A recent study by the MwAPATA Institute has highlighted significant inefficiencies in Malawi’s forest plantation fee structure, leaving the country trailing behind regional counterparts such as Kenya, Zambia, and Tanzania.

Speaking during the launch of the Forest Plantation Fee Structure Report and Public-Private Engagement on Forest Plantations on Tuesday in Lilongwe, MwAPATA Institute Executive Director William Chadza said Malawi’s outdated forest plantation fee structure is crippling the sector’s economic potential and hindering effective management.

The study reveals that outdated pricing policies and poor management practices are stifling the economic potential of Malawi’s forest plantations

According to Chadza, the forestry sector’s minimal contribution to GDP has resulted in low budget allocations, and that it faces issues such as forest fires and institutional challenges.

“We conducted the research to compare Malawi’s plantation fees with other Sub-Saharan countries. Our findings show that the pricing structure here is outdated, undermining the sector’s contribution to the economy. The forestry sector contributes so little to GDP that it receives minimal attention in budget allocations, leading to challenges like forest fires and institutional issues,” said Chadza.

Mike Chirwa, a REDD+ and LEDS Specialist for the Modern Cooking for Healthy Forests (MCHF) project, emphasized the potential for revitalizing Malawi’s forest sector.

“Malawi was once a leader in timber production in Southern Africa. Today, we rely on imports from countries like Zambia and Kenya. This research is a wake-up call for Malawi to restore its forest sector, which could be a significant contributor to GDP and socio-economic development,” he said.

Chirwa also noted that other countries in the region, such as Uganda, have successfully capitalized on their forest resources, making Malawi’s lag even more concerning.

Dr. Yusufu Mkungula, Principal Secretary in the Ministry of Natural Resources and Climate Change, acknowledged the challenges, attributing them to corruption and inadequate resources within the ministry.

“We have about 88 forest plantations in Malawi but managing them is a major challenge due to limited financial and human resources. Corruption further complicates our ability to manage and restore these vital resources.”

Dr. Mkungula also disclosed that Malawi had recently adjusted forest product prices for the first time in 14 years.

“We have implemented new pricing for timber, concession fees, and royalties, but we are rolling out these changes gradually to avoid market disruption,” he said.

However, political interference, according to Mkungula, remains an obstacle, as some members of parliament have questioned the new pricing adjustments, citing a lack of private sector consultation.

The MCHF project, co-funded by USAID and FCDO, along with the MwAPATA Institute, conducted the study to assess whether the forestry sector can sustainably generate revenue in the country.

Among others, the findings point to the under-performance of the sector, which contributes just 0.1% to Malawi’s GDP, resulting in policymakers often overlooking it in resource allocation decisions.