How South Africa’s Planted Forests Are Creating Jobs, Funding SMEs, and Saving Endangered Species

23

South Africa’s planted forests do far more than produce timber. They anchor rural livelihoods, power downstream industries, and generate billions of rands in economic value across sectors as diverse as sawmilling, pulp and paper, construction, tourism, and conservation. Sustainably managed planted forests, covering thousands of hectares across the country, are reshaping what inclusive economic growth looks like and who benefits from it.

This year, Forestry South Africa (FSA) marked the International Day of Forests on the 21st of March under the theme ‘Forests and the Economy’ by spotlighting the measurable, often overlooked ways in which planted forests drive national growth while lifting communities in areas where economic opportunity has historically been scarce.

“The economic contribution of forestry is often viewed through a very narrow lens, as a few large companies and obvious forest products, when in reality it’s a vast and diverse sector, and its economic contribution reflects this,” says Dr Ronald Heath, Director of Research and Protection at FSA.

RELATED NEWS

• Africa’s Tourism Ambitions in 2026: South Africa, Kenya, and Nigeria Are Rewriting the Playbook

• Brazil-South Africa Alliance Targets Seamless Travel Boost

• South Africa Leads with Integration in Luxury Medical Tourism Evolution

Forestry Creates Jobs Across an Entire Supply Chain

The forest economy does not begin and end at the sawmill; from tree planting and harvesting through to transport, processing, and manufacturing, the sector provides stable income for a wide network of workers, contractors, small growers, and suppliers, many of them in rural provinces where formal employment options are scarce.

Sappi’s Khulisa initiative illustrates the scale this support can reach. The programme backs more than 4,400 small-scale growers and 1,000 SMMEs, drawing 5.9 million tonnes of timber from 34,000 hectares and generating an estimated R4 billion in value. That figure does not represent corporate profit alone. It flows through communities, households, and local enterprises embedded in the forestry value chain.

Skills development is also opening doors. Mondi’s Semi-skilled Artisan Initiative creates clear pathways into employment and enterprise, pathways that extend beyond the forestry sector itself. Merensky’s Komazi Woodwork Project takes this further by equipping unemployed youth with the practical skills to start their own businesses, while simultaneously producing desks and furniture for local schools. The project answers two needs at once: youth unemployment and under-resourced classrooms.

Access to capital remains one of the sharpest barriers facing small businesses in rural South Africa. The forestry sector is attacking that barrier directly. Through Mondi Zimele, 24 contracting SMEs secured R29.5 million in funding in 2025 alone. The capital enables expansion, equipment acquisition, and job creation that would otherwise remain out of reach.

In KwaZulu-Natal, the NCT/NTE Wattle Regeneration project is supporting small-scale growers in the Greytown area with seedlings and expert technical guidance. Some participants have already crossed the threshold from supported growers to independent operators and local employers, a progression that compounds value over time.

Forests Are Generating Tourism Income and Recreation Jobs

Planted forests are not just working landscapes. They are increasingly recreational ones too, and that shift is translating into real economic returns.

In KwaZulu-Natal, the Sappi Trails Programme has delivered an increase in visitor numbers, supporting over 500 direct jobs and more than 3,000 indirect jobs in the uMngeni municipal area. Events like the Karkloof Classic and Trail Festival generate R6.88 million in direct economic impact. Trail running, mountain biking, and hiking are not fringe activities; they are legitimate income streams powering local businesses, hospitality operators, and event economies in areas that need every economic lever they can pull.

This pivot toward recreation and tourism diversifies the forestry sector’s value proposition. Timber prices fluctuate. Trail runners keep coming. The combination of productive forestry and active tourism use creates a more durable local economy than either would produce alone.

Conservation and Cultural Heritage Are Also Part of the Return

The case for forestry’s broader value extends into biodiversity and cultural practice areas that rarely appear in economic impact reports but carry enormous significance for the communities living alongside these forests.

Through the Sappi Rare, Threatened and Endangered Species Programme, forestry landholdings have become sites of active conservation. Partnerships with conservationists, traditional healers, and local communities are cultivating endangered medicinal plant species that anchor cultural traditions and primary healthcare for millions of South Africans.

One result stands out. The Pepperbark (Warburgia salutaris), once classified as endangered, has been reclassified as vulnerable after the cultivation and distribution of more than 140,000 plants to local communities. That reclassification is not an abstract conservation win. It means communities retain access to a plant that has shaped their healing traditions for generations.

The sector makes that case convincingly. South Africa’s planted forests are not waiting in the background of the national economy. They are actively building it, one grower, one SME, one trail, and one endangered plant at a time.

Want more stories on the people, policies, and industries shaping South Africa’s economy? Explore our latest coverage; the most important stories are already waiting.

 

Frequently Asked Questions

1. How much economic value does South Africa’s forestry sector generate?

The sector generates significant direct and indirect value across multiple industries. Sappi’s Khulisa programme alone creates an estimated R4 billion in value through its network of over 4,400 small-scale growers and 1,000 SMMEs operating across 34,000 hectares.

2. How does forestry support rural communities in South Africa?

The sector provides employment across the full supply chain from planting and harvesting to processing and manufacturing. It also backs small businesses through funding programmes like Mondi Zimele, which secured R29.5 million for 24 SMEs in 2025, and skills initiatives that help unemployed youth start businesses.

3. What role does forestry play in tourism and recreation?

Forestry landholdings in provinces like KwaZulu-Natal host trail running, mountain biking, and hiking infrastructure. The Sappi Trails Programme has recorded an 884% increase in visitors and supports over 3,500 direct and indirect jobs, while events like the Karkloof Classic generate close to R7 million in direct economic impact.

4. How is the forestry sector contributing to conservation?

Through programmes like the Sappi Rare, Threatened and Endangered Species Programme, forestry companies partner with conservationists and traditional healers to cultivate endangered medicinal plants. The Pepperbark (Warburgia salutaris) has been reclassified from endangered to vulnerable after over 140,000 plants were cultivated and distributed.

5. Who oversees sustainable forestry practices in South Africa?

Forestry South Africa (FSA) is the primary industry body promoting sustainable forestry management. The organisation tracks economic contributions, supports research, and advocates for policies that balance timber production with social and environmental outcomes across the sector.