Bioprospecting Economy at a glance

Biodiversity and Conservation

Preshanthie Naicker-Manick

Trade

TransformationResearch &

Development

Sustainable Use

Cost-Benefit Analysis

Sustainable Livelihoods

Benefit-Sharing

Policy & Legislation

Biodiversity

Value Chains & Supply Chains

Trans-boundary

Equity & Access

Infrastructure

Entrepreneurship

Partnerships

Incentives

Advocacy

Bioprospecting

• Bioprospecting sub-sector encompasses organisations and people

that are:– Research, development, or application of IBGR for commercial or

industrial exploitation, which includes,

• systematic search, collection and making extraction from IBGR.

• Traditional use of or discovery about IBGR

• Modification of traditional use or discovery on IBGR

• Export, trade of IBGR for purposes of development of products.

Bioprospecting Sector Value Chain

• Resource

Segment: 2000-

2800 tons pa =

R57 million

• Biotrade

Segment: R482

million (R322

(exported +

R160 VAP)

• Value added

Products:

R1.47 million:

Researchers

Cultivation

Domestic Retail Sales

(Value added products):

Personal hygiene productsCosmeticsOilsFood flavouringsComplimentarymedicines

Export Sales

Resource segment Biotrade segment Final market segment

Traditional market

Form

al m

arke

tIn

form

al m

arke

t

NGOs

Wild harvesting

Biotrading

Harvesters

Farmers

Harvesters

Category 1&2 traders

Category 3 traders

Species Estimated jobs created Production (tonnes)/R Reference

Buchu 1 000 500 tonnes per annum

(Williams, 2005)

The Western Cape Trade

and Investment Promotion

Agency (2006)

Honeybush Production/ Planting = 60 - 100

Wild Harvesting = 50

Plantation Harvesting =100-150

First level processors =67

Second level processors=6

Tertiary level processors = 80

Retail packaging plants = 105

Distribution, marketing and export = 18

Research =39

Maintenance = 30

130 tonnes (2010) DAFF (2011)

Honeybush Plantation = 5 - 10 per hectare per day

(usually 2-3 days)

30 – 100kg per person

per day

Rooibos 5000 (in 2003) 9 500 Trade and Investment

South Africa (2004)

Rooibos 5000 14,000 tonnes in 2007/

R500 mill per year

DAFF (2011)

Essential

Oils

2306 (all oils) 6300 tonnes (oil

indigenous)

FRIDGE (2004)

BIOPROSPECTING/BIOTRADE IN RSA• 88 organizations with bioprospecting products ~ 601 products

• 207 species potentially used in bioprospecting

• Top three resource account for 50% of the products and

includes products containing:

• Aloe ferox (Bitter aloe)

• Aspalathus species (Rooibos)

• Pelargonium sidoides

• Largest exporters of products containing natural ingredients

are China, India, USA, Germany and Argentina.

• These countries produce 45 % of the biotraded products

globally, whilst RSA contributes 0.4 % of global contribution.

BIOPROSPECTING/BIOTRADE IN RSA

Resource: Aloe ferox

• Mostly wild harvested

• In 1996, estimated rural industry supported by

wild harvested A. ferox = R4million per annum

• In 2006, this figure was adjusted to R8-9 million

per annum

• If growth in the industry is added = R12-15 million

per annum

Projected growth of the Biotrade Segment

The low growth scenario projected here assumes the historical average of 6.0% annual growth is maintained. The high projection assumes a 20% per year growth, which is based on the international industry growth over the period 2001-2011

R 0

R 2 000

R 4 000

R 6 000

R 8 000

R 10 000

R 12 000

R 14 000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

R'M

illio

n

Actual Output (Projection - BAU) Output (Projection - High) Output (Projection - NBES Minimum)

BIOPROSPECTING ECONOMY• Despite South Africa having an incredibly rich diversity of genetic and

biological resources the biodiversity economy of the country remains

unrecognised, underdeveloped and largely untransformed.

• Sustainable use of these resources does and can in future provide

the backbone of many local economies and livelihoods in the country,

providing life-support system for many people and communities.

• The bioprospecting sub-sectors of the biodiversity economy have

already demonstrated potential for significant future development and

growth in the country.

