PCTI/20141021/CoB/CSIR/77

‘Adding value to South Africa’s

Indigenous Knowledge and Plant
Biodiversity through Scientific
Innovation’

Marthinus Horak
CSIR Enterprise Creation for Development
 Contents

• Background

o South Africa’s knowledge and biodiversity resources

• Rural agro-processing enterprises: lessons from the trenches

o Essential oils and medicinal plant demonstration projects funded by

Department Science and Technology

• Conclusions

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 Background information

• The CSIR:
o Is a leading technology development institution
o Contributes to socio-economic development of the country through
knowledge creation and knowledge application activities
o Contributes to national imperatives of job creation, rural development,
human capital development and meeting of basic needs.

• Enterprise Creation for Development (ECD):

o Utilizes science and technology solutions to address poverty and
underdevelopment
o Sources technology from CSIR units, universities, research councils
and other participants in the National System of Innovation
‒ Currently implementing a portfolio of DST-funded essential oil and
medicinal plant (EO&MP) projects aimed at demonstrating agro-
processing businesses in favour of socio-economically excluded,
rural communities.

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 South Africa’s plant biodiversity

• 24 500 plant species occur in South Africa

o Approximately 10% of plant species known to man

o South Africa represents only 2% of land surface area of the
world
o Approximately 11 700 endemic species
o Nine unique vegetation types

• Plants occur in highly diverse ecosystems

o Adapted to extreme climatic conditions
o Many species evolved and survived for millennia
o Developed sophisticated chemical defence mechanisms
‒ Potential source of biologically active metabolites

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 South Africa’s indigenous knowledge systems

• Local Traditional Healer practices:

o A long history of traditional use of indigenous plants to treat

human ailments
o More than 200 000 Traditional Healers are active throughout the
country
o Approximately 70% of South Africans regularly consult a Healer

• Knowledge of medicinal value of indigenous plants

o not yet leveraged for the benefit of sustainable development in

South Africa

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 National System of Innovation

• Indigenous plant species have been researched by botanists,

taxonomists, plant ecologists, etc. at many universities and research
institutes during the past 60 years

• Natural product chemists, pharmacologists, etc. have contributed

significantly to mankind’s understanding of biologically active
substances from plants since the second world war

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South Africa’s competitive advantage

Unique Indigenous
Plant Biodiversity Knowledge System

National System
of Innovation

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Harnessing South Africa’s competitive advantage

Biodiversity Indigenous Research findings,

Knowledge publications,
Systems technology
packages, patents

‘Innovation chasm’

Scientific
Innovation

New enterprises that

cultivate and process
indigenous plants
with fragrant,
cosmetic, medicinal
and/or nutritional
value

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 Why focus on Essential Oils and Medicinal Plants ?

• Lucrative global markets

• South Africa does not yet participate significantly in these markets,

despite our access to resources:

o Heritage of indigenous knowledge on the medicinal use of plants

o History of scientific research at local research institutes and universities
o The diverse climatic regions supports EO&MP species

• EO&MP products
o shelf-stable
o high-value
o low volume

• EO&MP - opportunity for on-farm value-addition through processing

of harvested crops

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 EO&MP sector objectives

• Develop the EO&MP sector:

o Identify suitable EO&MP products

o Identify technical production hurdles, source and implement technology
solutions
o Create market linkages for locally produced EO&MP products
o Develop sector protocols
− land and water use
− environmental issues
− biodiversity access and benefit sharing

• Enterprise creation projects to facilitate participation of developing

rural farmers

• Commercialize novel, locally invented EO&MP products

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 Conceptual Framework for developing the sector

National, Provincial & Local

Policies, Strategies, Programmes & Instruments

Knowledge
Generation
Institutions
Technology and knowledge
Beneficiaries:
Needs
Donor Agencies Sector development • Communities
and Private Sector initiatives • Enterprises
Solutions • Individuals
Funding

Government
Departments
Programmes, projects and funding

Stakeholders (NGOs, Agencies, Service Providers etc.)

