Post: Message From The FSA Executive Director’s Desk

May 16, 2026

Message From The FSA Executive Director’s Desk

Welecome to the first edition of Forestry in Focus for 2026 and as Ronald mentioned in his foreword, what an unpredictable and challenging three months we have had.

9TH JAN NATIONAL PROSECUTING AUTHORITY APPOINTMENT
Some encouraging appointments have been made to the National Prosecuting Authority and to the Business Against Crime South Africa initiative. Mr Andy Mothibi, formally the head of the Special Investigative Unit, was appointed by the President to lead the NPA following the end of Ms Shamila Bathoyi’s term of Office.

BACSA has been bolstered by the appointment of Mr Anton du Plessis who was Deputy National Director of the NPA until last month. He is joined by Mr Martin Kingston who has been a leading figure in many of our interactions with government over the last five years and was a key proponent of the Business Against Crime South Africa initiative.

27 JAN GOVERNMENT BUSINESS PARTNERSHIP COMMITS TO “INCLUSIVE GROWTH, JOBS AND CONFIDENCE” AS CENTRAL FRAMEWORK FOR PHASE THREE
President Cyril Ramaphosa met with Ministers and senior business leaders under the Government Business Partnership, formally commencing Phase Three of the partnership with a shared commitment to placing economic growth at the centre of the partnership’s work in 2026.

The meeting reviewed progress achieved during Phase Two, during which important gains were made in stabilising the energy and logistics systems. These advances, together with several other achievements, contributed to improved sentiment towards the end of 2025. Investors are increasingly responding positively to South Africa’s economic trajectory and recognising policy credibility. Significant developments include South Africa’s removal from the FATF grey list, a steady reduction in inflation towards the 3 percent target, a successful and oversubscribed sovereign Eurobond issuance, a firmer Rand and an upgrade to South Africa’s sovereign credit rating by S&P, the first in more than two decades.

During Phase Two, coordinated interventions and policy reform improved operational performance, particularly at Eskom. The recent commencement of the Durban Pier 2 terminal concession and the opening of the rail network to private operators further demonstrate the momentum that has been achieved. The Partnership agreed that the focus in these two areas must now shift decisively from crisis management to the urgent implementation of government’s structural reform agenda. Establishing commercially viable, competitive markets in these network industries is essential to mobilising the additional investment required for growth.

Against this backdrop, government and business agreed that the central framework for Phase Three of the Partnership will be anchored in “Inclusive Growth, Jobs and Confidence”. In a rapidly changing global environment characterised by economic realignment, heightened competition for capital and increased uncertainty, the Partnership agreed that a disciplined focus on competitiveness and inclusive growth is essential. All actions under the Partnership will be assessed against their ability to grow the economy, support job creation and strengthen confidence.

Government and business further agreed that crime and corruption remain among the most significant deterrents to confidence, investment and economic growth. While progress has been made in strengthening institutional capability, including through FATF related reforms and improved coordination, there is agreement that a more ambitious crime and corruption focus is necessary to support Government’s efforts to reform the criminal justice system.

Tackling organised crime, corruption and weaknesses in the criminal justice system will therefore become a more central focus of the Partnership’s work in 2026, recognising the direct link between the rule of law, societal and investor confidence, and growth.

Priority activities for Phase Three include support for government’s energy market reform, including the launch of a competitive South African wholesale electricity market, grid expansion and the publication of a clear roadmap for Eskom’s unbundling which clarifies the approach to establishing an independent Transmission System Operator in line with the Electricity Regulation Act. Another priority for this year is to accelerate reforms in the transport and logistics sector, including greater private sector participation, to increase investment and improve competitiveness and efficiency.

Youth employment interventions in other sectors will build on the model of close coordination between government and business, which resulted in the successful introduction of the Electronic Travel Authorisation (ETA), which removes a key bottleneck to increasing international tourist arrivals and supports job creation.

Across all priority areas, the emphasis will be on execution and delivery in support of growth. Government and business agreed that this year should represent a decisive turning point for South Africa’s economic trajectory, and an opportunity to achieve lasting progress and shared prosperity President Cyril Ramaphosa: “After two years of hard work, we can definitively say that this partnership has been a success. While we have achieved much, there is much that we need to do. As this partnership evolves and as the focus of our work shifts, we remain firmly committed to acting together and with purpose to serve the needs of our country.”

Adrian Gore, Group CEO of Discovery and co-convener of the business delegation: “South Africa is turning the corner. We must act decisively to convert this momentum into investment and jobs. “Growth, Jobs, Confidence” sits at the heart of our approach and needs to be the filter for every decision in 2026. If an action does not advance these objectives, it should not proceed. If it does, we should move quickly and back it fully. Business is fully committed to supporting this.”

