A study released today by the think-tank MwAPATA Institute reveals that Malawi has some of the lowest forestry plantation fees and prices for forest produce in the region, with rates 5 to 20 times lower than neighboring countries.
The study, conducted in partnership with the USAID, UKAid co-funded Modern Cooking for Healthy Forests in Malawi and Malawi’s Department of Forestry, compared forestry concession and license fees across five countries: Malawi, Tanzania, Rwanda, Zambia, and Kenya.
Data collected from government officials, plantation managers, and key industry stakeholders highlighted a significant undervaluation of Malawi’s forest resources, providing little financial incentive for responsible management.
Call for Fee and Price Revision
MwAPATA researchers recommend an immediate revision of forest plantation fees and prices to better reflect the true economic and market value of forest resources. “Current fees do not incentivize sustainable practices or efficient utilization,” the report states, calling for a more robust pricing model that would encourage better management of Malawi’s forests.
Short-Term and Long-Term Reforms Needed
In addition to fee adjustments, the study outlines several other critical reforms. In the short term, it emphasizes the need for increased funding and equipment to support sustainable forest plantation management.
In the medium term, it calls for the development of a national integrated forest fire management strategy, noting that Malawi’s forests are at risk from uncontrolled fires. The study also recommends the creation of an integrated revenue collection system to reduce corruption and revenue leakages, along with forest investment plans aimed at attracting both domestic and international investors.
Research and Innovation for Long-Term Sustainability
Looking ahead, the report stresses the importance of research and development in plantation forestry to address emerging challenges such as climate change and pests. Additionally, it advocates for the establishment of a forestry information management system to improve data accessibility and support informed decision-making.
Policy Implications
The findings suggest that Malawi’s forestry sector is at risk of resource degradation unless urgent reforms are implemented. The undervaluation of forest resources, coupled with weak governance and inefficient revenue collection, could lead to over-exploitation. By adjusting fees and improving management practices, Malawi could attract significant investments in forestry, driving both economic growth and environmental conservation.
The study’s recommendations, if adopted, are expected to transform Malawi’s forestry sector, ensuring the sustainable management of forest resources while boosting revenue collection and curbing corruption.
