The forestry vision states “Forests are managed for people and we need to create an enabling environment for economic and social development through sustainable forestry, especially at a local level”. It is therefore imperative to shape and align the forestry strategies to achieve the vision. The Forest Development (FD) directorate is tasked with the championing of 1) Forest Enterprise Development (FED) 2) Household Poverty and Livelihoods and 3) Local Institutional and Development matters. This places the Directorate in the forefront of the quest for forestry to contribute to the broader priorities of the government.

The aim of Forestry Enterprise Development (FED) is to create opportunities for people to utilize forests (indigenous forests, woodlands and plantations) and forest-based resources for economic growth, income generation and job creation in a manner that will take people from a subsistence livelihood system into the market economy and from the “second economy” into the “first economy”. This concept is not new and is a central theme of the White Paper on Sustainable Forest Development in South Africa (1996). This concept is also contained as a key principle in the National Forests Act of 1998, which states in section 3 (3) (c) that forests, including forest produce, must be developed and managed so as to promote inter-alia the fair distribution of their economic and social benefits and advance persons disadvantaged by unfair discrimination.

The FED concept is also central to Government’s pro-poor agenda and also a key component of Broad Based Black Economic Empowerment (BEE) in the forestry sector and the DTI’s Integrated SMME Promotion Strategy. In short, FED is a necessary initiative to ensure that forestry development relates directly with the larger agenda of Government on poverty alleviation and Broad Based BEE.

With this challenge the Directorate has designed an FED programme that will provide the basis and momentum to operate efficiently. The programme is explained below.

The aim of the FED programme is to provide the pigeon hole for and act as a strategic tool that allows practical unlocking and rolling out the broader objectives of the Directorate. The programme also provide structured but flexible approaches that carry a spatial and physical momentum needed to fight poverty head-on. In addition the programme is aligned with the broader inter-governmental and sector’s programmes.

The FED Programme comprises of 5 sub-programmes namely,

The FED programme is administered by the national office and provides a lock and key arrangement between the national office and the regional offices. The only sub-programme that applies only and is fully managed by the FED national office is Strategy, Innovation & New Business Development (SIND). This is more of a managerial sub-programme unlike other sub-programmes which are more tangible, operational and project based. In addition the essence of this sub-programme is to enhance the art of project management across the FED programme.

Project management

It must be emphasised that this is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. A project is a finite endeavor—having specific start and completion dates—undertaken to create a unique product or service which brings about beneficial change or added value. This finite characteristic of FED projects stands in sharp contrast to other Forestry Development (FD) processes, or operations, which are permanent or semi-permanent functional work to repetitively provide the same support or/and services to the same project.

The primary challenge of the FED Programme is to achieve all of the project goals and objectives while adhering to project constraints—usually scope, quality, time and budget. However the programme through SIND endevour to optimize the allocation and integration of inputs necessary to meet pre-defined objectives.

Business Processes Outsourcing

It has been a fact that due to lack of capacity especially in regions some business processes are not achieved, executed correctly or timely. Through SIND the FED national office under thorough analysis exercise the concept of Business Processes Outsourcing (BPO) to use it national office FD capacity to facilitate some critical capacity related paths/processes in supporting regions.

Funding mechanism

The FED Programme through an independent but interrelated forestry projects funding support programme constituting Small Enterprise Development Agency (SEDA)/ Industrial Development Corporation (IDC) provides a funding vehicle for all it viable projects.

The Department: Water Affairs and Forestry through the Forestry branch published a series of sub-sector studies. These sub sector studies describe forestry business activities and opportunities. They reflect on several forestry enterprise, enterprises opportunities and sector key statistical data. As results the FED is trying to enhance and continuously support (see FED support model) these projects and further help develop viable businesses.

In addition the FED has a detailed database of all the project activities it supports. Unfortunately this database is not accessible to the public but FED will make every effort within the guiding policies to attend to public requests regarding projects information.

A range of benefits are realized by all role-players and stakeholders operating in the forest sector. The FED programme will ensure that these benefits are enhanced and come in different forms which could 1) improve access to information 2) ensure skills transfer and capacity building 3) ensure monetary and policy benefits 4) robust business development 5) general social development and/or 6) improve relationships with the private sector. Table 1 below depicts these broad benefits and DWAF intervention.

Table 1: Showing a range of perceived beneficiaries and benefits under each programme.

The FED has also developed few tools for use when approaching FED programme and project support. Apart from the projects database there is a FED scorecard for use to distinguish and assess forestry projects for business development. Anyone can use this for quick check if a project is regarded as FED or as at subsistence level.

Any good programme must have a sound financial back-up for it to be completely successful. In this regard the directorate is busy developing a funding disbursing mechanism for project funding.

Sub-Sector Briefing on Timber Pole Market, Jan 2005