Where legal operators lose The scene changes for eucalyptus trees Most timber traded in Uganda is illegal Growing radiata pine on a commercial scale Subscription only
THE FORESTRY EDUCATION MAGAZINE FOR AFRICA
A Publication of Better Globe Forestry
I s s u e N o.2 4 O c t ob e r - De c e m b er 2 0 1 4
Not a job for the faint-hearted Importing wood from the DRC is a minefield
Planting trees under drip irrigation
Entrepreneur shows it is possible, and even profitable
A timber ‘tsunami’ is coming to Uganda The country needs to increase its timber processing capacity 13-fold by 2022
The timber industry in the East African region
A potentially lucrative but complex business
Better Globe Forestry Ltd
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Making Africa greener Better Globe Forestry (BGF) is part of The Better Globe Group from Norway, which focuses on the need to fight poverty through promoting massive tree planting and sustainable agricultural programmes. BGF’s vision is to create secure commercial projects with vital humanitarian and environmental activities and as a result become the biggest tree planting company in the world within 20 years.
Land in Kiambere before planting. Note the omnipresent soil erosion
The mission of BGF is to make Africa a greener, healthier place in which to live and eradicate poverty by focusing on the development of profitable, commercial tree plantations that will deliver environmental as well as humanitarian benefits. Miti magazine is a publication of Better Globe. It is the policy of BGF to, among other things: • Create attractive financial opportunities for present and future investors, Continuously identify and address the needs of employees, suppliers, customers, shareholders, the community at large and any other stakeholders, • Focus on the need to help fight poverty, through promoting massive tree planting • Create and sustain motivation throughout the organisation for meeting its business objectives, • Continuously maintain and review an effective and efficient Quality System which as a minimum satisfies the requirements of the appropriate Quality System standard(s), • Continuously improve the performance of all aspects of the organisation.
Workers clearing a thicket in Nyangoro in preparation for tree planting
Our nursery at Kiambere
A two-year-old plantation of Melia volkensii in Kiambere
Workers in BGF’s plantation in Kiambere, after receiving a food donation
A Melia volkensii plus -tree part of our genetic improved programme
Preparing for planting in Kiambere
The committee of Witu Nyongoro ranch with Rino Solberg and Jean-Paul Deprins
www.betterglobeforestry.com
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Issue No 24 October - December 2014
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Editorial
24
Levying taxes on tree-growers
An insight into the EA timber trade
4
News and events
System needs to be equitable, fair and acceptable, says UTGA By Dennis Kavuma
Tree-growers meet in Mbarara
5
Forest resources in the EAC region
26
The scene changes for eucalyptus
Legal frameworks need to be improved to aid efficient timber trade By Joshua Cheboiwo
The trees are today increasingly being grown for timber, not just poles By Phanuel Oballa
8
Tainted with the brush of illegality
28
A timber ‘tsunami’ is coming to Uganda
The country needs to increase its timber processing
capacity 13-fold by 2022 By Warren Rance
30
Going against the grain
Ugandan company makes durable, high quality
furniture from eucalyptus timber By Diana Ahebwe
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Taking a calculated risk
Undeterred by past failure of the tree to thrive in the country, Kisima Farm grows radiata pine on
Small-scale timber dealers in DRC struggle for legitimacy By Paolo Omar Cerutti
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A risky and uncertain trade
The EA trans-border timber trade is loaded with hazards - it needs to be transformed By Joshua Cheboiwo
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Not a job for the faint-hearted
Importing wood from the DRC is a minefield By Jan Vandenabeele
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Besieged with illegality
Most of the timber traded in Uganda can be considered illegal By Martin Asiimwe
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Trading in legal timber in Uganda
There are efforts to develop standards to weed out illegalities
18 What future for small-scale sawmilling in Uganda? There is need to support tree-growers, improve harvesting methods and add value to forest products
By Geoffrey Odokonyero
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Want a professionally-run plantation?
Hire a certified forest contractor By William Maweno
22
Where legal operators lose
The Ugandan timber trade is fragmented and disorganised, and does not encourage tax compliance
By Moses Agaba and Isaac Kapalaga
a commercial scale By Jan Vandenabeele
35
A coloniser of degraded sites
The bush that gave its name to the Kileleshwa area of Nairobi has a multitude of uses By Francis Gachathi
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Coming together to grow trees
RECPA sets the pace for community involvement in the environment By Diana Ahebwe
By Gaster Kawuubye Kiyingi
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Tree-planting under drip irrigation
Northlands shows it is possible, and even profitable By Wanjiru Ciira
On the cover: Professional milling of small logs from thinnings of Pinus caribaea in a plantation in Gulu, northern Uganda. (Photo: Herold Turinawe)
Editorial
An insight into the EA timber trade
T
his December, it will be exactly 33 years since 15 African countries signed the treaty establishing the Preferential Trade Area for Eastern and Southern African States (PTA). The aim of the treaty was to promote development and integration of the economies of the member states in all sectors. In this issue, some of our knowledgeable contributors have investigated the state of the timber industry and intra-regional trade in forest products in East Africa today. The findings seem to confirm earlier research from FAO that since 1982, the regional trade balance in forest products has been a situation of net imports. Trade within the sub-region as well as with the rest of Africa is minimal and what exists is often of a cross-border, informal nature. Intra-regional trade remains hampered by high transport costs resulting from a lack of good road and rail networks, plus a host of tariff and non-tariff barriers. Our feeling is that the report from FAO, titled ”An overview of forest industry in eastern and southern Africa”, by Peter Mwaura and F.M. Kamau, is still valid in its findings and conclusions. This issue of Miti magazine is very much Uganda tinted. There is a good reason for this. The country, known as the pearl of Africa, is a major transit and consumer market for the timber trade in the EA region. In order to understand the challenges of the trade and its sometimes illegal aspects, one needs to read the great contributions of Gaster Kiyingi, Martin Asiimwe, Moses Agaba, Isaac Kapalaga, Dennis Kavuma, and our own Jan Vandenabeele. Moreover, according to Warren Rance, Uganda needs to increase its processing capacity tremendously, while Geoffrey Odokonyero looks at the sawmilling industry in Uganda. As is the tradition for Miti magazine, Wanjiru Ciira and Diana Ahebwe highlight successful industries and projects. Phanuel Oballa shows that eucalyptus trees are now making inroads into the timber industry, while Francis Gachathi writes of the multiple uses of the leleshwa tree. Special mention in this issue goes to Joshua Cheboiwo who, through his contributions, proves once more that he is the absolute master of information related to forestry resources in the EAC region. On the other hand, Paolo Cerutti, together with Phosiso Sola, Francois Biloko, Guillaume Lescuyer and George Schoneveld show how small-scale timber dealers in the Democratic Republic of the Congo (DRC) struggle for legitimacy in a trade that is largely criminalised. Enjoy the reading! Jean-Paul Deprins
Published by:
Chairman of the Editorial Board:
Managing Editor - Kenya
Better Globe Forestry Ltd No. 4, Tabere Crescent, Kileleshwa P.O. Box 823 – 00606 Nairobi, Kenya Tel: + 254 20 434 3435 Mobile: + 254 722 758 745 Email: kenya@mitiafrica.com www.betterglobeforestry.com
Rino Solberg
Wanjiru Ciira
Uganda office: MITI MAGAZINE ® Plot 92, Luthuli Avenue, Bugolobi P.O. Box 22232 Kampala, Uganda Mobile: + 256 775 392 597 Email: uganda@mitiafrica.com www.betterglobeforestry.com
2
Editor-in-chief
Technical Editor
Jean-Paul Deprins
Jan Vandenabeele
Editorial Committee - Kenya
Country Director - Uganda Julie Solberg
Joshua Cheboiwo, Francis Gachathi, Keith Harley, Enock Kanyanya, James Kung’u, Rudolf Makhanu, Fridah Mugo, Jackson Mulatya, Mary Njenga, Alex Oduor, Leakey Sonkoyo, Jean-Paul Deprins, Jan Vandenabeele and Wanjiru Ciira
Country Representative - Uganda Diana Ahebwe
Editorial Committee - Uganda
Designer
Gerald Eilu, Hillary Agaba, Dickens Sande Bueno, Ponsiano Besesa, Paul Buyera, Sarah Akello Esimu, Dennis Kavuuma, Patrick Byakagaba and Diana Ahebwe
Daniel N. Kihara COPYRIGHT © BETTER GLOBE FORESTRY ALL RIGHTS RESERVED
Miti October-December 2014
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NEWS
Uganda tree-growers meet in Mbarara BY DIANA AHEBWE
T
he second Uganda Timber Growers Association (UTGA) - south western cluster meeting was held in Mbarara from 11th to 12th September 2014. The south western cluster comprises 13 districts. The meeting attracted over 50 individual tree-growers and community associations. It took place at Consulting Business Master Plantation located in Rwoho Central Forest Reserve - Mbarara. The meeting was organised by UTGA with the help of the Sawlog Production Grant Scheme (SPGS). UTGA is an umbrella association that brings together private commercial tree-growers for collective action for advocacy and lobbying to create an environment conducive to the establishment, management and harvesting of forest plantations. The theme of the meeting was “Pruning and Thinning in Commercial Forestry”. This theme was selected because of the numerous challenges that growers face in these areas. To add value to a plantation, pruning and thinning must be done and at the right time. Pruning at the right time ensures knot-free timber, a product that is valued in the market. On the other hand, thinning at the right time ensures that you release growth in time.
Key aspects discussed included appropriate pruning, thinning regimes, appropriate tools, use of trained workers and safety measures. These cluster meetings present opportunities for growers to learn new technologies and share ideas, challenges and jointly come up with solutions to the issues they face. Growers were advised to establish timber yards in different
regions where members of the cluster can take their timber or poles for processing. The writer is the Country Representative of Miti magazine - Uganda Email:diana@mitiafrica.com
The views expressed in Miti magazine are the writers’ and do not necessarily reflect the views of Better Globe Forestry.
Issue was inspiring
Articles are very informative
I wish to thank you for the January – March 2014 issue of Miti magazine. I particularly liked your articles about the poles sector. The articles were well-researched and carried in-depth information on the sector, detailing production, processing, trade and taxation in the poles trade. The issue was very inspiring for a budding forester like me. Keep up the good work of protecting our environment through dissemination of knowledge.
I would like to deliver special thanks to your team for contributing to knowledge and information on the tree business through the Miti magazine. I have read a number of your issues and found the articles to be very informative. I especially liked the article titled ““Preparing a retirement nest” by Diana Ahebwe, in the January – March 2014 issue. Willy Kakuru Kampala
WRITE TO US We welcome feedback on any article you have read in Miti magazine, or on any issue on tree planting, afforestation and related matters. Please include your name, address and telephone number. Letters may be edited for clarity or space. We also invite you to send us any interesting photos you might have. Please send your contributions to: The Editor Miti magazine P.O. Box 823 – 00606 Nairobi, Kenya. Email: kenya@mitiafrica.com OR Miti magazine P.O. Box 22232 Kampala, Uganda. Email: uganda@mitiafrica.com
www.betterglobeforestry.com Miti Magazine-Africa’s Tree Business Magazine
Erisa Mwesige Kampala
Miti October-December 2014
LEAD THEME
Forest resources in the EAC region Legal frameworks need to be improved to aid efficient trade in timber products among member states BY JOSHUA CHEBOIWO
M
any countries are forming regional blocks to promote trade and economic development through market integration. These blocks are aimed at creating larger markets to attract investors, and enable flow of goods and services. Within the umbrella of the African Economic Community (AEC) an organ of the African Union (AU), there are various economic blocks, notably the East African Community (EAC) and the Common Market for East and Southern Africa (COMESA). Others relevant to East Africa are the Southern African Development Community (SADC) and the Community of Sahel-Saharan States (CEN-SAD). These economic blocks include the forest resourcesrich countries of Tanzania, DR Congo, Congo, Angola, Central Africa Republic, Gabon and Cameroun. The construction sector is one of the key drivers of the region’s economy, currently undergoing rapid growth and consequently needing a high input of materials, including timber. A number of countries within the regional blocks are facing timber shortages. Strategies employed to access timber include expansion of local plantations and imports from member states endowed with bigger forest resources. The types of forests found in these countries are wide ranging - tropical rain forests, tropical moist forests, tropical dry forests, mountain forests, mangrove forests and tropical lowland woodlands. They all have potential to produce a range of goods and services that can be utilised to stimulate economic development. Similarly, investment in forest-based industries and value addition businesses within the region will create employment opportunities and wealth; and reduce imports of wood-based products from outside the region. The market opportunities for forest-based industries are enormous, including an AEC population of approximately 860 million, of which COMESA contributes 190 million and EAC 132 million people. The EAC and COMESA economic blocks are endowed with vast forestry resources. Hence they provide opportunities for trade and investments to enhance sustainable economic development in the region.
Miti October-December 2014
A mukau (Melia volkensii) tree. Better Globe Forestry is growing the species, known as “dryland mahogany”, in Kenya’s arid and semi-arid lands (ASAL). (Photo: BGF)
Status of forest resources in East and Central Africa The forestry sector in the regional blocks is dominated by the public sector, which owns natural forests and plantations that vary in size and production outputs. The common denominator in forest resources management in the region is population-induced deforestation
and degradation, mostly due to encroachments and increasing demand for forest products. Most countries in the region are exploring alternative forest product sources. This includes farm forestry and private forests. However, these have mostly remained as subsistence activities as their product entry into markets has largely been by default than by design (Arnold, 2008).
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A complimentary strategy is exploring imports to fill demand gaps that local supplies cannot meet and that can only happen under prudent policy and legal frameworks. Most countries in the COMESA region have enacted forestry policies and laws that lay the foundation for export and import trade on forest products. In Kenya, it has become a reality that domestic supplies cannot meet the growing demand for timber. This has been accelerated by a construction boom and population growth, against the backdrop of declining outputs from public forests, and increased emphasis on forest reservations for water and biodiversity conservation.
Potential roundwood production in the EAC Table 1 shows the status and potential of the forestry sector in some COMESA member countries. Tanzania had the largest forest cover, followed by Kenya, Uganda and Rwanda in that order. The bulk of the forest cover consisted of woodlands and bush lands that accounted for over 70 per cent of the total forest cover in the study countries. In Kenya, woodlands and bush lands, mostly in ASAL, accounted for 77 per cent of the total area, but produced 30 per cent of the total output. Farms and settlements led in accounting for 60 per cent of the annual output by volume whereas high forests and plantations accounted for less than 10 per cent. In Rwanda, data available showed that woodlands and parks produced over 60 per cent of the total roundwood outputs, with the rest coming from natural forests. In Uganda the bulk of forest products are harvested from woodlands, with farms accounting for 68 per cent of the annual outputs. In Tanzania, tree product outputs from farms and settlements led with an estimated 7.9 million tonnes per year and forest plantations followed at 700,000 cubic metres
per year. In terms of plantation forests, Ethiopia led with 262,162 hectares, mostly eucalyptus plantations for fuel wood and poles production. Tanzania was second with 250,000 hectares, Kenya third and Southern Sudan having the least with over 15,796 hectares. Among EAC members, there is a transformation of smallholder and private sectors into commercial enterprises. The region has witnessed increased investment in forestry enterprises by various players that range from smallholder farmers, private companies, equity funding agencies to public sector agencies. The investment areas include eucalyptus, cypress, grevillea and pine plantations for transmission poles, sawlog cycles and firewood.
