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Forestry Products & the Timber Industry |
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Some 60 percent of Zambia’s total land area is estimated to be covered in forests – 45 613 000 hectares of the country’s total land area of 74 339 000 hectares – with close to 10 percent of these areas protected.
Forestry products comprise mainly soft and hardwood timber harvested from natural forests and commercial plantations, with small yet expanding honey and beeswax production. According to the Food and Agriculture Organisation (FAO), the country’s total annual production and consumption of industrial roundwood is over 820 000 cubic metres, while some 7.2 million tonnes of wood fuel is consumed every year.
The majority of commercial plantations are found on the Copperbelt, where exotic softwoods supply the needs of the mining industry. The privatisation of Zambia Forest and Forestry Industries Limited (ZAFFICO) has opened up the market for softwood, while the privatisation of Zambezi Sawmills has seen increased private sector participation in the hardwood sector.
Adding value to exports, processed timber is promoted ahead of raw timber produce. Export products include plywood, furniture, carvings and curios. Certification of Zambia’s forests is vital if forest products are to penetrate the lucrative markets of the European Union.
Timber processing adds to export value
During 2007 there was a marked increase in the production of wood and wood products as well as paper and paper products, underlining the growing importance of timber processing to Zambia’s non-traditional exports. Zambia’s forests play an important socioeconomic role in supporting the livelihoods of rural communities. Wood fuel is critical for domestic energy needs, particularly in rural areas. Furthermore, farmers depend on local woodlands for the gathering of foods, bushmeat, medicinal plants and household materials, often obtaining significant income from non-wood forest products such as honey, beeswax and edible caterpillars.
Future growth in the industry
Government is seeking private sector investment to develop an expanded plantation-based timber industry, with promising opportunities for increasing timber exports to South Africa, currently Zambia’s main export market for its timber. As such, the sale of up to 20 000 hectares of ZAFFICO plantations has been proposed – a move that would also generate revenue for the plantation expansion and recapitalisation programme. Furthermore, a Forest Industry Credit Facility targeted at rural populations provides US $500 000 each year for plantation development.
There are also a number of investment opportunities in wood processing. Currently most timber is exported in its raw form, which could otherwise be processed into finished consumer and industrial wood products. While government is currently targeting secondary investment in the timber industry, there is also an opportunity for processors to be involved in the harvesting of timber.
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Forestry and Timber