Biodiversity Economy Programme

UNLOCKING THE SOCIO-ECONOMIC POTENTIAL OF SOUTH AFRICA’S BIODIVERSITY ASSETS THROUGH SUSTAINABLE USE OF BIODIVERSITY BIODIVERSITY ECONOMY PROGRAMME DATE: 19 FEBRUARY 2020

South Africa is the 3rd most biodiverse country in the world

7% of the world’s reptiles, birds and mammals

10% of the South Africa

world’s plants

2% of the

15% of the

world’s land area

world’s coastal marine species

NATIONAL BIODIVERSITY ECONOMY STRATEGY

Vision: Optimised economic benefits from the sustainable use of South Africa’s biodiversity.

Mission: Is to enhance and create new and inclusive opportunities for economic growth through biodiversity based initiatives.

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KEY PRINCIPLES OF THE NBES

• Conservation of biodiversity and ecological infrastructure • Sustainable use of indigenous resources • Fair and equitable beneficiation • Socio-economic sustainability • Incentive driven compliance to regulation • Ethical practices • Improving quality and standards of products.

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BIODIVERSITY ECONOMY OPERATION PHAKISA Context ▪ The 2014 Ocean’s Economy Lab and 2015 National Biodiversity Economy Strategy described opportunities to implement initiatives for growth of SA’s Biodiversity Economy

The Department of Tourism and Department of Environmental Affairs have taken the initiative to conduct an ‘implementation lab’ on how South Africa’s biodiversity can be used for transformation purposes

▪ Tourism and DEA jointly decided to use the implementation lab methodology to create detailed implementation plans to achieve that growth

▪ The Lab was convened

Marine & Coastal Tourism

Bioprospecting

Wildlife

from 10 April to 13 May

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BIOPROSPECTING/ BIOTRADE ECONOMY

Bioprospecting sector overview Resources

Processing and trade

R 0.26 b

R 0.92 b

▪ Both wild harvesters and ▪

farmers supply the sector The market is largely focused on plant resources

▪ Primarily trade in

▪

indigenous plant species, of which 70% are exported as raw materials Operate in two categories – Trade of raw and semiprocessed materials – Development and sale of intermediary products

Revenue Final domestic products

R 2.08 b

▪ Development and sale of ▪

final value added products The trend towards “natural” products demand is high and customers pay a price premium for goods with indigenous resources

Bioprospecting initiatives How do we increase the supply?

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Promote a mass cultivation drive of 25 plant species of strategic importance and increase cultivation by 500 hectares per annum

How do we increase demand and local value addition?

Establish a coordinating and facilitating BioPANZA (Bio Products Advancement 3 Network South Africa) to harness existing initiatives and to address the innovation chasm

Define management plans to ensure sustainable wild harvesting of 7 high value plant species to safeguard long term supply

 Promote applied research, local processing, innovation and product development; and to promote the use and awareness of products with IBRs

Regulatory 4

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Fast tracking amendments of Chapter 6 of National Environmental Management Biodiversity Act (NEM:BA) to ease compliance while ensuring protection of the rights and benefits of traditional knowledge (TK) holders and alignment with Nagoya Protocol on Access and Benefit Sharing

Improve efficiencies in the Bioprospecting Access and Benefit Sharing (BABS) permitting system Transformation is a cross cutting essential

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Top 25 species for cultivation

Hoodia gordonii (Hoodia)

Agathosma betulina (Buchu)

Cyclopia genistoides (Honeybush)

Eriosema kraussianum (Bangalala)

Harpagophytum procumbens (Devil’s claw)

Lobostemon fruticosus (Lobostemon)

Pelargonium reniforme (Kidney leaved pelargonium)

Pelargonium sidoides (Kalwerbossie)

Trichilia emetic (Mafura – oil)

Aspalathus (Rooibos)

Buchu crenulata (Buchu)

Bulbine frutescens (Burn Jelly)

Hypoxis Helichrysum hemerocallidea odoratissimum (Golden everlasting) (African potato )

Sceletium tortuosum (Kanna)

Siphonochilus aethopicus (Wild Ginger)

Cyclopia intermedia (Honeybush)

Kigelia africana (Sausage tree)

Sutherlandia frutescens (Cancer bush, balloon pea)

Tylosema Warburgia Ximenia X. caffra (Sour Xysmalobium Lippia javanica esculentum salutaris americana (Sour plum – fruit and oil) undulatum (Marama bean - oil) (Pepperbark tree) plum – fruit and oil) (Uzara) 9

