SOUTH AFRICAN FORESTRY AND FOREST PRODUCTS INDUSTRY 2016

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1 SOUTH AFRICAN FORESTRY AND FOREST PRODUCTS INDUSTRY 2016 Image: Mondi SEPTEMBER 2017 By Roger Godsmark

2 Presentation Outline Introduction The importance of the Forestry Industry The importance of the Forest Products Industry Industry Contribution to Employment Investment Industry Contribution to GDP Industry Contribution to Foreign Trade

3 Section 1 INTRODUCTION

4 Land Use in South Africa Grazing Arable Nature Conservation Other Forestry 13.9% 9.6% 6.9% 1.0% Total RSA land area million ha ha 68.6%

5 Land Use in Mpumalanga Grazing Arable Nature Conservation Other Forestry 28.5% 3.9% 21.9% 6.1% ha Total MP land area 8.2 million ha (6.7% of total) 39.6%

6 Land Use in KwaZulu Natal Grazing Arable Nature Conservation Other Forestry 12.9% 15.1% 8.5% 5.3% ha Total KZN land area 9.1 million ha (7.5% of total) 58.3%

7 Land Use in the Eastern Cape Grazing Arable Nature Conservation Other Forestry 6.8% 3.7% Total E. Cape land area 17.1 million ha (13.9% of total) 8.7% 0.8% ha 80.0%

8 Land Use in the Western Cape Grazing Arable Nature Conservation Other Forestry 20.1% 5.6% 3.5% 0.3% Total W. Cape land area 12.9 million ha (10.6% of total) 70.4% ha

9 Land Use in Limpopo Grazing Arable Nature Conservation Other Forestry 14.3% 9.7% Total Limpopo land area 12.0 million ha (9.8% of total) 74.0% 1.5% 0.4% ha

10 Plantation area as % of land area by province Mpumalanga 6.05% KZN 5.32% E.Cape 0.83% Limpopo 0.44% W. Cape 0.34% 0% 1% 2% 3% 4% 5% 6% 7% % of Land Area Afforested

11 Land use comparisons: 2006, 2011 & Maize Forestry Wheat Sugar Million Hectares Drop in forestry area: ha (4.8%)

12 Plantation Area Comparisons 2016 China India Russia USA Japan Indonesia Brazil Thailand Ukraine Iran RSA Million Hectares

13 Section 2 THE FORESTRY INDUSTRY

14 Plantation Area by Species 2016 Pine Eucalyptus Wattle Other 7.1% 0.4% 42.7% 49.8% Total ha

15 Plantation Area by Ownership 2016 Corporate Commercial Farmers Corporate (Ex Safcol) SAFCOL State/ Municipalities Small Growers 17.0% 11.7% 10.5% Total ha 50.2% 7.0% 3.7%

16 Plantation Area by Province 2016 Limpopo Mpumalanga KZN E. Cape W. Cape 11.6% 3.6% 4.3% 40.6% Total ha 39.9%

17 Plantation Area by Province and Genera 2016 Hardwood Softwood Mpumalanga KZN E.Cape Limpopo W. Cape Hectares Total ha (softwood); Total ha (hardwood)

18 Plantation Area by Province and Genera 2016 Softwood Hardwood Mpumalanga KZN E.Cape Limpopo W. Cape Hectares Total ha (softwood); Total ha (hardwood)

19 Planted Area Comparisons by Province & Species 2016 KZN Mpumalanga E Cape W Cape Limpopo Pine Eucalyptus Wattle Other Hectares

20 Pine Plantation Area by Province 2016 Mpumalanga KZN E Cape W Cape Limpopo 7.0% 4.8% 19.4% 49.7% Total ha (49.8% of total) 19.1%

21 Eucalyptus Plantation Area by Province 2016 Mpumalanga KZN E Cape W Cape Limpopo 57.1% 4.0% 0.3% 4.5% Total ha (42.7% of total) 34.2%

22 Wattle Plantation Area by Province 2016 Mpumalanga KZN E Cape W Cape Limpopo 83.3% Total ha (7.1% of total) 2.3% 0.1% 0.0% 14.4%