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 Level of involvement

100% 100%

Continually increasing local/community

involvement, control and
responsibility

Continually decreasing mentor

involvement, control and
responsibility
10%

Initiate Establish Establish Train staff and Establish Mentor

project Infrastructure production and embed Good business business
create market Farming and
linkages Manufacturing
Practices
5 years

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 IKS and scientific research collaboration: a case study

• A consortium of Traditional Healers approached CSIR during

early nineties to establish collaboration
• The aim was to scientifically validate the knowledge of
Healers on the beneficial uses of various plant species
• The result was the invention of a novel insect repellent product by
CSIR

• CSIR patented the use of the essential oil of Lippia javanica as an insect
repellent
• CSIR entered into a benefit-sharing agreement with the consortium of
Healers whereby royalties on sales are paid
• Three community-based essential oil agro-processing farms currently
produce the insect repellent oil
• CSIR licensed a local entrepreneur to manufacture and distribute the
mosquito repellent product
• The invention provided an opportunity to demonstrate the value of
beneficiation of local natural resources and indigenous knowledge

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 CSIR innovation leads to community-based cultivation of an
indigenous plant species….

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 Distillation of crop to give the essential oil….

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 Formulation of essential oil in candles….

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 Patented mosquito and fly repellent product on the shelves of
more than 200 local stores

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 Current EO&MP projects

Geographic dispersion of
projects increases
implementation costs but
facilitates inclusive
development

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 Rose geranium cultivated by Pella community,
Northern Cape

Distillation factory

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 Rose geranium essential oil production at KwaNobuhle

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 Scientifically validated results allow replication of
successful cultivation and processing sites

The quality of EO&MP products are

confirmed through chemical analysis
prior to shipment to buyers
Telemetric weather stations
and soil moisture meters
are installed on project sites

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 Pilot production of Rosa damascena essential oil
at Ficksburg

• Rosa damascena oil of Bulgarian origin certified as organic is worth

R105 000 per kilogram
o The species is suitable for very cold climates

• Project requires horticultural and engineering innovations:

o Stem grafting of imported genetic material to establish a local
propagation system
o Hydro-distillation based
on recycled engine oil as fuel
source to generate steam

Rosa damascena at Ficksburg – November 2013

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 Regional collaboration: development of the
Essential Oil sector in Uganda

• Uganda Industrial Research Institute contracted ECD to assist with

development of the Essential oil sector in Uganda
o Aim is to benefit from ECD’s experience gained while developing the
sector in SA
• Phase 3: Pilot Operation is currently underway
• UIRI staff were trained in SA and ECD staff members undertakes
project site visits in Uganda

Rose geranium crop ready for harvesting Essential oil distillation unit being installed

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 Requirements for establishing an essential oil
production site

o At least 30 Ha of arable land

o Access to irrigation water
o Access to Eskom electricity
o Approximately 15 workers and one supervisor on 30 Ha
o Construction of a distillation factory on the farm
o On a well-managed farm, the financial returns from sale of oil is sufficient to
cover costs of area under cultivation and yield a profit
o Requires commitment from workers and management

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 Requirements for establishing an essential oil
production site (continued)

• The project and resultant enterprise must conform to a highly involved

legislative framework:
• National Environmental Management Act (Act No. 107 of 1998) (NEMA), as amended
in 2008
• National Environmental Management: Biodiversity Act (Act No. 10 of 2004) (NEMBA)
• National Environmental Management: Biodiversity: Amendment Act (2008) –
Integrated Export & Bioprospecting Permits, Material Transfer & Benefit-Sharing
Agreements (BABS Regulations)
• National Environmental Management: Air Quality Act (39 of 2004) (NEMAQA)
• National Environmental Management: Waste Act (Act No. 59 of 2008) (NEMWA);
• National Heritage Resources Act (Act No. 25 of 1999) (NHRA)
• National Water Act (Act No. 36 of 1998) (NWA) – application for a Water Use License
• Conservation of Agricultural Resources Act (Act No. 43 of 1983) (CARA)
• Occupational Health and Safety Act (Act No. 85 of 1993) (OHSA),
as amended in 2008

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 Conclusions

• Agro-processing of high-value essential oils and medicinal plants

under irrigation:
o A viable opportunity for rural farmers
o Requires access to 5 -30 Ha – not a cottage industry
o Technology transfer and market access models are proven
o Wealth creation leads to job creation
But:
• Business models for enterprises on communal land not yet
proven
o Management of working capital, cash flow and ongoing mentoring
remains a challenge
o Business partners may be required

• Legislative framework is stifling growth of the sector

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 Thank You!

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