The South African pulp and paper sector continues to play a vital role in the country’s economy, providing essential materials for packaging, printing and hygiene products, as well as innovative alternatives to fossil fuel-based materials.

“Our industry spans more than just copy paper and cardboard boxes,” says Paper Manufacturers Association of South Africa (Pamsa) executive director Jane Molony.

Today, anything that can be made from fossil fuels can be made from sustainably grown trees, whether it is dissolving wood pulp used in viscose, sponges and acetate, or biochemicals from process by-products.

The South African pulp and paper sector contributes about R50-billion to the domestic economy through the production of pulp, paper, board and tissue. The sector is also a key contributor to the country’s balance of trade, with a contribution of around R11-billion in 2024, reports Pamsa.

While the sector exports R18-billion in relatively nonbeneficiated pulp products, these exports exceed the R7-billion spent on importing certain value-added paper grades that are not locally produced, adds the association.

Since 2019, key industry players across the value chain have invested R33.2-billion with a large portion invested in KwaZulu-Natal. An additional R11.2-billion in capital expenditure – excluding maintenance, safety and environmental spending – is projected for the pulp and paper sector over the next three to five years.

Varied Performance

The industry is not immune to volatility in market trends and economic conditions locally and globally. Additionally, water supply constraints and loadshedding continue to plague industrial efficiency.

The printing, writing and newsprint segments are declining in developed countries owing to the increasing shift toward digitalisation and digital marketing. However, growth in developing countries is being driven by rising literacy rates and population growth, leading to higher demand for educational materials, according to market research company Mordor Intelligence.

“The demand for white A4 office paper, also known as uncoated woodfree paper, is fully met by local production. However, the influx of cheap imports is undermining the domestic market, eroding competitiveness and heightening the risk of job losses,” says Molony.

To mitigate this impact, mill use and machine uptime is imperative. Pamsa has noticed that companies are exporting an average of 28% of their local production.

It must be noted that digitalisation of marketing and communication channels is not more environment-friendly than paper and print as the use of electronic devices carries a higher carbon footprint than paper owing to the fossil fuel-heavy source of electricity in South Africa.

Paper, like all other harvested wood products, comes from a renewable resource – wood from sustainably managed plantations. These products store the carbon that was initially locked up in the wood from which it is made, argues Pamsa.

Shifting to Paper-based Packaging

Regarding paper-based packaging such as corrugating materials, container board and kraft paper, demand remains slightly higher year-on-year. The market continues to grow, particularly in sectors such as e-commerce and food distribution.

“There are some fantastic innovations in the paper packaging market. We are seeing a number of brands switching from single-use plastics to recyclable paperboard carriers, punnets and grocery delivery bags,” explains Molony.

South African packaging manufacturer and recycler Mpact, a Pamsa member, has introduced its Freshpact range of paper punnets that are food-safe and 100% Forest Stewardship Council-certified. Fully recyclable, these punnets are designed to replace single- use plastic trays in the fresh produce market.

However, the South African tissue manufacturing sector, which comprises Pamsa members and independent tissue mills and converters, is experiencing a dip in production and apparent consumption. This could be attributed to constrained consumer spend, notes Pamsa.

Taking Circular Economy Beyond Recycling

South Africa’s paper recycling rate for 2024 stands at 60%, with 1.2-million tonnes of paper and paper packaging diverted from landfills out of an available two-million tonnes. Over the past five years, the average recycling rate has been 63%.

Pamsa’s paper recycling rate is based on the tonnages of paper from consumer and post-industrial sources collected from the available pool of recoverable paper, which excludes exports and tissue.

However, the circular economy of pulp and paper is extended by the beneficiation of process waste streams and by-products which further reduces what goes to landfill.

Last year, Pamsa, in collaboration with Stellenbosch University, global pulp and paper company Sappi and Mpact, launched a demonstration plant to convert cellulose fibre-rich paper sludge into bioethanol using a specialised fermentation process. Ethanol, a versatile platform chemical, can be used in the production of industrial chemicals, bio-based plastics and aviation fuel. The project is ongoing with support from the Council for Scientific and Industrial Research’s Circular Innovation Fund, and there are long-term aspirations to apply the same process to other organic waste streams.

Sappi’s Saiccor Mill’s furfural pilot plant has successfully produced high-quality furfural from hemicellulose-derived sugars. Furfural, an important bio-based platform chemical, is derived from C5 sugars using hydrolysis and dehydration, and is used in various products, including adhesives and fertilisers.

Need for More Fibre

Molony states that the largest barrier to the pulp and paper sector’s growth is the availability of fibre, particularly virgin fibre.

Additional timber availability could boost the yearly sales value of the industry by 44%, from about R50-billion to R72-billion, while also creating direct and indirect employment opportunities and advancing greater carbon storage.

Despite the challenging economic climate, the South African pulp and paper sector remains resilient and continues to offer significant potential for economic growth, rural development and environmental sustainability.