30 JAN OPERATION VULINDLELA Q3
FSA has been invited to engage with Ms Noluthando Mlambo, who has been appointed into OV in the Presidency, to focus specifically on the green economy and agriculture. We will be meeting with her and Ms Tanya Cohen from the National Planning Commission in the next two weeks, to accelerate progress on the remaining challenges for our Sector, like the Cat B and C plantations (which have recently been advertised for EOIs), new afforestation and support for new and existing entrants in the Sector.

12 FEBRUARY HIGH COURT RULING SUPPORTS FSA POSITION REGARDING “RESTRICTED AGRICULTURAL” AND PEST CONTROL OPERATORS
As previously reported, FSA raised the controversial PCO regulations issued by the Dept of Agriculture, with the DFFE and the Minister of Agriculture, as well as with the Presidency. We indicated that the Cabinet-prescribed SEIAS process was not followed and that the Registrar’s response, which was that “they would not enforce the regulations”, was unacceptable to our Sector and inconsistent with our international certification obligations. Fortunately, while other organised agricultural associations were not as deeply concerned about the matter, CropLife SA shared FSA’s stance. FSA supported an urgent application in this matter, by CropLife SA to the High Court in December.

On 26 January, the High Court handed down judgment in favour of CropLife SA, declaring inter alia that the class “restricted agricultural remedy” listed in Annexure A is not subject to regulatory control under the PCO Regulations. This means that timber growers cannot be compelled to hold Pest Control Operator (PCO) registration solely to purchase and apply restricted agricultural remedies.

FSA is sending letters of notice to both international certification bodies for Forestry, to inform them of this and to avoid having them raise CARs in this regard. The Forestry Sector continues to operate under robust stewardship frameworks, including the Timber Industry Pesticide Working Group (TIPWG) PCO SOP and related guidelines. The court ruling provides regulatory clarity, but it does not replace the industry’s responsibility to manage Highly Hazardous Pesticides through trained operators, formal procedures, and auditable systems. Please contact Dr Ronald Heath of FSA for additional information or support, should this be required, in your dealings with regulators or certification bodies.

12 FEB NEW DIESEL REBATE SYSTEM FOR FORESTRY TO COME INTO EFFECT 1 APRIL
As reported previously FSA succeeded in convincing SARS to include previously excluded diesel costs for our Sector in the new diesel rebate system. These include:

– Empty mill return journeys

– Inclusion of wattle bark transport

– Inclusion of all fire prevention and control operations

These enhanced provisions, along with the fact that the rebate will now be at 100% versus the previous 80% allowance, will save the Industry in the order of R150m per annum.

We are still engaging National Treasury to also allow for labour transport costs to be included.

Members seeking further detail can contact Mr Francois Oberholzer from FSA.

18 FEB SA-CHINA TRADE AGREEMENT “OFFER”
Several members have raised concern with what the DTIC have circulated as a proposed trade agreement offer from SA to China, in which it is proposed that 80 85% of the 1236 inbound products from China should be zero-rated for tariffs. Several of our Sectors’ products are included.

Please be advised that we are collaborating on this matter with PAMSA, Sawmilling SA, BUSA and BLSA. Currently, we’re advised that there isn’t a need for individual letters of objections from affected industries because, in the BUSA meeting on Tuesday and in the NEDLAC meeting held yesterday, Business told government that there are domestic and international rules around this sort of agreement, which have not been followed. Business therefore regards this as an early draft by the State and unanimously agreed that SA should not be discussing any sort of an offer at this stage, as firstly they haven’t followed the required process to make such an offer and secondly, it offers no benefit for any sectors except shorn wool, macadamia nuts, citrus and a few others. We have direct representation through PAMSA in BUSA discussions at NEDLAC and we will ensure that our sensitive products, will be listed as such in any actual offer which may be subsequently made.

20 FEB FURTHER PROGRESS ON TIMBER RAIL MIGRATION
FSA had another fruitful meeting with TFR’s CEO and senior management team this morning.

Key outcomes for noting are as follows.

There is tangible evidence of TFR’s commitment to grow timber volumes. This is being seen in:

– TFR’s undertaking to refurbish an additional 45 wagons, following the 105 wagon commitment given to FSA late last year.

– January’s throughput was 58,029 tons, which is the highest volume in TFR’s Financial Year and one of the highest for our Industry, in several years.

– Strong execution on some key corridors which has been acknowledged by members using those corridors.

– TFR has committed to further fleet expansion if supported by contracted and predictable volumes.

TFR held a meeting with the KZN Premier who has set up a task team of the Premier’s Office, PRASA, TRIM, TFR and the DoT, to ensure that the long overdue Illovo bridge is reinstated, including funding for the line. We pointed out that PRASA had given FSA that commitment in November, subject to additional funding which they have subsequently received and that reinstatement would also secure greater rail volumes from the PMB cluster branch line project.

