Tanzania’s forests worth more than we think

FORESTS in Tanzania, particularly on the Mainland, play a vital role in sustaining life and driving development. They not only support environmental conservation and climate stability but also underpin key sectors of the economy such as agriculture and food security, energy, livestock, fisheries, wildlife, water, tourism, health and education.

Yet, despite their immense contribution, the value of forest and woodland resources has been underestimated for decades.

The official statistics from the National Bureau of Statistics (NBS) only account for what is traded—timber and other wood products—completely ignoring the critical, non-monetary services our forests provide. These non-traded services—including climate regulation, water catchment protection, biodiversity conservation and carbon storage—are excluded from GDP calculations.

This omission undervalues forests, even though they remain a primary source of livelihood for millions of Tanzanians in both rural and urban areas. Forestry experts have repeatedly raised concerns about this underestimation, but limited political will has meant their voices went largely unheard.

The overlooked ecosystem functions include nutrient cycling, water regulation, wildlife habitats and pollination, among others. Natural forests, in particular, provide these services more effectively than monoculture plantations, highlighting the importance of preserving them.

For example, forests regulate rainfall and allow groundwater recharge, sustain hydropower dams such as Mtera, Kidatu and the Julius Nyerere Hydropower Project, and safeguard soil fertility for agriculture.

They also support ecotourism, cultural values and recreation. Without these services, many sectors of the economy would struggle to function. Currently, however, GDP calculations focus almost entirely on traded wood products, ignoring nonmarketed forest ecosystem services (NMFES).

According to NBS (2023), the forestry sector’s official contribution to GDP between 2010 and 2023 ranged from 2.2 to 4 per cent. Similarly, a Ministry of Natural Resources and Tourism (MNRT) study between 2019 and 2021 placed it at 3.3 per cent—still excluding ecosystem values.

Recognising this gap, MNRT commissioned the Tanzania Forestry Research Institute (TAFORI) to lead a collaborative study with experts from Sokoine University of Agriculture (SUA), the University of Dar es Salaam (UDSM), the Forestry and Beekeeping Division, NBS and the Tanzania Forest Services Agency (TFS).

The taskforce assessed the monetary value of ecosystem services to make a stronger case for their inclusion in national accounts. Using a “green accounting” approach, the study covered 17 regions rich in forest resources, including Arusha, Iringa, Kigoma, Lindi, Mbeya, Morogoro, Ruvuma and Tanga.

Data were collected through 1,159 questionnaires and 81 checklists. The study evaluated seven key ecosystem services: Carbon storage, soil fertility and preservation, biodiversity protection, water conservation, air purification, recreation and cultural values, and pollination.

Findings presented to the National Forestry Advisory Committee (NAFAC) in June 2025 showed that forests contributed 16.73 per cent to GDP through ecosystem services alone. When combined with the conventional 3.3 per cent reported by NBS, the sector’s true contribution rises to about 20 per cent—five times higher than previously recognised.

These results provide compelling evidence for policy makers to adopt green accounting in national statistics. They also highlight the urgent need to reduce deforestation and degradation, which currently claim about 470,000 hectares of forest annually. Without intervention, the ecosystem services that sustain Tanzania’s economy and livelihoods will be at risk.

To safeguard these values, the MNRT should establish mechanisms such as Payment for Ecosystem Services (PES), where beneficiaries contribute financially to conservation efforts. Furthermore, NBS must regularly update national accounts to include both conventional and ecosystem-based contributions from forests.

The message is clear: Preserving forests is more valuable to Tanzania’s economy and future than converting them to other land uses. @Dr Kilahama is a former Director of Forestry and Beekeeping in the Ministry of Natural Resources and Tourism.