The BBBEE Charter process is one of many strategies that government is implementing to transform the economy. The Government recognises that its BEE (Black Economic Empowerment) strategy will not be effective if it does not have the support of the private sector. Partnerships between government and the private sector, including trade unions and community-based organisations, represent a key ingredient for the formulation and implementation of BEE programmes at different levels and in different sectors of the economy.

Partnerships refer to structured collaboration between government and the private sector for the sustainable achievement of BEE. Government will actively seek the establishment of innovative partnerships with the private sector, built around the specific circumstances of different sectors and enterprises.

Sector charters are one of the forms that such partnerships could take. Such charters need to include specific mechanisms to achieve BEE objectives in each particular sector or enterprise in a comprehensive and appropriate manner, as well as advising on appropriate measurement indicators and targets for the sector. For the partnership to be a success and to ensure that the economy is transformed, the agreement must be negotiated between the stakeholders. Charters exist in liquid fuels, mining, tourism, ICT, agriculture and in the finacial sector; and more are expected in the accounting and legal professions, property, construction and advertising.

The BBBEE charter for the forestry sector will be instrumental in achieving the objectives of the scorecard as suggested by the DTI (Department of Trade and Industry), such as increasing the number of black people, particularly women, that own, manage and control enterprises and productive assets facilitating ownership and management of enterprise and productive assets by communities, workers, co-operatives and other collective enterprises.

The main objective of this Charter is to promote Broad-based Black Economic Empowerment in and through the Forest Sector by undertaking the following:

• Promoting investment programmes that lead to sustainable B-BBEE-driven growth and development of the Forest Sector and meaningful participation of black people in the entire forestry value chain.
• Achieving sustainable change in the racial and gender composition of ownership, management and control structures and in the skilled positions of existing and new forest enterprises.
• Increasing the extent to which black women and men, workers, cooperatives and other collective enterprises own and manage existing and new forest enterprises and increasing ? their access to economic activities, infrastructure and skills training.
• Nurturing new black-owned and/or black-managed enterprises to undertake new forms of economic and value-adding activities in the Forest Sector.
• Using the forest industry as a catalyst for empowering rural and local black communities to access economic activities, land, infrastructure, ownership and skills.
• Promoting sustainable employment and contracting practices in the Forest Sector.
• Promoting access to finance for Broad-based Black Economic Empowerment in the Forest Sector.
• Promoting equitable representation in industry structures and equitable access to forestry support systems.
• Providing an enabling environment for transparency, fairness and consistency when measuring and adjudicating on matters related to B-BBEE in the Forest Sector.

• B-BBEE is Broad-based in terms of spectrum of people empowered and instruments used to empower
• B-BBEE is an inclusive process with participation and commitment by all stakeholders – large and small enterprises; management and labour; community groups and government
• Sustainable B-BBEE supports and is underpinned by economic growth in the sector
• B-BBEE requires partnerships - between sub-sectors; large and small enterprises; industry and government; and with local communities
• Good governance must underpin B-BBEE
• B-BBEE requires commitment to a shared vision for the forest industry based on a win-win approach.

All enterprises involved with plantation forestry and first level processing of wood products:

• Plantation forestry growers and nurseries
• Forestry contractors
• Fibre processors - pulp, paper, paperboard, timber board product, woodchip and wattle bark
• Sawmilling
• Pole producers
• Charcoal producers

Note: NTFP enterprise not included but will benefit from Charter conditions for Growers.

All role players need to commit to a shared vision for the forest industry and seek win-win approaches to tackling the transformation challenges arising. This needs to be underpinned by a common understanding of the challenges facing the sector and its sub-sectors, and a commitment to implement the strategies and instruments for sustainable growth and broad-based empowerment throughout the forestry value chain. This Charter represents the sector stakeholders’ shared vision for broad-based empowerment with growth for the Forest Sector, namely:

• An inclusive and equitable Forest Sector in which black women and men fully participate.
• A Forest Sector that is characterised by sustainable use of resources, sustainable growth, international competitiveness and profitability for all its participants.
• A Forest Sector that contributes meaningfully to poverty eradication, job creation, rural development and economic value-adding activities in the country.

• Increased local supply of roundwood to underpin sustainability and growth throughout the forestry value chain. A key requirement here is to increase land available for forestry.
• Sustainable supply and better utilisation of the country’s limited sawlog resources.
• Increased local beneficiation in and through the fibre production sub-sector.
• Greater equity in the entire value chain of forestry.
• Greater empowerment and profitability of existing small scale forest enterprises.
• Linking forestry as a rural based industry with poverty eradication and local economic development.

• Official launch of Charter process by Minister Sonjica at Indaba in Midrand on 18th April 2005
• Charter Steering Committee was established and began its work in June 2005
• Steering Committee established Sub-sector Working Groups:
  • Growers
  • Forestry Contractors
  • Fibre (pulp paper, timber board and woodchip)
  • Sawmillers
  • Pole & Charcoal
• Three sets of regional consultation meetings (including women’s workshops) were held to solicit stakeholder inputs
• Six drafts of Charter prepared between Dec 05 and July 06
• DWAF-DLA workshop on how to fast-track land reform issues in forestry areas (Jan 06)
• Appoint Task Teams to address skills development instruments, financial instruments and Government undertakings (Feb 06)
• Negotiations on Scorecard targets and Government undertakings on BBBEE implementation instruments (July 06)
• Draft Companion Document to the Charter compiled (background information, explanatory notes and implementation plan)
• User Guide on how to implement Charter prepared
• Draft Charter launched for public comment on 25 June 2007 in Benoni
• 13 stakeholder consultations in the Provinces held until August 2007
• Comments form public consultations incorporated into the Charter
• Steering Committee approved Charter in November 2007
• Minister appointed Charter Council in December 2007
• Minister appointed Charter Council Chairperson in February 2008.
• Signing of the final Charter on 22 May 2008.

For more information on the process, please contact:

	Dr Themba Simelane
	Tel: (012) 336 7734 Email: 1al@dwaf.gov.za