Forests and woodlands in Tanzania are estimated to cover about 35.5 million hectares and constitute about 38% of the total area of the country. Of this, 13.5 ha are gazetted as national forests or local government forests and the remaining 25.5 million ha are in a village or general land. Tanzania has 600 government forest reserves, covering about 13% of the total land area. The reserved area includes 1.6 million ha that is managed as catchment forests and 80,000 ha of government plantations.
In addition, there are 80,000 ha of private forest plantations. Most of the forest is savannah and intermediate woodland (dominated by branchy-stegia and isoberlinia species). The principal species of wood in Tanzania are valuable tropical woods, such as cedar, African rosewood, podocarpus, and mahogany. There are also plantation forests covering an area of 250,000 - 300,000 ha. consisting of Pinus, Cupressus or Eucalyptus and Wattle. Investment opportunities available in forest industry include:
Establishment of plantation forests
The Government is actively promoting private sector and community involvement in the management of the governmental industrial plantation. It is seeking to encourage companies and individuals to invest in pulp and saw log growing and processing through mutually Public Private Partnership (PPP) arrangements.
Currently, there are 16 government-managed forestry plantations in Tanzania,
classified as forest reserves under the control of Forestry & Beekeeping Division (FBD) of the Ministry of Natural Resources and Tourism (MNRT) encompassing a total of 83,000 ha. Future plans are for a 50,000 ha. expansion. The major private industrial plantations include TANWAT, Green Resources Limited, and Kilombero Valley Teak Company accounting in aggregate for 30,000 ha. There are also numerous small-scale woodlots and medium- sized plantations owned by smallholders, communities, districts, tea companies, faith-based organizations, schools etc. This accounts for between 120,000 – 150,000 ha in aggregate.
Investment Opportunities
There are multiple commercial opportunities in the forestry sector. New large-scale investors such as New Forests Company and Oji Paper have entered the sector and are at initial phases of their large planting programs. Both are acquiring large areas of lands, in a magnitude of 30,000 to 40,000 ha each to combine their own large plantation program with the adjacent communities in form of out-grower schemes. Industrial establishments are needed to utilize forests to produce timber, chipboards, plywood, fiberboard, furniture, poles etc. Investment is needed in terms of transportation network as well as in bringing in new and efficient technology.
The state of the privatized industries is insufficient as they still operate using outdated technology. It is currently estimated that only 30 - 40% of the raw material contributes towards the final product and the rest is wasted.
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