Mpumalanga is South Africa's major forestry production area and is climatically suited to the growing of trees on a commercial basis. Owing to this and other reasons, such as the availability of suitable land, the industry in the province has grown substantially and is now an extremely important sector in the province's economy, accounting 4.7% of the province's GGP (Gross Geographic Product) (South Africa Yearbook, 2001/02). In 1997, Mpumalanga's plantations (76% of which were owned by the private sector) covered 41% (626 000 hectares) of the total afforested area in the country, a total of 7% of Mpumalanga's entire surface area. In terms of the species planted, 53% of the species were softwoods, 42% were gums (Eucalyptus species), 4% wattle and 1% other hardwood species (MII, 2003).

Thirty nine of the 148 primary processing plants in the country are located in Mpumlanga Province, among these are the largest integrated pulp and paper mill in Africa (Sappi Ngodwana), the largest softwood sawmill in Africa (Mondi Sabie) and the largest panel and board plant in South Africa (Sappi Novoboard) (MII, 2003). Investment in the forestry industry in the province is almost R5 billion with a further R4.5 billion being invested in the primary processing sector. With regards to employment, it is estimated that 4.1% of the provinces economically active population (36 000 people) are directly employed in the industry. Furthermore, it is estimated that over 200 000 people are dependent on the forestry and forestry products industry for their livelihoods. Remuneration received by the industry workers in Mpumalanga totalled about R619 million in 1997.

Forestry, however has a marked impact on the natural environment and affects biodiversity, water and soil resources and air quality. Apart from the obvious transformation of the natural landscape and resultant loss of biodiversity (such as in biodiversity rich grassland habitats), the exotic tree species planted commercially for forestry are know to consume vast volumes of water. This has a severe impact on available surface and groundwater resources. Furthermore, inappropriate forestry practices such as planting too close or in a wetland, can cause them to dry out and can result in the loss of the environmental services that these important wetland systems provide and as an important habitat for biodiversity. Water quality (i.e. siltation) can also be affected by bad forestry practices. The forestry industry is nevertheless also a contributor in creating wealth and employment opportunities and contributes to the development of rural infrastructure and human resources.