Chaotic land reform is hurting timber industry
Apr 9, 2011 10:59 PM | By HARARE CORRESPONDENT
About 30000 hectares of land and $1.2-billion in potential revenue have been
lost to Zimbabwe’s chaotic land reform due to unrelenting disruption on
timber estates.
With 5047 hectares of prime forestry land having been lost to
bounty-hunters, including 500 illegal gold panners in March alone, the
invasions have mainly affected Allied Timbers Zimbabwe, listed Border
Timbers Limited and the Wattle Company.
“The industry loss of 30000 hectares over a 10-year period has had adverse
and dire consequences for the country’s gross domestic product. On a 25-year
rotation, the loss . is equivalent to an annual revenue loss of
$118.8-million,” the Timber Producers Federation (TPF) said in an industry
review paper. “The forest-based land reform policy framework recognises that
timber plantations are an acceptable and viable land use option, and as such
should be allowed to thrive without conversion to other uses,” it said,
adding that government support was needed in removing settlers to increase
hectarage and strengthening policies for forestry activities.
From a peak of 120000 hectares in the 1999/2000 season, only 90000 remain,
due to illegal occupation, harsh weather and relentless fires.
So bad have been the disruptions that sawn timber production has fallen by
more than 50% to 138000 hectares from a height of 395000 hectares 12 years
ago. Paper products manufacturing has virtually vanished from a height of
60000 tons.
Crucially, the TPF noted that the increase in squatter settlements has
fanned fire incidents. Twenty percent of the national resource was destroyed
or lost in 2008 alone. “It should be noted that prior to. settlements on
forestry plantations, fire losses did not exceed 120 hectares in any given
season,” it said.
While the 14-member body has held preliminary talks with such funders as the
World Bank, the issue of Zimbabwe’s land tenure system continues to haunt
the search for much-needed funds to restore production and revamp key
infrastructure.
“Funding for such projects is readily available from international financial
institutions and the donor community, but they are sceptical about the land
polices,” TPF said, adding the state must also help in capacitating the
industry through research and development.
Already hobbled by electricity supply, technological, utility and other
operational challenges, the industry desperately needs $115-million to
rebuild roads over a 9000 square-kilometre expanse of land in the key
producing eastern highlands districts.
The sector, which used to pay $14.4-million in annual wages, and support
thousands of its 10000 direct employees’ dependants, remains largely
depressed.
“It is worth noting that during the year 2009, a number of processing plants
closed down mainly due to viability challenges emanating from aged
equipment, high cost of borrowing and unsustainable cost of labour.”