration away from the operation. holders. • To have the potential to cause incidents of conflict • Result in compliance/non-compliance with ‘Good between local stakeholders. Citizenship’ Business Principles. • To be causing high levels of personal stress and anxiety.

27 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 8 MANAGEMENT RESPONSES TO ISSUES RAISED

THIS SECTION provides an outline of management have been developed in consultation with local stake- responses to the key issues identified during the SEAT holders, and in many instances are already in the process process (see Table 8.1). For the most part, these measures of being implemented (see Table 8.2).

Table 8.1 Management Responses to Issues Raised

ISSUE MANAGEMENT MEASURES WHO WHEN

Employment issues

Employment of Contractors to employ local labour only (i.e. from communities SQF* CEO: to Dec 2005, non-local that adjoin the SiyaQhubeka plantations). This requirement will monitor employment employees be stated in their contract, and will be monitored by contracts and on-going SiyaQhubeka. ensure compliance

CEF: to communicate employment data to local residents

Use of non-local SiyaQhubeka will only consider contractors with a minimum of CEO: review and Dec 2005 and non-HDSA 25% BEE partnership. These BEE partners need to be sourced monitor the contracts contractors, from the Zululand coastal area. Existing contracts to be to ensure compliance including poor reviewed and on-going performance to be monitored. understanding of Establishment of a Procurement Forum in order to develop CEO: establish SiyaQhubeka’s a user-friendly tendering information document. Procurement Forum, tendering process Continued roll-out of the Fukamela programme in partnership with assistance with Financial Institutions (see Section 3.3). from CSR and procure- ment departments

CEO: ensure continued roll-out

Perceived negative Social impact study currently being done to evaluate the CSR Department Nov 2005 impact associated impact of mechanisation, and to propose mitigation to complete study with increased measures. mechanisation

Talent manage- SiyaQhubeka to ensure full implementation of Mondi Business Human Resource On-going ment and career Papers’ Talent Management programme, including effective Department to development awareness raising, and active assessment and development ensure implementation of career development plans. of programme

Access to Resources

Perceived poor Livestock owners to be educated before their permits are CEF to coordinate a Dec 2005 access to grazing issued. This will be done with the assistance of a local training programme in Agricultural College. Issues to be covered include grazing partnership with local capacity and the impacts of over-grazing (e.g. soil erosion). agricultural college.

28 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 8.1 Management responses to issues raised (continued)

ISSUE MANAGEMENT MEASURES WHO WHEN

Development of a grazing management programme. This CEF to develop Dec 2005 involves determining stocking levels for areas and monitoring grazing management grazing levels to prevent over-grazing and associated impacts. programme in There are 3 main steps involved in this: conjunction with • Completion of grazing register (who owns what and how local communities. many); • Determining the grazing capacity (this gives you your appropriate stocking levels); • Grasslands monitoring; • Facilitation of training and awareness raising, including establishment of grazing committees and grazing meetings. In instances of over-grazing, SiyaQhubeka management will decide how to address the issue, in consultation with the grazing committee/s.

Loss of settlement SiyaQhubeka CEO to consult with government regarding the delay SQF CEO to consult Mar 2006 and agricultural in the resolving of land claims and associated receipt of rental. with government land DWAF and Land Commission personnel to communicate with local residents on this issue.

Uncontrolled use Development and implementation of a MRU strategy across CEF to develop and On-going of non-timber Mondi Business Papers’ forestry operations, including implement MRU forest products SiyaQhubeka, as a joint initiative between SiyaQhubeka and its strategy within local communities. This strategy is derived from the Biodiversity SiyaQhubeka Act 10 of 2004. The policy statement is “to practice wise and operations sustainable utilisation of resources, products and opportunities within the forestry estates for the benefits of employees, general public and adjacent communities.” The goals of this strategy are to: (a) develop a MRU inventory; (b) develop management guidelines; and (c) monitor, educate and raise awareness.

