Institutions, governance, and upgrading in non-industrial private forestry value chain in the Southern Highlands of Tanzania
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Date
2021
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
Among the factors for the rise of Non-industrial private forestry (NIPF) include, the
demand for timber and limited capacity of governments and corporations to supply to
cover for the deficit. In developing countries, NIPF is dominated by smallholder farmers
and presents a huge potential for alleviating poverty in rural areas where the majority of
farmers live. Nevertheless, institutional framework and governance of the NIPF value
chain have a huge influence on the benefits accrued from NIF and their distribution.
However, in Tanzania, most studies on the role of institutional framework and
governance have been on natural forests and industrial plantations, which for a long time
have been the main source of timber in the country. Using the theory of access and the
global value chain, particularly the institutional framework and governance structure
dimensions, the study analyzed the role of institutions and governance in non-industrial
private forestry value chain in the Southern Highlands of Tanzania. Specifically, the study
intended to 1) analyze the role of state regulations in governing timber value chain 2)
examine the role of informal institutions in timber value chain and 3) analyze the types of
upgrading in the NIPF value chain and the institutions driving them.
In large measure, the study adopted an exploratory cross-sectional study design whereby
qualitative data were collected through in-depth interviews, focus group discussions,
observations and document reviews. In addition, quantitative data were collected for the
study from six district councils in Njombe and Iringa regions. Qualitative data were
analyzed following six steps of thematic analysis including transcribing interviews into
text, going through the text, coding the text, grouping the codes to form themes,
reviewing the themes, describing the themes and assessing their relationships. SPSS
software was used for analyzing quantitative data.
The study findings show that the government is the sole regulator of the NIPF value
chain, and all actors in the chain operate under the same regulatory framework. This was
not unique as similar cases are found in many developing countries. However, in
Tanzania, regulations are implemented differently at the district council level whereby
some district councils, unlike others, charge higher the cess per a piece of timber. Lack of
distinction between industrial and non-industrial private forestry has resulted in placing
industrial and non-industrial forestry under the same regulatory framework despite their
many differences including economic status of the owners, the size of plantations, and
management plans. Lack of distinction has also partly resulted in high transaction costs,
which are unaffordable to the majority of actors in the NIPF value chain. Although the
regulations affect incomes of all actors, tree growers are the most-affected category.
Besides, the study found that trust between value chain actors played a role of integrating
actors in the value chain. However, in some instances, it also excluded some actors from
accessing timber market under the guise of lacking or having low level of trust.
Furthermore, the study found that institutional framework comprising the government,
development partners through donor-funded programmes, and grower organizations are
behind attempts to upgrade the NIPF. Although four types of upgrading are promoted,
only functional upgrading was found to have resulted into higher income among tree
growers.
In view of the study findings, it is concluded that although forest regulations were set to
facilitate the operations of NIPF and to improve its contribution to rural livelihoods.
Some of the regulations have resulted into unintended negative effects by limiting the
actors of the value chain from gaining more income. Similarly, informal institutions,
particularly trust, play an important role of integrating actors in the value chain by
enabling them access regional market. Besides, the study concludes that in the absence of
a lead firm, upgrading driven by institutions comprising the government, development
partners through donor funded programmes, and grower organization is still occurring.
The study recommends that in order for NIPFs to contribute significantly to the income of
actors, the government, through the Ministry of Natural Resources and Tourism (MNRT),
should review the regulations governing the timber value chain. Specifically, barriers that
limit tree growers and other actors from gaining access to the markets should be
minimized or completely removed. In addition, in order for upgrading strategies to
contribute to the improvement of rural livelihoods in the Southern Highlands of Tanzania,
institutions promoting upgrading in NIPF value chain should pay attention to the needs of
the tree growers.
Description
Dissertation
Keywords
Institutions, Governance, Value chain upgrading, Private forestry