23 Other Hardwood Plantation Area by Province 2016 Mpumalanga KZN E Cape W Cape Limpopo 24.0% 58.5% Total ha (0.4% of total) 3.9% 2.2% 11.3%

24 Plantation Area by Management Objectives 2016 Pulpwood Sawlogs Mining Timber Poles Other 38.0% Total ha 56.8% 2.3% 2.1% 0.8%

25 Softwood Plantation Area by Management Objectives 2016 Pulpwood Poles Sawlogs Other 73.5% 0.0% Total ha 26.1% 0.4%

26 Hardwood Plantation Area by Management Objectives 2016 Pulpwood Sawlogs Mining Timber Poles Other 2.9% 4.6% 4.1% 1.2% Total ha 87.2%

27 Plantation Area by Province and Ownership 2016 Private Public Mpumalanga KZN E.Cape Limpopo W. Cape Leased Safcol packages included in Private KLF included in Public Hectares Total Private ha (82.3%) Total Public ha (17.7%)

28 Percentage Plantation Ownership by Province 2016 Publicly Owned Privately Owned 100% 80% 54% 60% 73% 81% 94% 99% 40% 20% 0% Province Total Private ha (82.3%) Total Public ha (17.7%)

29 Plantation Area by Species and Ownership 2016 Private Public Pine Other Hard Eucalyptus Wattle Hectares Total Private ha (82.3%) Total Public ha (17.7%)

30 Percentage Plantation Ownership by Species 2016 Public Private 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 74% 82% 90% 95% Pine Other Hard. Eucalyptus Wattle Species Total Private ha (82.3%) Total Public ha (17.7%)

31 Planted Area Comparisons by Province & Product 2016 KZN Mpumalanga E Cape W Cape Limpopo Pulpwood Sawlogs Mining Timber Other Hectares

32 Roundwood Production by Product 2016 Pulpwood Sawlogs Mining Timber Poles Other Million m3 Total 6.6 million m3 / 6.9 mt (softwood) Total 9.8 million m3 / 7.3 mt (hardwood)

33 Total 6.6 million m3 / 6.9 mt (softwood) Total 9.8 million m3 / 7.3 mt (hardwood) Roundwood Production by Province and Genera 2016 Hardwood Softwood KZN Mpumalanga E. Cape Limpopo W. Cape Million m3

34 Roundwood Production by Province and Genera 2016 Softwood Hardwood KZN Mpumalanga E. Cape Limpopo W. Cape Million m3 Total 6.6 million m3 / 6.9 mt (softwood) Total 9.8 million m3 / 7.3 mt (hardwood)

35 Roundwood Production ex Plantations by Province & Product 2016 Pulpwood Sawlogs Other KZN Mpum E. Cape Limpopo W. Cape Million m3 Total 16.4 million m3 or 14.2 million tons

36 Roundwood Production ex Plantations by Province & Product 2016 Other Sawlogs Pulpwood KZN Mpum E. Cape Limpopo W. Cape Million m3 Total 16.4 million m3 or 14.2 million tons

37 Total Roundwood Production ex Plantations by Province 2016 KZN Mpumalanga E. Cape Limpopo W. Cape 11.5% 31.4% 3.9% 0.8% 52.5% Total 17.9 million m3 or 15.3 million tons

38 Total Roundwood Production ex Plantations by Product 2016 Pulpwood Sawlogs Mining Timber Poles Other 27.0% 2.6% 2.0% 2.1% 66.2% Total 16.4 million m3 or 14.2 million tons

39 Softwood Roundwood Production ex Plantations by Product 2016 Sawlogs Pulpwood Poles Other 34.5% 0.8% 0.9% 63.7% Total 6.6 million m3 or 6.9 million tons

40 Hardwood Roundwood Production ex Plantations by Product 2016 Pulpwood Mining Timber Poles Sawlogs Other 4.4% 2.8% 2.2% 3.0% 87.6% Total 9.8 million m3 or 7.3 million tons

