SiyaQhubeka Forests (SQF), a leading forestry company, has increased the equity stake of its community partner, SiyaQhubeka Community Trust (SQT) based in KwaZulu-Natal, from 5.4% to 15.4%, marking a significant step towards inclusive growth in South Africa’s forestry sector.
The transfer, announced on Tuesday, is part of a partnership with Mondi South Africa and the South African Forestry Company Limited (Safcol), aimed at empowering local communities and fostering economic participation.
The deal strengthens SQT’s role in SQF, a Level 1 Broad-Based Black Economic Empowerment (BBBEE) contributor, which operates sustainably within the iSimangaliso Wetland Park, a Unesco World Heritage Site. Certified by the Forestry Stewardship Council, SQF integrates commercial forestry with environmental conservation, setting a benchmark for responsible practices. The increased shareholding is expected to unlock job creation, training, and enterprise development opportunities for local beneficiaries.
Mondi’s representative,Themba Vilane, said the move was a milestone in the company’s transformation goals.
“Today’s shareholding handover marks an important step forward in our partnership with SiyaQhubeka Forests. This milestone underscores our commitment to transformation, as we increase community ownership and foster greater economic participation,” he said at the handover event.
Mondi, alongside Safcol and other partners like the Khulanathi Growers Trust and Imbokodvo Lemabalabala, remains committed to building sustainable livelihoods.
SQF board chairperson, Dinga Mncube, said, "This shareholding transfer represents three critical principles. First, inclusive growth - where our communities have a growing stake in the forestry sector and directly benefit from its success. Second, sustainable business - ensuring that SiyaQhubeka continues to create opportunities while preserving the environment. And third, strength in partnership - our collaboration with Mondi, Safcol, government, and local communities is what makes this partnership work.”
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