Can Africa Build a Sustainable Fashion Value Chain From Raw Material to Retail? with Madelaine Fourie

[00:00:00] You're listening to the Unlocking Africa Podcast I've been working at SAPI for the past 29 years and understanding the intricacies of how we convert trees into everyday products that goes into things from packaging into textiles The South African forestry sector contributes 8 billion rand to the country's GDP supporting around 150,000 jobs and livelihoods

[00:00:27] This is not just greenwashing anymore People are more aware of these concepts and scrutinize things through a different lens Stay tuned as we bring you inspiring people who are unlocking Africa's economic potential You're listening to the Unlocking Africa Podcast with your host, Terser Adamu Welcome to another episode of the Unlocking Africa Podcast

[00:00:55] where we explore the ideas, innovations and strategies that are unlocking Africa's economic potential When most people think about Africa's role in the global fashion industry they picture cotton fields, textile factories or perhaps colourful fabrics sold in local markets Very few realise that one of the world's most important fashion supply chains actually begins much earlier It begins in forests

[00:01:22] Across Africa, millions of tonnes of natural resources leave the continents every year before being transformed into higher value products elsewhere The fashion industry is no exception South Africa is already supplying one of the world's key materials used to produce fabrics Yet most consumers have absolutely no idea their clothing may have started life as a tree

[00:01:50] To discuss this, we have Madeleine Fourie, General Manager of Marketing for Sappy Verve Madeleine, welcome, welcome, welcome to the Unlocking Africa Podcast How are you? Hi Terser, thank you so much for the opportunity in speaking to you today And I think it's wonderful that we can share the news of how trees actually bring value in our lives As always, I like to start from the beginning So I was hoping you could give us an introduction into who Madeleine Furee is

[00:02:19] Well I've been working at Sappy for the past 29 years and understanding the intricacies of how we convert trees into everyday products that goes into things from packaging, into textiles, into normal paper and obviously all of those kind of things And in the process, I think just learning as much as one can about this particular industry but also growing as an individual because I think you have to be open to learning all the time

[00:02:48] and broadening your horizons Otherwise, you know, new perspectives and potentials won't actually stick Fantastic And I guess this has brought us to where we are today and the work that you're doing and the conversation that we're just about to have So let's start from the beginning in terms of what Sappy Verve does When people think about the fashion industry a forest is probably the last thing that comes to mind So take us through

[00:03:16] How does a tree eventually become a t-shirt that I'm wearing today? Well, eucalyptus trees are planted and harvested after about 8 to 10 years and we use them due to the high cellulose content specifically And these trees are then debarked and transported to the malls where these logs are cut into wood chips And then those wood chips are cooked and pulped to basically extract that cellulose

[00:03:44] which is then manufactured into bales in the format of sheets And then further downstream, these sheets are dissolved into a liquid which basically looks like honey in colour and consistency And this liquid is then pushed through spinnerets to form a fibre And the fibre is then spun into yarn which is woven and dyed and ends up as fabric like viscose and lye cell which then eventually becomes a garment

[00:04:14] So wood fibre forms a good blend due to the moisture wicking properties the softness and the breathability that the fibres provide which then ends up in your t-shirt your shirt, your dress, your scarf, etc. So from this process I guess we're looking at the manufacturing or the harvesting process as well but if we look at it from the consumer perspective what surprised you most

[00:04:40] when you first realised the disconnect consumers have with regards to the clothes that they're actually wearing? I think consumers are unaware of all the certifications that exist within the industry and people are more focused on food items compared to clothes So I think ideally we would want people to scrutinise their clothing tags and labels

[00:05:07] the same way that they actually do their food What ingredients goes in there? Where does it come from? Because it does also have an effect on wellbeing the same way that food has because it becomes an extension of you as a person and within that industry there are obviously demands and limitations and subsequent legislations that manages all of these elements that we just accept as a normal thing that we use without knowing where it comes from