41 Total Roundwood Production ex Plantations by Species 2016 Pine Eucalyptus Wattle Other 54.1% 5.2% 0.4% 40.4% Total 16.4 million m3 or 14.2 million tons

42 Composition of Roundwood Production by Product % Softwood Hardwood 80% 60% 40% 95% 20% 21% 17% 17% 0.0% 0% Sawlogs Pulpwood Other Poles Mining Timber Product Overall: Softwood = 40% & Hardwood = 60%

43 Hectares Total Plantation Area 1980 to % decrease ha increase ha decrease Years Total increase in planted area over period ha (5.1%)

44 Total Roundwood Production ex Plantations 1980 to 2016 Million m Years Total increase in production over period: 38.4% Total increase in afforested area over period: 5.1%

45 1980 = 100 Index of Roundwood Production vs. Plantation Area 1980 to Plantation Area Plantation Production Years Total increase in production over period: 38.4% Total increase in afforested area over period: 5.1%

46 m3 per hectare Average Productivity per Hectare Years Total increase in productivity over period 3.2 m 3 per ha p.a. (32%)

47 Production Comparisons 2006, 2011 & Sugar Forestry Maize Wheat Million tons

48 Value of Roundwood Production 2016 Pulpwood Mining Timber Other Sawlogs 22.9% 3.2% 2.3% Total R9.0 billion (R0.5bn less than 2015) 71.6%

49 Value of Roundwood Production ex Plantations by Product 2016 Pulpwood Sawlogs Poles Mining Timber Other Billion Rands Total R8 988 million

50 Value of Roundwood Production ex Plantations by Province 2016 KZN Mupumlanga Eastern Cape 754 Limpopo 330 Western Cape Million Rands Total R8 988 million

51 Value of Roundwood Production ex Plantations by Province & Product 2016 Pulpwood Sawlogs Other KZN Mupumlanga Eastern Cape Limpopo Western Cape Million Rands Total R8 988 million

52 Value of Roundwood Production ex Plantations by Province & Product 2016 Other Sawlogs Pulpwood KZN Mupumlanga Eastern Cape 754 Limpopo 330 Western Cape Million Rands Total R8 988 million

53 Billion Rand (2014/15 Rands) Value of Roundwood Production 1980 to 2016 Nominal Real Years Nominal increase over period: R8.8 bn (5 364%) Real increase over period: R5.0 bn (124%)

54 Thousand Hectares New Afforestation by Region 1980 to 2016 Northern KZN Cape Total AVERAGE Years New afforestation over period: ha Average per year: ha

55 Total New Afforestation by Region 1980 to 2016 KZN Mpumalanga & Limpopo E&W Cape 11.8% 33.6% 54.6% Total ha

56 Total New Afforestation by Region 10 Yr Period to 2016 KZN Mpumalanga & Limpopo E&W Cape 24.2% 0.7% Total ha 75.1%

57 Thousand Hectares New Afforestation by Region 10 Year Period 2007 to 2016 Northern KZN Cape Total AVERAGE Years New afforestation over period: ha Average per year: ha

58 New Afforestation by Province 2016 W. Cape KZN Limpopo Mpumalanga E. Cape 1.4% 30.4% 0.0% 0.0% Total ha 68.2%

59 Thousand Hectares New Afforestation by Species 1980 to 2016 Pine Eucalyptus Wattle/Other Total AVERAGE PER ANNUM 1980 to 1985: ha (16.8% of total) 1986 to 1990: ha (31.4% of total) 1991 to 1995: ha (31.2% of total) 1996 to 2000: ha (9.0% of total) Years

60 Total New Afforestation by Species 1980 to 2016 Pine Eucalyptus Wattle Other 8.6% 1.0% 46.8% Total ha 43.7%

61 New Afforestation by Species 2016 Eucalyptus Wattle Pine Other Hardwood 0.5% 10.1% 47.5% Total ha 41.9%

62 Thousand Hectares New Afforestation by Product 1980 to 2016 Pulpwood Sawlogs Mining Timber Other Total AVERAGE PER ANNUM 2001 to 2005: ha (6.5% of total) 2006 to 2010: ha (3.3% of total) 2011 to 2016: ha (1.8% of total) Years