Species earmarked for sustainable management plans

Aloe ferox

Adansonia digitata Baobab

Agathosma betulina Buchu

Harpagophytum procumbens Devil’s claws

Sclerocarya birrea Marula

Cyclopia intermedia Honeybush

Cyclopia genistoides Honeybush

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BioPANZA OPERATIONAL MODEL

3. Decision making, Strategy design & Implementation

1. Decision making, Strategy design & action plan

Advisory Committee

DEA/ DST / the dti

Tri-Chairmanship (DG)

Finance Cluster

Market Cluster

Innovation Cluster

Sustainable Supply

BioPANZA@Finance

BioPANZA@Market

BioPANZA@Innovationn

BioPANZA@SS

2. Implementation

Secretariat (DEA/DST/the dti)

CLIENTELLE

Email/ Online system/face to face

BioPANZA CLUSTER OUTPUTS

1. Finance Cluster: Sector Fund 2. Sustainable Supply Cluster: BMPs; African ginger task team; Honeybush COP 3. Market Access Cluster: SMME platform (integration model)

INTEGRATION New candidates

Sector Fund candidates

Domestic Market

BSO Network/Stakeholder platform

BioPANZA SMME Platform 2020-21 Holistic support for SMMEs to improve market readiness

International Market

MESO segment (IKS/DTI/DEFF/ CSIR/ARC etc SMMEs

AbioSA/CECOSA/SIPPO/ the dti tailored support to strengthen market access

BLENDED SUPPORT (IN PROGRESS)

6. DEAL IMPLEMENTATION & MONITORING AND EVALUATION 5. AGREEMANT FINALISED BETWEEN DEAL OWNER AND INVESTORS 4. BioPANZA SMME PLATFORM DECISION

3. INTRODUCE DEAL TO PLATFORM

2. DEAL ANALYSIS AND FILE CREATED

1. OPEN CALL FOR APPLICATIONS (Biannual) NB: TORs for Deal Manager and Investment Committee will be in place

BLENDED BUSINESS SUPPORT BIOPROSPECTING/BIOTRADE BUSINESS ACCELERATION PROGRAMME Idea/Prototype

Business Plan/Pilot 2. Enterprise/Cooperative Blueprint + Precommercialisation

1. Individual/ SMME/Cooperative

• Idea • natural product • commercialisation implementation plan

• • • • •

12 Months Business plan Mentorship Training Pre-commercialisation support Supplier development programme

Upscale

3. Commercialisation Financing

1 Month • Commercialisation application processing and implementation

“Iskhathi sokuzuza emnothweni womhlaba wokhokho bethu sifikile” The time has come to benefit economically from our land

Biodiversity and Conservation

WILDLIFE ECONOMY

Biodiversity and Conservation

The wildlife sector value chain Wildlife ranching

Wildlife activities

Wildlife products

▪

Primary activities: – Breeding – Live sale

▪

Primary activities: – Wildlife Viewing – Trophy Hunting – Biltong Hunting

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Primary activities: – Game Meat Processing – Skin and Hide Production – Other products (e.g. curios and decorations)

▪

Secondary contributors: – Live captures – Translocation Services – Veterinary Services – Fencing and maintenance – Bush and Alien invasive species clearing

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Secondary contributors: – Accommodation – Transport – Equipment & Supplies (Arms, Ammunition etc.)

– Taxidermy

▪

Secondary contributors: – Packaging and Transportation

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OPPORTUNITIES IN THE VALUE CHAIN

Products made from bone ▪ Jewelry ▪ Curios

Products made from horn ▪ Lampstands ▪ Decorations

Animal Hides Crocodile breeding and product development

Taxidermy

Game meat

Bags

Ostrich breeding and product development

• THE WILDLIFE SECTOR :ECO-TOURSIM VALUE CHAIN

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THE WILDLIFE ECONOMY LAB DEVELOPED DETAILED PLANS FOR 15 INITIATIVES AND A FURTHER 6 RECOMMENDATIONS Recommendations

Facilitating transformation 1 Identify and prioritize 10m Ha for transformation of wildlife economy

2 Establish, develop and support new wildlife ranching entrants including business set up support, infrastructure and game ownership programmes 3 Increase capacity and support for (at least) 300 CPA’s, trusts and traditional authorities 4 Create supply chain linkages and capacitate 4,000 SMMEs (new and existing) to locally capture the value of ancillary goods and services to the wildlife economy 5 Operationalise 11 biodiversity economy nodes, that enhance the economic potential of Protected and non Protected Areas 6 Empower 4,000 emerging entrepreneurs and farmers through focused capacity building programmes i Develop a toolkit of effective wildlife business, stewardship and partnership models

Driving growth through promoting ‘value’ and products

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Creating an enabling environment for the wildlife sector

7 Formalize SA game meat market and create a network of game meat processing facilities

9 Create an enabling legislative environment through the amendment of NEMBA

8 Implement a campaign that drives participative transformation and consumer growth for wildlife related activities and products

