INVESTING IN TREES AND LANDSCAPE ... - PROFOR

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Marketing and Processing Investments in Tree-Based Products In addition to the production investments in the examples above, there will be scope for investment in marketing, processing, and other value-adding activities related to tree and forest products. The export and domestic markets offer different opportunities. Exports of processed tree products may provide fewer short-term opportunities, because most of Africa’s tree products are exported with little or minimal processing/value adding. Processing is generally not a feasible undertaking for countries in which industries are not well developed. A possible exception would be for the more developed wood-manufacturing industries in South Africa to supply the furniture, panel, or paper needs of consumers in other African countries. The opportunities may be greater for domestic markets, although FAO analysts believe that the fragmented and slowly growing nature of demand for processed wood products may be filled by more efficient and cheaper imports (FAO 2003a). There are some exceptions, however. One is light manufacturing of wood (e.g., for furniture), in which imports may be from distant countries that originally sourced the raw wood material from Africa. Fruit juice production could be another promising area. Although mature juice producers exist in South Africa (Ceres, Liquifruit) and relatively new ones in other countries such as Kenya (Del Monte, Pick N Peel) and Uganda (Britannia-Splash), many of the concentrates used are imported, mainly from South America. (The exceptions are grapes and apples in South Africa and pineapples in Kenya.) However, the East African companies are all investing in trying to boost local sources of fruit pulp. In addition, Coca-Cola has announced a major investment in the region—especially in Kenya—to develop fruit juice supply chains involving smallholder farmers. This seems a natural downstream investment to take advantage of the large number of fruit growers; however, many obstacles will have to be overcome, notably the range of varieties and the production quality of fruits grown, and the dispersed nature of the growers. To realize the potential for market growth in fruits, improvements are needed in the field-to-market supply chain of the fruits, in new technologies, and in enhancement of distribution networks to enable fruit industry players to operate at lower costs throughout the value chain and to remain competitive. 1.3 BROADER LANDSCAPE RESTORATION AND ECOSYSTEM SERVICES Forests and trees are vital land uses for restoring degraded landscapes (for example, to combat hillside erosion in Rwanda or Ethiopia) and for providing environmental services such as carbon sequestration, watershed protection, and biodiversity conservation. The environmental services provided by trees and forests—including protecting and revitalizing soils, regulating water regimes for rural producers and urban consumers, providing habitat for pollinators and seed dispersers, and absorbing and storing carbon—are valued in the tens of billions of dollars annually (Costanza et al. 1997). As many as 97 of the 180 Natural World Heritage Sites listed by UNESCO are in forested areas (UNESCO 2010). Not all tree-based systems will provide the same degree of environmental services. For example, although trees can play important roles in regulating water flow, they are also users of water, which must be taken into account. Some nitrogen-fixing trees can bring new nitrogen into soils, but others Chapter 1. TREE-BASED AND OTHER LAND MANAGEMENT TECHNOLOGIES FOR LANDSCAPE RESTORATION AND LIVELIHOOD IN AFRICA 37
can only recycle nutrients from soil depths. All trees can sequester carbon, but some trees grown for wood will be cut; others may be regularly pruned for livestock feeds and never reach a significant size. Recent literature includes guidelines for the use of sustainable land management (SLM) practices for agriculture and other land uses, such as integrated soil fertility management, soil conservation methods, conservation agriculture, rainwater harvesting and irrigation management and integrated crop-livestock management. The following are two key publications: • Sustainable Land Management Sourcebook (World Bank 2008) • Using Sustainable Land Management Practices to Adapt to and Mitigate Climate Change in Sub-Saharan Africa (Woodfine 2009) There is also a Web portal that contains practical examples of SLM from around the world: the World Overview of Conservation Approaches and Technologies (WOCAT) at http://www.wocat.net. In this section, we touch briefly on two practices: sustainable rangeland and forest management. Pastoralism and Rangeland Management Many important practices can improve productivity and reinforce environmental stability for livestock and rangeland management. These include sustainable grazing management, which focuses on recovery periods for grasses and other vegetation; reduced use of rangeland fires to prevent loss of soil carbon; and silvopastoral management, which involves balancing vegetation and biomass to meet a variety of needs (Woodfine 2009). Most management techniques are designed around regenerating resources to facilitate fresh grass and shrub biomass growth. In more intensive systems or in strategically placed sites, purposeful planting of grasses and shrubs can also be undertaken, benefiting from research on improved species and establishment methods. Although overstocking is often cited as a culprit behind apparent