Post: Forests And The Economy: Planting The Seeds Of A Circular Future

May 14, 2026

Forests And The Economy: Planting The Seeds Of A Circular Future

This year’s International Day of Forests theme, Forests and the Economy, speaks directly to the global imperative to build a sustainable, circular and genuinely green economy.

This is not a marginal adjustment to our economic model. It is a fundamental shift that must take place, and forestry is showing that it is not only possible, but commercially viable.

Sustainability in a forestry context means ensuring that your business is sustainable not only in economic and financial terms but also socially and environmentally.

In South Africa, our Sector is uniquely positioned because we are growing our own renewable, recyclable and carbon neutral feedstock. We are not extracting finite resources. We are producing a raw material that can be renewed in perpetuity if managed responsibly, subsequently producing associated products that are as sustainable as the raw material.

That is the essence of the circular economy. It is about managing economic activity from cradle to grave, with a strong focus on reuse, renewability and minimising waste as well as environmental impact.

Forestry does this by design. Trees absorb carbon dioxide as they grow. Wood products store that carbon throughout their lifespan.

Fibre can be recycled several times and production residues can be repurposed for energy or new bio-based materials. This is green growth in practice.

The South African Forestry Sector makes a substantial contribution to the national economy while operating on a relatively modest land footprint. We use about 5 percent of the water used by agriculture, yet we generate over 20 percent of agricultural GDP and a similar proportion of agricultural employment. We rely on rainwater, which the sector pays for, meaning there is no cost to the state to supply water to our plantations, and the water that leaves plantation areas is of excellent quality compared with many other land uses.

Environmental stewardship is foundational to our Sector. We plant only around 70 percent of our land holdings, with over two-thirds of the remaining 30 percent set aside for preserving natural habitats and biodiversity management. There are few, if any, other land users that would dedicate around a quarter of their landholdings to conservation.

Forestry is also a rural industry, meaning our operations are located across areas where poverty and unemployment remain severe. Direct employment across the forestry value chain supports hundreds of thousands of livelihoods, but the true impact of the sector extends far beyond those employed directly.

Through supplier and enterprise development, we are building small and medium businesses that service both the sector and wider community. Through skills development initiatives, we are investing in the long-term capabilities of rural communities, with a strong focus on the youth.

Through Creating Shared Value (CSV) initiatives, the forestry industry supports community development while strengthening the value chains that underpin a circular economy.

The sector understands how transformation and inclusive growth are central to our future and has made significant investments in enterprise and supplier development to expand participation by black-owned and community-based businesses.

Social investment in education, healthcare, elevating food poverty and infrastructure forms part of our broader commitment to social sustainability. When forestry succeeds, rural communities benefit, not only from wages, but from improved services, livelihoods and opportunities.

Remaining globally competitive requires continuous investment in innovation and capacity. As the world moves away from fossil-based and non-renewable materials, demand for sustainable fibre is rising. Renewable packaging, paper-based solutions and plant-based alternatives to conventional plastics and carbon heavy processes represent significant growth areas. The forestry sector is well placed to respond.

South African forestry companies have invested heavily in improving genetic material, refining silvicultural practices and enhancing processing technologies. The goal is clear: increase productivity on a finite land area while lowering environmental impact and maximising social benefits.

Advances in tree breeding, precision forestry and data-driven management are enabling us to grow more fibre, more efficiently and more sustainably. While wood and processing sciences are enabling the creation of a myriad of wood-derived products that most people would never imagine had their origins in our trees.

If we are serious about building economies that are low carbon, resource efficient and inclusive, we must prioritise sectors that align with those objectives. Forestry mitigates carbon emissions through sequestration and substitution, creating jobs and supporting economies in rural areas where they are needed most, while underpinning circular manufacturing systems based on renewable materials.

When managed sustainably, forests are powerful economic assets that support climate resilience, rural development and green growth and should be considered the root stock of a green economy.

Source: Forestry In Focus