Malawi’s plantation forestry sector contributes significantly to the country’s economic growth through revenue generation, job creation, and foreign exchange earnings. However, the sector faces numerous obstacles that hinder its potential.
The Department of Forestry struggles with limited human resources, inadequate financial resources, and insufficient equipment, such as fire-fighting tools. Budget allocation inconsistencies have resulted in significant shortfalls, with Viphya Plantation receiving only half of its requested budget between 2019 and 2024.
Forest fires pose a significant threat, with over 11,000 hectares of plantation forest lost to fires between 2018 and 2022. Corruption also remains a persistent issue, with stakeholders citing difficulties in addressing the problem due to the involvement of powerful political and economic elites.
The current fiscal policy, including a 16.5% value-added tax on forestry machinery and equipment, undermines the sustainability of forest plantations and discourages private-sector investment in forest management.
To address these issues, the Mwapata Institute recommends providing adequate financial and human resource support, enacting appropriate policy and regulatory frameworks, and increasing investment in research and development. Engaging local communities through participatory approaches in plantation forestry management is also crucial.
Vice-President Michael Usi emphasized the importance of promoting sustainable forest management through tree planting and natural regeneration, citing it as a cost-effective and efficient way to restore degraded forest landscapes.
