In line with its Provincial Growth and Development Plan (PGDP) and, as part of ASGISA Eastern Cape, 30 000 hectares of land in the eastern part of the province has been set aside for new forestry plantations.

In addition to this, both national and provincial government have identified an additional 100 000 hectares that is suitable for commercial forestry operations in the province.  This makes the Eastern Cape the only province in South Africa where forestry can be significantly expanded to enhance provincial manufacturing diversification and economic growth in the forestry and wood sectors.

This government commitment to the forestry and wood sectors was quickly recognised by Steinhoff, a large German multi-national who, together with their local South African operation, PG Bison, opened their particle board plant in Ugie in the North-Eastern part of the province in 2008.  The opening of this plant represented a joint investment of R1,3 billion (US$173 million) between the provincial government and Steinhoff in a previously disadvantaged rural area of the province.

As a result of the intensive focus of provincial government on forestry and wood products, the following opportunities exist in the eastern part of the province:

• Charcoal - the government initiative to eradicate invasive timber species provides opportunities for small and large-scale operations in terms of charcoal production
• Expanding investments in forestry - opportunities exist to partner with provincial government, farmers and communities in the eastern parts of the province to place new areas under forestation for the timber and wood industry.
• Wood-chipping plant - with the Kei Rail link between Mthatha and East London, raw wood product can be transported to the East London IDZ from the rich forestry areas in the North-East of the province where the opportunity exists for the establishment of an export wood-chipping plant.
• New hardwood plantations - the need for increased availability of hardwoods such as eucalypts (saligna) and wattle provides for forestation opportunities. However, these being invasive species, certain permits would be needed from the Department of Water Affairs and Forestry.
• Treated poles - treated creosote poles are used extensively in the agriculture and commercial sectors in the province. The majority of plants to treat poles are found in urban areas. Potential exists for the establishment of a pole treatment plant in the Butterworth/Mthatha areas.