rangeland degradation, the holistic approach to grazing management emphasizes the importance of rotations and recovery periods for the resource; if these are done properly, they can greatly improve productivity and carrying capacity. Sustainable Forest Management Conversion of forest lands into cultivated mosaics has had adverse effects on water flows, has greatly reduced plant and animal biodiversity, and has been a chief emitter of greenhouse gases. While some forests need to be conserved and protected, many new examples of integrated management involve sustainable use of forests and forest products. According to FAO (2010a), sustainable forest management aims to ensure that the goods and services derived from the forest meet current needs while securing their continued availability and contribution to long-term development. Certain silvicultural practices guide governments and other managers on sustainable harvesting and offtake for various species. New management models include some form of local ownership or rights, through which local communities have vested interests in the long-term health of the forest. The rights can vary from home consumption of forest products (e.g., fuelwood) to marketing specified products (e.g., fruits) to establishment of eco-tourism businesses. 38 INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICA
Page 1 and 2: INVESTING IN TREES AND LANDSCAPE RE
Page 3 and 4: Acknowledgments This volume draws o
Page 5 and 6: REFERENCES_________________________
Page 7 and 8: vi INVESTING IN TREES AND LANDSCAPE
Page 10 and 11: OVERVIEW Reforestation measures for
Page 12 and 13: out their plans. This vision of cli
Page 14 and 15: ABBREVIATIONS ACT ADB BDSP CA CBI C
Page 16 and 17: PROFOR RA REDD REIT SADC SAGCOT SFM
Page 18 and 19: INTRODUCTION WHAT DO WE MEAN WHEN W
Page 20 and 21: The approach can involve the use of
Page 22 and 23: HOW CAN WE GENERATE INVESTMENT? Des
Page 24 and 25: 1 TREE-BASED AND OTHER LAND MANAGEM
Page 26 and 27: Macro Trends That Affect Demand for
Page 28 and 29: In this context, investment opportu
Page 30 and 31: Indigenous Fruits, Nuts, and Kernel
Page 32 and 33: Honey The global trade in honey is
Page 34 and 35: TABLE 1.4. PRODUCTION AND CONSUMPTI
Page 36 and 37: continue to depend on charcoal and
Page 38 and 39: Tree Crops Coffee is one of the top
Page 40 and 41: Faidherbia albida intercropping sys
Page 42 and 43: Carbon storage in fertilizer tree s
Page 46 and 47: 1.4 VALUE CHAIN INNOVATIONS FOR PRO
Page 48 and 49: In Africa, farms that engaged in ce
Page 50 and 51: 3. Some tree-based investments, suc
Page 52 and 53: 2 WHERE DO PRIVATE MARKET INCENTIVE
Page 54 and 55: and coordinate investment in major
Page 56 and 57: BOX 2.1. KAGERA RIVER BASIN: TRANSB
Page 58 and 59: at first seemed modest, when adjust
Page 60 and 61: with strong policy and extension su
Page 62 and 63: country-level analyses to identify
Page 64 and 65: supermarket in Africa, and growing
Page 66 and 67: nonfarmed areas in infrastructure,
Page 68 and 69: BOX 2.5. WESTERN KENYA TEA LANDSCAP
Page 70 and 71: size of an agricultural carbon proj
Page 72 and 73: COUNTRY PUBLIC PRIVATE (by descendi
Page 74 and 75: To avoid participating in this scen
Page 76 and 77: need to be developed. Progress in l
Page 78 and 79: 3 OPPORTUNITIES AND CONSTRAINTS FOR
Page 80 and 81: BOX 3.1. REDD BENEFITS TO LOCAL COM
Page 82 and 83: SMEs operate in various kinds of va
Page 84 and 85: sovereign wealth funds, and so on.
Page 86 and 87: Investors may be neither willing no
Page 88 and 89: BOX 3.3. OVERCOME REGULATORY BARRIE
Page 90 and 91: land must be unclaimed wilderness.
Page 92 and 93: issues should be dealt with before
Page 94 and 95:
Capacity building is relevant for a
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Certain issues should be explored f
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anything. For this reason it is som
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to increasing the capacity of commu
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Hard investors, on the other hand,
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REFERENCES Aagaard, P. 2010. “Con
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Cheboiwo, J. 2007. “Economic and
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Feleke, S.T. and R.L. Kilmer. 2009.
Page 110 and 111:
Huang, S. 2004. Global Trade Patter
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Mathenge, M., J. Olwande, F. Place,
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Place, F., S. Franzel, J. Dewolf, R
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Sileshi, G., F. Akinnifesi, O.C. Aj
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_____. 2011. Conflict, Security and
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ANNEXES ANNEX I. SOURCES OF SPATIAL
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ANNEX II. INVESTOR TYPES IDEAL TYPE
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BO LAGER pointed out that farmers w
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areas and watersheds and to anticip
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The company does not deal with fore
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ANNEX IV. INVESTMENT FORUM PARTICIP
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FIRST NAME LAST NAME TITLE COMPANY
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FIRST NAME LAST NAME TITLE COMPANY
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HISTORICALLY, BOTH PUBLIC AND PRIVA
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