10 Develop and implement wildlife industry standards 11 Develop and Implement a national wildlife economy certification scheme 12 Develop and implement an electronic wildlife permitting system and centralised database

ii Promote sustainable use as a foundation for conservation and growth of biodiversity economy iii Develop a strategic marketing campaign and value proposition for mixed game and livestock systems

iv Establish mechanisms to allow for holistic and integrated management of animal health and conflict issues at the livestockwildlife interface v Develop an appropriate mechanism to manage and mitigate risk

1 Recommendations will be included with high level activities, but these will not have 3ft plans

13 “Re-position” the Wildlife Forum as an efficient interdepartmental/ industry collaboration and co-ordination platform to promote the benefits of the Wildlife Economy 14 Develop an integrated knowledge/ evidence generating and sharing platform to support the wildlife economy 15 Leverage protected areas to unlock economic potential

vi Develop, upskill and resource extension services to facilitate the growth of the wildlife economy

THE NEW WILDLIFE ECONOMY SUPPORT PROGRAMME (WESP) WILL HARNESS AND COORDINATE EXISTING SUPPORT MECHANISMS TO EMPOWER NEW ENTRANTS IN THE INDUSTRY Support package

Primary delivery mechanism

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Recap and Development Program, EPIP, DSBD, The DTI

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DEA:EPIP, DRDLR:Recap and Dev, Private Sector

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Donations, loans, fence dropping (in context of national protocol for game donations)

Business set-up support

Coordinated under new Wildlife Support Programme

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Infrastructure support

Game loans/ donations

Agricultural support & veterinary services Ranching skills and market access

▪

WSU partner

▪ ▪

Stewardship/ Extension services

▪ ▪ ▪ ▪

Prov Authorities Private sector

Mentorship programmes Partnership building DTI support with (among others) access to market

Prov Authorities

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PROVIDE START-UP SUPPORT: INFRASTRUCTURE AND GAME DONATION

3• SKILLS DEVELOPMENT (ACCREADITED AND NON-ACCREATED TRAINING AND FOCUSED CAPACITY BUILDING PROGRAMMES

• VISION 2030 FOR THE SOUTH AFRICA GAME MEAT INDUSTRY: TO BE THE WORLD’S PREFERED SUPPLIER OF SUSTAINABLY-SOURCED GAME (WILD) MEAT. Untapped potential:    

World demand for venison 100,000 tons, supply approximately 40,000 tons.

South Africa exports less than 2,000 tons.

Outlook projects that between 2013 and 2020 growth in game meat products for local markets has the potential to grow by 20%.  Export market has the potential to grow by 8%.

Our competitive advantage :   

 

Health – free range and organic.

Sustainability – sourced off of well-managed protected areas.

Social value – produced off of some of the poorest and agriculturally most marginal land in SA. Abundance of Diverse wildlife species Ethical – humanely harvested in situ.

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CREATE SUPPLY CHAIN LINKAGES AND CAPACITATE 4,000 SMMES (NEW AND EXISTING) TO LOCALLY CAPTURE THE VALUE OF ANCILLARY GOODS AND SERVICES TO THE WILDLIFE ECONOMY

REAL PEOPLE REAL LIFE “COMMUNITIES REALISING TANGIBLE BENEFITS THROUGH THE WILDLIFE ECONOMY PROGRAMME

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over 16 000 hectares of previously undervalued communal land transformed into highly valued land through the dropping of fences • R136 million private investment • R10 million gov • 120 people employed and trained

Somkhanda Game Reserve- Community-owned

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HIGHLIGHTS OF THE BIODIVERSITY ECONOMY PROGRAMME:  + R500 Million of private investment unlocked wildlife , R150 million Bioprospecting (Blended financing model)  + 1000 jobs created  R66.6 million Gov investment, additional R 1.7 billion on infrastructural support for game farms, protected areas and bioprospecting project  The National Game donation/custodianship Policy has been approved for implementation

 1900 game donated/loaned an additional 500 herds of game donated in 2019

Creating economically viable wildlife business venture owned and managed by PDIs on 10 million hectares

 18.5 million ha of land with potential for wildlife economy mapped

 + 1000 SMMEs Trained

“MORE NEEDS TO BE DONE” PARTNERSHIPS ARE REQUIRED TO SUPPORT NEW ENTRANTS INTO THE SECTOR AND TO UNLOCK THE FULL POTENTIAL OF THE WILDLIFE SECTOR

Land reform, Stewardship and Biodiversity Economy

Land reform, Stewardship and Biodiversity Economy

TONDANI KONE 012 399 8938 TKONE@ENVIRONMENT.GOV.ZA