Table 1: Forest cover, roundwood production and industries in selected EAC countries Country
Forest cover (Ha)
Plantations (Ha)
Farm forests (Ha)
Annual output (Tonnes or m3)
No of Industries
Burundi
152,000
65,000
65,226
7,237,675 T
*
Kenya
48,604,000
199,000
9,540,000
37,523,000 m3
442
Rwanda
240,800
114,900
-
4,343,200 m
*
Uganda
20,465,000
35,000
8,401,000
53,676,500 m3
103
Tanzania
334,702,000
250,000
51,000,000
89,190,000 m
138
Sources: AFF Volume 1: Issue 11, 13, 14, 16, 17 (2011)
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3
3
* Information not available
The emergence of eucalyptus as a prime sawn wood product has widened the supply horizon at the domestic front. Eucalyptus is widely used in various furniture and construction operations. These developments are welcome to countries with a timber deficit.
Regional industrial processing capacity The studies on the installed processing capacities indicate that there were many different types of industries in operation. Kenya, the most industrialised of the countries, led with an estimated 442 wood-based industries with over 80 per cent being sawmills. However, most of the sawmills have remained closed since 2002, due to a government ban on harvesting in public forest plantations. Tanzania was reported to host 138 woodbased industries, Uganda 103 and Ethiopia 45, most of them sawmills. Rwanda did not report any wood-based industries. Since the Kenya government imposed a ban on harvesting in public forests, some sawmills have moved to Tanzania where forest plantations were available for sale. Kenya was reported to host top of the range complexes, mostly reconstituted wood manufacturing industries, some of which have established manufacturing plants in Tanzania and Malawi.
Miti October-December 2014
The level of forestry sector industrialisation in the selected countries is still very low, with the greater proportion consisting of old sawmilling plants. The industries cited above include biomass energy sectors, mostly textile and tea processing industries, transmission pole treatment plants, sawmills and wood panel and constituted wood processing industries. The above excludes hundreds of power saw operators and hand sawyers that serve the domestic markets. There are huge opportunities for expansion and modernisation of wood-based industries in the region with more emphasis on wood resource use efficiency and capacity to process short rotation tree crops grown by smallholder tree-growers.
Socio-economic and environmental importance of forest resources Forest resources contribute to the socioeconomic development in the EAC region through provisions of products, environmental services and social and cultural values. The majority of EAC populations living adjacent to forests depend on forest resources for their livelihoods. The forestry sector provides linkages with other productive and service sectors of the regional economy (agriculture and livestock sectors, fisheries and tourism) which are the backbone of the region’s economies. Forest ecosystems support agriculture through soil and water conservation and amelioration of the environment (influencing local micro-climate) and provide economic benefits such as generation of jobs in the rural areas in small and medium-scale forest products processing industries. It is also noteworthy that forest ecosystems are important in other environmental services such as biodiversity conservation and in mitigating climate change and variability. Forest resources contribute significantly to the Gross Domestic Product of EAC member states (Table 2). The figures in Table 2 are conservative estimates because most ecosystem services are difficult to measure and thus not captured in the national accounts. Table 2: Contribution of forest sector to Gross Domestic Product (GDP) Country
Percentage contribution to GDP
Burundi
N/A
Kenya
7.0
Tanzania
3.4
Rwanda
2.0
Uganda
6.0
Miti October-December 2014
Figure 1: Tanzania timber export trade statistics for 2009-2011
Timber trade among EAC member states The key players in timber trade within the EAC are Kenya and Tanzania. The imports of timber into Kenya peaked in 2012 when 72,784m3 of softwood from Tanzania and 39,896m3 of hardwood from the Democratic Republic of the Congo (DRC) were imported into the country. In 2010, Kenya exported paper and paper products worth US$36 million to four EAC member states. The major export markets were Uganda that accounted for 54 per cent of Kenyan exports, Tanzania (31 per cent), Rwanda (12 per cent) and Burundi (3 per cent). Kenya is essentially a net importer of timber and power transmission poles. These products are mainly imported from Tanzania, Uganda, South Sudan, Congo and DRC. It is estimated that 33,100m3 per year of high value timber (mvule and mahogany) are imported into Kenya’s domestic markets (White et al 2012). This represents the formal trade of timber. However, it is estimated that between 30 and 50 per cent of this trade is not captured formally and is illegal.
Tanzanian exports In 2011 Tanzania exported 42,103m3 of sawn wood and logs to various countries mostly India, China, the European Union and Kenya. The dominant destinations were the emerging Asian markets, accounting for 56 per cent, with China leading at 30 per cent, followed by India (18 per cent) and Thailand (5 per cent). Exports to African countries accounted for 25 per cent of the total sawn wood export, dominated by Kenya. As compared to the previous period, the timber trade market between Tanzania and other EAC member states has shown growth but apart from Kenya, other countries were not captured in
the statistics probably because of the cross-border informal markets or illegal business (Figure 1). The different endowments in forest resources within the COMESA countries have provided an opportunity for flow of forest products from surplus to deficit countries. These developments have increased attention on market related research and accumulation of information to enhance market driven forestry sector investments. The information gap on potential opportunities for forest product markets in different countries has hindered decisions for investment in forestry development enterprises. The potential benefit of interstate trade is attested by recent flow of timber from Tanzania into Kenya that sustained the construction and other wood dependent sectors to weather the severe timber shortage caused by the Kenya government ban on harvesting trees in public forests (Cheboiwo, 2009). Similarly, since Kenya produces minimal hardwoods, its vibrant woodwork sector is highly dependent on supplies from DRC and likely to remain so into the future. Therefore, there are vast opportunities in the region for investment in processing to meet the growing regional demand for processed woodbased products and surplus for export. However, policy, legal frameworks and infrastructure need to be improved to facilitate efficient trade in forest products between member countries. The writer is Deputy Director, Socioeconomics, Policy and Governance, Kenya Forestry Research Institute (KEFRI) Email: jkchemangare@yahoo.com
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LEAD THEME
Tainted with the brush of illegality Small-scale timber dealers in DRC struggle for legitimacy in a trade that is largely criminalised By PAOLO OMAR CERUTTI1, PHOSISO SOLA1, JOSHUA CHEBOIWO2, FRANCOIS BILOKO3, GUILLAUME LESCUYER1, 4 AND GEORGE SCHONEVELD1, 4
T
here are two main sources of commercial timber in the Democratic Republic of the Congo (DRC). One is industrial, from companies operating with highly mechanised processing facilities and harvesting trees from large-scale logging concessions. The second source is artisanal, from loggers and millers working with chainsaws in small-scale operations in forests and agro-forests. Many different economic, ecological, social and technical characteristics set the industrial and the artisanal sectors apart. Broadly speaking, however, one major difference is that the former is largely formal, while the latter is largely informal, meaning that it operates at the margins, or often outside established legal frameworks. In recent years, there has been a heated debate about artisanal timber production in the DRC and elsewhere. Interestingly, the debate associates all small-scale logging and milling with illegal logging. However, a recent study undertaken by the Center for International Forestry Research (CIFOR) and its Congolese partners shows that to promote a meaningful discussion on the topic, policy-makers need to take stock of important nuances. The operations of thousands of individual small-scale chainsaw loggers and millers 1
Center for International Forestry Research (CIFOR), Nairobi,
Kenya 2
Kenya Forestry Research Institute (KEFRI), Nairobi, Kenya
Réseau pour la Conservation et la Réhabilitation des Ecosystèmes Forestiers (Réseau CREF), Goma, the 3
Democratic Republic of the Congo 4 Centre de coopération internationale en recherche agronomique pour le développement (CIRAD)
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in the DRC, who supply timber products to Kinshasa, Kisangani, and Goma, and to neighbouring countries such as Uganda and Angola, are inaccurately equated with illegal or criminal operations. In fact, the artisanal sector in the DRC is largely informal because of legal loopholes and the diverse and convoluted procedures that government officials follow in granting small-scale logging permits over the vast national territory. To improve the current situation, the DRC government has recently expressed interest in signing a binding trade agreement with the European Union under the EU’s Forest Law
Enforcement, Governance and Trade (FLEGT) Action Plan. The goal would be to clarify the legal framework and only produce and trade legal timber. Eventually, if the agreement is successful, the artisanal sector should acquire a formal status, with clear rules and official taxes paid to the DRC’s national coffers. However, if the experiences of other countries that have already signed such an agreement with the European Union, including the Republic of the Congo, Cameroon and the Central Africa Republic, are anything to go by, the process of reaching an agreement and
Miti October-December 2014
fixing the legal loopholes may still be several years down the line. Meanwhile, timber produced in the DRC with informal origins will continue to be traded on the international – largely African - market. Data indicate that not only has there been a substantial increase in small-scale timber production over the past 20 years, but also that about 60,000 - 70,000 cubic metres of sawn wood (about 200,000 cubic metres of logs) are exported annually. A small portion of this timber remains in neighbouring countries such as Uganda, but the greater portion is traded onwards to countries such as Kenya. Along the way, this informally produced timber seems to acquire full legal status, as the traders pay several official taxes and duties - as well as many bribes - at international border crossings and on roads on the way to the timber’s final destination. In practice, by the time the timber reaches the final consumer, it becomes very difficult for authorities such as the Kenya Forest Service (KFS) to establish whether the timber in the market in Nairobi is legal. In fact, our research along the Northern Corridor shows that several timber traders in Nairobi have legal export/import documents for the timber they are selling, although parallel research in the DRC seems to indicate that such timber typically originates from the informal economy. The blurred line between what is legal and illegal poses a dilemma that is difficult to resolve, as this is not a one-country problem. Unlike other countries with high levels of informal timber production and a large domestic demand for it, such as Cameroon, many countries in Eastern and Southern Africa (ESA) face a timber shortage and a growing internal demand, which at least on the shortto medium-term can only be satisfied with timber produced elsewhere. Given the current plans for infrastructure development in the ESA region, the DRC, with its vast timber resources, is best positioned to fulfil this demand. So, what are the solutions for policymakers to formalise and/or legalise this regional trade? Although researchers and policy-makers often have trouble listening to each other – it is often said that when the latter need a solution, the former only bring a further problem - we dare suggest that, in this case, concerted regional policy and legislative efforts seem the only viable solution.
Miti October-December 2014
In particular, hundreds of meetings held over many years in several countries with government officials, industrial and smallscale operators, and national and international traders have revealed at least three points worth stressing in developing appropriate ways forward. First, there is consensus that regulations on small-scale timber production are incomplete and often contradictory, especially in producing countries (e.g. the DRC). Legal reforms are needed and national governments acknowledge this. Nonetheless, concomitant efforts by the governments of neighbouring countries would also help. For instance, shared trans-boundary documentation in the languages used by both the exporting and importing country (e.g. DRC and Uganda, or Tanzania and Mozambique) could increase transparency about procedures to follow and documents needed for official trade, thus reducing the need for intermediaries and the overall cost of doing business legally. Second, a concerted effort that goes beyond the political rhetoric is needed to change the behaviour of civil servants and state officials. The timber trade is currently considered a secure source of “easy money” all along the supply chain, from production in the DRC or South Sudan to final consumption or transit in, say, Mombasa. Operators at all levels know how much they have to pay (notably in bribes) at each border or check-point along the road or railway before their timber reaches the final consumer. Since every official seems to assume that the timber trade is a “dirty business”, they apply the simple rule that any document is a fake one and request their ‘‘piece of the cake’’, even if they are provided with all the necessary evidence of a document’s authenticity. Third, several types of support should be provided to small-scale operators to improve their practices and their impact on the national and regional economy. For instance, one of the major constraints along the supply chain for producers, traders and consumers is the complete lack of transparency on timber prices and availability. Although a few people engaged in the trade build their fortunes on market opacity, our data show that these are not generally the people who are productively engaged in harvesting, processing and trading, and thus most deserving of a fair share of the revenue
it generates. More and better information - through periodic press releases, regularly updated websites, and dissemination via local radio stations - could mean improved selling and trading prices, more even bargaining capacity, fewer endless debt traps into which many operators fall, and ultimately a more equitable redistribution of proceeds. Greater profitability of small-scale operators would also enhance their capacity to “formalise”. Several FLEGT-related efforts are going on in the ESA region. Both individual countries and regional bodies appear determined to follow the path of legal timber production and trade. This is a good start and concerned countries must be commended for such efforts, which we hope will not stop at the national borders. It is a fact that a country such as, say, Kenya needs timber to satisfy the demands of its growing economy, but a sustainable common future - even if only of regional scope - can hardly be achieved by turning a blind eye to what is happening in, say, the forests of the DRC. Acknowledgements This article is based on research implemented by the Center for International Forestry Research (CIFOR) and funded by the European Union (EU) through the project “PROFORMAL: Policy and Regulatory Options to recognise and better integrate the domestic timber sector in tropical countries” (www.cifor.org/pro-formal); and on research implemented by the Kenya Forestry Research Institute (KEFRI) and funded by the EU-FAO-FLEGT Programme through the project “Power matters: a socio-economic study on the trans-boundary timber commodity chain in two road corridors of East Africa”. The views expressed in this article are those of the authors and do not necessarily reflect the views of the organisations with which they are associated, the EU and the FAO. Further reading Lescuyer G, Cerutti PO, Tshimpanga P, Biloko F, AdebuAbdala B, Tsanga R, Yembe-Yembe RI and EssianeMendoula E. 2014. “The domestic market for smallscale chainsaw milling in the Democratic Republic of Congo: Present situation, opportunities and challenges.” Occasional Paper. Bogor, Indonesia, CIFOR. Available at www.cifor.org/pro-formal. WWF Uganda. 2012. “Timber movement and trade in eastern Democratic Republic of Congo and destination markets in the region.” WWF Brief. Kampala, Uganda, WWF.
Paolo Cerutti is a Forester, GIS & RS Analyst, Forests and Governance Programme, Center for International Forestry Research (CIFOR) Email: p.cerutti@cgiar.org
9
LEAD THEME
A risky and uncertain trade The East African trans-border timber is loaded with hazards - it needs to be transformed BY JOSHUA CHEBOIWO
T
he European Union, through the Forest Law, Enforcement, Governance and Trade (FLEGT) Programme of the EU-FAO, awarded a grant to KEFRI to carry out a study on the trans-boundary timber trade in the East African region. The study lasted from August 2013 to August 2014. It was undertaken by KEFRI and the Center for International Forestry Research (CIFOR), in collaboration with consultants from Tanzania, Uganda, the Democratic Republic of Congo (DRC) and Rwanda1. The objective of the study was to provide a socio-economic narrative of timber trade in two road corridors - the Northern Corridor from DRC through Uganda to Kenya; and the Southern Corridor from Iringa, through Lunga Lunga and Namanga for timber destined to Kenya.
