‘Ban of timber exports, a boon to economy’

THE government’s imposed ban on export of forest products is now witnessing the proliferation of timber factories in the country.

According to the Minister of Natural Resources and Tourism Dr Pindi Chana, Tanzania is now home to about 4,200 timber and log processing factories.

Dr Chana, who was fielding questions from reporters before chairing a Ministerial Public-Private Sector Dialogue here yesterday, further disclosed that the country was now hosting 37 engineered wood products, most of them located in the Southern Highlands part of the country.

“The government’s decision has since been vindicated, well knowing that it was geared towards improving revenue collections from forest products,” the Minister explained.

Dr Chana further reiterated that it was prudent to export wooden finished products instead of raw materials.

She equally urged players in the forestry sector to leverage on the African Continental Free Trade Area (AfCFTA), an agreement which Tanzania has since become part of.

The government had, in November 2021, banned export of a range of forestry products in a move meant to increase investment and value addition in the country.

Tourism and Natural Ministry deemed the export of veneer as unacceptable, at a time when the country was encouraging value addition as opposed to export of raw materials.

Shedding light on the two-day engagement with the public sector, Dr Chana described the meeting, which is also a brainchild of Tanzania National Business Council (TNBC), as an important platform in steering the forestry sector to greater heights.

For his part, an official with the Confederation of Tanzania Forest Industries Association, Ben Mfungo Sulus said such a dialogue had helped resolve at least 26 business obstacles that had once marred the sector.

“We commend the government for coming up with such an initiative which seeks to improve the sector,” he observed.

Forestry sector plays a significant role in the economy of Tanzania and ecosystem stability.

Although its contribution to the Gross Domestic Product is about 3.5 per cent and to Tanzania total export trade about 11 per cent, its role to subsistence economy is over 20 per cent.