Forest fires The establishment of formal honey projects has assisted in CEF to monitor On-going decreasing the problem of forest fires started by honey hunters. existing initiatives In this regard, the following steps have been taken: • Port Durnford, started in 2004: SiyaQhubeka purchased bee smokers and gave these to people free of charge. Smoking activities are then monitored by the security guards. • KwaMbonambi, started in 2004: in agreement with local communities, Saturdays and Sundays have been identified as honey hunting days. All honey hunters are accompanied by the security guards. • St Lucia, started in 2003/2004: SiyaQhubeka pay someone to take the honey hunters into the plantations. This is to help protect people from the wild animals (e.g. elephants) in the plantations.

29 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 8.1 Management Responses to Issues Raised (continued)

Safety Issues

Criminal activities A full time security company has been employed to patrol the CEF to monitor existing On-going in the plantations SiyaQhubeka plantations. This has already seen a decrease in initiative, together with crime in the area. local security company

Accidents due to SiyaQhubeka’s Safety, Health and Environment (SHE) officer, SHE officer and senior On-going heavy machinery together with senior management, to monitor and enforce management to monitor compliance with required safety measures. Spot checks to be and enforce compliance carried out by the SHE officer.

Large trucks on SiyaQhubeka’s SHE officer to monitor and enforce compliance SHE officer and On-going local roads with required vehicle specifications. Spot checks to be carried senior management out by the SHE officer. to monitor and enforce Trucks to be inspected at the Mill. Timber will not be off-loaded compliance if there is non-compliance with vehicle specifications. SHE officer to carry out spot-checks

Community Issues

Lack of basic SiyaQhubeka to partner with local and provincial government CEF to set up meetings Dec 2005 infrastructure in addressing priority needs. In this regard, meetings to be held with MEC’s and relevant with senior government officials and relevant local authorities. authorities

Environmental Issues

Soil disturbance SiyaQhubeka’s Environmental officer to monitor and enforce Environmental officer to On-going during road compliance with road construction/maintenance specifications. monitor and ensure construction and compliance maintenance

(*SQF = SiyaQhubeka)

SiyaQhubeka’s CSI department has identified a number of These objectives and targets are captured in Table 8.2 on key objectives and targets which, if met, will assist in page 31. addressing the issues raised in Section 6, and help with the implementation of the above management measures.

SiyaQhubeka HIV/AIDS awareness initiative.

30 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 8.2 CSI Department: Objectives and targets (2005)

KEY FOCUS AREA OBJECTIVES AND TARGETS

Local Economic Create at least 15 job opportunities through their social investment project Development Establish at least two youth small business development projects in each of our business units Train at least 30 entrepreneurs in Business Skills Involve our contractors in at least three economically viable community projects Form strategic partnerships with other funding agencies (involve Fukamela)

Return on Full implementation of social risk management system Investment Reduce current arson fires (especially bee fires) by half Train more than 300 children in forest fire awareness Train more than 40 community forum members in forest fires Engage at least three youth groups (and other community structures) in dealing with social risks, especially forest fires Complete integration of security contractor in community structures across all SiyaQhubeka areas

Poverty Alleviation Formation of strategic partnerships with Welfare department, Department of Agriculture, National Trade and Investment Training of at least two women’s groups in food technology (per nutrition survey recommendations) Evaluation of vegetable garden projects initiative, and full implementation of the recommendations (in partnership with the Department of Agriculture) Establishment of at least two school vegetable gardens (in partnership with School Governing Boards and other stakeholders)

Education Formation of strategic partnerships with Welfare Department, Department of Agriculture and Department of Education Provide at least one bursary to a most deserving pupil from the local communities Provide required infrastructure in rural schools through our Community Engagement Fund Organise at least two forestry seminars (life skills, career guidance, etc) in rural schools in the division Continue participating in Take A Girl Child in forestry - 50 children Provide reading material/library books to at least one rural community school (1,000 children)

Use of Non-Timber Formulation of livestock grazing committees in St Lucia and Port Durnford areas Forest Products Training of six herdsmen in animal husbandry and general grazing management in above areas Training at least two groups of livestock owners in beef and dairy production in above areas Reduce the damages of uncontrolled grazing to zero Initiate at least one other MRU project

HIV/AIDS Assist at least two groups of community peer educators. Continuation of the HIV/AIDS awareness and education programme by participating in municipal initiatives