Findings The study found that hardwood timber from eastern DRC is exported to Uganda, Rwanda and Kenya. Softwood timber and transmission poles were exported from Tanzania to Kenya. The hardwood timber in eastern DRC is harvested by many informal groups, licensed by both local and central governments with tacit support from ethnic and local government administrations. The timber that flows across gazetted border points undergoes normal inspections, and required taxes/fees are paid by exporters. However, some illegal flows bypass the legal requirements through various methods that include use of porous border points and movements of small consignments overnight across borders. That contrasts with the case of Tanzania where the harvesting is restricted to plantation forests that the government has allocated to local groups and individuals. These groups pay prescribed royalties before being allowed to harvest and process. The processed timber is verified and taxes and fees paid to respective public agencies before being transported by large trucks to Kenya. However, in both the DRC and Tanzania cases, due to inadequate funding, the harvesting 1
The complete study is available at KEFRI.
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and processing operations are sometimes prefinanced by timber traders, mostly Ugandans in DRC and Kenyans and Tanzanians in Tanzania. This pre-funding is then deducted from revenues generated through timber sales. In terms of policies and legislations on trans-boundary timber trade, Kenya, Rwanda and Uganda, lacking timber, have placed more emphasis on the conservation of their dwindling natural forests and expansion of tree-planting in public forests and farms to meet their current and future timber requirements. These countries have few articles in their forestry policy statements and legislations on trans-boundary timber trade, except some mentions on chain of custody, movement permits, taxations and phytosanitary requirements. In contrast, Tanzania and the DRC have vast forest resources for domestic and export markets. They have put in place comprehensive policies and legislations on trans-boundary timber trade that provide elaborate procedures, mechanisms and taxation regimes on timber exports. Tanzania has the most comprehensive legislative framework that governs timber
exports. Despite political and economic problems that have faced the DRC for a long time, it has managed to put in place, with support from the World Bank and non-governmental organisations, some innovative structures to regulate timber trade. These include monitoring systems operated by public and independent verification agencies. In general, the study reveals that the key issues are not the absence of the policy and legislation on trans-boundary timber trade, but the level of compliance with the existing legal instruments. Due to several factors, some timber traders and facilitators circumvent legal procedures. The reasons advanced for this behaviour are many. The most important ones are the cumbersome procedures to obtain legal documents, high taxes and fees and corruption. These have the combined effect of increasing costs, thus making trans-boundary timber trade uncompetitive. Internal power relations in the market chain are determined by the players’ strength in negotiating advantage within particular parts
Miti October-December 2014
of the chain. At the production stage, Congolese nationals would be considered to have power by virtue of their access to the resource, command of the local language and the high demand for the valuable timber. In addition, the increasing logistical and security challenges as the harvesting areas recede westwards deeper into central DRC give the Congolese traders an edge over their Kenyan and Uganda colleagues. With increasing scarcity of the commodity, some nonCongolese pre-financiers have lost funds, making Kenyans and Ugandans hesitant to enter into such contracts. This development has given rise to a powerful category of players, the “agent” or “broker”. These people have neither the finance nor access to resources, but serve as intermediaries between the producers and traders, helping the traders to secure timber and protecting them from unscrupulous producers. The agents are so powerful that it is practically impossible for merchants to secure timber without involving agents. Another powerful group are clearing or border agents who take care of all the paperwork at border crossings. These clearing agents are well connected to key public agencies, which makes it much easier for them to clear the importation, compared to individual traders. Despite the presence of intermediaries, many traders freely purchase timber at the border point of Kasindi on the DRC - Uganda border. The timber trade at the border points is apparently an open business though logistical difficulties provide fertile grounds for cartel-like businesses to flourish. The study revealed that between 2009 and 2013 there were 13 exporters of hardwood timber from DRC into Kenya. Two players accounted for 89 per cent of the total volume; with the top four exporters accounting for 98 per cent. This is a very high concentration. It may be that these exporters are appointed brokers or clearing agents for various exporters at the point of declaration. In contrast, there were 17 declared importers from DRC with the top five accounting for 78 per cent of the total volume. The leading importer
Miti October-December 2014
saw operators, business financiers, land owners, porters2, transporters, security agencies, traders and state agencies through royalties, taxes, wages, and legal and illegal fees to the exit points of Kasindi/Mpondwe (DRC/Uganda border), Namanga, Lunga Lunga, Busia and Malaba (Tanzania/Kenya border). The study confirmed the socio-economic importance of timber trade in Kenya and trading partners within EAC and beyond.
Recommendations
accounted for 27 per cent, indicating a more open playing field. It is possible that more importers purchase their consignments at the border points from Congolese and Ugandan traders. The declared importers could be the appointed brokers or clearing agents for various importers at the point of declaration. The study further revealed that Kenya is the largest regional importer of hardwood timber from DRC, with quantities imported varying between 20,000 -50,000m3 per year. Hardwood timber from DRC largely supplies the regional markets of Rwanda, Uganda, South Sudan and Kenya. Very little is exported beyond these countries. The imports of softwood timber from Tanzania into Kenya peaked in 2010 when 75,354m3 was imported. The figure fell to 9,425m3 by 2013 due to competition from local sources after the lifting of the ban on sawlog harvesting in public forests in 2012. In Kenya, the timber import trade presented a gross value of Ksh 15.5 billion (US$183 million) between 2009 and 2013. Taxes and fees paid to government and public agencies accounted for 20 per cent of this, with transactions by importers, transporters, wholesalers and traders accounting for the balance. In the DRC and Tanzania, the timber business benefits an array of players that include power
The study recommends that the East African Community (EAC) and its trading partners undertake comprehensive forest sector reforms to improve sustainable forest resource management and forest law enforcement, governance and trade in forest products. The timber trade should be given deserving emphasis in regional economic integration initiatives within the EAC, COMESA and SADC. This would attract well-financed investors into the sector and promote an efficient flow of legal timber between the member countries. Forest multi-sectorial reforms should fast-track initiatives such as the Single Customs Territory System (SCT), transparent tax payment services at border points, increased innovations to verify timber and harmonisation of standard measurement/marks and taxes/tariffs. These developments would minimise bureaucratic import and export procedures and transform the trans-boundary trade into a wellcoordinated and efficient legal timber trade. Currently, the timber trade is largely risky, loaded with uncertainty and a high turnover of players. It is hoped that such transformation would enable consumers to enjoy competitive retail prices that would enhance profitability and vibrancy in the woodwork sector. Reforms would make corrupt cartel networks that operate along the entire trans-boundary market unattractive. The writer is Deputy Director, Socioeconomics, Policy and Governance, Kenya Forestry Research Institute (KEFRI). He was the Team Leader of the study. Email: jkchemangare@yahoo.com
2 These are the workers who carry the timber on their heads and shoulders from the tree-felling point in the forest to the nearest loading point, accessible to mechanised transport.
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LEAD THEME
Not a job for the faint-hearted Importing wood from the DRC is a minefield; not all come out unscathed By JAN VANDENABEELE
I
n the framework of a workshop on the FLEGT (Forest Law Enforcement, Governance and Trade) Action Plan of the European Union, funded by FAO, Miti had the opportunity to get a first-hand insight into how the trans-boundary trade in tropical hardwood in Central and East Africa works. This is the wood that comes mainly from the Democratic Republic of the Congo (DRC), or to a lesser extent, from South Sudan, and finds its way into Kenya. KEFRI organised the workshop, and executed a study to shed light on the magnitude of the trade, and the practices that surround it. One of its conclusions is shocking, in that no profitable hardwood trading between the DRC and Kenya is possible if all legalities are observed. The calculations, taking into account all factors (purchase, custom procedures, transport, etc.) point to a loss of US$ 51 per
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cubic metre of wood, when delivered in Nairobi. In other words, to survive, traders are pushed into illegality, meaning bribery and corruption. The KEFRI study estimates that in 2014 about 60,000m3 of DRC hardwood (mahogany and mvule), reached Kenya. Out of this, 43,000m3 is legally registered. Mahogany wood comes from some five to six different species (Khaya anthotheca, K. ivorensis and Entandrophragma species), while mvule is timber from the Milicia excelsa. Both timbers come from trees that grow in rainforests in eastern DRC and that take 80 - 150 years to mature. Let us call our trader Gerald. He is based in Nairobi, and deals with timber from DRC and South Sudan. To get his timber, he travels to the Ugandan town of Bwera, on the border with DRC, between the Rwenzori mountains (north) and Lake Edward (south). It helps that
there is a branch of Equity Bank there, to which he has wired money in US dollars, that he can withdraw from his account whenever he needs. On the DRC side is the town of Mpondwe, or slightly more inside, Kasindi. These towns have open-air markets for buying timber, which comes from the interior, more to the west. The Congolese side is a lawless place to do business, quite risky and it is not advisable for traders to go into the forest to get the timber at a cheaper price. As such, Gerald pays a broker on the Ugandan side, recommended by someone Gerald trusts, as brokers can be conmen too. His broker is Ugandan and speaks English, which Gerald understands, French, which Gerald does not understand, and the Swahili that the “Congomani” speak, sometimes quite different from Kenyan Swahili. In addition, many of the “Congomani” speak or understand Luganda, which the broker speaks.
Miti October-December 2014
The broker charges some US$ 1,300 – 1,500 for his services, and arranges everything for his client. He gets Gerald through customs and to the market where the timber stacks are on display. He will “arrange” all the paperwork needed for clearing. This is serious stuff, and it results in a stack of papers about one inch thick, in French, made up of stamped documents and photocopies, and completely unintelligible to Gerald, or any other Kenyan trader. The papers include everything, or supposedly so - phytosanitary permit, tax papers, certificate of origin, whatever, covering up to a total of 23 functions. “You don’t know what is legal and what not…,” says Gerald. But it is done quite fast, in a day if required, after Gerald has decided on the timber he wants to buy and negotiated the price. The timber is sawn in beams and is either “ring 2” (12x2 inches) or “ring 4” (12x4 inches), available in 9, 12, 14 or 18ft. All this is done on Day 1 in Mpondwe/Kasindi. Mvule goes for something like US$ 420 per cubic metre; mahogany for US$ 40 - 50 less. The distinction between “ring 2” and “ring 4” is important and needs to be explained. It is related to the physical characteristics of the timber. Mvule is heavier and more stable than mahogany, and is thus better able to resist a humid environment. A cubic metre of mvule is approximately 1,000 kg, while a cubic metre of mahogany is approximately 750 - 800kg. And the timber is sold wet. That means mvule is the timber of choice for Mombasa, where the weather is hot and moist, while mahogany sells better in cooler and drier Nairobi. The commercial size is 2” timber, so the 4” beams have to be split into two. This is done easily in Nairobi, where several sawmills can do it, but not in Mombasa. Hence the preferred size for all timber is “ring 2”. And this also results in an additional movement permit, from Nairobi to Mombasa, as the original one valid for “ring 4” has to be renewed into a “ring 2”. This is paid to the Kenya Forest Service (KFS), and costs Ksh 2,000 per consignment. Back to the DRC. Day 2 is for transportation and the timber is loaded on this day. Timber buyers are warned not to make any payment on the first day. “Payment on Day 1, even an advance, would be a mistake, as paid timber, waiting overnight to be transported, can disappear,” says Gerald. The so-called “owner” can vanish with the money, and suddenly the timber is discovered to belong to somebody else. The buyer cannot conclude the deal if the transport has not been provided. The broker takes care of this as well, bearing in mind that the
Miti October-December 2014
lorry driver can disappear with the timber. “Many traders have been defrauded during this process, easily losing up to Ksh 1 million,” warns Gerald. The loading itself must be completed early in the day, as the border closes at 5pm, and failure to cross it means the paid timber will be in the DRC overnight and might disappear before daylight. The Congolese lorries that transport the timber to Uganda and to the Kenyan border are big, and their weight is not permitted on Kenyan roads. Hence the timber has to be transferred to trailers that carry a maximum of 25 tonnes, otherwise there will be trouble at the weighbridges. The transfer from the big to the small lorries happens at Busia, with one Congolese lorry filling three Kenyan lorries. But before the lorry gets there, it goes through customs on the Ugandan side of the border, where all the French papers are replaced by English ones. This clearing costs another US$ 200, but the broker takes care of this. At the Uganda/Kenya border however, another game is played out. Suddenly the Kenyan custom officers become aware that the declared volume of timber is less than the capacity of the lorry, a figure that they get easily by measuring length, width and height of the loading space. The customs will calculate the amount of taxes to be paid (import tax at 10 per cent of the value, VAT 16 per cent, import declaration fee 0.25 per cent of the value or Ksh 5,000, and a KFS fee of Ksh 20,000), and confront the trader with the amount. Gerald explains a possible scenario: “Say, they come with an amount of Ksh 220,000, which they know you cannot pay, and bluntly ask ‘What do you have?’. If I give them Ksh 50,000, then I’ll
get all the papers, but my receipt will only show Ksh 15,000 with the difference going into the pockets of the customs officers.” However, the list of potential mishaps is not yet exhausted, as during the Nairobi trip the lorry driver might “lose” the lorry altogether, explaining that he was forced at gunpoint to hand over the vehicle. He could also become unavailable over the phone and untraceable in reality. In addition, even with the correct, legal papers, the police at road-blocks still have to get “something”. “There is big corruption all along the route,” says Gerald. “Crossing every weighbridge takes money.” As such, Gerald has opted for railway transport, loading his timber onto a carriage of Rift Valley Railways in Kampala. This comes with its own problems, including loading in Kampala and off-loading in Nairobi, but is preferable in terms of safety, like a train is not prone to disappearances like a lorry, and he avoids the weighbridge issues. Meanwhile, the Nairobi market is flooded with timber by the competition that has a comparative advantage. Lorries that transport manufactured goods or petrol/diesel from Kenya to the DRC come back with timber at no additional transport cost. Admittedly, there are easier ways of earning a living than trading in timber. Well, for Gerald and other timber traders, it is a good thing that the FLEGT Action Plan, with the cooperation of eastern African governments, is looking into the trade. The writer is the Executive Director, Better Globe Forestry Email: jan@betterglobeforestry.com
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LEAD THEME
Besieged with illegality Most of the timber traded in Uganda can be considered illegal as it does not comply with the legal and regulatory requirements BY MARTIN ASIIMWE
W
orld Wide Fund for Nature (WWF) Uganda Country Office conducted an assessment of the timber trade in Uganda. This was in order to provide specific proposals for project interventions aimed at addressing illegal timber harvesting and trade as well as improving regulation of the trade. WWF interviewed timber traders, wood manufacturing industries, forest administration staff, and others involved in the timber supply chains. The findings are also based on assessment of the timber markets in Kampala and in the main timber districts of Masindi, Arua, Gulu, Lira, Mbale, Tororo, Busia, Jinja, Mukono, Wakiso, Kampala, Mpigi, Masaka, Rakai, Mbarara, Kabale, Kasese, Kabarole, Kibaale and Kalangala. In the past, the main sources of timber supply were the government-owned forest plantations and natural forests in the Central Forest Reserves. However, due to overharvesting of these natural forests and poor replanting, the supply of timber from these sources is declining rapidly. Currently,
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the timber trade is increasingly relying on production from private lands.