[00:05:37] As we are on the Unlocking Africa podcast many people might be wondering what is the connection between this conversation and Africa? So I know many people would be surprised to learn that South Africa plays a significant role in this global industry So give us a bit more information in terms of what role does the country actually play? South Africa provides 11 to 12% of the world's dissolving wood pulp

[00:06:05] and we produce approximately 1.3 million tonnes per annum of this dissolving wood pulp So South Africa is seen as a source of sustainable and certified fibre grown on land that is mostly not suitable for any other agricultural products and this makes it a low risk for deforestation which is a big industry challenge And in South Africa we are seen as a leader in sustainability not just from an environmental perspective

[00:06:34] but also from a community upliftment view So if we look at this from the economic potential how does forestry or wood fibre manufacturing actually contribute to economic growth? Well the South African forestry sector contributes an estimated 8 billion rand to the country's GDP supporting around 150,000 jobs and livelihoods and these operations are often in areas with limited opportunities

[00:07:03] So it provides a stable source of income supporting a network of contractors small growers, suppliers and one such example for instance would be SAPI's Kulisa programme that supports more than 4,400 small growers and about 1,000 SMMEs So they've supplied 5.9 million tonnes of timber from around 34,000 hectares of land

[00:07:31] an estimated value of 4 billion which is considerable And one shouldn't forget about the interdependency of at least 10 to 12 additional people that is reliant on that income So it is a very big role within the sector and of course with the country as well I think for me one thing that really interests me about the conversation is that it's not just a conversation about fashion it's also a story about the value chain

[00:08:00] We always see these conversations about how Africa exports enormous amounts of raw materials but imports more finished consumer products So is the fashion industry another example of that challenge? Yes, the fashion industry is challenged by many things and obviously the onslaught of legislation and particularly things like the EUDR And you know, you have to look at the infrastructure

[00:08:30] in each of these countries that these clothing and textile manufacturers are what is the infrastructure that the respective governments hand invested in what are their potential challenges within those countries and then also the role of geopolitical forces that come into play in this kind of scenario People won't actually realise that the input and chemicals used in these types of industries

[00:08:57] are actually shipped around the world It's not just from one specific source So any of these kind of items actually has an impact on how these materials and garments in the end of the day is manufactured and shipped around but also the role of how it can have an extended life with the additional legislation that has been brought in So from your perspective what do you believe would need to happen for Africa to capture much more value

[00:09:27] before those materials leave the continent? I think certainly to speak to the textile master plan it would be advantages if the South African industry could invest in a converting plant You know, all our tons are exported because there isn't anyone within the country that can actually convert our dissolving pulp into fibre We have the other downstream industries to a certain extent

[00:09:56] but that is one missing link within the overall textile value chain So that would be of huge value from an opportunity perspective and income generation perspective So using local resources local manufacturing and again putting South Africa and Africa on the map as a very important player within this textile industry You touched there on opportunity So I know from your experience I was hoping to get a bit more information regarding

[00:10:25] where do you see the biggest opportunities or the biggest gaps? Well, I think overall within the industry and it's also something that excites me a lot is the potential of wood fibre and the growing need of wood fibre If you think of the global apparel market it's expanded from around 1.75 trillion to 1.9 trillion within 2026 So this industry is not going to go away

[00:10:54] and there's an annual growth rate of between 3.5 to 6.3% So I think the growing role that we can play from an African perspective is very important and with that infrastructure that I mentioned I think it opens up more possibilities to the global supply chain compared to the traditional sources you know, where these things come from and it might be with opportunities

[00:11:21] in terms of forestry investment manufacturing investment and of course the knock-on effect that it creates for communities as such because everything is about the people the people that work within the industry but also the people that consume the products that is manufactured And we know of course manufacturing alone isn't enough anymore Consumers are increasingly wanting to know what they're buying and also where it comes from

