Regulations matter: their effects on actors of the non industrial timber value chain in the Southern Highlands of Tanzania
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Date
2021
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Routledge
Abstract
In recent years, non-industrial private forestry (NIPF) for timber production has gained economic importance in the Southern Highlands of
Tanzania. Access to benefits accrued from NIPF represents an opportunity for poverty alleviation. Access and distribution of the benefits are
affected by governance, which is an important aspect in this regard. This paper focuses on state regulations, which in the context of Africa and
Tanzania in particular, have received scant attention in the value chain studies. The paper seeks to respond to three main questions: i) How is
the timber value chain regulated? (ii) What strategies do the value chain actors use to gain access to benefits? And iii) how do regulations affect
the incomes of the chain actors? Data for the study were collected from Njombe District through documentary analysis, focus group discussions,
observations and in-depth interviews with key informants. The study findings show that while the government is the sole regulator of the chain,
regulations are implemented differently at the sub-national level. Industrial and non-industrial private forestry are placed under the same
regulatory framework despite their many differences. This has partly resulted in high transaction costs, which are unaffordable by the majority
of actors in the NIPF value chain. Despite strict regulations and many taxes paid, the actors adopt different strategies such as using locally
available materials and capitalizing on social networks in maximizing their incomes from the timber business. The regulations affect incomes
of all actors, however, tree growers are the most-affected category. This is because tree growers possess limited capital to engage in high value
chain activities and strict regulations aggravate the situation. The paper concludes that the contribution of non-industrial private forestry to
poverty alleviation is stifled by cumbersome district and state regulations that limit actors’ access to profitable markets
Description
Journal Article
Keywords
governance, access, benefits, value chain, forestry