Current status of the trade The size of the timber market in Uganda is difficult to estimate as the trade is poorly regulated and much of it is undocumented. Based mainly on updated data from an assessment carried out in 2005 when the forest sector was better regulated and good quality information on the trade was available, the present sawn wood market in Uganda is estimated at 369,000m3. Most timber is consumed in the domestic market by the construction industry and in making furniture and other wood products. An estimated 80 per cent is used for roofing, with about 10 per cent for furniture and 10 per cent for other uses. Another recent regional study by WWF indicated that annually about 8,500m3 of sawn timber is imported from the eastern Democratic Republic of the Congo (DRC). Much smaller quantities of wood are imported from Kenya, Tanzania and South Africa.
National Forest Authority (NFA) records indicate that production from Central Forest Reserves has reduced from a high of approximately 180,000m3 of roundwood sawlogs in 2008, to approximately 40,000m3 in 2011. This figure will reduce even further as the remaining mature plantations are cleared. Assuming a sawing conversion efficiency of 25 per cent, NFA’s roundwood production in 2011 is equivalent to 10,000m3 sawn wood which was just 3.5 per cent of the estimated market supply in that year. As domestic production from the forest reserves is reducing, the market is increasingly relying on production from forests outside the reserves supplemented with imports of mahogany and other species from the eastern DRC. Prices have been rising in response to growing scarcity of traditional timbers (pines, cypress, mahogany and mvule), which are being replaced by substitutes. The most common species now found on the market in Uganda are: eucalyptus 43 per cent; kirundu (Antiaris spp) 33 per cent; pines and cypress
Miti October-December 2014
Table 1: The estimated retail value of the current market Species
Estimated % of domestic production1
Estimated volume of sawn wood2
Avr retail price per cubic metre in Kampala (Ush)3
Current Retail value (Ush)
Eucalyptus
45
162,000
250,000
40,500,000,000
Kirundu
33
118,800
200,000
23,760,000,000
Pine/cypress
5
18,000
500,000
9,000,000,000
Others Subtotal Domestic Production Imported
17
61,200
250,000
15,300,000,000
100
360,000
-
88,560,000,000
N/A
9,000
1,400,000
12,600,000,000
Total
369,000
101,160,000,000
1
The percentage market share of each species is based on findings in the timber markets in Kampala.
2
Based on estimated total domestic production of 360,000m3 and percentages found in the Kampala markets.
3
Kampala prices in June 2012. Prices outside Kampala are marginally lower.
(Cupressus lusitanica) 5 per cent; mahogany (Khaya spp) 3 per cent, mainly from DRC but also from South Sudan, and small amounts from local sources in Uganda. The remaining 16 per cent consists of other species including nkalati (Aningeria and Chrysophyllum spp), mvule (Milicia excelsa), teak (Tectona grandis), namukago (Funtumia spp), nkuzanyana (Blighia unijugata), mugavu (Albizzia coriaria), musambya (Markhamia lutea), mpewere (Piptadeniastrum africana), lufugo (Celtis spp) and musizi (Maesopsis eminii).
Trade flows in Uganda The largest market for timber is in Kampala and is supplied by the districts in the west, south-west and from the islands on Lake Victoria. The timber markets in the central and eastern districts are supplied from local resources. The timber resources in northern Uganda are inadequate to meet local demand and the markets there
Miti October-December 2014
are supplied by timber from Kibaale, Hoima and Masindi. Markets in the south-west are supplied from local resources as well.
Illegal trade The trade in timber from trees on private lands outside the forest reserves is poorly regulated by the District Forest Services. Most of this timber is illegal as it does not comply with official procedures and regulations. The poor regulation is due to a combination of factors including lack of institutional capacity in the District Forest Services and lack of backup support and guidance from the Forest Sector Support Department (FSSD). With continued sub-division of districts, many district forestry staff are inexperienced and are not aware of the official processes and procedures for regulating timber harvesting from private forests. Regulations are interpreted differently and
different districts charge different fees and taxes. The official tax rate of 30 per cent of the value of the timber is widely perceived to be excessive and is rarely charged. The official forms and marking hammers required as part of the regulatory procedures are not available in most districts. In the past, FSSD provided guidance on sustainable harvesting levels based on resource information but this is no longer provided. In most districts the role of the District Forest Officer (DFO) in regulating the timber trade is now limited to collection of taxes and fees. For these reasons, most timber originating from forests and trees outside the reserves is illegal as official procedures and regulation are rarely followed. Regulation of harvesting in the Central Forest Reserves is much easier than on private land as the reserves are directly under the control of NFA. However, even in the reserves, much of the timber harvested could be regarded as illegal as the harvesting is not in line with the Forestry Act, which requires that an approved management plan should be in place and that harvesting should be in line with the plan. Most reserves do not have approved management plans at present. Illegal logging or poaching also occurs in the reserves especially where the boundaries are not demarcated or are disputed. This is becoming more widespread as timber supplies from the traditional plantation sources become scarcer. A very common form of illegality at present is the use of chainsaws to convert round sawlogs to sawn timber. Chainsaw-milling was declared illegal in 2004 but is now the most common form of conversion from round logs to sawn timber. Chainsaw timber is often planed to remove evidence of chainsaw milling before being displayed for sale in timber sheds. Most of the timber traded in Uganda can be considered illegal at present as it does not comply with the legal and regulatory requirements in one way or another. Either the timber is chainsaw milled, it is harvested from private lands and harvesters do not pay the correct taxes, the participants in the supply chain do not follow the official chain of custody procedures or it is illegally logged in the Central Forest Reserves or harvested without approved management plans. Under the present circumstances, it is difficult for the authorities, traders and wood users to comply with all the regulations because of weaknesses or gaps in the regulatory systems that are beyond their control. Many participants in the trade interviewed during the WWF study estimated that at least 80 per cent of the timber in the market at present is illegal.
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on a enga)
Timber trade in summary In summary, the total retail value of the timber trade is estimated at Ush 101 billion or US$ 43 million of which US$ 36.7 million is timber from within Uganda and the balance is imported. Expected revenue from domestic production, assuming taxes of 30 per cent, is US$ 11 million per year. Assuming undercollection of 80 per cent, losses in tax revenue amount to US$ 8.8 million per year. The current market value of imported hardwoods is US$ 5.25 million and estimated losses from undervaluing the timber and under-declaration of volumes is US$ 1 million. The total losses in tax revenues amount to US$ 9.8 million per year (Table 2). The timber values on which taxation is based need to be updated urgently and revised annually to reflect current market prices. The tax rate of 30 per cent also needs to be reviewed and updated as it is considered too high and is likely to be a dis-incentive to investment in plantation establishment. The estimated volume of timber currently illegally harvested annually in Uganda (80 per cent of the total production of 360,000m3) is equivalent to felling 16,000 hectares of high production plantation forest or to harvesting 280,000 hectares of natural forest (assuming a volume yield of 20m3 sawlogs per hectare and current conversion rates of 25 per cent). The main drivers of the illegal trade are: Weak institutions responsible for regulating the trade, particularly the District Forest
Table 2: Summary of estimated losses due to the illegal timber trade Total retail value of the timber trade
US$ 42 million
Uganda production
US$ 36.7 million
Expected annual tax revenue
US$ 11 million
Estimated losses from under-collection of taxes
US$ 8.8 million
Market value of imported sawn timber
US$ 5.25 million
Estimated annual losses from under-collection of taxes on imports
US$ 1 million
Estimated total losses in under-collection of taxes
US$ 9.8 million
Services that is responsible for regulating timber harvesting from private lands, and the Forest Sector Support Department which has overall responsibility for regulating the forestry sector; Obsolete and confusing procedures and chain of custody systems that are difficult to follow at present; Lack of understanding of the official procedures at district level; Pressure from district administrations to maximise tax revenues from local forest resources, and Weak law enforcement at district level. The impacts of the illegal trade are: Unsustainable levels of forest harvesting. Losses to the local and national government from under-collection of taxes and fees. The unregulated environment makes investment in efficient sawmilling machinery risky, prolonging the current inefficient and wasteful conversion of round logs to sawn wood.
Law-abiding loggers, timber traders and wood users are at a disadvantage and cannot compete with illegal loggers and tax evaders (or must adopt similar practices in order to compete).
Recommendations and addressing illegal timber trade Four models for addressing the illegal timber trade are proposed in order of priority in the form of project concepts. The concepts include a brief descriptive narrative, goals and objectives and lists of proposed activities. They are as follows: Model 1. Revise systems, processes and regulations for harvesting and trade in timber in Uganda. Model 2: Revise public procurement policies and regulations to exclude illegal timber. Model 3: Generate information on the timber resources and trade and increase transparency by making the information public. Model 4: Give incentives and assist NFA, private forestry companies and timber-using industries to become certified by bodies such as Forest Stewardship Council (FSC). Drawing on lessons learned in addressing illegal logging and trade worldwide, and in countries with weak public administration and law enforcement, the proposed interventions focus more on market based incentives, and self-regulation, than on law enforcement. The Forest Sector Support Department (with support from NFA), has a key role in facilitating implementation of these models in collaboration with development partners. The FSSD requires capacity development support to enable it to perform its functions in supporting implementation of these models. This can be achieved through a separate model or as a component of the models already listed. The writer is Project Manager, WWF Uganda Country Office Email: masiimwe@wwfuganda.org
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Miti October-December 2014
LEAD THEME
Buying and selling of legal timber in Uganda Forest loss is alarming and needs to be checked BY GASTER KAWUUBYE KIYINGI
A
ccording to a report published by World Wide Fund for Nature (WWF) Uganda, illegal timber constitutes over 80 per cent of timber sold on the Ugandan market. The report also states that at 20 per cent, the government of Uganda is the biggest buyer of timber in the country. It is debatable whether all procurements of timber in the country are legal. No wonder there is an alarming rate of deforestation in the country. In the 1990s, Uganda’s total forest cover was estimated at 24 per cent. However, this reduced to 18 per cent by 2009. To date, approximately 92,000 hectares (227,240 acres) of forest cover is lost annually. There is therefore a looming scarcity of timber in the near future. The recommended level of national forest cover for Uganda is 30 per cent of total land area. Currently, Uganda’s forest cover stands at 3,604,176 hectares. The rate of forest loss (1.86 per cent) on both public and private plantations is alarming and needs to be checked. Illegal logging is one of the biggest drivers of increased forest loss. While there are a number of controls on illegal timber harvesting and trade, these have not effectively salvaged forests from destruction. For this reason, there is a shift from purely legal approaches to forest conservation to the use of market based incentives. These are believed to be more effective as they affect the profit margins of timber dealers. Some of the marketbased incentives include forest certification and strict procurement policies that exclude illegally harvested timber from the market. Good governance approaches have been put in place but the results are frustrating. The introduction of the Environment Protection Police Force was a much welcome idea; with sector actors hoping that it would entrench sanity in the sector but this seems not to have occurred. Sector stakeholders are now concerned. “There is a general belief that there are no saints in the timber trading industry,” says Martin Asiimwe, Project Manager, WWF Uganda Country Office. Stakeholders are now turning to the use of market dynamics to control illegalities. The Standards Development Group is currently engaged
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in a two-year process to develop standards based on the indicators of the Forest Stewardship Council (FSC). Once finalised and adhered to, the certification standards will require that a forest owner is registered, manages the forest responsibly and engages in legal trade. “We hope this will change the way Ugandans are trading in timber since there are strict procedures to adhere to. Through this approach, the market will start demanding for certified timber. Anybody that brings uncertified timber on the market will be sidelined,” says Edward Mupada, FSC’s National Focal Point in Uganda. In addition to forest certification, countries are enforcing public procurement laws and systems that prohibit illegal timber. Countries are also encouraging purchase of timber from sustainably managed forests, especially as timber supply decreases. For Uganda, the present public procurement regime, while not expressly incorporating legality and sustainable forest management in timber procurement, presents a good opportunity for inclusion of these aspects. “We need to strengthen linkages between forest sector managers and the procurement committees. We need to engage the entire procurement chain to appreciate this approach,” says Thomas Otim, WWF-Uganda. The Forest Sector Support Department is not sitting back though.
According to Bob Kazungu, Forest Officer, Forest Sector Support Department, the department has developed an official communication to consider timber specifications and standards as well as environment concerns whilst procuring timber. On the other hand, it is also thought that the increase in volume of illegal timber is due to the government’s negligence in enforcing the use of proper equipment and tools for conversion of logs into timber. “The government outlawed the use of unguided chainsaws but did not provide alternatives. So, all timber harvested using a chain saw is considered illegal. There are no forest officers on the ground to guide people on how to harvest trees, apart from those impounding illegal timber,” says Nkayivu Ezra, the Treasurer, Wakiso Timber Dealers Association. “There are modern tools and equipment for conversion that are affordable, efficient and can help Ugandans reduce waste,” says Harold Turinawe, Wood Scientist, Standard Tools Uganda. Forest resources managers have complained about political patronage in the timber trade and therefore bringing political and civil leaders on board will be critical. The writer is Livelihood and Environmental Manager at Tree Talk Email: gasterk@yahoo.com
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What future for small-scale sawmilling in Uganda? There are concerted efforts to support tree-growers, improve harvesting methods and add value to forest products BY GEOFFREY ODOKONYERO
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he sawmilling industry in Uganda is typically highly fragmented, small, mobile and plantation based. The byproducts are often wastes or residues having very little or no value. The forests are small, scattered and many are located in remote places. The annual allowable cut (AAC) of 200,000 - 250,000m3 can sustain only small mobile sawmills and pit-sawing. Logging costs or other factors including conservation sentiments make it uneconomical or impractical to set up larger and more efficient, static sawmills. Policy and legislative framework is to promote a modern, competitive, efficient and wellregulated forest industry. There are three types of producers of sawn timber, namely, pit-sawyers, chainsaw sawmillers and static sawmillers. Producers have invested little or nothing on value-addition - timber handling, grading, storage, drying, treatment and use of wood debris/wastes. Pit-sawyers produce most of the timber on the market and most timber trade is informal. They are licensed to work in natural forests and woodlands. The majority work on public or private land. They may damage forests and their tools are inadequate to handle some difficult hardwood species. Table 1: Mobile sawmills per type, number of units, capacity, AAC and recovery rates (1999) Type (make)
No
Installed Capacity (m3)
Annual allowable cut (m3)
Recovery (%)
Rolling table circular sawmills (Kara, Kameck, Laimet)
30
2,122
5,280
40
Swivel sawmills (Lucas, Forestor, Peterson)
85
1,050
3,500
25
Narrow bandsaw mills (Wood-Mizer, Trekka, Lumbermate, Husqvarna)
25
1,750
3,500
50
Others fabricated, chainsaw millers (Logosol)
20
750
2,500
30
132
660
25
Pit sawyers Chainsaw millers freehand TOTAL
160
5,84
20 18,940
Note: Installed capacity and annual allowable cut for each mill
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Chainsaw millers produce about a third of total timber output. Most operate free-hand and therefore illegally on farms and private lands. Chainsaws with milling attachments (rail, frame or carriage) are permitted. These offer an even and smooth cut and limit waste. The operators register with NFA and pay fees.
