SPECIAL REPORT: Tanzania, Kenya to end the Sh16bn illegal cross-border timber trade

Arusha. In 2013, the wildlife trade monitoring network TRAFFIC, and WWF—the leading organisation in wildlife conservation and endangered species—carried out a rapid assessment on the Tanzania and Mozambique border to establish the extent of illegal cross-border timber trade.

The exercise revealed that Tanzania was losing an estimated Sh7.5 billion (about $4.2 million) from illegal practices in the forestry industry from three border districts of Masasi, Nanyumbu and Tunduru in Mtwara and Ruvuma regions.

Businessmen were using forged documents at the borders, allowing them to pass through official checkpoints and bring timber to the Tanzanian market from Mozambique.

In Mozambique, an assessment by Eduardo Mondlane University and WWF to determine revenue loss from illegal logging and illegal trade from domestic markets revealed that about $11 million (about Sh19 billion) was lost annually.

These alarming findings led to the signing of a Memorandum of Understanding (MoU) between Mozambique and Tanzania in 2012 to help stem such illegal activities and protect forests in the two countries.

Motivated by the MoU, the Kenyan government entered into discussions with Tanzania to develop a similar agreement that would address the rising timber trade from Tanzania to Kenya.

In December 2013, Tanzania Forest Services (TFS) and Kenya Forest Services (KFS) met to draft a bilateral MoU between the two countries.

This initiative was also inspired by reports of illegal timber trade, which demonstrated a rise in inter-regional trade from Tanzania to Kenya and considerable loss of revenue from both countries.

Globally, in 2012, it was estimated that 229 square kilometres of land were deforested each day due to illegal logging. In 2009, the global illegal trade in timber was believed to be responsible for annual losses in government revenues to the tune of $10 billion, up from $5 billion in 2006.

In Africa, forests are reportedly disappearing faster than in any other region in the world. Illegal logging in Central Africa is among the highest in the world.

In East Africa, the illegal trade in timber is undermining forest conservation and sustainable livelihoods for rural communities that depend on forest resources. It also costs the region’s governments tens of millions of US dollars each year in lost revenue.

The signing of the new forest co-operation agreement between Kenya and Tanzania in Arusha on March 24, 2015, is set to improve the effectiveness of measures to tackle the rampant illegal logging and timber trade across the borders of the two east African states.

Over time, there have been growing concerns over the expansion of the illegal trade in forest products across the border between Tanzania and Kenya.

Between May and October 2011, a study carried out by the East Africa Wildlife Society in partnership with the Tanzania Natural Resources Forum entitled “The Trade in Forest Products Between Tanzania and Kenya”, revealed that Tanzania might have lost revenue estimated at $8.33 million (about Sh15.5 billion) annually due to inaccurate recording of figures and volumes of forest products, under-valuation of timber and poles, illegal charcoal business and illegal harvesting and sale of logs moving across borders.

The study also established that considerable movement of timber and other forest-related products across the borders was carried out at the border points of Horohoro/Lunga Lunga, Holili/Taveta and Namanga but with numerous illegal crossing points present in both Kenya and Tanzania.

The MoU signed by TFS and KFS chief executive officers on behalf of the Tanzanian and Kenyan governments outlines cooperative measures to help improve the management of critical forest resources in the two countries.

The MoU is the result of several years’ work by the WWF and TRAFFIC, which facilitated exchange visits and organised several meetings.

Speaking shortly before the MoU signing ceremony, TFS Chief Executive Officer Juma Mgoo said the agreement would, over the next five-years, focus on trans-boundary collaboration around law enforcement to end the illegal trade in forest resources such as timber and charcoal.

“This is the beginning and we hope that, in five years, all the areas identified in the MoU will be fully implemented,” said Mr Mgoo.

He added: “We aim to focus on undertaking joint law enforcement activities and exchanging information on trade and harvesting operations in both countries. The purpose of this is to ensure that there is compliance on both sides by traders in Tanzania and Kenya with laws and regulations regarding the management and utilisation of forest resources.”

In 2013, he said, Tanzania completed a four- year project on the National Forest Resources Monitoring and Assessment (Naforma)—the first ever comprehensive national forest inventory undertaken in the country.

The Naforma inventory came up with an alarming rate of over-harvesting of the country’s forests, said the TFS boss, adding: “The key message of Naforma is that Tanzania’s forests are under increasing pressure and their degradation threatens to hurt the economy and negatively impact the quality of life for most Tanzanians—especially those living in rural areas.”