[00:11:50] and we always hear terms like sustainable, ethical, responsible most days So how much of that should consumers actually believe? Well I think an informed consumer is very very important these days because there are so many fake products on the market and things that are harmful So that's where the role of sustainability actually comes in and it has become a major talking point within the industry

[00:12:19] and has shaped and changed the industry because there's a shift towards using more renewable materials and a focus on closed loop manufacturing also implementing circular models and creating long-term value things that might not be normal concepts that consumers think about but it is also around managing that environmental footprint and resource scarcity which of course affects everybody So you have to think about these things

[00:12:48] not just because it's legislated but it affects livelihoods because it's consideration of things like water stewardship energy efficiency lower carbon technology life cycle analysis and all of those kind of things and that is brought in to the concept of traceability for you as a consumer How do you know where your product comes from? What it's made from? And whether it was manufactured with ethical labour practices

[00:13:17] according to regulation and whether there is any of the natural resources that was overused in a specific instance So it is about that transparency for the consumer of the journey that the raw material takes to a final product that we buy You mentioned that sustainability has changed the industry but how much has it changed your industry specifically? Well sustainability

[00:13:47] has changed things a lot There's obviously the legislation that has come in but there's also things like the sustainable development goals from the UN that affects manufacturing plants and companies that adopt those strategies which SAPI have of course and from that perspective this is not just greenwashing anymore people are more aware of all of these concepts and scrutinise things through a different lens

[00:14:16] how do we ensure the longevity of an industry with all the livelihoods concerned but also how do we do this in a more responsible way with a smaller environmental footprint you know without using up all the scarce resources in specific areas You touched on greenwashing so for people listening who might not be familiar with the term what is greenwashing? Well greenwashing

[00:14:46] is referencing promotional words and marketing that cannot be substantiated by science or underlying facts you have to be able to produce your data that says you know if you look at traceability for instance where does your in our case the tree comes from that is converted into wood fiber what is the journey that it takes you know where these things are actually coming from

[00:15:16] because just saying something is green is no longer possible you have to be able to prove your case So in recent times why has it become so difficult for consumers to separate say genuine sustainability from clever marketing? I think as consumers we might be more cognizant of sustainability sustainability in certain areas of our lives things like food if you look at labels on food referencing things

[00:15:46] like FSC and ISO all the normal things that people would see on products but sustainability can be hidden especially on things that you actually don't know if it's a long value chain and this is particularly the case in the textile industry it's one of the longest value chains that exist so sustainability is only at a certain point in that chain so we all need to strive to collaborate and work together better to create that sustainability throughout and not just

[00:16:14] at one point and then creating those cues on products things like QR codes referencing things for consumers like this digital product passport that is actually a buzzword at the moment and everybody's looking at that which then gives you that visibility and traceability it doesn't have to give you all the science behind it but at least it informs you as to where your product is manufactured and what it's made from with those

[00:16:44] different cues that is then included in hang tags or labels etc so I think it is an educational process and people need to be more aware of it but I think with the onslaught of this legislation people are becoming more aware of these kind of things and scrutinising it and a big part of this that is driving the change is also technology technology is also changing the conversation you know now supply chains can become completely transparent

[00:17:14] and you highlighted digital product passports for listeners unfamiliar with that concept what are they and why could they fundamentally change global trade or the fashion industry well digital product passports obviously it hasn't been completely implemented I think a big struggle for the industry is that you have to have that visibility throughout the various stages and certain parts of the chain might have easier access

[00:17:43] to data so for example from a sub-beak perspective the elements I mentioned knowing where trees are planted what land is being used how it is transported etc so you might have that visibility up to a point and that these things can be captured in that digital product passport but it's like you have a passport or identity card it's the same thing for clothing item so it basically gives you its

[00:18:13] journey throughout the chain at the various stations of manufacture and there's obviously the technical detail that needs to go into the product passport but it's not as easy as it sounds because again it is data based and that data needs to be pulled throughout the value chain and not just at one section of it I understand so how prepared do you think majority of African manufacturers are for a future