Evolution of production methods Commercial timber production in Uganda started with the introduction of pit-sawing at the beginning of the 20th century. In the 1930s, pit-sawing was discouraged and sawmilling commenced. The methods were inefficient and crude and were selective in harvesting or creaming of high value species from tropical high forests. In the 1960s up to 1972, sawmilling experienced its greatest growth. Large stationary sawmills were established with well-planned and managed activities in logging, log yards, and timber storage sheds, drying and treatment. Thick circular saws were increasingly being replaced by band saws with better sawn timber recovery and quality. In the 1970s, most sawmills shut down due to lack of maintenance, spare parts and trained personnel as the country’s economy collapsed. Hand-sawing in natural forests and forest plantations became the major mode of sawn timber production. The 1980s saw the beginning of massive illegal chainsaw sawmilling to meet the increasing demand for sawn timber for construction. Hand-sawing peaked in the early 1990s until a ministerial ban was imposed on chainsaw sawmilling in 1996.
Efforts to revive the sawmilling industry In 1988, a multi-donor Forestry Rehabilitation Project (FRP) was developed to conserve and protect the remaining dwindling natural forests and revive the forest sector. FRP encouraged the utilisation of conifer plantations. Other measures that led to the revival of the industry included: The introduction of mobile rolling table circular sawmills in 1990 and mobile band sawmills suitable for harvesting small (less than 45cm diameter) plantation sawlogs. Promotion of low impact harvesting practices (in effect pit-sawing) in natural forests. The banning of chain saws in the production of sawn timber in 1996. The rehabilitation of Nyabyeya Forestry College, the Forest Department training sawmill and the training of forestry staff at different levels in forest industry activities.
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Extensive research was carried out on the physical and mechanical properties of locally grown, exotic conifers. Development of the Integrated Selection Management System (ISSMI) in 1998 by the Forest Resources Management and Conservation Programme (FRMCP) that emphasised conservation and bio-diversity in natural forests. In 1997, swivel sawmills were introduced. Lucas, Forestor and Peterson became the dominant sawmills. They were inexpensive, highly mobile, and needed no tractor. However, they were very wasteful and inefficient (25 per cent recovery) in sawing of small logs. Softwood was inexpensive with log prices fixed at Ush 28,100 per m3 over-bark for pines and Ush 45,000 for cypress. Stationary sawmills collapsed and handsawing became dominant in natural forests, but it was difficult to supervise and control. It was used in illegal timber processing and marketing trade in the country but the quality of sawn timber remained poor. However, illegal harvesting and non-payment of forest fees and evasion of taxes seemed to have become the order of the day in timber marketing. This revived sawmilling and consequently led to the importation of many more mobile sawmills types (mostly small circular saws) by the private sector (see Table 1). There was little control over these 160 registered sawmills, and they were highly inefficient and wasteful. This eventually led to overproduction and in 1999, sawmilling was banned. Again, in March 2012, an unexpected ban was placed by government on all timber harvesting. This was an attempt to curb illegal cutting but it provoked an outcry from private timber growers. The Uganda Timber Growers Association (UTGA) quickly presented a case for forestry investors and in April of the same year, the ban was lifted “for those who had their licences verified.” Rolling table circular sawmills These are larger-production mobile and semipermanent sawmill units. To fulfil the AAC requirements, the mill should be located near a source of a ready log supply, have a tractor for skidding and log transportation and shifting sawmills. These sawmills are suitable for sawing small logs (up to 45cm diameter) with an average recovery rate of 40 per cent. Swivel sawmills These are capable of sawing large (approx. 180cm diameter) hardwoods at a recovery rate of up to 43 per cent. They are versatile, are highly
portable on pick-ups and manually, efficient and environmentally friendly. The saw frame is assembled at the stump site around the log. The Tungsten Carbide Tipped (TCT) saw blade teeth can cut high-density hardwood easily. However, the cut dimensions are limited to 150mm and 200mm (double cut 300mm and 400mm) for Models 6 and 8 respectively. Saw blades are circular 5 tooth TCT 2.8-3.2mm plate 5-5.7mm kerfs. Narrow band saw mills These mills employ a narrow band saw system (1.14mm x 32mm) which delivers high levels of accuracy, a fine sawn finish, and a recovery of 50 per cent. There is a wide choice suitable for every level of production: The manual mills LT15, LT20 and LT27, are small personal-sized mills for small production, handling log diameters up to 800mm. The entry level for an LT15 costs Ush 18 – 22.5 million (approx. US$ 6,600 – 8,400). Currently, the Woodland Mills HM126 Portable Sawmill, and Norwood /LOGOSOL ML26 have been introduced. The hydraulic mills LT40, LT40H, LT40SH and LT70, professional sized for increased production, handling log diameters up to 950mm. The largest, LT70, costs Ush 135 million (approx. US$ 50,561). Norwood, and lately, Norwood LumberPro LM 29 and HD36 have also become available.
NFA and sawmilling from 2004 On the inception of the National Forestry Authority (NFA) in 2004, “couping” competitive bidding to sell trees in softwood plantations was introduced. Speculative sawmillers hiked the round-wood prices to up to Ush 81,000 per cubic metre, but payment of the coupes1 was irregular and NFA did not realise the revenues as expected, to fund its own operations. Swivel sawmills became competitive due to high mobility, inexpensive to buy (hence a shorter pay-back period) and low operating costs. Rolling table sawmills were edged out since they are semi-permanent, larger production sawmills that relied on concessions. Illegal harvesting intensified in private natural forests due to the increased price of plantation timber. NFA started milling its own timber in 2005/2006 as a salvage operation. The organisation has set up an independent sawmill unit to achieve the following objectives: To ensure timely realisation of revenue flow; A coupe is an area of forest where harvesting is planned or has taken place. 1
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Table 2: Sawmilling production over the years by NFA Item
FY 05-06
Log Vol (m ) 3
Sawn timber Vol (m3) Recovery
236.29
FY 06-07
FY 07-08
FY08-09
FY09-10
FY10-11
8,487.89
23,705.58
11,763.92
5,216
2,566.68
3,507.75
9,935.48
5,101.08
2,296
1,129.10
41%
42%
43%
44%
44%
Note: FY=Financial Year
To demonstrate best practices in logging, conversion and value-addition with a view of stimulating a competitive sawmilling industry and; To minimise inefficiency and cushion NFA from irregular payment from sawmillers. Although there was a marked improvement in recovery, the declining raw materials in softwood plantations led to closure of some sawmills. This was because the Forest Department had not replanted for 30 years. From 2011/12 NFA moved sawmilling activities to natural forests and thinnings in the plantations.
Challenges in the sawmilling industry Sawmill processing in Uganda has been, is, and will continue to be wasteful due mainly to: Lack of financial and technical capacity to invest wisely in the sawmilling industry. Log measurement to a fixed standard 4.2m (14ft) length, irrespective of log sizes and shapes. Inappropriate sawmill technology. For example, swivel sawmills are meant for cutting high-density hardwood and largediameter trees (over 80cm DBH), but are currently sawing small logs, with a recovery rate of 25 per cent. Limited range of board sizes (thickness and width) being cut, and complicated by the available small-sized logs in commercial thinnings (250mm small-end diameter). These small logs can only produce 6”x2”x14feet (150mm x 50mm x 4.3m) and 4”x2”x14feet (100mm x 50mm x 4.3m) size timber, and not the commonly demanded sizes of 12”x1”x14ft (300mm x 25mm x 4.3m) and 9”x1”x14ft (225mm x 25mm x 4.3m). The latter sizes are in high demand and attract prices of up to Ush 1,600,000 per m3.
Small sized logs out of thinnings, and common defects such as excessive sweep, taper, eccentricity, knots and decay, all lower productivity. This has profound effects on manufacturing costs. Also swept logs usually yield lower grade sawn timber. Hence costs are higher and revenues lower. Large sized slabs are left un-resawn. Only centre pieces of the logs are recovered and side boards (width 150-75mm x thickness 5025mm) are left in the slabs. This is promoting a dubious trade of re-sawing in major towns. Cutting oversize dimensions, for example, 63mm for nominal 50mm boards. Lack of standard sawing patterns during the sawing process; random sawing of softwoods rather than Cant Sawing which gives highest volume recovery and is deemed appropriate for logs of 250mm small-end diameter. Lack of special skills needed to plan, coordinate and control production and sales. Most forest workers in Uganda practising logging and sawmilling have not been through formal training. This is evidenced by their poor working and tool maintenance techniques. Logs are converted into rough saleable sawn timber and by-products such as sawdust, slabs, edgings, end trims or off-cuts and bark that are left to waste. Health and safety of workers are not respected. Security for the timber, materials and equipment is lacking. Low productivity sawmills due to breakdowns and inadequate or poorly maintained hand tools. Unmet client needs. Inadequate skills and techniques in felling,
conversion and timber handling, leading to waste. Environmental damage. The above leads to poor quality sawn timber, low timber prices, and financial loss for sawmillers.
Future prospects The Forest Sector Support Division (FSSD), NFA, Sawlog Production Grant Scheme (SPGS), UTGA, National Environment Management Authority (NEMA), Uganda National Bureau of Standard (UNBS), Forest Stewardship Council (FSC) are all working to support tree-growers, improve sawmilling and add value to forest products. For the last ten years, there has been a remarkable increase in the area of forest plantations that are now maturing. NFA has planted over 20,000 hectares in the degraded forest reserves. The private sector, spurred largely by SPGS and UTGA, has established over 27,000 hectares of commercial tree plantations with a target of 60,000 hectares in the next 20 years. They have also secured funds for sawmill training and value addition. The demand for high-quality sawmill sawn timber products clearly exceeds the supply. The prices of pine and eucalyptus sawn timber have surpassed Ush 1,600,000 per m3 and Ush 600,000 per m3 respectively. Timber prices have gone through the roof. There is currently renewed interest in portable/mobile sawmills to turn profits from relatively small volumes of low-grade saw logs from commercial forest thinnings on sites that otherwise would be harvested as low-value firewood. Operating “large-scale” sawmills to utilise thinnings is just not realistic for many owners. The Uganda National Bureau of Standard (UNBS) is also reviewing standards on sawmilling and wood products to enhance trade within and between countries in the region. The National Forestry Resources Research Institute (NAFORRI) and NFA have demonstrated and laid down best practices in achieving high quality wood from small diameter logs and thinnings. The writer is Sawmill Manager, National Forest Authority (NFA). He was formerly a research officer with National Forestry Resources Research Institute, (NARO), Lecturer at Makerere University and Production Manager at Wood Industries Corporation (WICO). Email: geoffreyo@nfa.org.ug geoffreyod@yahoo.com
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LEAD THEME
Want your plantation run efficiently? Hire a certified forest contractor BY WILLIAM MAWENO
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f you are a private tree-grower who directly supervises labour, then you are aware of the challenges of the day-to-day management of your workforce. In addition, some treegrowers do not have the time and skills to establish and maintain forest plantations. As a tree-grower, you may consider engaging a forest contractor to manage your plantation professionally. Forest contractors are business enterprises that perform forest operations - from land preparation to planting, maintenance and finally, harvesting. The contractor performs these operations on behalf of the tree-grower at a fee. Forest contractors have been working on forest plantations and yet they are not certified. The Sawlog Production Grant Scheme (SPGS) has decided to develop a contractor certification programme to equip forest contractors with skills and knowledge about productivity, social standards, health and safety, among others. A certification checklist is used to audit forest contractors and find out whether they comply with the social, environmental and economic standards in forestry. The checklist is divided into four sections namely; Silviculture management The contractor must be competent in undertaking silvicultural operations such as pruning, thinning, weed control and planting, among others. SPGS usually runs courses all year round to train forest contractors and their supervisors on silvicultural practices. Some contractors specialise in some operations while others do all the operations. The contractors will therefore be certified based on the forest operation which they are doing at the time of certification. Business management Forest contractors are business owners and should therefore have basic skills in budgeting and cost control. Assessment of the forest contractor in business management will look at issues such as timing and efficiency of forest operations, weekly and monthly works programmes, work volumes and productivity, among others. Forest
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contractors make decisions on how to improve their businesses using information derived from the records they keep. Legal compliance Just like any other business, forest contractors must adhere to the laws of the land such as the Labour Disputes Act 2006, Labour Union Act 2006, Employment Act 2006, among others. Forest contractors must not plant trees in wetlands because such actions violate the National Environment Act of 1995. SPGS guides forest contractors on how to obtain legal documents, or how to register their companies, which is needed for running their businesses. In addition, forest contractors should have contracts for all plantation labour with clear terms and conditions of work and payments. Labour management Plantation operations are labour-intensive and the forest contractor should pay attention to training of workers, allocating tasks to workers, paying workers on time and motivating them through incentives. The forest contractor must be able to supervise workers and operations, keep records on worker performance and resolve conflicts among workers that could arise in the camp. SPGS supports private tree-growers, some of whom might be interested in using the services of forest contractors. If you are an SPGS-certified
forest contractor, you have the advantage of being recommended by SPGS to work for private tree-growers under SPGS support. Certified forest contractors can market their services to SPGS tree-growers and thus grow their businesses. Forestry operations are labour-intensive so forest contractors must have access to a productive and disciplined labour force. Provision of the correct tools and equipment as well as personal protective equipment (PPE) such as overalls, gumboots and gloves to forest labour will ensure safety during forest operations. The forest contractor should not only provide PPE but should also ensure that workers use PPE. Forest contractors deal in a business characterised by high but seasonal labour demands. This requires them to plan and schedule operations using an annual plan of operations (APO). Forest plantations are located in different parts of the country; therefore forest contractors may not have permanent work stations but may move from one plantation to another, provided they are offered work. Through contractor certification, forest contractors can become professional and competitive and be able to deliver highly valuable forest plantations to private tree-growers. The writer is a Plantation Officer at Sawlog Production Grant Scheme (SPGS) Email: williamm@sawlog.ug
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Neatly stocked timber piles, waiting for a buyer. (Photo: BGF)
Where legal operators lose The Ugandan timber trade is fragmented and disorganised, and does not encourage tax compliance BY MOSES AGABA and ISAAC KAPALAGA
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imber available on the Ugandan market is estimated at 369,000m3 and to a large extent comes from natural forests. This is increasingly supplemented by often illegal imports from natural forests in neighbouring countries, in particular the Democratic Republic of the Congo (DRC) and legal imports from South African plantations. Commercial timber plantations started in the 1960s and early 1970s. This however came to a halt. It only resumed in 2004 when the Sawlog Production Grant Scheme (SPGS) started encouraging plantation forestry. In the same year, the National Forest Authority (NFA) started planting in the Central Forest Reserves (CFRs). Today, approximately 65,000 hectares of plantations have been established, spread throughout the country. Of these, NFA owns approximately 14,000 hectares although this may include private planters in CFRs; while private planters own 50,500 hectares.
