Biological resources can stimulate SA's economy

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This was the message by the Limpopo MEC for Economic Development, Environment and Tourism, Seaparo Charles Sekoati, at the first Biodiversity Economy Indaba which was held in Polokwane on 11 and 12 November.

The Indaba, hosted by the Department of Environmental Affairs (DEA), brought together stakeholders from the biodiversity economy sectors in the hunting, game farming and related industries, as well as the bioprospecting, natural product and biotrade industries to consider the contribution of these sectors to economic growth.

Shortcoming leads to poverty

Sekoati said South Africa is endowed with rich natural resources but lacks measures and tools for effective transformation of its biological capital into goods and services for social and economic development. This shortcoming contributed to the present levels of poverty in South Africa, and Southern Africa.

The South African National Biodiversity Institute has calculated that South Africa's ecological goods and services are valued at R73bn, equivalent to about 3% of the national gross domestic product (GDP). Recent estimates have placed the bioprospecting industry's contribution to SA's GDP at R2.1bn, which places the overall contribution of the direct utilisation of indigenous biological resources at R8.3bn. In the previous financial year, the entire value chain of the hunting industry contributed some R6.2bn to the GDP.

Biodiversity is recognised globally as the cornerstone for economic growth and sustainable development. South Africa is one of the most biodiverse countries in the world and need to find ways in which to harness the sector so that it can effectively contribute to economic growth. This requires dialogue at national, regional and international levels to consider possible means of biodiversity trading in Africa in a manner that is sustainable and can contribute to the continent's green economy.

Bioprospecting permits

Among the key areas considered by the biotrade and bioprospecting sectors has been the establishment of an industry forum, the development of an action plan in order to achieve optimum industry transformation, the introduction of a South African certification scheme for the sector, and to provide recognition of bioprospecting permit holders.

Sekoati handed over seven bioprospecting permits to organisations enabling them to legally engage in bioprospecting activities and afford certain benefits to the owners of the traditional knowledge and/or providers of indigenous biological resources. The recipients of integrated export and bioprospecting permits were African Aloe (Pty) Ltd, Organic Aloe (Pty) Ltd, Parceval (Pty) Ltd, Skimmelberg Fynbos (Pty) Ltd, the Council for Scientific and Industrial Research (CSIR), Incosmetics (Pty) Ltd, and Ecoproducts.

Certification scheme

The delegates reviewed the implementation of the action plan agreed to at the 2012 Hunting Indaba and the development of an action plan to achieve optimal growth in the industry. Also discussed was community involvement, poverty alleviation and industry transformation, and the implementation of a certification scheme. The establishment of a national forum for the biotrade and bioprospecting industry will create a formal communication channel between industry and government.

The introduction of a South African certification scheme for both sectors would assist in the development and growth of the industries. While certification schemes to identify organic and fair trade products exist, these are not aligned to South African needs. By developing a certification scheme the contribution of independent rural entrepreneurs will be recognised thus providing the assurance of adherence to quality standards.