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

Mission: is to enhance and create new and inclusive opportunitiesfor economic growth through biodiversity based initiatives.

Scope: Has the scope of Leadership, Coordination andTransformation of the Bioprospecting and Wildlife industries.

BES GoalBy 2030, the South Africa’s biodiversity economy will achieve aninclusive average annualised GDP growth rate of 10% per annum.

Goal Focus: 18 Biodiversity Economy transformation nodes (rural and urban)

Bioprospecting Industry TargetsBioprospecting Sector Expansion: Grow cultivation of bioprospectingingredients by at least 500 hectare per annum. At least triple the numberof RSA products in domestic & international markets.

Jobs: 30-50% of RSA bioprospecting products must have communityparticipation in the supply chain.

Equity: R250 mil product development and sales from SMME and R250mil on fixed assets and infrastructure resulting in improved income, skillsdevelopment, institutional capacity building, entrepreneurship and foodand environmental security.

Sustainable Use: Establish a National Repository of natural productcompounds, Biodiversity Market Bank.

Overview of Transformative Enabling Interventions (TEI’s)

Lead collective ownership Regulatory optimisation

In the context of environmental sustainability

Permitting, standards, Other Institutional / organisational

architecture Develop an effective and efficient

government supporting institution for both industries

Enhance R & D Attract investment and access to finance

Private investment Government investment

Promoting exports / foreign income Domestic markets International markets

Enhancing education and skills development Training Research support Part of school curriculum

Facilitating technology exchange and innovation

Fostering and supporting Entrepreneurship Marketing and Public Relations Economic Transformation Initiative

Formalise and cost a community wildlife industry development planLand reform modelsDevelop a Charter and BBBEE scorecard

Advocacy for both industries

BES PrinciplesBased on the NDP objectives, BES seeks to addresstransformation imperatives through the following principles:

• Conservation of biodiversity and ecological infrastructure

• Sustainable use of indigenous resources

• Fair and equitable benefit-sharing

• Socio-economic sustainability

• Incentive driven compliance to regulation

• Ethical practices

• Improving quality and standards of products

Legislative environment underpinning BES

ENVIORNMENTAL NATIONAL POLICY

ENVIRONMENTAL LAW

South African Constitution

(Section 24; South Africa, 1996)

National Environmental Management Act

(Act no. 107 of 1998)

National Environmental

Management: Biodiversity Act

(Act No. 10 of 2004)

National Environmental

Management: Protected

Areas Act

(Act No. 57 of 2003)

White Paper on the Conservation

and Sustainable Use of South

Africa’s Biological Diversity

(DEAT, 1997) White Paper on

Environmental Management

policy for South Africa

(DEAT, 1998)

IP POLICY

IP LAW

AGRICULATURAL

POLICY

AGRICULTURAL LAW

IKS Policy

(dti, 2004)

IKS Policy

(dti, 2004)

White Paper on

Agriculture

(DoA, 1995)

Marketing of

Agricultural

Products Act,

(Act No. of

1996)

Meat Safety

Act

(ACT No. 40

of 2000)

Provincial ordinances

NATIONAL BIODIVERISTY ECONOMY STRATEGY

Nagoya Protocol on ABS

Roles of different stakeholdersGovernment sectors – strategic oversight

Investors and private sector -commercialisation and economic development

Communities – implementation and economic development

Government departments (national and provincial

Conservation agencies

• Policy development and advocacy

• Facilitate and coordinate implementation

• Support and regulate compliance, enforcement and monitoring

• Develop best practice guidelines

Business Banks

Supporting sectors –implementation support

Academic institutions

Research councils

NGOsPPPs

Communities

CBOs

Cooperatives

• Generate knowledge and new technologies

• Demonstrate and pilot new technology

• Skills transfer, education • Capacity building• Develop new processes and

products• Community and private

sector engagement• Support implementation

• Commercialise new technology

• Skills transfer, education• Capacity building• Job creation• Develop new products• Develop new markets• Support communities and

SMMEs• Develop new SMMEs• Resource protection and

sustainable use

• Beneficiation• Job creation• SMME development• Resource protection and

sustainable use

Entrepreneurs Entrepreneurs

Markets MarketsVenture capitalist

Local government