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More than 60 per cent of the plantations are privately owned, having an average size of less than 500 hectares. These owners are categorised into small, medium and large size planters. This fragmentation complicates planting and marketing efforts.
Challenges facing the industry Timber is sourced through retailers. We have “bibanda” (timber yards) all over the country but most notably in Kampala – in Ndeeba, Bwaise and Ntinda. Timber is also sourced from sawmillers and, in a few cases, directly from privately owned forests. Due to difficulties in timber procurement, quality is not an important consideration. However, large processing companies buy quality timber at good prices. At the small retail level, no price differences are apparent, yet certified harvesters cannot compromise on standards. As a result, most large harvesters operate at a loss. Long-term relationships between suppliers and buyers are very rare. Instead, buyers opt for less
standard, cheaper, and quick businesses with “bibanda” retailers. The whole timber market arena has remained fragmented, disorganised and unreliable. Furthermore, the ban on export of timber has become a great impediment to large planters who produce timber sustainably from their plantations and want to exploit markets beyond the country’s borders. The domestic market sometimes gets very competitive and unpredictable; whereas trade across the border is characterised by contractual relationships and fewer irregularities. Further support for planters and the wood processing industry should be provided so as to create a sustainable and viable sector. Training investors and their employees in plantation development needs to be stepped up. Regular networking events that will strengthen regional integration and cooperation of the forestry sector horizontally and vertically should be initiated by key players like the Uganda Tree Growers Association (UTGA),
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SPGS, and World Wide Fund for Nature (WWF). Other potentially interested organisations like the Uganda Investment Authority (UIA), the Private Sector Foundation (PSF) and the Uganda National Exports Promotions Board (UNEPB) should also be involved. Most of the timber Ugandans buy in timber yards is illegally imported. There is widespread illegal harvesting and sawing of natural forest hardwood species all over the natural forest reserves in our country. The cost of bringing these timbers into the market is low, so they penetrate the market at a very low price. This presents a great setback for sustainably produced timber that must enter the market through lawful channels associated with steep costs. The price of legal timber is further hiked by the VAT imposed on the timber and all other products produced by any legally registered business entity. Certified companies compete on the same market with sellers who transact “free” timber without a VAT attachment. These “VAT- free” prices are almost half those of taxcompliant companies. There is an extremely high national and local revenue loss due to low timber valuations (dating from the year 2000) on which taxes are based, and through evasion of taxes and fees. Assuming up-to-date timber valuations are not used and assuming that 80 per cent of the taxes currently go un-collected, the annual losses in uncollected taxes on Uganda produced timber
are estimated at Ush 21 billion (US$ 8.8 million). In addition, the government loses an estimated Ush 2.4 billion (US$ 1 million) in import duties and taxes due to under-declaration of imported timber and due to outdated timber valuations used by the Uganda Revenue Authority (URA) and Customs authorities (dating from 2009). The total
tax revenues foregone amount to an estimated Ush 23 billion (US$ 9.8 million) per year.
Incentive to avoid tax The current domestic tax rate of 30 per cent on domestic timber production should be revised because it is an incentive to avoid tax and could discourage private plantation investment. An investigative study should be carried out in the main timber hubs in Uganda. This would help get more information on the gymnastics involved in the illegal trade. An up-to-date valuation and a less steep taxation regimen on timber would reduce tax evasion and help to level the price and the market platform for both big and small players. Forest Law Enforcement, Governance and Trade (FLEGT) has been at the centre of promoting sustainable forest management. The major role of this effort would be to regulate the forestry sector and its trade. FLEGT, alongside WWF, should also put effort in certification and regulation of timber flows to and via Uganda, especially from the prominent sources of illegal timber like the DRC and South Sudan. Isaac Kapalaga is Managing Director, Green Resources (U) Email: isaac.kapalaga@greenresources.no Moses Agaba is Marketing Manager, Green Resources (U) Email: agaba.moses@greenresources.no
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Small pine logs from a second thinning in a plantation owned by Ferdsult Ltd. (Photo: Miti magazine)
Levying taxes on tree-growers System needs to be is equitable, fair and acceptable, says UTGA BY DENNIS KAVUMA
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number of individuals and companies have established commercial forest plantations in Uganda. These include small, medium and large-scale private investors. The interest in tree-growing is increasing and it is estimated that more than 70,000 hectares of mainly pine, teak and eucalyptus trees have been planted in the last 10 years. Other species that have been planted on a commercial scale include Terminalia superba and musizi (Maesopsis eminii). Uganda is endowed with a climate and soils that ensure fantastic growth rates for the trees. It was originally thought that maturity for the trees would be at 18 years for pine, 30 years for teak and 15 years for eucalyptus, based on the annual average increment of diameter at breast height of trees monitored by the Uganda Timber Growers Association (UTGA). However, it is now estimated that maturity will be realised at 14 years for pine,
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20 years for teak and 12 years for eucalyptus, especially on good sites.
Value of commercial forestry UTGA is currently advising and supporting its members to plan for harvesting. This process may actually be late for the early planters. Many of these have started to do a second thinning - a silvicultural activity that can also be a commercial operation. Private investors sink their hard-earned money into establishing and maintaining plantations because they expect to make money once they harvest the timber or poles. However, more than providing timber, poles and fuel wood, commercial forestry in Uganda also deters the continued deforestation and harvesting of the natural forests, which have important environmental, ecological and social value to the country, in addition to generating revenue.
Taxation of forests Commercial forestry is a long-term investment. Investors are willing to wait for several years to earn back their investment, with a profit. Members of the Uganda Timber Growers Association (UTGA) are of the opinion that a careful approach to the taxation of forest products needs to be devised, especially at this time when tree-growers are trying to find their feet. The on-going consultations with all stakeholders on forest charges to be used in the forest revenue system in Uganda are commendable. The levels of charges as contained in the Forest Produce Fees and Licence Order 2000 (Government of Uganda, 2000) levied both on forest plantations and natural forests need to be looked at very carefully. The timber grading fees, while appearing in the Forest Produce Fees and Licences Order 2000, are invalid because currently, timber is not graded. Commercial tree-growers may find
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Two-year-old GC clones in a plantation owned by Ferdsult. Future timber supply for the Ugandan market will not only consist of pine, but also eucalyptus. (Photo: Miti magazine)
no justification for timber royalties levied per tree for felling. Local forest charges and forest revenue collected by field staff of the respective local governments and decentralised forestry service units need to be formalised and streamlined. There are obvious and visible challenges to this system that emanate from poor terms and conditions of employment for field staff, poor work ethics, low efficiencies, poor performance, collusion and corruption, which have a direct impact on the growers. Taxation regimes of forestry products in many countries are usually on the value-added products, both at primary, secondary and tertiary
levels of value addition. Except for licence fees charged on growers who plant on Central Forest Reserve land, which is ground rent, there should be no tax on land on which trees are planted by private land owners and neither should there be any levies on the logs. The notion that permission to harvest must be sought may be important for those with concessions to harvest from natural forests, but is not necessary for private, commercial treegrowers. Payment for a Forest Produce Movement Permit (FPMP), which is charged at 1 per cent of the value of the product hauled, in addition to the 30 per cent charged for the value of the timber transported from
one district to another, do not take into consideration the cost of establishment, maintenance and harvesting. A blanket charge or tax on timber is inequitable and unacceptable for an investment that is long-term and for the public good. UTGA can work with Forest Sector Support Department (FSSD) to ensure a clear chain of custody for timber coming out of private plantations, including the licensing of certified harvesters. The export of timber was banned in 1987and is still not allowed except in cases where value has been added beyond primary processing (sawing), at secondary to tertiary processing levels. UTGA feels that this needs to be revisited especially with a growing regional market for timber and wood and also to enable the sector to align and promote trade links with partners of the East African Community. UTGA has started to engage with the Ministry and other partners to come up with a taxation regime and fees structure for timber trade that is equitable, fair and acceptable to all. The Statutory Instrument that shall be gazetted at the end of this process should be a win-win structure for all, where the fees/taxes are harmonised and streamlined. While payment of taxes is important and expected, the return on investment that is made by private commercial tree-growers needs to be optimal. This way, tree-growers will be encouraged to replant and therefore ensure sustainability of the industry in Uganda. The writer is the General Manager of the Uganda Timber Growers Association (UTGA) Email: dennisk@utga.ug
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LEAD THEME
The scene changes for eucalyptus The trees are today increasingly being grown for timber, not just poles BY PHANUEL OBALLA
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ucalyptus is by far the most widely planted fast-growing hardwood in Kenya. It is estimated that there are over 320,000 hectares of eucalyptus grown by the Kenya Forest Service (KFS), the private sector and large and small-scale farmers. The most widely grown eucalyptus species in Kenya are Eucalyptus grandis, E. saligna, E. camaldulensis and E. globulus. Others planted on a smaller scale are E. regnans, E. paniculata, E. maculata and E. citriodora. (The last two species are currently identified as Corymbia maculata and citriodora, respectively). Plantations of Eucalyptus urophylla and eucalyptus hybrids are also fast expanding as preferred trees in the mid-highlands and in the lowlands (from 10 to 1600 metres above sea level). Traditionally, eucalyptus has been grown mainly for fuel wood, pulpwood, building posts and transmission poles. However, that is changing fast as the trees are getting higher value uses as peeler logs, for structural timber and for indoor furnishing. The cost of timber is fast rising and the estimated average price stands at Ksh 32,000 per cubic metre, which is a reasonable financial return for timber growers. Products manufactured from plantation grown eucalyptus are increasingly taking the place of tropical hardwood species in a variety of markets and applications. In western Kenya, more than 70 per cent of timber sold in markets is eucalyptus. That shift indicates
that the management of eucalyptus for short rotational objectives such as pulpwood, fuel wood and posts must change to include thinning and pruning to attain higher value sawlogs with maximum length of clear wood. Fuel wood, pulpwood and posts will come out as by-products of good plantations for timber and peeler logs.
Establishment of good plantations must start with high quality seeds, well managed seedlings, good site preparation, optimum spacing, weed management, pruning, thinning and good harvesting techniques. Some of the characteristics that determine good timber production such as log diameter size, wood density, grain angle, branching habits, taper
Table 1: Recommended planting spacing and management in both high potential and ASAL areas for production of timber and plywood Management objective
Spacing (m)
Remarks
High potential areas
Drylands
Timber
2.5.x2.5 or 3.0 x3.0
3.0 x3.0
Thinning, pruning and coppice management is required
Plywood
2.5 x 2.5 or 3.0 x 3.0
3.0 x 3.0
No thinning is required but coppice management is required later
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(rate of decrease in stem diameter per unit length) and end-splitting are inbred. The desired qualities can be enhanced through proper stand management and selection for genetic improvement. The best qualities of the selected trees are then passed on to the next generations of plantations through improved seeds. High quality seeds for most of the widely planted eucalyptus timber species are available at the Kenya Forestry Research Institute (KEFRI) Seed Centre Muguga, with other outlets at Gede, Kitui, Karura, Nyeri, Turbo, Kakamega, Londiani and Maseno. The seed package should have a KEFRI label and logo and the following details -species name; batch number; source of seeds; date collected; pre-treatment conditions; germination rate and weight. Seedlings are raised in plastic pots (or tubes) of 6 by 8 cm or 8 by 12 cm with well mixed fertile soil. They are better planted out when they reach a height of 24 - 35cm and should be disease and pest free. Hybrids are planted as cuttings (clones) and mostly purchased from the Tree Biotechnology Trust (TBP) nursery in Karura, or other outlets in Meru, Eldoret and Gede or any nurseries which are registered with TBP. Planting should be done at the onset of the rainy season in an already well prepared site. In sites with good terrain, site preparation should be by complete ploughing while in rocky or stumpy sites, holes should be dug as guided by forest specialists. Spacing of plants should be as indicated in Table 1. Once planted, young eucalypts should be kept clean from weeds to enhance growth. Eucalypts can also be grown on-farm with other short agricultural crops such as beans, potatoes and green gram until the canopy closes. Clearing of weeds should continue in plantations until the canopy closes in year two or three after planting. Timber plantations should be thinned by one third of the total stock after every three years beginning from age three until the 9th year and then at the 15th year. Trees with poor stem forms, spiral grains and heavy branches should be removed. Spiral grain (i.e. large grain angle) is one of the traits known to influence the shape, stability and strength of sawn timber. Grain angle is a heritable trait and selection for improvement should be directed at growing trees with small angles, i.e. less than 10ยบ from a perpendicular line drawn along the stem. Good eucalyptus trees with small branches are usually self-pruning. However, even with these dead thin branches, knots develop which lead to checks on sawn timber. Where branches are slightly big and persistent, some pruning should be carried out to leave a clear stem. Stem
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straightness with minimum knots influences the length of acceptably straight sawlog that can be obtained, and in turn the volume of sawn good grade timber recovered from the tree. The best age for cutting down eucalyptus trees for good timber production is after 20 years. During felling and subsequent delivery for processing, log ends often split because of severe stresses resulting from growth, impact of falling, loading, transportation, off-loading and drying. Precautions should be taken to minimise
some of these stresses to enhance sawn timber production. Growth stress can mainly be minimised through genetic improvement as it tends to vary from one tree to another. Elsewhere, considerable attention and research have been given to various techniques of log-making and log handling in order to reduce end-splitting. The writer is Chief Research Scientist, KEFRI Email: poballa@kefri.org or oballaphanuelo@ yahoo.com
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LEAD THEME
With the support of SPGS and NFA, Ugandan entrepreneurs have planted over 30,000 hectares of trees in the last 10 years. These areas have been “clustered”, meaning there are concentrations in certain areas. This plantation of Pinus caribaea var. hondurensis is in the Mubende cluster. (Photo: BGF)
A timber ‘tsunami’ is coming to Uganda The country needs to increase its timber processing capacity 13-fold by 2022 BY WARREN RANCE
A
t a recent Sawlog Production Grant Scheme (SPGS) seminar held in Kampala, Mike Howard of Fractal Forestry delivered an interesting presentation on processing and value addition. Prior to the seminar, Mike studied the data on SPGS clients provided to him by the SPGS team. He then developed a basic model which highlights the expected future timber yields from the established plantations. However, due to lack of industry consolidated statistics, the data was only for SPGS approved areas. The total area used was the 40,000 hectares approved by SPGS by the end of 2013. The accumulated annual established hectares are illustrated in Figure 1 below. The total plantation area in Uganda is roughly estimated at between 67,000 and 75,000 hectares, so the figures and data presented here could potentially be twofold. The focus of the industry has been largely on establishing plantations, so much so that the country has an estimated processing capacity of less
Figure 1: Area of SPGS approved plantations
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than 30,000 cubic metres per year. The sector, according to Mike Howard, needs to start working towards the establishment of additional processing capacity. The model was developed to illustrate the “tsunami” of timber that will be produced by the industry during the next 20 years. This was done by extrapolating the age class data and the application of the recommended thinning and harvest regimes to the dataset. When incorporating the expected yields for each of the thinnings and the expected final harvest, a reasonably accurate prediction can be made. Over the next 10 years, the yields from the plantations shall be primarily from 1st, 2nd and 3rd thinnings and gradually increase to 175,000 cubic metres by 2017. When final harvesting commences, the volumes produced shall increase dramatically from 2022. Figure 2 shows the expected yields increasing over the next 10 years. The decentralised nature of the plantations across Uganda and the high cost of transport will likely require that processing facilities are also decentralised. This translates to a number of sawmills that shall
Figure 2: Projected volumes 2009 – 2022 from SPGS approved plantations
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Figure 3: Yields from the plantations between 2020 and 2030
Figure 4: Market trend - pine sawn timber
be required by the sector to ensure that the timber produced is efficiently utilised. The projected yields will require that Uganda doubles its capacity in two years, increases capacity six-fold in five years and will require 13 times the current capacity by 2022. The “tsunami” that Mike referred to in his presentation actually refers not to the timber produced in the next ten years, but to the timber that these plantations will yield thereafter. The “tsunami” of timber starts with a warning in 2023 but peaks with over 3,000,000m³ in 2030, requiring 100 times the current processing capacity in Uganda to have been developed. It is of course the forest owners’ responsibility to regulate the harvest, reducing the peaks and troughs of the varied age classes. By bringing some harvests forward and delaying others, the yields will be “regulated” at approximately 700,000m³ per annum. Considering that this data represents approximately half of the plantation area, the current Ugandan forests should produce a regulated yield of between 1 and 1.4 million cubic metres of round logs per annum if managed sustainably. The government of Uganda, development partners, the government of Norway and the European Union have, through SPGS and together with dedicated tree-growers, successfully established a significant resource for the country. Although the sector is not yet there, if managed correctly, it has the potential to contribute significantly to the Ugandan gross domestic product (GDP) and reduce its dependence on imported timber and timber from natural forests.