63 Total New Afforestation by Product 1980 to 2016 Pulpwood Sawlogs Mining Timber Other 13.8% 5.6% 23.0% 57.6% Total ha

64 New Afforestation by Product 2016 Pulpwood Sawlogs Poles 56.3% 0.5% Total ha 43.1%

65 Hectares Area Converted Out of Timber Production by Species 1980 to Pine Eucalypts Wattle/Other Total Years Area converted over period: ha Average p.a.: ha

66 Hectares Area Converted Out of Timber Production by Species 2007 to Pine Eucalypts Wattle/Other Total Years Area converted over period: 7 906ha Average p.a.: 791 ha

67 Total Area Converted out of Timber Production by Species 1980 to 2016 Pine Eucalypts Wattle Other 2.5% 23.9% 45.6% Total ha 28.0%

68 Total Area Converted out of Timber Production by Species 2016 Pine Eucalypts Other Hardwood Wattle 0.0% 29.0% 57.7% Total 638 ha 13.3%

69 Thousand Hectares Net New Afforestation by Species 1980 to 2016 Pine Eucalypts Wattle/Other Total Years Net new afforestation over period: ha

70 Thousand Hectares Net New Afforestation by Species 2007 to 2016 Pine Eucalypts Wattle/Other Total Years Net new afforestation over period: ha Average p.a.: 939 ha

71 Net New Afforestation by Species 1980 to 2016 Pine Eucalypts Wattle Other 47.1% 0.5% 3.9% Total ha 48.5%

72 Hectares Net New Afforestation by Species Pine Eucalypts Wattle Other Species Total net new afforestation ha

73 Hectares Area Converted Out of Timber Production by Region 1980 to North KZN Cape Total Years Area converted over period: ha

74 Hectares Area Converted Out of Timber Production by Region 2007 to North KZN Cape Total Years Area converted over period: ha Average p.a.: 791 ha

75 Total Area Converted out of Timber Production by Region 1980 to 2016 Mpumalanga & Limpopo KZN E&W Cape 27.5% 42.5% Total ha 29.9%

76 Thousand Hectares Net New Afforestation by Region 1980 to North KZN Cape Total Years Net new afforestation over period: ha Average p.a.: ha

77 Thousand Hectares Net New Afforestation by Region 2007 to 2016 North KZN Cape Total Years Net new afforestation over period: ha Average p.a.: 939 ha

78 Net New Afforestation by Region 1980 to 2016 Mpumalanga & Limpopo KZN W&E Cape 7.0% 34.7% Total ha 58.3%

79 Thousand Hectares Conversion of Plantations out of Production & to Other Species 1980 to 2016 Pine Eucalyptus Wattle/Other Total Years Net loss to production area over period: ha Average p.a.: ha

80 Thousand Hectares Conversion of Plantations out of Production & to Other Species 2007 to 2016 Pine Eucalyptus Wattle/Other Total Years Net loss to production area over period: ha Average p.a.: 791 ha

81 Total Area Converted out of Production & to Other Species 1980 to 2016 Hectares Pine Eucalypts Wattle Other Species Net loss to production area over period: ha Average p.a.: ha

82 Hectares Area Converted out of Production & to Other Species Pine Eucalypts Wattle Other Species Land taken out of timber production: 638 ha

83 Hectares Net Addition to Planted Area by Species 1980 to 2016 Pine Eucalyptus Wattle/Other Total Years Total net addition to production area: ha Average p.a.: ha

84 Hectares Net Addition to Planted Area by Species 2007 to 2016 Pine Eucalyptus Wattle/Other Total Years Total net addition to production area: ha Average p.a.: 939 ha

85 Total Net Addition to Planted Area by Species 1980 to 2016 Hectares Pine Eucalyptus Wattle Other Species Total net addition to production area: ha Average p.a.: ha

