1. business and industrial
2. agriculture and forestry
3. forestry

BUSINESS PLAN 2009-2014
JUNE 2009
FOREWORD
The National Forestry Authority is mandated to manage 1.2 million hectares of
forestland in Central Forest Reserves. This is 64% of Uganda’s permanent forest
estate which was reserved for providing forest products and ensure that public goods
like protecting river banks, lakeshores, water catchments and steep slopes,
conserving biodiversity, mitigating the effects of climate change and providing
amenity and recreation services are delivered to the people of Uganda and the
international community. Although the “public goods” are delivered through all the 3.9
million hectares of forests in Uganda, these roles will increasingly be left to the
forests in the Permanent Forest Estate as forests on private lands decline in area
and quality. The Central Forest Reserves therefore will continue to be an invaluable
insurance asset against environmental disasters.
In terms of the economy, forests in Uganda contribute 5.7% to the Gross domestic
Product. A significant part of this contribution is found in the service roles of forests
including climate change mitigation, stabilisation of water supplies for domestic and
agricultural use and soil conservation among others. Therefore, forests are
indispensable in supporting production of other sectors like energy, health, water,
and agriculture.
In this Business Plan 2009-2014, the National Forestry Authority aims to make sure
that forestland in Central Forest Reserves is put to productive use through
responsible forest management. As a result, plantations will be established and
maintained, degraded natural forests restored and the whole Permanent Forest
Estate protected and managed in a responsible manner. This is in line with the
Sector Investment Plan of the Environment and Natural Resources Sub-Sector. This
Business Plan has also been prepared with the consideration of the emerging
National Development Plan.
Being a Government owned semi-autonomous organisation, the National Forestry
Authority is in a unique position to deliver on its functions in a businesslike manner.
Its shareholders are the people of Uganda who have invested heavily to maintain
these forests in the past. The National Forestry Authority therefore, is not only
expected to generate revenue to finance its activities but also to show dividends to
the stakeholders in terms of the public goods. This Business Plan will enable the
National Forestry Authority to meet the needs of its shareholders during the next 5
years starting in financial year 2009/10.
We look forward to working with our partners and other stakeholders in implementing
this Business Plan.
Hon. Baguma Isoke
CHAIRMAN, NFA BOARD OF DIRECTORS
i
ACKNOWLEDGEMENTS
The preparation of this Business Plan 2009 -2014 is the collective effort of the
National Forestry Authority (NFA) and its various partners in the Forestry Sub-sector.
The Business Plan process was participatory and consultative, using focus group
discussions, planning workshops, field visits and documentary reviews.
On behalf of NFA, the staff and Business Plan Task Force, the Executive Director
NFA would like to thank one and all, individuals and institutions for the input and
participation in the workshop and meetings, for the guidance given to a drafting team
that worked tirelessly in order to produce this Business Plan in time. The team that
drafted this BP included:
Mr. Ernest Kaddu
Leader Business Plan Task Force
Mr. Steve Amooti Nsita
Team Coordinator
Mr. John Bosco Obore
Internal Auditor
Mr. Godfrey Acaye
Coordinator Natural Forest Management
Mr. Stephen Khaukha
Manager, Tree Seed Centre
Mr. Samuel Matagi
Coordinator Consultancy and Management Services
Mr. Chris Otim
Coordinator, Corporate Planning
Mr. Obed Tugumisirize
Plantation Development Specialist
Finally, I would like also to recognise the invaluable input, advice and guidance of the
National Forestry Authority Board of Directors, chaired by Hon. Baguma Isoke.
Damian B. Akankwasa
Executive Director, NFA
ii
ACRONYMS
HR
Human Resources
AAC
Annual Allowable Cut
AIDS
Acquired Immunity Deficiency syndrome
BP
Business Plan
CAP
Chapter
CBO
Community Based Organisation
CFM
Collaborative Forest Management
CFR
Central Forest Reserve
CSO
Civil Society Organisation
DFS
District Forest Service
EI
Exploratory Inventory
EIA
Environment Impact Assessment
EU
European Union
FBE
Forest Based Enterprises
FD
Forestry Department
FID
Forestry Inspection Division
FIS
Forest Information System
FMP
Forest Management Plan
FNCMP
Forest Nature Conservation Master Plan
FR
Forest Reserve
FSSD
Forestry Sector Support Department
GDP
Gross Domestic Product
GIS
Geographical Information Systems
GoU
Government Of Uganda
GTZ
German Technical Co-Operation
Ha
Hectare
HIV
Human Immuno - deficiency Virus
ISSMI
Integrated Stock Survey & Management Inventory
IUCN
World Conservation Union
Km
Kilometre
LFR
Local Forest Reserve
LG
Local Government
MDG
Millennium Development Goals
MEA
Multi-lateral Environment Agreements
MFPE
Ministry Of Finance, Planning & Economic Development
MWE
Ministry Of Water and Environment
NA
Not Applicable
NAADS
National Agricultural Advisory Service
iii
NaFORRI
National Forestry Resources Research Institute
NBS
National Biomass Study (of NFA)
NEMA
National Environment Management Authority
NFA
National Forestry Authority
NFP
National Forestry Plan
NFPTA
National Forestry & Tree Planting Act, 2003
NGO
Non-Governmental Organisation
NORAD
Norwegian Agency For Development
NTSC
National Tree Seed Centre
ODA
Official Development Assistance
PA
Protected Area
PES
Payment for Ecosystem Services
PFE
Permanent Forest Estate
PMA
Plan for Modernisation of Agriculture
PPPs
Public Private Partnerships
REDD
Reducing Emissions due to Deforestation and Degradation
RFM
Responsible Forest Management
RM
Range Manager
Shs
Shillings (Uganda)
SPGS
Sawlog Production Grant Scheme
SWOT
Strengths, weaknesses, opportunities and threats
UBOS
Uganda Bureau of Statistics
UWA
Uganda Wildlife Authority
iv
TABLE OF CONTENTS
FOREWORD .......................................................................................................................................... I
ACKNOWLEDGEMENTS ..................................................................................................................II
ACRONYMS ....................................................................................................................................... III
LIST OF LIST OTABLES .............................................................................................................. VIII
EXECUTIVE SUMMARY ..................................................................................................................IX
BACKGROUND ..................................................................................................................................... IX
THE WAY FORWARD ............................................................................................................................X
1. INTRODUCTION .............................................................................................................................. 1
1.1 THE NATIONAL FORESTRY AUTHORITY MANDATE ........................................................................ 1