Uganda is positioned to learn from the experience of other more developed forest sectors and consciously work towards the development of efficient primary and secondary processing industries. This should be regarded as a priority in the sector. Through modern processing of the round logs from the plantations, the value generated by the industry towards the GDP would be significant. At a relatively low recovery of 40 per cent, an annual sustained harvest of the estimated plantations in Uganda would generate between US$ 130 – US$ 160 million per annum. This is on the assumption that the harvesting is regulated at 1 - 1.4 million cubic metres per year. The implications of these volumes for the Ugandan forestry sector as well as for the regional timber markets are far-reaching. These volumes require that planning of processing facilities should already be in progress. Delayed implementation of processing facilities shall result in delayed or wasted thinnings and loss of revenue for all involved. Due to the decentralised nature of the Ugandan plantations, establishing efficient large-scale processing facilities to serve these areas is going to be a challenging task, but there is no short-cut to this. It has to be done, if we are to realise a profitable and sustainable commercial forestry industry.
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The writer is the Chief Technical Advisor, SPGS Email: wbrance@forestmanco.com (This article is reprinted with permission from the Sawlog Production Grant Scheme (SPGS). It was first published in SPGS Newsletter 37)
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SUCCESSFUL INDUSTRY Doors, tables, chairs… all made out of eucalyptus timber. This is durable furniture, locally made, at pocket-friendly prices. (Photo: Miti magazine)
Going against the grain Ugandan company makes durable, high quality furniture from eucalyptus timber BY DIANA AHEBWE
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M
ost tree-growers who plant eucalyptus trees in Uganda do it for poles. However, growers would reap enormous profits if they let the trees grow to maturity for timber. Nonetheless, eucalyptus timber presents some challenges as it is hard to work with. One Ugandan company, Wood Technologies Ltd (WTL) is going against the grain. WTL makes high quality domestic and commercial furniture from eucalyptus timber. Charles Musekuura and Henry Mugowa, the people behind WTL, appreciate the sturdiness of eucalyptus timber and specialise in making durable furniture products out of the timber. Each of the founders of the company lived outside Uganda for a long time - Mr Musekuura in Australia and Mr Mugowa in the United Kingdom. Both have a passion to produce quality furniture to international standards. “WTL was formed out of a passion and also as a hobby where profits come in as an addition,” says Mr Mugowa. The two have invested over Ush1.5 billion on machinery
and raw materials. The partners bought a 20-year-old eucalyptus plantation which they converted to 30,000 pieces of timber. They dried it under shade for a year before they started making furniture. The company processes a yearly volume of 75,000 cubic metres of wood. The carpenters who work at WTL have shown tremendous commitment to the company. “It is important to build a good relationship between employers and employees,” says Mr Mugowa. “We make them feel they are part of the business.” The business partners read a lot and interact and learn from their colleagues in the same industry. From their experience so far, they can make any design that a customer requires. “Dream it and we design it,” says Mr Mugowa. WTL’s clientele grows day by day because people who get to know about them tell others. “When clients buy our durable furniture, locally made, at pocketfriendly prices, they recommend us to other
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Joined timber ready for drying. (Photo: Miti magazine)
people,” says Mr Mugowa. “Ninety per cent of the furniture in Uganda is imported, and yet we can process it locally and cheaply here,” says Mr Mugowa. Most of the furniture in the Ugandan market is made from timber with a high moisture content. Some furniture dealers cannot wait for the timber to dry and because of ignorance, consumers end up buying furniture made from wet wood. Such furniture cracks during expansion and contraction.
growing similar species. That is why some people are selling off their forests and yet buyers are few. WTL encourages farmers to diversify by planting different species of trees for different purposes. Mr Mugowa says if he had a forest, he would wait for 15 more years before harvesting so he could harvest after others have harvested.
Opportunities in the industry
In working with eucalyptus timber, WTL has faced some challenges. For one, there is a shortage of raw materials as mature eucalyptus trees are rare since people harvest the trees at eight to ten years for poles. There is also a shortage of experienced and skilled carpenters who pay attention to detail and a good finish. To create a product
Due to the enormous demand for timber in Uganda, there are many opportunities for wood companies to explore. However, there is likely to be an oversupply of timber in the market in the next five years or so, because most commercial tree growers started planting almost at the same time, in 2004 and 2005,
More furniture made out of eucalyptus timber. It is important to dry the timber properly before working with it. (Photo: Miti magazine)
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Challenges faced
that appeals to an international clientele, the partners at WTL find they have to offer intense training to their carpenters. In addition, it takes two years to dry eucalyptus timber by natural means. It is advisable to stack the timber well and air-dry it as rapid drying increases splitting. Even with proper drying, eucalyptus timber still splits, leading to a loss of about 10 per cent. WTL advise industries and companies intending to use eucalyptus for timber to be careful while drying the timber. They should also pay attention to different eucalyptus species because they behave differently. The partners advise farmers and business people to do what they are good at and have passion for. “For example if you are good at tree-growing, plant the trees and someone else will add value because mixing businesses wastes a lot of time and is financially straining,” says Mr Mugowa. “In addition, do and use what you can sustain.” Commercial tree-growers and small scale furniture companies are encouraged to form groups or join associations like the Uganda Timber Growers Association and work together. “Forestry is an expensive venture, therefore it does not benefit a grower if done in isolation, especially at the time of harvesting,” says Mr Mugowa. “It is also good to share experiences with people in the same business.” WTL hope to be on top of the market in five years because they do not sell their dry timber. “We use it entirely for our furniture and we are stocking more so that we do not run out of it,” says Mr Mugowa. They hope to explore other species such as pine in future. The writer is the Country Representative, Miti magazine, Uganda Email: diana@mitiafrica.com
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SUCCESSFUL INDUSTRY
Taking a calculated risk Undeterred by past failure of the tree to thrive in the country, Kisima Farm grows radiata pine on a commercial scale BY JAN VANDENABEELE
N
orth of Mt Kenya, along the Timau - Meru road, before the Isiolo junction, stands Kisima Farm. It is a big operation, on 4,000 hectares of land, and well diversified. Most of the land is planted with wheat and barley; there is some pasture, and a forest cover of 763 hectares, 60 per cent of which is indigenous and the rest exotic. The farm has offices, stores, sheds for machinery, and all the normal stuff of an agricultural farm. In addition, there is a horticulture component of greenhouses to grow flowers, and disease-free potato seeds under hydroponics. And an air-strip. The forestry component has value adding infrastructure in the form of a small sawmill and a solar kiln/storage facility and employs 20 people on a continuous basis. All in all, the farm
A one-and-a-half-year-old pine (Pinus radiata) plantation in Kisima Farm. The lower half of the slope had been ripped by a tractor, up to where it became too steep for the tractor. The plantation shows excellent survival and growth, stimulated by slow-release fertiliser at 25g per seedling. (Photo: BGF)
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Miti October-December 2014
First pruning of Pinus radiata, at three and a half years. The work is done carefully, leaving no pruning scars and is paid per piece. (Photo: BGF)
is well integrated and managed. The area around Timau is relatively dry, being in the “rain-shadow� of Mt Kenya; with about 800mm mean annual rainfall. At an altitude of 2500-2600 metres above sea level and an average annual temperature of 15.2oC, the air is cool, and contains relatively little moisture. These factors have probably led to a rare occurrence in Kenya - the successful growing of radiata pine (Pinus radiata). To explain this, some history. Towards the end of the colonial period in Kenya, some 15,000 hectares of P. radiata had been planted in various locations in Central Province, Rift Valley and other scattered
Miti October-December 2014
The Wood-Mizer in action - sawing a eucalyptus log. (Photo: BGF)
places1. It grew very well, and fast. Known for its good timber, superior to that of P. patula, planting was bound to expand. However, this was not to be. By 1962, a disease hit the radiata pine growing on the south and south west slopes of Mt Kenya, which also showed the following year in the Rift Valley. It was a foliar blight, caused by the fungus Dothistroma pini, and as such it became known as the dothistroma blight. The affected pine leaves turned brown, resulting in severe defoliation, and in extreme cases, the tree died. The disease was however mostly prevalent in 1 Gibson IAS, Christensen PS & Munga FM. First observations in Kenya of a foliar disease of pines caused by Dothistroma pini Hulbary. Commonwealth Forestry Review, Vol. 43, No 1 (115), March 1964.
crops less than eight years old. Trees that were not afflicted by that age had a good chance of survival. In addition, the blight spread and was most deadly in misty areas with high relative humidity. The disease also struck abroad, in countries like New Zealand where there were (and still are) big plantations producing the species for a thriving timber industry. New Zealand mounted a successful breeding programme of dothistroma-resistant strains of radiata pine that continues to date. However, obtaining the seeds produced from this programme is difficult. KEFRI obtained some, and included them in several trials established between 1985 and 1996 in Timboroa, Napkoi, Sabor and Kaptagat in Rift Valley. Measurements in 2007 and analysis of growth results enabled KEFRI to identify
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some relatively disease-resistant provenances2. Nonetheless, the authorities are cautious, and there is no official encouragement to grow radiata pine in Kenya. Back to Kisima Farm. After battling with the question of which tree species to grow for commercial timber production, and observing healthy mature radiata pine trees on the farm, the general manager of the farm Charles Dyer, decided to embark on a planting campaign of the species. So far, the trees occupy 150 hectares. The decision to grow radiata pine was not taken lightly. Mr Dyer studied how the species was doing in New Zealand, from where he imported good quality seed, although not the dothistroma-resistant one he would have liked. The good news is that the pines in Kisima farm are doing well; in fact, very well. They receive good silvicultural attention, like proper land preparation, fertilisation, weeding, pruning and thinning. Young plantations along the road even attract unwelcome attention at night from people who pluck freshly planted seedlings. This is a sure sign that the species is doing well. Mr Dyer produces the seedlings in his nursery, for a yearly planting of 10 hectares. He plants another 10 hectares annually with indigenous seedlings, bought in nearby community nurseries. Not one to be deterred easily, he observes: “The radiata pine is growing very well. And if it gets attacked by the blight while it is still vulnerable, I’ll have it sprayed with copper by our crop-duster,� Indeed, the company uses an aeroplane to spray its extensive wheat fields when required. 2
Mbinga, Joram. Growth and disease tolerance in selected
progenies of Pinus radiata, (D.Don) in Kenya. KEFRI, 2014.
