Our approach
Phumani Paper promotes a market-driven approach to integrated community development.  This approach includes addressing issues relating to creating sustainable jobs within the parameters of small enterprise development.  The affects of the HIV/Aids pandemic are investigated and minimised through targeted initiatives.

The organisation developed a menu of services that are offered to its affiliated small hand paper-making enterprises.  These services are currently offered free of charge – with all services generously funded by Phumani Paper’s loyal and committed donors.

Tax exemption for donations and bequests
Phumani Paper has been approved as a public benefit organisation (PBO) in terms of section 30 of the Income Tax Act, and the receipts are exempt from income tax in terms of section 10(1)(cN) of the Act.  Donations are exempt from donations tax in terms of section 56(1)(h) of the Act, as well as the payment of estate duty (for bequests from the estates of deceased persons in favour of Phumani Paper) in terms of section 4(h) of the Estate Duty Act, 45 of 1955.

Broad-based black economic empowerment
Phumani Paper currently supports seventeen community-owned enterprises in seven provinces, and provides employment opportunities to 136 beneficiaries.  Our approach includes support to local contractors to benefit local economic development.  Phumani Paper’s experience and grassroots support base make it an ideal broad-based black economic empowerment partner. 

The government’s Black Economic Empowerment (BEE) Code of Good Practice 2005 for successful businesses in South Africa focuses on various elements.  The table below represents these elements, as well as the value that Phumani Paper will add to each element:

Increasing the capacities of rural communities to participate in the hand paper-making process
Phumani Paper’s affiliated small enterprises produce a variety of hand-made paper and products from invasive vegetation, agri-waste and recycled paper.  Labour-intensive processes are used and appropriate rural technology has been developed and supplied to produce hand-made paper.

These rural enterprises constantly battle against various challenges.  Phumani Paper recently received a two year grant from a leading American grant-maker to support six producer units to increase their sales revenue through:
• Increased participation in the supply chain
• The development of market-led products
• Market-led agri-waste beneficiation
• Access to markets

It is envisaged that the project will:
• Increase sales revenue by 15% during year one and by 25% at the end of year two
• Develop business plans for each participating unit
• Deliver three market-led product development workshops
• Develop one new product per unit
• Develop a market-led bio-fuel product from agri-waste
• Deliver HIV/Aids awareness and support training through engaging creative strategies

An external evaluator will be appointed to assess progress against agreed outcomes.