Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Chaotic land reform is hurting timber industry

Chaotic land reform is hurting timber industry

http://www.timeslive.co.za/

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.”

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