Value chain constraints analyses of selected medicinal and aromatic plants indigenous to South Africa

Abstract

The introduction of the New Growth Path (NGP) and the New Industrial Policy Framework (NIPF) have created an opportunity for the industrialisation of indigenous medicinal and aromatic plants (MAPs Amarula (Sclerocarya birrea), Buchu (Agathosma betulina), and Pelargonium (Pelargonium sidoides) for job creation and economic development in South Africa. The aim is to create a locally sustainable industry which creates jobs as well as improvement of the balance of payments. The National Growth Plan highlights some of the opportunities for industrialization as well as creation of decent jobs. There is increasing pressure on the harvesting of wild indigenous medicinal and aromatic plants (MAPS). The establishment of a local pharmaceutical and nutraceutical industry for processing MAPS remains a challenge in South Africa and many low income countries. The objective of this study was to assess the challenges and their impact looking at particular species, Amarula, Buchu and Pelargonium by using structured focus group interviews with users in communities and businesses in KwaZulu Natal Province, Eastern Cape and the Western Cape. More data/information was also collected from key stakeholder companies including desk-top reviews. Data/information was analysed using the SPSS computer programme and the Atlas software to summarize data and the results. Graphs and tables were used where necessary. The qualitative research reported on some qualitative assessments and challenges facing the establishment of medicinal and aromatic plants in South Africa. Comparative findings from BRICS were also reported. The results of the study indicated that there is continuous exploitation of several medicinal plant species, for plant trade, from the wild and substantial loss of their habitat. The research identifies a number of challenges such as: poor standards for raw materials, lack of research and development linking industry driven revenues, demand exceeding supply, regulatory risk, community risk, lack of understanding of judicious agronomic practices, ethical challenges, liquidity risk as well as political instability fail to attract foreign direct investments. The research concludes that for the establishment of a viable local pharmaceutical industry, iii beverage industry and nutraceutical industry with sustainable harvesting, there are serious hegemonic challenges which will require multi-stakeholder analysis. However, for the South African (SA) industry to be competitive, detailed feasibility studies need to be done comparing SA with other BRICS countries. There is also a need for the Research and Development to be strengthened. It must also be linked into industrial development in the industry. Furthermore there is a need to initiate the incentivizing of the pharmaceutical manufacturing to lower the cost of setting up the businesses in the industry and lessen the need to harvest from South African forests. Furthermore there is a need for programmes of production so that key species are given opportunity for cultivation and the attention they deserve to preserve these depleting resources.