However, chances are that Mr Dyer will not need the aeroplane, as young trees up to three and a half years show a healthy growth, and no blight can be observed in stands older than eight years. The cool and relatively dry environment of the northern Mt Kenya slopes is helping him. Mr Dyer not only grows trees, but also utilises and processes them. To this end, Kisima Farm has invested in two tractors, trailers and lorries and set up a small but well equipped sawmill, with a shed for solar drying. The sawmill has two Wood-Mizer band saws, a circular roller bench, a Swedish four-cutter planer and three more planers. The shed for solar drying involved some innovative thinking, as it is a simple steel structure on a floor of concrete tiles, covered on all sides (walls and roof) by transparent plastic sheets. There is provision for future installation
of big ventilation fans to lower the humidity if required. While waiting for the large numbers of radiata pine logs, the sawmill is not idle, and processes eucalyptus and other species like patula pine. And orders are coming. So, Mr Dyer took a calculated risk that may well pay off. The writer is the Executive Director, Better Globe Forestry Email: jan@betterglobeforestry.com
Inside Kisima Farm. Canola (rapeseed, Brassica napus) is on the left and wheat on the extreme left; with freshly pruned Pinus radiata on the right. (Photo: BGF)
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TREE SPECIES
A coloniser of badly degraded sites The bush that gave its name to the Kileleshwa area of Nairobi has a multitude of uses BY FRANCIS GACHATHI
T
archonanthus camphoratus, commonly known as leleshwa or camphor bush, is a multi-stemmed shrub generally found in large uniform groups of almost pure stands. It usually covers extensive areas, and excludes all other woody species. The bush grows to about 4 metres high, the stems and foliage making a V-shaped canopy. However, it can develop into a tree 8 metres or more high, when it grows alone or among other trees. The stem is covered with pale brown rough bark, furrowed and peeling in long strips. Younger shoots and the underside of leaves are densely covered with silvery-whitish hairs, giving the shrub a greyish appearance. The leaves are alternate, narrowly elliptic, up to 10cm long, dark olive-green above and silvery-white and velvety beneath. The leaves emit a strong smell of camphor when crushed. Flowers are dioecious, (male and female borne on separate trees). Male flowers are pale yellow, females developing into woolly fruiting heads, in much-branched terminal inflorescence. Seeds are covered with fluffy cotton wool-like hairs. Tarchonanthus camphoratus occurs in evergreen bush land and bushed grassland, often on stony hills particularly those of volcanic origin. It can be dominant over huge areas of land, a successful coloniser of badly degraded sites. It is even able to regenerate from the base if burnt or cut almost to the ground, making it ideal for
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firebreaks. It occurs between altitudes 1400 to 2300m, and is especially common in the Kenya Rift Valley counties of Narok, Nakuru and Laikipia. It can be a serious threat to pastures. The genus name Tarchonanthus is derived from the Greek words meaning funeral flower, probably because of its camphoric smell. The specific epithet camphoratus refers to the strong smell of camphor given off when the leaves are crushed. One of the uses of camphor was in embalming. There is only one species of Tarchonanthus in Kenya. It is closely related to Brachylaena huillensis, locally known as muhugu and very popular with wood carvers. Both belong to the sunflower family Compositae, a large family of mostly herbaceous species, the two being exceptional. Local and common names for Tarchonanthus camphoratus include camphor bush; mkalambati (Swahilli); muriricua (Kikuyu); lelechuet (Kipsigis); Ol-leleshwa (Maasai); and elewa (Tugen). The Kileleshwa area of Nairobi is named after this tree. Traditionally, leleshwa has a wide range of local uses. People treat blocked sinuses and headache by inhaling smoke from burning green or dry leleshwa leaves. A decoction made from the leaves is used to treat coughs, asthma,
toothache, abdominal pain and bronchitis. A hot poultice of leaves is used to massage stiff joints and inflammation. An essential oil distilled from the leaves is used in perfumery. The camphor-scented leaves are used in beddings, to keep off flees, lice and bedbugs. The leaves are also used as a deodorant and scent for houses. Twigs are used as tooth brushes. The wood of the leleshwa is close-grained, attractive, durable and rich in aromatic oils, suitable for making musical instruments. It is used for building, fencing posts, walking sticks, clubs, firewood and charcoal. Special clubs are made from the rootstock. Wood splinters are said to cause septic sores that are difficult to heal. The cotton woollike seed-heads are made into balls and used to smoke out bees when collecting honey. They are also used to stuff cushions. Bees produce a nice fragrant honey from camphor bush flowers. Cattle and wild animals browse on the leaves and young shoots. Leleshwa is easily propagated through seed. The writer is Principal Research Officer, Kenya Forestry Research Institute (KEFRI) Email: gachathif@yahoo.com
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SUCCESSFUL GROWER
Coming together to grow trees Rwoho Environmental Conservation and Protection Association sets the pace for community involvement in the environment BY DIANA AHEBWE
Large-scale eucalyptus plantation on a hill in Ntungamo District. (Photo: Miti magazine)
T
here is environmental degradation in many areas of Uganda. Some Ugandans have accepted the situation but the people of Rwoho in Ntungamo District, Rukoni Sub-county, Ruhama County decided to do something about the condition. They resolved to start planting trees on their private land and this resulted in the formation of the Rwoho Environmental Conservation and Protection Association (RECPA). RECPA was started in 2003 by a group of 11 people who were seeking ways of overcoming the problems of environmental degradation they were facing. These included landslides that were threatening areas where natural trees had been harvested. The membership of RECPA cuts across the districts of Mbarara, Isingiro, Kiruhura and Ntungamo. The registered membership has grown from 11 to 250. The membership fee is Ush 10,000 with Ush 5,000 annual subscription. To qualify as a member, one should have planted trees on one’s farm regardless of its size. Ntungamo District is characterised by bare hills and there is a lot of degradation caused by fires and tree harvesting from natural forests. The district is 600 – 2000 metres above sea level (masl). It receives an average rainfall of 900mm
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per year, distributed in two rainy seasons. June – July is the driest and coolest season. The average temperature is 20o Celsius. Ntungamo is one of the districts in the cattle corridor and the main activity there is grazing. The RECPA office is located in Rwoho Trading Centre, 58km by road from Ntungamo town.
Achievements of RECPA The last census showed that RECPA members had planted 300 hectares of trees. In 2006, they learnt about the Sawlog Production Grant Scheme (SPGS) through the National Forest Authority (NFA), to which they applied and were given 990,000 seedlings of Pinus caribaea. They planted these on a public hill and shared the reminder among themselves to plant on individual land. Through the Collaborative Forest Management Programme of NFA, RECPA acquired a renewable lease of 60 years for 60 hectares in the degraded Central Forest Reserve of Rwoho. They created a bio-carbon project and have planted 35 hectares so far. This was funded by the World Bank through NFA. The carbon project is run strictly as a business. Subscription fee is Ush 200,000 and people can buy shares at Ush 100,000 up to a
maximum of six shares per person. The project received the first payment of US$ 4,062 in 2013. The carbon sequestrated is determined by tree size. Due site verification took place, and a number of conditions had to be adhered to, one of them being that belts of natural vegetation must be maintained. RECPA has initiated other projects such as bee-keeping and fruit-growing. They are also exploring an ecotourism project. RECPA works closely with the Ntungamo Local Government, NFA, the World Bank, the European Union, and SPGS. Seventy-five-year-old George Katahikire, a member of RECPA, worked for 30 years in the nursery of the Forest Department (before it was changed to NFA). He accumulated a great deal of experience in nursery management so he decided to start planting trees on his land. Mr Katahikire planted his first block of Pinus caribaea in 1987 on 3 hectares. After 15 years, he sold his trees at Ush 20,000 per tree but this price was too low for him to make money. Fortunately, Mr Katahikire succeeded in getting a sawmill owner to buy the remaining forest (1.5 hectares) at Ush 5 million. He built a house from the proceeds of the sale. Mr Katahikire replanted in 2010, buying
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seedlings from NFA at Ush 300 each. He is impressed with their growth so far. He has brought his valuable experience in nursery management to RECPA.
Opportunities that come with working in a group RECPA members benefit from bulk selling, which is more efficient and profitable than individual efforts. There is also more possibility of “benchmarking” best practices and solving common problems when working as a group. RECPA is able to access funds and seedlings as a group which would not have happened if they were working as individuals. In addition, members can access loans from banks. RECPA is engaged in social welfare activities such as sensitising members about HIV/AIDS, as well as supporting vulnerable people in the community, especially women. The association holds seminars on treeplanting, land use management, environmental conservation and related activities. Their efforts have borne fruit in that people have started planting trees on hillsides that were previously bare. They have reached out to each sub-county in the district, promoting pine for timber as a source of income. Most members have planted between 1 and 15 hectares of trees.
Challenges There is a challenge of members not paying
George Katahikire and his wife Egrasi Kendugu in front of the house he built with the proceeds from his first tree sale. (Photo: Miti magazine)
their annual subscription on time. Since the association relies on members’ contributions for its day-to-day activities, the issue needs addressing. The administrative costs are high and yet RECPA have not started harvesting trees. There is also a challenge of fire which destroyed some 10 hectares of trees. However, these have been replanted. Some members of the community, who are not sensitised about the importance of tree-planting, set tree plantations on fire and uprooted seedlings. RECPA members also have to deal with the
challenge of animals destroying their trees as Ntungamo is a grazing community.
Future plans RECPA are looking for more partnerships. They are writing proposals for carbon markets to source more funding for their private forests. They are also in the process of opening up a micro finance institution where members will be able to access loans to even start other projects. RECPA organises farmer-to-farmer exchange visits to share experiences and learn from each other. They are planning to expand to all districts in the western region. They are already operating in Mbarara and Isingiro but are yet to set up in Kabale, Sheema and Insingiro Mbarara.
Advice to other communities Deo Amanyire, the treasurer of RECPA, advises those who want to be involved in a community tree-planting programme to identify a common problem and a common goal. “This is what has made RECPA successful,” adds Mr Amanyire. He also advises communities to start planting on their own land, and then the government would come in later after seeing what the people have done. For communities to get SPGS support, they should have a membership of at least 20 people and at least half an acre of land each. SPGS gives priority to people neighbouring natural forests and also neighbouring large planters who are SPGS clients. The writer is the Country Representative, Miti Magazine - Uganda Email: diana@mitiafrica.com
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WATER MANAGEMENT
Tree planting under drip irrigation Northlands shows it is possible, and even profitable BY WANJIRU CIIRA
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omething is cooking in Ruiru, on the outskirts of Nairobi. A private city, Northlands, will soon come up in the area, on land that, among other properties, stands Brookside Dairies. “This will be a city like a city is supposed to be – planned,” says Tomie Hellerstedt, Project Officer, Northlands. Apart from the obvious components of a city such as residential and commercial areas, Northlands will also have forested areas. And in this regard, although the ground-breaking for the project has not been done yet, the tree-planting has started. Northlands’ tree-planting programme has started with eucalyptus trees. These are visible mainly from the Eastern Bypass but also from Thika Road. Yes, they have planted that species that draws mixed reactions from Kenyans. Some years ago, the species received negative publicity to the extent that foresters affiliated to the Forestry Society of Kenya (FSK) in conjunction with the Kenya Forest Service (KFS) in 2009 organised the first ever forum titled “The Eucalyptus Debate” to discuss all that pertains to eucalyptus growing in Kenya. While some Kenyans see eucalyptus as a money-maker, others have vilified it as being responsible for the water scarcity experienced in areas that were formally water sufficient. The debate was moderated by Dr Jeff Odera, a former Director of the Kenya Forestry Research Institute (KEFRI) and led by Dr Phanuel Oballa, an accomplished and renowned plant researcher/ geneticist at the same institution. The experts acknowledged that like all fastgrowing trees, eucalypts take up more water as compared to indigenous slow-growing trees. It is thus possible for eucalypts to clear water, especially in areas of water scarcity, said Dr Oballa. The species sometimes consumed over 20 litres a day, and thus proper technical assistance is required before embarking on eucalyptus farming, especially in areas of water scarcity. However, according to Dr Oballa, with proper advice on matching sites with planting objectives,
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eucalypts are among the top producers of biomass in the world. Their contribution to wood needs is a blessing rather than a curse. “The curse of our water losses lies in misuse and mismanagement of agricultural land,” he said. So, eucalyptus trees have many benefits. Northlands have chosen to grow the species for commercial gain. “For us this is an economic
forest,” says Mr Hellerstedt. He is no doubt informed by the fact that eucalyptus, and to a lesser extent, pine, are the species of choice for transmission poles. In addition, the eucalyptus forest also serves as a buffer zone, separating Northlands City from the surrounding areas and activities.
Miti October-December 2014
The lay-out of the piping. (Photo: BGF)
Drip irrigation for eucalyptus
Detail of the piping. It is a 20mm pipe connected to a 50mm one. (Photo: BGF)
The water pipe is initially 110mm in diameter, and then branches into 50mm pipes, while the dripping takes place through button drippers attached on to 20mm pipes. The drippers are designed to supply 4 litres of water an hour. The system’s lay-out serves a 5-acre block (2
Northlands’ eucalyptus plantations total about 420 hectares. The bulk of these are GC clones (hybrids of Eucalyptus grandis and Eucalyptus camaldulensis) 584 and 581, bought from the Tree Bio Technology Trust in Karura, with technical advice from KEFRI. Uniquely, Northlands grows The heart of the drip irrigation system these trees under drip irrigation, - a diesel engine with pump and filter, with good silvicultural management. mounted on a small carriage. (Photo: BGF) Wisely, the initially recommended spacing of 2.5x2.5m has been widened to 3x3m, after observations that the diameter growth was low, due to competition for water. Another clone, 15, came under serious attack by the bronze bug (Thaumastocoris peregrinus). The clone sucked in massive numbers of the bug on its leaves, and became stunted. A real deterrent to the bug was not found; even the insecticide Diazinon (an organophosphate) did not prove an adequate solution. The heart of the drip irrigation system consists of a diesel engine fitted with a pump and water filter and mounted on a carriage that is pulled by a tractor from one supply point to another. The supply points are along rivers Kamiti, Gatharaini and Nairobi, as well as some dams. Water is pumped over the required distance towards the new planting blocks under establishment. This distance varies, but can be quite long - over 2 kilometres at times.
Miti October-December 2014
hectares), which, at a density of 1,111 seedlings per hectare, means that 9 cubic metres of water is pumped per hour. This happens three times a month, for two hours each cycle, or 8 litres per seedling per cycle. The irrigation takes place for six to nine months a year, depending on the rains. According to Northlands forester Geoffrey Mulongo, the drip irrigation ensures up to 70 per cent better growth compared to non-drip, while the seedling survival rate is doubled. Mean annual rainfall in the area averages some 1000mm. The planting is done both during the long (AprilMay), as well as the short (NovemberDecember) rains. Other silvicultural measures include land preparation. In the mainly heavy clay soils of Northlands, land preparation takes the form of ripping with a D7 bulldozer. It is fitted with two teeth spaced 3 metres apart, exactly the planting spacing. After working the land in one direction, the bulldozer then rips in a perpendicular way, so that the seedlings can be planted at the intersections of the ripping lines. Pitting is done by a tractor-mounted drill, 3ft deep, while the planting is contracted out. The drip lines are laid out immediately after planting. The first weeding out is done after three months. Subsequent weeding outs are done with glyphosate but to avoid seedling damage and dead by random
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spray1, the first weeding is done manually. Growth in the clay soils is satisfactory. However, part of the land has murram soils, on which tree growth is less satisfactory. Still, Northlands are confident that the eucalyptus trees will provide a healthy profit. The cost of growing the trees, including the drip irrigation system, is estimated at Ksh 2,000 per tree; while sales of poles or (even better) timber will exceed Ksh 7,000 per tree, after a minimum of 10 - 12 years. Northlands is situated in an area with a high
1 Glyphosate does not only kill grass and weeds, but also many plant species except resistant dryland stuff like Combretum aculeatum and some acacia species. It would be interesting to see its effect on Prosopis juliflora.
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groundwater table, with the aquifer level some 40 metres deep. Boreholes do not need to go deeper than 70 metres, and Northlands has sunk 15 of them, with another 15 planned, to provide a stable water supply for its future residential and industrial developments. In addition to the eucalyptus trees, Northlands is also planting other species, both indigenous and exotics, for various purposes. Along Kamiti River, Cordia africana (mukumari, muringa) and Populus ilicifolia (poplar, mugui) will be planted, both for ornamental purposes
and for control of soil erosion. Some 2,000 Croton megalocarpus (muthulu, mukinduri) trees will be planted, while Cassia fistula (the golden shower tree), and Acrocarpus fraxinifolius will be planted for hiding a highvoltage power line that passes through the estate. Fig trees (mukuyu – Ficus sycomorus), palm trees, including the beautiful royal palm (Roystonea regia), and even 4,000 cape chestnuts (Calodendrum capense), a species with attractive purple flowers, will beautify Northlands City. Along Thika Road, Northlands has planted Nandi flame (Spathodea campanulata), mvule (Milicia excelsa) and siala trees (Markhamia lutea). In addition to the eucalypts along the Eastern Bypass, Northlands will plant two rows of jacaranda (Jacaranda mimosifolia) for beauty. The city will also have a residential park, planted mainly with mango trees. All in all, Northlands will certainly be a wooded city, and with some open water spaces, a very agreeable place in which to live. The writer is the Managing Editor, Miti magazine Email: wanjiru@mitiafrica.com
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