SiyaQhubeka Forests (SQF), in partnership with Mondi South Africa and SAFCOL, has officially transferred an increased equity stake to its community empowerment partners SiyaQhubeka Community Trust (SQT), marking a significant milestone in the transformation and inclusive growth of the forestry sector.

The shareholding transfer sees SQT increase its stake from 5.4% to 15.4%, ensuring that local communities play an even greater role in the forestry business. This development strengthens their position as active participants in the enterprise and unlocks further economic opportunities for local beneficiaries.

Speaking at the handover event, a Mondi’s representative, Mr. Themba Vilane emphasised the company’s commitment to transformation:

“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.

At Mondi, we are guided by three core goals of: contributing to a better country by empowering our local communities, benchmarking with the best by operating at the highest global standards, and growing our people through skills development and sustainable livelihoods. Through partnerships like this, we are not only growing businesses but also nurturing the skills and opportunities that will continue to sustain these communities for generations to come.”

SiyaQhubeka Forests is a Level 1 BBBEE contributor and continues to be committed to transformation. SiyaQhubeka Forests has established itself as a globally competitive, sustainable business that integrates commercial forestry with environmental conservation. Its operations are certified by the Forestry Stewardship Council (FSC) and serve as a model for responsible and innovative forestry practices. A key element of its success is the integration of forestry within the iSimangaliso Wetland Park, a UNESCO World Heritage Site.

SQF Board chairperson, Mr. Dinga Mncube. reinforced the significance of the transaction, framing the message around three key themes:

“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.”

In addition to Mondi and SAFCOL, other key empowerment partners, including the Khulanathi Growers Trust (KGT) and Imbokodvo Lemabalabala (IL), were also acknowledged for their role in shaping this transformation journey.

SAFCOL, as a key government partner in this partnership, reaffirmed its commitment to ensuring that community-owned forestry businesses thrive. This transfer is part of a long-term vision to foster economic independence and self-sustaining businesses in South Africa’s forestry sector.

With an enhanced shareholding structure, SQF is poised to deliver long-term value to its community beneficiaries while maintaining world-class operational standards. The transfer of equity is expected to stimulate local enterprise development, create jobs, and provide further training and upskilling opportunities for community members.

“We are still writing the SiyaQhubeka story,” concluded the Mondi representative. “This business is growing; it will be sustainable for many years to come, and the community will always be a part of our success.”

The SQF shareholding handover aligns with South Africa’s transformation goals and represents a model for successful partnerships between government, industry, and local communities.