[00:18:42] where buyers are increasingly demanding visibility across the supply chain I think the biggest awareness around this is more in the European regions due to the EUDR legislation and the references to the digital product passport I think it's not that other regions are not aware of it and certainly not Africa specifically but I think the challenge comes in in that investment you have to have

[00:19:12] platforms that can read this data etc so I think the bigger the investment is that we can make in these platforms technological platforms that can interpret the data and collaborate and collate everything from the various sources I think that's where our challenge lies as a country and as an industry so that's why it is so important that this thing can't be achieved by one party alone there needs to be

[00:19:42] increased collaboration because we have to help build confidence and credibility in the entire value chain so could these new transparency requirements become an opportunity for African producers rather than just say another regulatory burden yes I think it can be an opportunity but again without the investment it will be a struggle again because there is technological advances

[00:20:11] that happens within the industry you know whether it is understanding where things are shipped what supply lines are being used the fiber that's coming in and you can only be as a manufacturer as good as your source of supply so if you don't have the information available from your source of supply it affects your own ability as a manufacturer or converter to include that information downstream so I think it's definitely an opportunity

[00:20:41] but you would have to have financial investment in these various platforms but I do think that it creates a big opportunity for South Africa and Africa as a region to make our mark further in the industry I think one thing that really stood out for me is when reading about SAPI Verve is that the conversation isn't just about environmental sustainability it's also about business competitiveness so what would you say differentiates SAPI from many of the

[00:21:11] other say African or global players in this market well Tasha SAPI is a non-integrated supplier so we are seen as independent and we don't really influence fibre pricing we are also based in a neutral geographic area so not China or Indonesia but it's because we are also a reliable source of production and sustainable certified sources coming

[00:21:39] from South Africa and from SAPI specifically with a quality product that is underpinned by good customer service and communication so do you think businesses that do invest in sustainable materials and transparent supply chains as we've discussed will become more profitable or competitive in the future I think the opportunity is certainly there it's just that the change in

[00:22:09] the industry and the legislation it is a learning process as we've seen with many new initiatives that get adopted you go through a trial phase and even though it is legislated not everybody has the infrastructure or onboarded all the systems so I do think that it has that opportunity but there is still a lot of learning curves to go through in this process and also potentially a better understanding of the regulatory

[00:22:38] compliance that is required so going back to the point you made in terms of not everyone has onboarded this infrastructure from your perspective or how you work how have you changed the way you choose suppliers because of this sustainability expectation well I think as I said earlier on you can only be as good as your source or your supplier to enhance your own message so we obviously with the same

[00:23:07] hard criteria that we apply for our own products and manufacturing practices we do that same with our suppliers of chemicals of the wood fiber even though we own some of the land there is obviously all the science and innovation behind forestry so we need to make sure that that part has been implemented and adheres to the standards that we provide our downstream

[00:23:36] customers so looking at sustainable wood grown on land where biodiversity is adhered to also looking at the resources in those particular areas so obviously I'm speaking from a sappy perspective with our input but it is very important to make sure that as I say your wood supply your chemical supply and your own internal processes adheres to all of these sustainability guardrails that we need to

[00:24:06] impose ultimately none of this is just about clover and it's about Africa's wider industrial future which is driven by policy and legislation so what road you believe government should or could play in helping build this regional fashion value chain I think as I mentioned earlier it's very important that we introduce this missing link of the conversion of dissolving wood pulp into the fiber

[00:24:35] all of this at the moment is exported to a few converters around the world and those guys are mainly focused on converting the dissolving wood pulp into the fiber into the so putting up factories that can obviously work around the format of output so whether it is a bale or a reel and having those factories in areas that is fairly close to the manufacturing sites

[00:25:05] so that you also look at the supply chain and the logistics around getting those materials there so it's not just the plants itself I think it's the infrastructure required in moving the product let's say from a sappy mill for instance to a converter and then the downstream guys that do the knitting weaving dyeing etc before we actually get to the garment industry which can of course also help the local retailers they might