Areas which still require further attention are:

– Availability of loco on the coal line, without which, adding wagons will be a futile exercise.

– Clarification on which component of the TFR rate is made up of the access fee. This is key to determining the feasibility of Industry investing/co-investing in lighter wagons. TFR undertook to provide that clarity in the commercial discussions with members directly.

We can say without hesitation, that our efforts through Operation Vulindlela and the National Logistics Crisis Committee have not been in vain and that rail reform is starting to deliver improved outcomes for our Sector, sooner than most expected. There is however a lot more potential if the remaining challenges are addressed. We will keep members informed of further progress in due course and members can contact Mr Francois Oberholzer from FSA, for further info and advice.

25 FEB NATIONAL BUDGET
An excellent budget in many respects and especially in terms of both relief for taxpayers (personal and companies) and major increases in infrastructure spending.

31 March South African Short-term Relief Measures to Address Fuel Price Increases Announcement by Minister Enoch Godongwana and Minister Gwede Mantashe The escalation of conflict in the Middle East has materially increased risks to global energy markets, placing significant upward pressure on domestic fuel prices. Recent data from the Central Energy Fund Group suggests historically high fuel price increases from April 2026 as a result. Consultations have been held between the National Treasury and the Department of Mineral and Petroleum Resources to explore measures to provide short-term relief to consumers, while maintaining a stable and sustainable fuel supply system.

The agreed approach consists of an immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy.

The key proposals are outlined below:

Phase 1: A temporary reduction in the general fuel levy and addressing fuel security concerns:

– a. The Minister of Finance proposed that the general fuel levy was temporarily reduced by R3 per litre from Wednesday 1 April 2026 to Tuesday 5 May 2026. This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month. These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy.

– b. It is estimated that the partial reduction in the fuel levy will cost around R6 billion in foregone tax revenue for the one-month period. The relief measure will be reevaluated on a monthly basis for the following two months.

– c. The relief measure is designed to be fiscally neutral, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.

– d. In reaching this decision, the Minister of Finance sought to balance the socioeconomic impact on the country and welfare impact on South African consumers, specifically regarding food and transport inflation, with the fiscal objectives announced in the February Budget.

– e. Government further wishes to assure the public that there is sufficient fuel supply in the country to meet current and projected demand. Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks and these are expected to self-correct in the coming days. Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling.

Phase 2: Broader package of measures:

– a. The Minister of Mineral and Petroleum Resources will continue work to review fuel pricing over the medium term.

– b. Work is underway on a broader package of measures to support households and key sectors of the economy. Further details on additional support measures will be announced in due course.

Government remains committed to balancing economic sustainability with the need to protect consumers.

31 MARCH – EXCELLENT MEETING WITH THE PRESIDENCY
FSA had a very encouraging meeting yesterday, with Ms Noluthando Mlambo from the Office of the President, which was facilitated by Ms Tanya Cohen of the National Planning Commission.

We conveyed to her our ongoing issues with the DFFE’s lack of delivery on their commitments in the Forestry Masterplan including:

– facilitating private sector investment into new sources of fibre

– protection of the country’s existing timber plantations against fire, pests and pathogens

– support for timber growers.

Incidentally, President Ramaphosa at the handover ceremony in Umzimkhulu last week, echoed our concerns about the lack of post settlement support from the DFFE, for the communities who were receiving the land.

We indicated to the Presidency, that as previously warned, the private sector investment appetite to recapitalise the State’s Cat B and C plantations was now at the lowest point ever, because:

– The State’s plantations had continued to be stripped by illegal operators, since FSA first reported this to them around ten years ago and some plantations had over 95% TUP.

– The investment horizon to realise a potential return for investors, is around twenty five years and the lease period is only for 30 years.

– The State expects lessees to hand these severely degraded plantations back to the State after 30 years, with no TUPs and in normal rotation.

In discussing solutions, we advised the Presidency that serious consideration would need to be given to incentives for private sector investment which could include:

– tax incentives like those for private sector investment in research

– harnessing the Presidency’s youth employment initiative (to which we had previously made two unsuccessful bids)

– extending the lease period

– ensuring Presidency oversight of our Masterplan implementation by the DFFE, given the poor performance of the political principles and DFFE officials since the inception of our Masterplan.

We also shared the shocking DFFE performance on fire and pests and diseases and the growing need for protection against cheap imports, especially given the price pressures on exported forest products.

Ms Mlambo advised that she was mandated to address our concerns along with others in the green economy and she proposed both a direct task team between the Presidency and FSA and she indicated that the Presidency would also be engaging the Minister and DG of DFFE.

FSA is sending her our two previous applications to the youth employment initiative and Ms Mlambo in turn, will advise on steps to get the task team established rapidly.

Written By: Michael Peter, FSA Executive Director

Source: Forestry In Focus