OVERVIEW Forestry and
OVERVIEW Forestry and paper Optimising energy in paper and pulp. A lot of energy is needed to create paper and pulp and companies are looking for better ways of doing things. Many companies are working to improve efficiencies in their production processes but a focus on steamgeneration efficiencies and optimisation is the speciality of Associated Energy Services (AES), which operates and maintains equipment in the steam and boiler sector. In the South Durban Basin where there are several large paper companies, emissions regulations put in place by the eThekwini Municipality are having an effect on pollution levels. As Dennis Williams, Commercial Director at AES explains, “The municipality understood that, with an economic incentive, this becomes a selfregulating mechanism. They stipulated that, when applying for licences for new boilers, facilities had to be operated by a specialist energy plant operator.” AES is investigating the uses to which a range of by-products, pictured, can be put. A particular by-product of the tissue production process, high in both moisture and fibre, has been identified as having energy value. One of the most important drivers of the packaging industry is the growth of online shopping. Mondi, a global packaging and paper company with a significant presence in KwaZulu-Natal, has released its “Fifth Annual Mondi eCommerce Report”. Among the findings of this global report are that a quarter of shoppers are buying online at least once a week and fashion is still number one for online purchases. Importantly for packaging companies, 88% of the 6 000 people surveyed said they valued protective packaging and many considered recyclability important. Almost half of the audience said they would not shop again with a brand if the packaging did not meet expectations. Investments by Mondi into its Richards Bay mill have expanded the number of products that it can offer and also improved environmental outcomes. The two main products are Baycel, a premier grade bleached hardwood pulp made from 100% eucalyptus fibre, and Baywhite, a white top kraft linerboard. Both originate from certified responsibly managed forests. Mondi’s Merebank Mill produces a range of office paper products including the well-known brand, Mondi Rotatrim. Nampak produces crêpe paper at Verulam and Rafalo produces ONLINE RESOURCES Forestry South Africa: www.forestry.co.za Paper Manufacturers Association of South Africa (PAMSA): www.thepaperstory.co.za South African Institute of Forestry: www.saif.org.za SECTOR INSIGHT Customers want sustainability in packaging. tissue paper. SA Paper Mills is another paper producer. Mpact has plastics and paper operations and does a lot of recycling. Sappi has 19 production facilities on three continents. The Sappi Saiccor mill 50km south of Durban is the world’s biggest manufacturer of dissolving wood pulp. Typek office paper is made at Sappi’s Stanger Mill. Sappi Southern Africa has concluded a 175GWh per annum renewable energy Power Purchase Agreement (PPA) with Enpower Trading. ■ KWAZULU-NATAL BUSINESS 2024/25 28 PHOTO: AES
Agriculture as a vehicle for economic freedom According to Statistics SA’s 2021 report on food security and hunger, out of almost 17,9 million households in South Africa, almost 80% reported inadequate access to food, and 15% and 6% reported inadequate and severe access to food, respectively. The country’s unemployment rate was recorded at 32,9% in the first quarter of 2023, one of the highest unemployment rates in the world. During the COVID-19 pandemic, unemployment peaked at 35,3%. To alleviate these challenges, in 2020, Mondi Zimele established an Agriculture SMME programmme as part of a broader initiative that provides technical and business support to emerging farmers in communities where Mondi and SiyaQhubeka Forests (SQF) operate in Zululand, northern KwaZulu-Natal. Mondi Zimele thus supplies farmers with technical farming support, including seedlings in the early stages of the programme, business support and financial management training. The programme has been implemented in Zululand, but expansion to other close-by communities is planned. Mondi Zimele’s Agricultural SMME Programme has supported 122 farmers, which includes 17 SMMEs constituted by 11 co-operatives and six individual farmers since it was established. Over 1 098 households have benefitted. About 320 permanent and seasonal jobs have been created, and approximately R2 million in revenue has been generated since the programme’s launch. The critical success factor has been the facilitation of formal markets, with exceptional support from local retailers, fresh produce markets, and a vision of formalising supply partnerships with food manufacturers. All the farmers have grown exponentially and are given equal opportunity to supply some of the biggest retailers in South Africa. Members of Dokodweni Farming and Produce PTY showcasing their produce, which is mainly cabbage, but they rotate various vegetables using legume crops to maintain soil fertility. Mr Lizwi Dube, CEO of Ezemvelo Fresh Produce Pty, whose farm rotates various vegetables, including cabbage, potatoes, tomatoes, spinach, maize and dried beans. Bongile Bho of Bongile Bho Trading and Projects said that Mondi Zimele has become like family to her. “My journey wasn’t easy. Mondi Zimele helped me with knowledge to be the independent farmer I am today.” Bongile began by selling her produce at the local bus stations; now she supplies Spar and Food Lovers Market. Eva Biyela of Imahlobo Cooperative in Nzalabantu Reserve said that Mondi Zimele has provided them with business, sales, financial and farming support. “They have been instrumental in teaching us the financial and business side of farming; to record everything that coming in and what’s spent on business needs like chemicals and seeds, so we know how much profit we make individually.” Mtubatuba-based Lizwi Dube of Ezemvelo Fresh Produce said: “The training sharpened us more than I can express, especially in communicating with retailers and selecting the best produce to send to market. We are supposed to control the market by supplying the best quality in and out of season. Mondi Zimele provides us with the technical know-how.”Dokodweni Farming’s Sifiso Nkwanyana said that Mondi Zimele helped him install a borehole for his farm, which now supplies fresh produce to Spar and Pick ’n Pay. The Fakude Family owns and runs the Mtolo Farming and Produce in KwaMthethwa. They would like to thank Mondi and Mondi Zimele for extending their possibilities. “Before we started this business, we didn’t have any networking programmes or training. Mondi Zimele helped us when we wanted to expand and obtain necessary information and knowledge to help maintain our business and ensure it supplies what customers need. Emerging Zululand farmers who want to join can send their proposals, with pictures of their current operations, to their local traditional authority, which sits on the Mondi Liaising Forum. After a comprehensive assessment, the chiefs submit them to Mondi’s Land Department to determine if they are at the subsistence or semicommercial phase. If all criteria are met, Mondi Zimele will get on board and support them accordingly. About Mondi Zimele Mondi Zimele is the small business development arm of Mondi South Africa that adds value by making business development support and loans available to employment-creating small businesses within the Mondi value chain and surrounding communities. Its objectives are to develop and drive transformation through Mondi SA, encourage economic development and job creation in Mondi SA’s forestry communities, promote sustainable, empowered local contractors in Mondi SA’s forestry value chains, and increase the availability of sustainable fibre for Mondi mills from surrounding communities and small growers.