86 Hectares Net Addition (Loss) to Planted Area by Species Pine Eucalyptus Wattle Other Species Total net gain in production area: Plus 469 ha

87 Thousand Hectares Damage to Plantations by Genera 1980 to 2016 Softwood Hardwood Total Years Total area damaged over period: ha Average p.a.: ha

88 Thousand Hectares Damage to Plantations by Fires 1980 to 2016 Fire Other Causes Total Years Total area damaged over period: ha Total area damaged fire: ha (58%) Total area damaged - other causes: ha (42%)

89 Thousand Hectares Damage to Plantations by Fires 2007 to 2016 Fire Other Causes Total Years Total area damaged over period: ha Total area damaged fire: ha (68%) Total area damaged - other causes: ha (32%)

90 Damage to Plantations by Fires 1980 to 2016 Fire Other Causes 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Years

91 Damage to Plantations by Genera 2016 Softwood Hardwood 35.6% Total 64.4% ha (2.3% of total planted area)

92 Damage to Plantations by Cause 2016 Fire Other Causes 48.8% Total ha 51.2%

93 Damage to Plantations by Fire 2016 Arson Accidental Natural Unknown 39.2% 22.9% Total ha 5.3% 32.7%

94 Number of Certificates FSC Certificates RSA vs. Africa: as at September 2017 Africa South Africa RSA 38% of African Total RSA 58% of African Total Farm Managment Unit Chain of Custody RSA FMU certificates cover million ha or 18% of African total coverage of million ha

95 FSC Certified Forest Areas in Africa as at September 2017 DRC Gabon RSA Cameroon Other Tanzania Swaziland Mozambique Thousand Hectares Total FSC certified area in Africa: ha

96 FSC Certified Forest Areas in Selected Countries as at September 2017 Brazil Chile RSA NZ Australia Uraguay China Argentina Thousand Hectares Total FSC certified area in world: 198 million ha

97 FSC Certified Forest Areas Top 5 Countries as at September 2017 Canada Russia USA Sweden Belarus Million Hectares Total FSC certified area in world: 198 million ha

98 FSC Certified Forests by Region as at September 2017 Europe North America Latin America Asia Africa Oceania Million Hectares Total FSC certified area: 198 million ha in 84 countries

99 FSC Certified Forests by Ownership: as at September 2017 Private Cos Private Cos (ex SAFCOL) SAFCOL (KLF) Group Schemes 15.4% 13.2% 12.8% 58.6% Certified Area ha (incl. planted & non-planted areas)

100 FSC Certified Forests by Ownership as at September 2017 Private Cos Group Schemes SAFCOL (KLF) Private Cos (ex SAFCOL) Thousand Hectares Total FSC certified area: ha

101 Section 3 THE FOREST PRODUCTS INDUSTRY

102 Number of Processing Plants by Type 2016 Sawmills 75 Pole Plants 35 Pulp, Paper & Board Mills 17 Mining Timber Mills 17 Charcoal Plants 4 Veneer Plants 2 Match Factories Number of Plants Total number of plants: 151

103 Million m3 Intake of Roundwood into Processing Plants 1980 to Pulp & Paper Mills Sawmills Mng. Timber Mills Other Total Years Total increase in intake over period: 5.3 m m 3 (48%) Biggest increase that of pulpwood: 7.0 m m 3 (166%)

104 Intake of Roundwood into Processing Plants 2016 Pulp, Paper & Board Mills Sawmills Mng. Timber Mills Other 24.6% 2.9% 3.8% Total 16.4 million m %

105 Roundwood Intake into Processing Plants by Province & Product 2016 Pulpwood Sawlogs Other KZN Mpum E Cape Limpopo W Cape Million m3 Total 16.4 million m 3

106 Roundwood Intake into Processing Plants by Province & Product 2016 Other Sawlogs Pulpwood KZN Mpum Limpopo E Cape W Cape Million m3 Total 16.4 million m 3

107 Average Size of Plant by Intake 1980 vs Pulp & Paper Mills Average All Other Plants Sawmills Mng. Timber Mills Overall average intake has increased by: 137% Average intake of Sawmills has increased by: 112% Only average intake of MT Mills has declined by: 61% Pole Plants Thousand m3

