57% of one South African company’s land is subject to land claims

57% of the land under the management of the South African Forestry Company Limited (SAFCOL) is subject to land claims.

This was revealed by the Minister of Forestry, Fisheries and the Environment, David Maynier, in response to a Parliamentary question.

SAFCOL was established in 1992 under the Management of State Forests Act. It operates as a Schedule 2 major public entity.

It is the third largest state-owned forestry company in South Africa and plays an important role in the agricultural, manufacturing, and rural economic sectors.

It is the largest producer of high-quality sawlogs in South Africa, focusing on sustainable pine plantations with 25- to 30-year rotations.

It manages 190,000 hectares of operational forest land, with prime plantation assets spanning Mpumalanga, Limpopo, and KwaZulu-Natal.

Beyond harvesting logs, SAFCOL processes timber. Its flagship processing facility is the Timbadola Sawmill in Limpopo.

This sawmill produces kiln-dried, stress-graded structural lumber for construction and clear-grade lumber for furniture manufacturers.

Oversight recently shifted from the Department of Public Enterprises to the Department of Forestry, Fisheries and the Environment (DFFE).

The company has a mandate to conduct a commercial forestry business, primarily timber harvesting, processing, and other associated activities.

It also has a socio-economic development mandate, showing an effective return to its shareholder, the Department of Forestry, Fisheries and the Environment.

This should be done whilst contributing to social and economic development, primarily in the rural areas where the company operates.

Most of SAFCOL’s land is subject to land claims

National Assembly member Albert Themba asked Minister Maynier for details about SAFCOL’s transformation and land restitution mandate.

This includes the percentage of SAFCOL’s total plantation area that has been transferred through land claims and equity partnerships.

Maynier responded, saying 57% of the land under the management of the South African Forestry Company is subject to land claims.

He added that, as of 1 January 2020, the Department of Land Reform and Rural Development (DLRRD) had transferred 2,614 hectares of land to communities.

This represents approximately 1.4% of the total 189,414 hectares of land managed by the South African Forestry Company.

Following the transfer of the land, SAFCOL concluded lease agreements with the relevant Communal Property Associations (CPAs).

• Mamahlola CPA – 1,597 hectares
• Makhubu CPA- 257 hectares
• Esiyalwini CPA – 760 hectares

“No plantation land was transferred through equity partnership arrangements during the period under review,” he said.