SANDILE NKOSI | Give forestry space to branch out to its potential

There are few issues in South Africa more emotive than “the land”, and, as someone representing a global woodfibre and forestry business, this is a subject I spend a lot of time reflecting on. This thinking takes on even deeper meaning as we align our business with the UN Sustainable Development Goal 1: No Poverty.

If we consider that the forestry industry contributes about 1% (about R8bn) of South Africa’s annual GDP each year and makes up about 10% of the agricultural sector’s contribution, while supporting more than 150,000 jobs, the industry is a meaningful player in the country’s bioeconomy.

The government continues to develop its forestry sector masterplan, which aims to unlock about R25bn in investment and create a further 100,000 jobs. If we are to convert this from policy into real, on-the-ground impact, we need to unpack what land ownership and participation truly mean.

This discussion, which is frequently framed around historical recourse, often attracts critics who are quick to point to “profitable” farms that have failed. In turn, stakeholders from the government, local communities and the private sector all double down on their deep-rooted stances.

If we take a step back and cut through the noise, these dynamics can be better understood through programmes such as Sappi’s Khulisa initiative.

Khulisa started in 1983 as an initiative aimed at educating local communities on risks such as forest fires. Over time, we recognised that our role extends beyond awareness towards building more resilient and sustainable community systems. Today, Khulisa has become a community forestry partnership model, enabling thousands of small growers to participate meaningfully in the forestry value chain.

By operating in the forestry sector, we have developed a real appreciation of the concept of time and cyclicality. For context, a tree takes eight-10 years to reach maturity, meaning our “product” takes nearly a decade to come to life.

We are incredibly proud of the fact that in our financial 2025, Khulisa growers delivered 374,943t of timber worth R398m.

Since 1995, our growers have produced more than 5.9-million tonnes, valued at more than R4bn, clear testament to the programme’s long-term impact.

While we can be patient, we operate within a broader ecosystem. We have communities who are looking for us to create jobs and develop supplier opportunities for local entrepreneurs. On the other hand, the government also looks to us as a significant taxpayer and as a partner in supporting community development priorities.

One of the big misconceptions about the agriculture sector is that it is a home for low-skilled work. The sector saw strong growth in 2025, and employment data shows that “skilled agriculture” was one of the fastest-growing categories in South Africa.

We operate in many rural communities where skills are scarce, which is why we place strong emphasis on local upskilling. In 2025 alone, our skills centres in Illovo Neck and KwaMbonambi trained more than 357 growers across 22 training courses. This includes aquaponics, sustainable forestry and supporting recognised certification through bodies such as the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification.

While an entrepreneur may be able to secure a parcel of land and start some form of a forestry plantation, do they have the capital to survive for eight years before the ‘product’ matures?

For small businesses wanting to participate in the timber and forestry sector, there are two key challenges. The first is the delayed return on investment. While an entrepreneur may be able to secure a parcel of land and start some form of a forestry plantation, do they have the capital to survive for eight years before the “product” matures?

The second challenge revolves around the survival of these SMEs; land can rarely be used as collateral for start-up enterprises seeking working capital from commercial banks or development finance institutions. This extends to government grants and incentives such as the agro-processing support scheme.

This remains a significant and frustrating challenge, particularly because we have strong examples of patient capital enabling community entrepreneurs to build sustainable businesses and generational wealth.

One is a grower who has partnered with Khulisa and transformed her 30ha into a profitable enterprise, enabling her to put her child through school and university.

We recognised this challenge and decided to step in with a significant loan facility for microforestry and timber SMEs. One of the data points that we are particularly encouraged by is that the beneficiaries are not treating this as an ongoing grant facility. Instead, the entrepreneurs we are supporting have used this initial funding to help build self-reliance. If we look at our data, our loan facility has dropped from R80m to R65m. If the beneficiaries simply saw this as a handout, this figure would be going the other way.

Addressing these challenges requires co-ordinated support, not only from the private sector but critically also from the government.

In our work across the departments of forestry, fisheries & the environment (DFFE), rural development & land reform and water & sanitation, we have seen a tangible shift in how the state views our role.

We have taken heart from the recent restructuring within the DFFE, where we now have a deputy minister with a dedicated focus on the forestry portfolio, which signals an appreciation of our sector’s unique requirements. This specialised oversight is a vital first step.

We need government partners to move beyond regulation and into active advocacy. By fully embracing the South African bioeconomy and the forestry sector as a primary engine for rural transformation, the state can help us bridge the gap between industrial innovation and the communities we serve.

When the public sector and private industry share a single, unified perspective on the value of a standing forestry plantation, we create a powerful narrative of growth that resonates from the boardroom to the rural homestead.

If land is seen as an enabler for a small participant in a value chain linked to long-term income streams, then unlocking the potential of the land to achieve this — through reduced red tape and unblocking and removing contradictory regulations — will help focus the land debate on the right triggers and solutions, moving beyond the current stale polemic. Khulisa provides a powerful blueprint on how to execute this, by enabling small-scale growers to access and productively use land within a supported, long-term forestry value chain.

The transition to a vibrant South African fibre-based economy is within our grasp. As a sector, forestry has spent decades perfecting the art of long-term stewardship and sustainable scaling.

My challenge to policymakers, the communities we support and our partners is this: stop viewing the forestry sector through the narrow lens of traditional timber. Instead, lean into our deep-rooted expertise and established infrastructure.

If we have the courage to integrate forestry’s proven circularity into the national economic grid, we will not just be growing trees; we will be growing a resilient, decarbonised future for all South Africans. The roots of “the land” are already deep; it is time we let the bioeconomy branch out.

• Nkosi is a general manager – Sappi (Khulisa lead)