108 Thousand Units Sales of Certain Products from Processing Plants 1980 to Pulp (t) Lumber (m3) Mng. Timber (t) Chips (t) Years Biggest increase that of chips: 1.8 million tons (+335%) Biggest decrease that of mining timber: 1.3 million tons (-79%)

109 Value of Sales from Primary Processing Plants 2016 Pulp Chips Lumber Panels Mng. Timber Poles Other 23.4% 5.9% 7.1% 1.5% 4.2% 0.9% Total R25.5 billion 56.9%

110 Value of Sales from Primary Processing Plants 2016 Pulp Lumber Panels Chips Poles Mng. Timber Other Total R25.5 billion Billion Rand

111 Billion Rand (2015/16 Rands) Value of Sales from Primary Processing Plants 1980 to 2016 Nominal Real Years Nominal increase over period R24.8 bn (3 563%) Real increase over period R8.5 bn (50%)

112 Value of Roundwood Sales from Processing Plants by Product & Province 2016 Pulp / Boards / Chips Sawn Timber Other KZN Mpum Limpopo E. Cape W. Cape Total R25.5 billion Million Rands

113 Value of Roundwood Sales from Processing Plants by Product & Province 2016 Other Sawn Timber Pulp / Boards / Chips KZN Mpum Limpopo E. Cape W. Cape 706 Total R25.5 billion Million Rands

114 Gross Value of Output Comparisons 2006, 2011 & For. Prods Maize Forestry Wheat Sugar Cane Billion Rand

115 Gross Value of Output Comparisons per Planted Hectare 2006, 2011 & For. Prods Sugar Wheat Maize Forestry Rands per Hectare

116 Value Addition in Primary Processing Industry 2016 Input Output Total Industry Pulp / Paper Mills Sawmills Pole Plants M. T. Mills Charcoal Plants Million Rand Note: excludes secondary processing (e.g. paper manufacturing)

117 Value Addition Comparisons in Primary Processing Industry 2016 Pole Plants 4.67 Sawmills 2.88 Total Industry 2.84 Pulp / Paper Mills 2.76 M. T. Mills 1.88 Charcoal Plants Output as ratio of Input Note: Based only on input value of raw fibre (i.e. excludes all other input costs)

118 Section 4 CONTRIBUTION TO EMPLOYMENT

119 Forest Sector Employment RSA 2016 Sub-sector No. of employees Total Employment Direct Indirect Forestry 60,200 28,000 88,200 Pulp and Paper 13,200 10,800 24,000 Sawmilling 20,000 8,000 28,000 Timber Board 6,000 n/a 6,000 Mining Timber 2,200 n/a 2,200 Other 10,000 n/a 10,000 Total 111, , Direct jobs in Forestry = Indirect jobs in Forestry ( less ) =

120 Direct Employment in Forestry Industry by Province 2016 KZN Mpumalanga E Cape Limpopo W Cape 37.0% 9.1% 4.0% 2.6% Total %

121 Direct Employment in Forestry Industry by Region 2016 KZN Total Employment Mpumalanga E. Cape Limpopo W. Cape Number of Direct Jobs Total est. direct jobs in industry:

122 Direct Employment in Forestry Industry as % of Those Employed in 2016 Mpumalanga 1.89% KZN 1.11% E. Cape 0.40% RSA 0.39% Limpopo 0.19% W. Cape 0.07% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% % of Total Employed in Formal Sector Total employed in RSA:

123 Indirect Employment Created by Forestry Industry by Province 2016 KZN Total Employment Mpumalanga E. Cape Limpopo W.Cape Number of Indirect Jobs Total estimated indirect jobs created by industry in forestry and wood processing activities

124 Indirect Employment Created by Forestry Industry as % of Those Employed in 2016 Mpumalanga 2.63% KZN 1.75% Limpopo 0.75% RSA 0.63% E. Cape 0.58% W. Cape 0.21% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% % of Total Employed in Formal Sector