[00:25:35] have some of these arms locally but in a lot of cases it's still about importing those fabrics and getting our converted product from one of the overseas suppliers I think whenever we talk about Africa's developments we often focus on what the continent lacks and sometimes we should probably spend more time talking about what Africa already has so looking ahead what would you say excites you most about the future of sustainable textiles

[00:26:04] and maybe Africa's role within the global value chain well I think it would be great if we can actually just get a bigger pie of the textile pie so to speak you know in terms at the moment polyester is the biggest input material within the supply chain or value chain for clothing so I think if we can increase the role of wood fibre as an alternative to fossil

[00:26:34] based materials that would be wonderful and also looking at better and increased collaboration within the value chain towards shared responsibilities and also getting brands to invest in landscapes and the sustainability elements that are required because I think that is often shifted to manufacturers so it would be wonderful if we can have a bigger conversation around those elements in particular because ultimately

[00:27:04] it would help to create jobs and post income and obviously looking at more infrastructure it puts Africa and South Africa on the map as a bigger source into the value chain because I think a lot of it is driven by China, India, Indonesian countries and the consumers of that mostly being US and European and they're the biggest markets obviously from a consumer perspective of clothing and driving that narrative and if we were to have

[00:27:33] this conversation say in 10 years from now what would success look like for Africa's sustainable fashion industry? Well I think it is having access to good quality wood fire because that's obviously our raw material input and it's important to understand that we cannot have that without looking at the impact of climate change and having to future proof our industry and business against it

[00:28:02] you know you have to implement adaptive strategies around climate change looking at the science technology used within the industry and looking at potential other uses of cellulose because you know we're talking here just clothing and textile industry but this particular kind of product being wood fiber is used in so many other industries food products cosmetics in the agricultural sector pharmaceutical

[00:28:32] industries and even bioenergy generation not even to mention the ecotourism side of things you know things like mountain bike trails and trail programs so all of that working together around community upliftment skills development and technical support I think there's a lot that can be done again just saying that it's not something one can do on your own you have to have the buy in you know from everyone downstream

[00:29:01] and making sure that you implement your own strategies and also being conscious of the environment that you operate in with this in mind what role do you hope Soppy plays in this future well as I mentioned in the beginning you know we are a big supplier of dissolving wood pulp into the industry so I think you know if we can support that with a lot more product and increasing output

[00:29:31] potentially of course you have to comply with quality standards throughout to ensure that we you know the product is actually still relevant and in demand there's a lot of new things that come on into the value chain where people wanting to use different types of materials so ensuring that you can provide the best product at any given time you know based on the resources that are available to you and harnessing the strengths that we have from

[00:30:01] South Africa and Africa as a country As people we often have say quotes philosophies proverbs affirmations that keep us going when times are good or when times are challenging is there one that stayed with you throughout your journey I think it is the word perseverance perseverance when times are tough but also perseverance when things are going well because to move forward you need

[00:30:30] to adapt you need to look at things differently question things but also around always doing the best that you can with the resources and availability of elements that you have within your personal space because only you can make a difference once you act it can actually generate action further downstream or motivate the next person downstream fantastic thank you a fitting way to end today's conversation Madeleine

[00:31:00] great conversation I think for me what stands out is that Africa's future of fashion is probably far less to do with catwalks than it is with forests factories and supply chains and also highlighting where the value can be captured and the real story won't simply be about sustainable fashion it's the full value changing the full picture of what happened before that and at the consumer side as well so thank you for your time today and thank you for sharing

[00:31:30] your knowledge and experience with us thanks very much for the opportunity to it was really good to talk to you today thank you to everyone who has listened and stayed tuned to the podcast if you've enjoyed this episode please subscribe share or tell a friend about it you can also rate review us in apple podcast or wherever you download your podcast thank you and see you next week for the unlocking africa podcast