Seven bioprospecting permits were awarded this week as the Department of Environmental Affairs (DEA) moves to promote biodiversity as an industry in South Africa.

African Aloe, Organic Aloe, Skimmelberg Fynbos, the Council For Scientific and Industrial Research, Parceval, Incosmetics and Ecoproducts received integrated export and bioprospecting permits at the first annual Biodiversity Economy Indaba, in Polokwane.

This followed the departments issuance of the first seven permits last year.

The biodiversity economy comprised the natural, or ecosystem, services emerging from the interaction between plants, animals and humans, including food production, material for shelter, clean air and water, medicines and places for healing and enjoyment.

Globally, biodiversity was recognised as the cornerstone for economic growth and sustainable development.

The biodiversity economy, which is part of the government’s Green Economy policy, would be able to give South Africa’s economy a “competitive edge”, while conserving natural resources, said Limpopo MEC for Economic Development, Environment and Tourism Seaparo Charles Sekoati on Tuesday.

South Africa, ranking as the third most mega-biodiverse country in the world, needed to find ways in which to harness the sector so that it could effectively contribute to economic growth.

The South African National Biodiversity Institute said the nation’s aggregate ecological goods and services were valued at R73-billion, equivalent to about 3% of the national gross domestic product (GDP), but the industry had only reached about 20% of its potential.

The bioprospecting industry’s current contribution to GDP was estimated at R2.1-billion, with the overall contribution of the direct use of indigenous biological resources at R8.3-billion, noted Sekoati.

The bioprospecting industry, based on export trends, grew, on average, 6% a year over the period 2001-2011, and had the potential to grow to between R600-million and R800-million over the next five years.

Further, by 2018, an additional 700 to 1 700 new jobs could boost the current 2 100 jobs already created by the industry.

“Our natural capital is both a focus area of the green economy strategy and an area of intervention identified in the national sustainable development strategy,” said Sekoati, adding that government recognised a need to balance economic and other development goals, with that of environmental sustainability for the benefit of present and future generations.

To this end, dialogue was required at national, regional and international levels to consider possible means of biodiversity trading in Africa in a manner that was sustainable and could contribute to the continent’s green economy.

The DEA, along with relevant stakeholders, was considering the establishment of an industry forum for the bioprospecting industry to create a “formal communication channel” between industry and government.

The department also planned to develop an action plan to achieve optimum industry transformation and introduce a South African certification scheme for the sector.

The DEA, which had established a new chief directorate for the promotion and development of the biodiversity economy, suggested that the development of a National Biodiversity Economy Development Strategy would focus on realising economic benefits from South African indigenous biological resources.

“Despite the rich biological diversity of South Africa, relatively few species are economically used. Export and use of South Africa’s biodiversity, particularly plant resources and animal products are not yet well documented. This may very well contribute to limitations in deriving maximum benefits from our biological richness,” he concluded.