125 Direct & Indirect Jobs in & Created by Forestry Industry by Province 2016 Direct Indirect Total Employment KZN Mpumalanga E. Cape Limpopo W. Cape Number of Jobs Estimated total jobs

126 Total Employment in Industry as % of Those Employed in Formal Sector 2016 Direct Indirect Mpumalanga 4.99% KZN 4.16% E. Cape 2.21% RSA 1.02% Limpopo 0.94% W. Cape 0.28% 0% 1% 2% 3% 4% 5% 6% % of Total Employed in Formal Sector

127 Dependants of Those Working in Forestry Industry by Province 2016 Direct job dependents Indirect job dependants KZN Mpumalanga E. Cape Limpopo W. Cape Number of Dependants Est. total dependants

128 Total Number of People Dependent on Forestry Industry by Province 2016 Workers Dependents KZN Mpumalanga E. Cape Limpopo W. Cape Number of People Dependent on Industry Est. total livelihoods

129 Estimated % of Population Dependent on Forestry Industry 2016 Mpumalanga 5.45% Total Population KZN 2.90% RSA 1.24% Limpopo 0.88% E. Cape 0.84% W. Cape 0.40% 0% 1% 2% 3% 4% 5% 6% 7% % of Provincial Population Total RSA population: 55.9 million

130 Section 5 INVESTMENT IN THE SECTOR

131 Investment in RSA Forestry Industry 2016 Trees Land Roads Fixed Assets Moveable Assets 37.6% 7.9% 4.1% 1.5% Total Investment R42.9 billion 48.8%

132 Investment in RSA Forestry Industry 2016 Pine Long Gum Short Pine Short Wattle Gum Long 33.6% 13.1% 6.1% 1.9% Total Investment R42.9 billion 45.3%

133 Investment in RSA Forestry Industry 2016 Mpumalanga KZN E. Cape W. Cape Limpopo 13.3% 35.8% 4.4% 4.7% Total Investment R42.9 billion 41.8%

134 Mpumalanga = highest investment (41.8% of total) Investment in Plantations By Province 2016 Mpumalanga KZN E. Cape Limpopo W. Cape Billion Rand

135 Investment in Mpumalanga Forestry 2016 Pine Long Pine Short Gum Short Gum Long Wattle 19.2% 27.8% 1.3% 2.1% Total Investment R17.9 billion 49.6%

136 Investment in KZN Forestry 2016 Pine Long Pine Short Gum Short Gum Long Wattle 0.2% 55.5% 14.2% Total Investment R15.4 billion 11.8% 18.2%

137 Investment in E. Cape Forestry 2016 Pine Long Pine Short Gum Short Gum Long Wattle 6.8% 10.8% 1.0% 0.1% 81.4% Total Investment R5.7 billion

138 Investment in W. Cape Forestry 2016 Pine Long Pine Short Gum Short Gum Long Wattle 97.0% Total Investment R1.9 billion 0.0% 0.2% 2.7% 0.1%

139 Investment in Limpopo Forestry 2016 Pine Long Pine Short Gum Short Gum Long Wattle 23.9% 0.0% 13.3% 62.7% Total Investment R2.0 billion 0.0%

140 Investment in Forest Products Sector by Type of Processing Plant 2016 Pulp & Board Sawmills & Veneer Other Pole Plants Mng. Timber 10.4% Total book value of investments R21.8 billion 85.2% 3.4% 0.9% 0.2%

141 Investment in Forest Products Sector by Investment Category 2016 Machinery & Equipment Land & Buildings Moveable Assets Other 11.9% 1.7% 2.9% Total book value of investments R21.8 billion 83.5%

142 Section 6 CONTRIBUTION TO GDP

143 Composition of RSA GDP 2016 Agric Mining Other Secondary Manufacturing Finance Other Tertiary 43.8% 2.2% 7.5% 16.2% Total GDP R3 813 billion (R3.8 trillion) 18.1% 12.1%

