Minister Edna Molewa: Address during second Biodiversity Economy Indaba

Minister Molewa’s opening address during 2nd Biodiversity Economy Indaba, Durban, KwaZulu-Natal Province

Programme Director,
Members of Parliament
Members of the Kwazulu-Natal Provincial Legislature
Traditional Leaders (Amakhosi) and other Community leaders
Premier of KwaZulu-Natal Province, Honourable Senzo Mchunu
MEC for Economic Development, Tourism and Environmental Affairs, Mr Michael Mabuyakhulu
Mayor of eThekwini Metropolitan Municipality, Cllr James Nxumalo
HOD for Economic Development, Tourism and Environmental Affairs, Mr Desmond Golding
Director-General of the Department of Environmental Affairs, Mrs Nosipho Ngcaba
Chief Executive Officers of our National Parks, Provincial Parks and Reserves and Agencies
Presidents and Chairpersons and representatives of various Associations in the biodiversity sector
Representatives of communities and other stakeholders in the sector,
Distinguished guests
Members of the media

Sanibonani, it is good to be here with you all!

Sixty years ago, on the 26th of June, at the Congress of the People in Kliptown, our brave, patriotic forebearers adopted the Freedom Charter, the vision for a democratic future South Africa.

It is significant that the very first clause of the Freedom Charter affirms the inextricable link between our People, Prosperity, and the Land.

The Freedom Charter boldly declares; ‘South Africa belongs to all who live in it!

It goes on to further affirm: ‘The Land Shall be Shared Among Those who Work it!’

The Freedom Charter is the bedrock of our current Constitution, and its core principles guide the policies, laws and regulations across all spheres of government.

As we gather here we are ever mindful of our commitment to the words of the Freedom Charter – The Land Shall be Shared Among Those who Work it!’

South Africa is the third most mega-diverse country in the world, and your government, led by the African National Congress is leading the way in integrating the three pillars of sustainability: namely social development, environmental sustainability, and economic growth.

The bioprospecting sector is a massive area for economic growth, poverty alleviation and job creation.

Based on export trends, the sector has grown on average by 6.0% per year over the period 2001-2011. Based on resource permit applications and annual transactions reporting, the potential market size of the sector is at least R2.5 million per year.

Studies conducted by the Department of Environmental Affairs show that indigenous genetic material in some form is the basis for most commercial and industrial products, such as medicines, industrial enzymes, food flavours, fragrances and cosmetics.

This same study found that 549 products surveyed in retail stores and health shops contained indigenous plant resources. The largest resource use was Aloe ferox, followed by bee products, rooibos and Pelargonium sidoides.

Despite South Africa being a rich repository of indigenous knowledge, in the not too distant past the majority of our people were denied the right to benefit from our natural resources.

Indigenous knowledge of nature was stolen from our people, and used to secure massive profits for individuals and conglomerates both locally and abroad, without permission from the holders of that indigenous knowledge.

What added insult to injury is that these communities – many of whom were from communities just like those here today – weren’t just denied compensation. They were even denied the recognition that they were the holders of this indigenous knowledge.

It has been this government, led by the African National Congress, that put laws and policies in place to restore the rights of our people were robbed of their birthright by a system founded on injustice, theft and unequality.

The responsible use of South Africa’s natural resources in furtherance of a more diverse and inclusive economy is clearly outlined in the National Development Plan (NDP).

Sustainable development is further advanced through the National Environmental Management Biodiversity Act  2004 (Act no. 10 of 2004) (NEMBA), supported by the Bioprospecting, Access and Benefit-Sharing (BABS) Regulations and the Threatened or Protected Species (TOPS) Regulations.

In 1973 South Africa was also one of the first signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

We are also party to the Nagoya Protocol on Access and Benefit Sharing that came into force on 20 October 2014.

As part of government’s sustained promotion of this vital sector, the Department of Environmental Affairs has also developed a 14-year Biodiversity Economy Strategy.

The Strategy has been gazetted for public comment and the closing date for comments is 19 November 2015, and I would encourage all of you present, as our valued stakeholders, to make submissions.

This Strategy is our blueprint for sustaining the growth of the wildlife and bioprospecting industries. The aim of the strategy is threefold:

  • to provide a basis for addressing constraints for growth in the sector,
  • to outline stakeholder responsibilities,
  • and lastly, to monitor progress with regards to Transformative Enabling Interventions.