If this wood deficit continues, it will lead to the loss of an important economic base for the rural population and will have a serious negative impact on the quality of their lives, he said.

Mr Mgoo added: “This is not something we can take lightly. We must take action to reverse the trend. To do otherwise will be a betrayal of our children’s heritage and that of future generations.”

KFS acting director Emilio Mugo said the MoU was an effort to manage the two countries’ forest resources in a more sustainable manner.

“We have together agreed to co-ordinate our monitoring and law enforcement activities and share information regarding trade in forest products along with tapping into the knowledge base of forest-related products available in both our countries,” said Mr Mugo.

Mr Isaac Malugu, WWF Tanzania’s Forest Programme co-ordinator, said: “We expect that the signing of this MoU will benefit the people of Kenya and Tanzania, who deserve increased access to and benefits from forest resources that are currently absorbed by the illegal activities of a very small group of people.”

Dr Amani Ngusaru, WWF’s Tanzania country director, said the forestry sector contributed approximately 10 per cent of the country’s registered exports and this could rise if illegal exports in the forestry sector were taken into account.

The study that estimated that Tanzania loses $8.33 million annually due to under-evaluation of timber and poles, unrecorded volumes of timber, illegal charcoal business and illegal harvesting and sale of logs.

“Such a loss is unacceptable considering that this is money we need to build schools, hospitals and other social amenities,” Dr Ngasaru said. “Think about this carefully: How many schools can we build with $8.33 million? How many hospitals? This is a big loss and it is happening annually.”

WWF recognised the scale of the issue, he said, and would continue to play its part in helping the two governments and their agencies, such as TFS and KFS, move closer towards integrated and sustainable natural resource management.

Dr William Oweke Ojwang, the acting country director of WWF Kenya, said corruption at border points should be addressed in an open manner, particularly in granting export permits, regional export permit standards, and the use of information and communications technology as well as establishment of designated export processing for timber.

Dr Ojwang called for the need to introduce open office policies that encourage transparency and accountability, blacklisting those found to be engaging in illegal forest products trade and standardising permits.

Ms Julie Thomson, TRAFFIC East Africa’s programme co-ordinator, said: “The signing of the agreement is a significant action that shows the two countries are ready to address better control of the timber trade. It’s a positive step now. The next thing is to make the MoU work.”

In 2005, Tanzania was Africa’s sixth largest timber exporter to China, according to Ms Thomson. A review of declared imports by China since 2010 showed that Tanzania’s exports ranged between $378,887 and $1,262,462 compared to Mozambique, which was consistently above $100 million.

“Demand for timber in Tanzania is growing due to the construction industry’s rapid growth, coupled with economic growth and lack of reliable alternatives,” said Ms Thomson.

A feedback report on monitoring of forest products trade in Kenya and Tanzania border points presented by Mr Cassian Sianga, a senior forest programme officer with the Tanzania Natural Resource Forum and Coordinator of the Tanzania Forest Working Group, was among reports that motivated Tanzania and Kenya to sign the MoU.

The study came up with statistics showing how the government of Tanzania was losing revenue through illegal timber trade across the border points of the two countries.

Based on observations and records, the study estimated that on average, 1,492 bags of charcoal with varying weights leave Tanzania for Kenya every day and only 525 bags find their way to Tanzania from Kenya, he said.

“The overall objective of this study was to provide decision-makers from both countries with information on the scale and magnitude of the ongoing legality of forest products trade and creating a better environment for institutional collaboration and co-ordination between Kenya and Tanzania,” said Mr Sianga.

Mr Geofrey Mwanjela, the WWF Technical Programme co-ordinator for the Coastal East Africa Initiative, said the signing of the MoU would open more doors for Tanzania to engage regional co-operation in reducing the illegal timber trade and improving forestry governance.

“WWF is working with the East African Community and the Southern African Development Community to further strengthen the inter-regional co-operation of forestry agencies in Tanzania, Kenya, Mozambique and Zanzibar,” said Mr Mwanjela.

Dr Richard Lesiyampe, the principal secretary for Kenya’s ministry of Environment, Water and Natural Resources, said participation of people in forestry resources was more important today than ever before.

“We have to develop a mechanism on how people can best benefit from these resources in a sustainable way,” he added.

Ms Gladness Mkamba, Tanzania’s Director of Forestry Division in the ministry of Natural Resources and Tourism, said the charcoal trade in Tanzania was still a big problem. “We cannot stop the use of charcoal because we need it,” she added. “But we should utilise it sustainably.”