SiyaQhubeka Forests

SiyaQhubeka Forests (Pty) Ltd, in northern KwaZulu-Natal, South Africa, was born of the sales of Safcol’s KwaZulu-Natal commercial forestry assets to the SiyaQhubeka Consortium. Its plantations border largely on the Greater St Lucia Wetland Park, a recognised World Heritage Site and, with SiyaQhubeka’s adoption of Mondi’s ‘triple bottom line’ approach, this leverages important gains for the sustainable wellbeing of the region from an environmental, socio-economic and financial perspective.

Biodiversity and Eco-tourism A significant attribute of the transaction was the decision to delineate a practical ‘eco-boundary line’ between the Greater St Lucia Wetland Park, a world heritage site and a treasured conservation area, and SiyaQhubeka’s 26,000 ha of prime eucalyptus plantations - an important milestone from an ecological, economic and practical perspective. This line separates areas of conservation significance (mainly wetlands and riparian areas) from suitable, highly productive commercial afforestation zones.

The positioning of the eco-boundary line was agreed following a participative approach involving Mondi, SiyaQhubeka, Government, environmental NGOs and the Park Authority transforming a long history of passionate dispute between local forestry operations and environmentalists into a true partnership. The agreement saw the official inclusion of the 14,200 ha of SiyaQhubeka’s St Lucia landholdings into the reserve on the western shores of Lake St Lucia.

A world first for commercial forestry and a world heritage site has been the positioning of the 158km long ‘eco-track’ between the Park and the commercial plantation areas of Nyalazi and Dukuduku. The line separates 4,000 ha of previously afforested state forest with significant conservation value from highly productive commercial forest on the western shores of the lake. In partnership with government, the land is being rehabilitated to wetlands and grasslands, restoring soil and water conditions and encouraging biodiversity. Elephant, rhino, buffalo, cheetah and other game roam freely within the area, which forms a buffer between the Park and commercial farming areas.

As the party responsible for management of the Park, the Park Authority wishes to reintroduce game, incorporate buffer zones and achieve the highest level of diversity, ecological integrity and a sustainable ecosystem through the integrated management of the reserve as a whole.

Sustainable Commercial Forestry

Mondi reinforces its commitment to conservation and responsible forestry management through the certification of its plantation holdings under the principles of the internationally recognised Forest Stewardship Council (FSC). SiyaQhubeka enthusiastically supports the same approach and has converted its forests to economically sustainable hardwood plantations in line with the FSC requirements.

Social Development through Enterprise

SiyaQhubeka’s activities have stimulated small and medium enterprise development in the Zululand region. SiyaQhubeka Forests has identified and implemented small business initiatives such as honey production and firewood collection. Timber farming support schemes provide business opportunities for the local communities to grow and manage commercial plantation trees under the guidance of Mondi.

Economic Empowerment

I.L. Holdings was the first black economic empowerment company, other than a community trust, to acquire shares in a significant forestry enterprise in South Africa. Together, Mondi and I.L. Holdings own 75% of the share in SiyaQhubeka – with Mondi Holding 62% and I.L. Holdings, which counts traditional leaders and black businessmen among its shareholders, holding 13%. Mondi will reduce its shareholding to 51% by facilitating the acquisition by small-scale black timber farmers, traditional leaders and neighbouring communities of a further 11%. Government, through Safcol, the National Empowerment Fund and employees, hold 25% of the shares.

The Power of Partnerships

With ‘symbiotic forestry’ as SiyaQhubeka’s fundamental philosophy, the company proudly upholds its slogan, ‘Forestry for Life’ and strives for the establishment of sustainable and mutually beneficial relationships between the forestry sector, the community and the environment.

SiyaQhubeka, in association with Mondi, has been instrumental in cultivating working relationships with, amongst others, the Government Departments of Water Affairs and Forestry and Public Enterprises, Safcol, KZN Wildlife and the Lubombo Spatial Development Initiative (LSDI).

Last change: 18/03/2008