144 % Contribution to GDP Contribution to GDP 1980 to 2016 Forestry to Agric. GDP FP to Mnfg. GDP FP to total GDP 14% 12% 10% 8% 6% 4% 2% 0% Years Increase in Forestry to Ag GDP over period from 4.5% to 10.2% Decrease in For. Prod. to Mfg GDP over period from 6.3% to 5.1%

145 Forest Products vs. Other Manufacturing GGP per Region % 90% 80% 70% 60% 50% 40% 30% Forest Products Other Manufacturing 20% 10% 0% 20.0% 16.8% 16.1% 5.5% 4.1% 1.0% Limpopo Mupumlanga KZN RSA E. Cape W. Cape Province

146 Gross Value of Output by Sector & Province 2016 Forest Products Forestry KZN Mupumlanga Eastern Cape Limpopo Western Cape Million Rands Forestry: R9.0bn Forest Products: R25.5bn

147 Gross Value of Output by Sector & Province 2016 Forestry Forest Products KZN Mupumlanga Eastern Cape Limpopo Western Cape Million Rands

148 Forestry Industry Contribution to Agricultural GGP per Region Mpum 37.23% KZN 22.81% E. Cape 15.39% RSA 10.83% Limpopo 5.59% W. Cape 1.32% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% % of Regional GGP

149 Forest Industry Contribution to Total GGP per Region Forest Products Forestry KZN 0.79% 2.60% Mpumalanga 0.99% 2.09% RSA 0.24% 0.67% Eastern Cape 0.44% 0.26% Limpopo Western Cape 0.12% 0.14% 0.05% 0.57% 0.0% 1.0% 2.0% 3.0% % of Regional GGP

150 Forest Industry Contribution to Total GGP per Region Forestry Forest Products KZN 3.39% Mpumalanga 3.08% RSA Eastern Cape Limpopo 0.91% 0.70% 0.69% Importance of forestry and forest products sector has been declining in all provinces in which it operates over a number of years. Western Cape 0.19% 0% 1% 1% 2% 2% 3% 3% 4% 4% % of Regional GGP

151 Section 7 CONTRIBUTION TO FOREIGN TRADE

152 Exports of Forest Products 2015 vs Pulp Paper Solid Wood & Other R25.8bn 2016 R29.1bn Billion Rand Exports in 2016 R3.322 bn or 13% up on 2015

153 Imports of Forest Products 2015 vs Pulp Paper Solid Wood & Other R18.5bn R19.8bn Billion Rand Imports in 2016 R1.290bn or 7.0% up on 2015

154 Billion Rand Imports vs. Exports of Forest Products Trade Balance 2015 vs Imports Exports Trade Balance Trade balance in 2016 R2.0bn or 28% more than in 2015.

155 Billion Rand Imports vs. Exports of Forest Products Trade Balance 2014, 2015 & Imports Exports Trade Balance

156 Imports vs. Exports of Forest Products 2016 Exports Imports Pulp Paper Solid Wood & Other Exports R29.1bn Imports R19.8bn Billion Rand Positive trade balance in 2016 = R9 290 billion

157 Forest Product Exports by Product 2016 Pulp Paper Solid Wood Other 30.6% 23.9% 3.3% Total R29.1 billion 42.2%

158 Forest Product Imports by Product 2016 Pulp Paper Solid Wood Other 25.7% 0.1% 7.9% Total R19.8 billion 66.3%

159 Billion Rand Trade Balance in Forest Products 1992 to 2016 (nominal) Imports Exports Trade Balance Increase in imports - R18.4 billion (1 298%) Increase in exports - R26.7 billion (1 143%) Increase in trade balance - R8.4 billion (907%) Years

160 Billion Rand (2015 Rands) Trade Balance in Forest Products 1992 to 2016 (real) Imports Exports Trade Balance Increase in imports - R13.6 billion (217%) Increase in exports - R18.8 billion (182%) Increase in trade balance - R 5.2 billion (128%) Years

161 Export Comparisons 2006, 2011 & Coal Fruit & Veg Forest Prods Sugar Billion Rand

162 Image: Sappi Image: Sappi THANK YOU!