The Department of Environmental Affairs (DEA) will lead the process of implementing the Strategy in partnership with key departments namely Science and Technology, Rural Development and Land Reform, Trade and Industry, Agriculture, Forestry and Fisheries, Small Business Development, Tourism and Economic Development.

Premier Mchunu,

For this strategy to succeed and add real, meaningful value to our efforts, we count on the support of our friends in the private sector, but most importantly, we count on our communities, who live on and work the land.

The Strategy identifies targets for both the wildlife and bioprospecting industries.

The following are for the wildlife sub-sector:

  • Two (2) million hectares of communal land restored and developed for conservation and commercial game ranching, as a contribution to the conservation estate.
  •  A target of 60,000 jobs across the value chain.
  •  The creation of R7 billion equity: R4 billion in game, and R3 billion on fixed assets and infrastructure. This will result in improved rural income, skills development, institutional capacity building, entrepreneurship and food and environmental security.
  •  300 000 head of wildlife for black-owned ventures, including ranches

The targets for the bioprospecting industry are as follows:

  • Increased cultivation of bioprospecting ingredients by at least 500 hectare per annum through sector expansion.
  • We hope to at least triple the number of South African products entering domestic & international markets.
  • Community participation in the supply chain in 30 to 50% of all South African bioprospecting products
  • R250 million in product development and sales should come from Small Medium and Micro Enterprises (SMME’s)
  • The establishment of a National Repository of natural compounds to conserve our indigenous biological resources.

I am very proud to say that in addition to fine-tuning the Biodiversity Economy Strategy, the Department of Environmental Affairs has led a process of identifying 107 communities for conservation and economic activity support and funding to the tune of R1.3 billion.

That is 107 so far, because in the not too distant future we hope to see a substantial increase in this number.

We are also working on facilitating innovating partnerships and funding models, to bring more marginalised communities into the mainstream biodiversity economy, with the clear objective of fair benefit sharing.

We are pursuing this not just as part of our transformation drive to empower communities and aspirant entrepreneurs.

We are also working to undo a legacy of dispossession that saw our people denied the right to benefit from the ancient knowledge passed down from their forefathers.

Premier Mchunu,

Members of Parliament present here today,

The First Annual Biodiversity Economy Indaba took place in Polokwane almost exactly two years ago.

Among the actions emanating from this groundbreaking event was the establishment of a National Bioprospecting Forum to enable various stakeholders in the sector to engage on matters of mutual interest.

I am happy to announce that the National Bioprospecting Forum will be launched during this Indaba.

The members of the newly-formed Forum includes representatives from:

  • Nine (9) provincial departments with an environmental management mandate
  • The Department of Environmental Affairs as the Chair and Secretariat to the forum
  • Department of Science and Technology
  • Department of Agriculture, Forestry and Fisheries
  • Department of Trade and Industry
  • Department of Economic Development
  • Mpumalanga Tourism and Parks Agency
  • Northwest Parks Board
  • Eastern Cape Parks and Tourism Agency
  • Ezemvelo KZN Wildlife
  • South African National Parks
  • South African National Biodiversity Institute
  • People and Parks Community-based Organisation
  • The Khoisan Council
  • CSIR
  • The National Traditional Healers Association
  • Traditional Leaders
  • Cape Bush Doctors
  • Industry representatives
  • Tertiary institutions
  • South African Bureau of Standards (SABS)

I want to see this forum playing a key role in the currently ongoing review of the National Environmental Management Biodiversity Act (act 10 of 2004).

I also hope to see the forum serve as a vital platform for making recommendations that will be taken to key multilateral platforms such as the Convention on Biological Diversity (CBD).

This will be particularly resonant at a time when South Africa prepares to host the 17th Conference of the Parties to CITES next year.

Ladies and gentlemen, I now declare the National Bioprospecting Forum officially launched and ready to do business!

I want to ask those forum members  here today to please stand up  so we may acknowledge you. We want to send a clear message that this is a living, breathing entity, not words on paper!

