1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON WATER AFFAIRS AND FORESTRY Gay Mokoena and SAWMILLING SOUTH AFRICA 11 March 2008

Contents Matters directly affecting Sawmilling South Africa Matters affecting communities around timberlands and sawmills Introduction to Sawmilling South Africa Conclusion

Sawmilling South Africa Established in late 2007 This represents 74% of the formal sector Sawmilling SA is a successor to SALMA Currently recruiting the emerging sector. Output of 4 800m3 p.a. exempted from subscription fees Currently made up of some 38 sawmills throughout the country

Objectives of Sawmilling South Africa To create unity of purpose and identity among its members To promote the sawmilling industry by way of providing a formal voice To promote sustainable growth of the industry, particularly for emerging To promote and encourage education and training in the industry To collect,analyse, exchange and disseminate information To promote interests of all saw millers; big and small in the RSA

Objectives of Sawmilling South Africa (cont) To represent the interests of members to public and private bodies To seek affiliation with any other sawmilling, forestry and industry bodies To promote and facilitate free competition in all spheres of the industry

Issues facing Saw Millers The threat of imports for the local industry Impact on the local building industry Short supply of raw materials An opportunity to involve communities in afforestation Komatiland sawlog marketing policy

Issues affecting communities Access to land for forestry : Current institutional arrangements don’t promote entrepreneurship (Ownership) Should create incentive for members and forestry companies to invest Ensure accountability of any management e.g. audits Distribute benefits in a transparent and fair manner Communities often feel excluded as members have no influence (e.g. voting) Afforestation of previously disadvantage areas also an opportunity Communities need real benefits rather than corporate social investment projects

Issues affecting communities (cont) Commercialisation of Komatiland is an opportunity for BBBEE Building of infrastructure such as dams could promote other industries Decentralization of forestry functions essential

Conclusion Sawmilling SA satisfied with recognition by Government Sawmillers are quite keen to work with communities. In an environment that respects corporate governance Where decision making is efficient, equitable and sustainable With coordinated support from Govt and NGO sectors

10 Thank you Additional Comments