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FACTS AND FIGURES ON THE GROSS DOMESTIC PRODUCT
 
Employment

The forestry industry is of considerable importance to the national economy and to large numbers of poor people living in remote rural areas. The forest products industry ranks amongst the top exporting industries in the country, contributing some 9% to the overall export of manufactured goods and earning net foreign exchange of approximately R8,8 billion in 2003. In the same year, the commercial forest products GDP was R12,2 billion and employed an estimated 170 000 permanent, contract and informal workers. This amounted to 1% of national GDP and 1,4% of total formal employment. Between 390 000 and 560 000 mostly rural South Africans earn a living and can support their families on the basis of this industry.

 
 
Plantations provide direct employment for approximately 107 000 people, of which 67 500 are in formal employment, 30 000 are contract workers and 39 500 are small growers and their helpers. Importantly, plantation forestry provides the raw material for downstream activities such as pulpmilling, paper manufacturing, saw milling, wood chip exports, timberboard, mining timber and treated poles (Refer to the value chain linked to plantation forestry located on the right). Taking into account the multiplier effect of plantation forestry through its downstream value adding activities and the effect it has on local (mostly rural) economies, between 390 000 and 560 000 people are dependant on plantation forestry for their livelihoods. The contribution of plantation forestry to the economy of different provinces is outlined in the following table:
 
 

Plantation forestry GDP by Province, 2002/2003

 

Forestry as % of provincial GDP

Regional forestry GDP as % of total forestry GDP

Forestry employment as % of provincial employment

Mpumalanga

1,4

40

3,2

KwaZulu-Natal

0,5

37

1,4

Limpopo

0,2

5

0,4

Eastern Cape

0,3

9

0,5

Western Cape

0,1

6

0,1

Total South Africa

0,2

 

0,6

Source: Genesis, 2005. The contribution, costs and development opportunities of the Forestry, Timber, Pulp and Paper industries in South Africa. Study commissioned by the Department of Trade and Industry and the Pulp and Paper Manufacturers Association.
 

 

 
 
Related References
  Genesis Part I, 2005.
  The value chain linked to plantation forestry in South Africa, 2003