Youth Involvement Incorporation of youth groups onto our community liaison forums and our projects in general Form strategic partnerships with youth organisations and KwaZulu Natal Trade and Investment, with a target of 500 orders of craft products

Communication Launch of all our projects – in partnership with local media Establishment of Community Engagement newsletter twice a year (publication mainly in Zulu) Participation in strategic publications

31 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA Table 8.2 CSI Department: Objectives and targets (2005) (continued)

Human Capital CEFs to participate in all value adding seminars and strategic workshops Development Encourage cross-visits within and outside Mondi Continue training community structures in committee skills and entrepreneurship

General Consolidation and hand-over of all completed projects to beneficiaries Encourage the involvement of all our stakeholders including, farmers etc. Monitoring and evaluation Roll-out of Anglo guidelines and full implementation Double Black Economic Empowerment spending Encourage employee involvement in CSI Address stakeholder grievances

Signage is an important part of safety management at SiyaQhubeka.

32 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 9 INDICATORS AND MONITORING

9.1 STANDARD SEAT KEY PERFORMANCE INDICATORS

Certain findings of the SEAT process can be used as indicators to monitor and measure performance. These are shown in Table 9.1, and are known as “Key Corporate Performance Indicators”.

Table 9.1 2004 Key Corporate Performance Indicators – SiyaQhubeka

Indicators Total value Total value Number of beneficiaries (R) (US$) Employees Other stakeholders (a) Value added 14.3 million 2.2 million - -

(b) Taxes and other payments to the public sector 1.22 million 187,840 - -

(c) Direct employment (excludes social provision) 13.52 million 2.08 million 29 -

(d) Indirect contractor and supplier employment plus 22.1 million 3.4 million 1,395 - induced employment

(e) Employment through social investment (includes direct - - 25 - employment in social provision projects)

(f) Recipients of basic healthcare----

(g) Recipients of education and training (NB excludes - - - - students in supported schools and colleges)

(h) Living in SiyaQhubeka provided accommodation - - - - (employees and former employees live in company dormitories, average family size of four is assumed)

(i) Spend on social and community programmes 306,052 47,085 1,003

(j) Capital expenditure - - - -

(k) Total numbers dependent on Mondi for livelihoods - - 5,796 (families of employees included under ‘other stakeholders’ and average family size assumed to be four persons)

(l) Pension payments 143,163 22,025 29 -

33 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA 10 ADDITIONAL ACTIVITIES TO BE CONDUCTED BY SIYAQHUBEKA

SIYAQHUBEKA has performed very well in terms of under- Q Completion of a detailed monitoring plan for the taking the SEAT process and identifying and assessing issues that have been identified; guidance on the their socio-economic impacts. However, two additional requirements for this plan is provided in Tool E of actions that need to be carried out as part of the overall the SEAT document. SEAT study include: Q Local key performance indicators need to be developed to help measure the success of the management measures suggested in this report.

ENQUIRIES GLOSSARY

Jim Matsho AIDS Acquired Immuno Deficiency Syndrome Manager SiyaQhubeka BEE Black Economic Empowerment Tel: + 27 (35) 902 2759 CEF Community Engagement Facilitator Fax: +27 (35) 902 2761 CEO Chief Executive Officer [email protected] CSI Community Social Investment Zenzele Gumede CSR Corporate Social Responsibility Community Engagement Facilitator DWAF Department of Water Affairs and Forestry Tel: +27 (35) 580 4647 Fax: +27 (35) 902 2761 FSC Forest Stewardship Council [email protected] HDSA Historically disadvantaged South Africans

HIV Human Immunodeficiency Virus

MRU Multiple Resource Use

Safcol South African Forestry Company Ltd

SEAT Socio-economic Assessment Toolbox

SHE Safety, Health and Environment

SQF SiyaQhubeka Forests

34 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA s e l p i c n i r p d n a s e i c i l o p o l g n A t s n i a g a e c n a i l p m o c g n i s s e s s A : A e r u x e n n A

35 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA ) d e u n i t n o c ( s e l p i c n i r p d n a s e i c i l o p o l g n A t s n i a g a e c n a i l p m o c g n i s s e s s A : A e r u x e n n A

36 SOCIO-ECONOMIC ASSESSMENT REPORT I SIYAQHUBEKA