South Africa Finalises Biodiversity Sharing Agreements

The government has established benefit-sharing models for Rooibos, Buchu, and Honeybush to support Indigenous communities.

Updated on Oct. 16, 2026 in Botany

Isometric editorial illustration of botanical sprigs on a stone plinth, representing South Africa's new biodiversity policy framework. — South Africa finalized biodiversity agreements on September 18, 2025, to ensure equitable compensation for Indigenous communities using native plant resources. AI Illustration. Upload story photo >

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Should government benefit-sharing agreements with indigenous communities require public disclosure of their calculation methodology?

South Africa has implemented a biodiversity benefit-sharing framework, finalising three industry-wide agreements as of 18 September 2025. These agreements are designed to ensure the Coi and San communities receive equitable compensation for the commercial use of native plant resources.

Why it matters

This system seeks to operationalise the fair and equitable sharing of benefits derived from biodiversity commercialisation. By formalising these structures, the government provides a legal pathway for Indigenous communities to participate in the economic value of regional botanical resources.

The Rooibos agreement mandates a 1.5% levy on farm-gate purchase value, while the Buchu agreement requires a 1.2% levy on annual net revenue. These figures form part of three realized agreements managed under the Department of Forestry, Fisheries and the Environment.

The players

Department of Forestry, Fisheries and the Environment

This national agency is responsible for overseeing environmental policy and approving biodiversity benefit-sharing agreements in South Africa.

Chirandu institute

This organisation is tasked with planning and implementing methodologies for valuation and payment reporting related to biodiversity assets.

Coi and San communities

These Indigenous communities are the primary beneficiaries of the new frameworks established for the commercial use of indigenous botanical products.

The details

The Department of Forestry, Fisheries and the Environment approves all contracts to ensure terms are fair before they enter into force under the National Environmental Management: Biodiversity Act. The Chirandu institute is currently developing a three-stage methodology to manage valuation and payment reporting for these sectors.

2004: The National Environmental Management: Biodiversity Act was enacted.
2015: Official regulations regarding biodiversity agreements were issued.
2019: The Rooibos industry-wide agreement was established.
18 September 2025: The Honeybush benefit-sharing agreement was signed.

Deeper Dive

The framework follows the requirements set by Section 2(a)(iii) of the National Environmental Management: Biodiversity Act to formalise financial distributions. This move represents a major effort to align commercial botanical exploitation with legal mandates for resource equity.

The implementation of these levies could influence the long-term retail pricing of products like Rooibos and Honeybush as companies adjust to new overhead costs. These agreements create a more structured environment for the botanical industry, potentially affecting the cost structure of raw materials used in consumer goods.

The takeaway

The formalisation of these agreements highlights a move towards greater transparency in how traditional botanical knowledge is monetised. Consumers and industry participants can expect increased regulatory oversight regarding the sourcing of indigenous plants in the coming years.