Since the first indaba the Department of Environmental Affairs has taken steps to enrich its understanding of the regulated sectors that are actively involved in bioprospecting. To achieve this, a study was conducted focusing on the nature and extent of the Bioprospecting and Biotrade Market Size in South Africa. The scope included bioprospecting projects that are in the commercialisation phase in order to generate quantifiable data in economic terms; and this report gives a review of the South African industries which utilise indigenous biological resources (predominantly indigenous plant species), for bioprospecting and biotrade.purposes.

The key findings of the report provided insight about the manner in which value is being added to the country’s biodiversity and the extent that it is sought after by domestic and international markets.  A bioprospecting commercial industry value chain was determined showing the key roleplayers and processes, from the resource to the end user.  This value chain was used to describe the indigenous resources and products currently utilised in the formal commercial bioprospecting sector of South Africa.  The largest resource use in products is Aloe ferox (bitter Aloe), followed by bee products, Rooibos (Aspalathus linearis) and Pelargonium sidoides. It was also found that the potential market size of the bioprospecting industry up until 2012, was at least R2, 150 million per year. This means that the industry has reached only about 20% of its potential, and therefore has a huge growth potential. This report is also to be launched at the Indaba accompanied with the fervent hope that it will play a major role in the transformation of the economy by motivating marginalised individuals to start their own biodiversity-based enterprises, as well as enhancing the entrepreneurial spirit of current players in the sector.

In addition, the Department of Environmental Affairs, in collaboration with the Endangered Wildlife Trust and a number of businesses, launched the National Biodiversity and Business Network in 2013. Thanks to its activities, a preliminary assessment of the status of biodiversity mainstreaming in a number of different sectors in South Africa has also been conducted, and is being launched here in Durban in the coming days. This scoping document is timeous and provides a snap shot of the status of biodiversity mainstreaming and provides identified actions to further the mainstreaming of biodiversity going forward.

This Second Biodiversity Economy Indaba is also being convened as we face challenges of non-compliance and biopiracy, and also at a time when the Nagoya Protocol has come into force.

Over the next two and a half days, you will engage on various matters affecting the bio prospecting/ bio trade and wildlife sub-sectors.

You will also come up with more creative ways to promote inclusivity and the equitable sharing of benefits, hence the theme ‘Biodiversity is good for Business, Business is good for Biodiversity’.

Ladies and gentlemen,

I want to turn to the issue of the wildlife economy, as it is intertwined with the bioprospecting economy, and in particular, to the threat of rhino poaching.

I believe that you are well aware of the integrated rhino management and protection approach Government has been pursuing over the last while.

Just this past weekend, President Jacob Zuma visited the Kruger National Park (KNP) which is bearing the brunt of rhino poaching. President Zuma witnessed first-hand the devastating impact of poaching not just on our iconic species, but on communities and community livelihoods.

He was also updated on progress made on the Integrated Strategic Management of Rhinoceros, launched last year. This integrated strategic plan prioritizes bringing communities into the mainstream of conservation, to make them less vulnerable to recruitment by poachers.

In promoting a sense of guardianship of wildlife within our communities, we as government will be donating some high-value species (such as rhino and sable) to communities who own land and have good animal protection measures in place.

This afternoon I will preside over the handover of 4 rhino to the community of Nambithi at their very own Nambithi Nature Reserve on the outskirts of Ladysmith. This has been made possible through Ezemvelo KZN Wildlife.

In the coming days, a similar donation of 4 rhino will be handed over to the Kwasanguye Community, as additional security measures on the communal property are finalised.

I want to once again thank our conservation management entities such as Ezemvelo KZN Wildlife and SANParks for walking this road with us.
Today there will also be a handover of Bioprospecting permits to 21 recipients. The Department is working hard to accelerate the rate at which the permits are issued, and each year, 100% of permit applications are processed on time as per our regulations.

Today is really a day of “firsts”!

We will also be marking the receipt of a milestone payment to the Lephalale community from Limpopo, from the Council for Scientific and Industrial Research (CSIR).

The payment is among the outcomes of a research partnership between the community of Lephalale and the CSIR into the development of a non-carbohydrate sweetener.

Ladies and gentlemen,

These successes bear witness to the strength of our collective efforts.

Together we are indeed moving South Africa forward, and in the process harnessing the potential of our rich natural heritage as a catalyst for our country’s social and economic growth.

I thank you

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