Environmental services and goods exist in an inter-dependent relationship. Many environmental services depend on the utilisation of relevant environmental goods.The 2006 EGSA report recognised the international EGS sector as one of the fastest growing industries in the world, due to global and local environmental and climate change challenges. Unlike most other industries, the growth of the EGS industry is largely driven by government activities and policies.

The study estimated the size of the South African EGS market between R14.5 billion and R23.2 billion in 2004 that translates into between 1% and 1.6% of GDP (Nedlac, 2006). Up to 2006 the diverse and dynamic SA EGS sector was not well organised. Despite a few sub-sector associations, certification boards, committees and other structures  the overall EGS industry in South Africa was fragmented. The major SA EGS sub-sectors were focused on water and waste management and resource management. Demand-driven growth is experienced in the climate change, air and noise pollution goods and services.

South Africa is a world leader in specific niche areas such as the management of mine waste and mine rehabilitation and conservation and bio diversity management. The structure of the South African EGS industry includes a strong presence of foreign subsidiaries, established small local companies and new and emerging players. The current focus of these companies is the local market, which is therefore extremely competitive.

The SA EGS Forum was established on 22 August 2007 and the EGS Forum Steering Committee had its first meeting on 21 September 2007. The world-class environmental policies and laws introduced by the democratic ANC government would underpin an action plan to accelerate EGS growth for South Africa. The EGS Action Plan needs to clearly show its contribution to the challenges of poverty alleviation dominating government programmes and budgets. Implementing innovative EGS initiatives in tandem with government’s programme to tighten environmental enforcement would improve the quality of life in communities and create business opportunities and jobs.