1.1.1 Purpose of the Business Plan .......................................................................................... 1
1.1.2 The Planning Process........................................................................................................ 1
1.1.3 Target Users and Beneficiaries ........................................................................................ 1
1.1.4 Structure of the Business Plan ......................................................................................... 1
2. PERFORMANCE REVIEW OF THE PREVIOUS BUSINESS PLAN........................................ 2
2.1 OBJECTIVE A: IMPROVE THE MANAGEMENT OF CENTRAL COREST RESERVES ............................... 2
2.1.1. Increase in Area and Quality of Forest Cover in Central Forest Reserves .............. 2
Source: NFA Performance Report 2003-2008......................................................................... 2
2.1.2 Reduction in the Level of Illegal Activities ...................................................................... 3
Source: NFA Performance Report 2003-2008......................................................................... 3
2.1.3 Level of Investments in Forest Assets and Infrastructure ............................................ 3
Source: NFA Performance Report 2003-2008......................................................................... 3
2.1.4 Level of Sustained Yield and Quality of Forest Products ............................................. 3
Source: NFA Performance Report 2003-2008......................................................................... 4
2.1.5 Human Resources Efficiently Used ................................................................................. 4
Source: NFA Performance Report 2003-2008......................................................................... 4
2.2 OBJECTIVE B: EXPAND PARTNERSHIP ARRANGEMENTS .................................................................. 4
2.2.1 Area under Collaborative Forest Management Arrangements.................................... 4
Source: NFA Performance Report 2003-2008......................................................................... 5
2.2.2 Develop and Implement Memorandums of Understanding with Partners ................. 5
Source: NFA Performance Report 2003-2008......................................................................... 5
2.2.3 Area of Plantations Managed On Contracts................................................................... 5
Source: NFA Performance Report 2003-2008......................................................................... 5
2.3. OBJECTIVE C: SUPPLY OF OTHER PRODUCTS AND SERVICES ......................................................... 6
2.3.1 Resource Base ................................................................................................................... 6
2.3.2 Forest Products and Services .......................................................................................... 6
Source: NFA Performance Report 2003-2008......................................................................... 7
Source: NFA Performance Report 2003-2008......................................................................... 7
Source: NFA Performance Report 2003-2008......................................................................... 7
Source: NFA Performance Report 2003-2008......................................................................... 8
2.3.7 Seeds and seedlings.......................................................................................................... 8
Source: NFA Performance Report 2003-2008......................................................................... 8
2.3.8 Services and Other Public Goods.................................................................................... 9
2.3.9 Inventory and Surveys ..................................................................................................... 10
2.3.10 National Biomass Monitoring and Land Cover Mapping .......................................... 10
2.3.11 Eco-tourism ..................................................................................................................... 10
Source: NFA Performance Report 2003-2008....................................................................... 11
2.4 OBJECTIVE D: FINANCIAL SUSTAINABILITY .................................................................................. 11
2.4.1 Net Revenue and Expenditure According To Annual Budgets.................................. 11
Source: NFA Performance Report 2003-2008....................................................................... 11
2.4.2 Updated Net Cash Flow Positive from Year 4 ............................................................. 12
2.4.3 NFA’s Balance Sheet Stable or Increasing .................................................................. 12
Source: NFA Performance Report 2003-2008....................................................................... 12
2.4.4 Sources of Funding .......................................................................................................... 12
2.4.5 INVESTMENT & EXPENDITURE PERFORMANCE ........................................................................... 13
v
2.5 MANAGEMENT OF RISKS & ASSUMPTIONS .................................................................................... 13
2.5.1 Political Acceptance of NFA’s Autonomy...................................................................... 13
2.5.2 Clarity of its Responsibilities ........................................................................................... 13
2.5.3 Private Sector Involvement ............................................................................................. 14
2.5.4 Collaboration with Local Communities .......................................................................... 14
2.5.5 Promotion of Sustainable Forest Management outside the Reserves ..................... 14
2.5.6 Competent and Motivated Work Force ......................................................................... 14
2.5.7 Market Development........................................................................................................ 14
2.5.8 Shortfall in Funding Commitments................................................................................. 14
2.5.9 Political Constraints on CFR Operations and Management ...................................... 14
2.6 KEY SUCCESS FACTORS ................................................................................................................ 15
2.7 LESSONS LEARNT .......................................................................................................................... 15
3: ANALYSIS OF CURRENT SITUATION ..................................................................................... 16
3.1 NATIONAL SITUATION .................................................................................................................. 16
3.1.1 Government Policy Objectives ....................................................................................... 16
3.1.2 The Forestry Resources in Uganda............................................................................... 17
3.1.3 Forestry in National Development ................................................................................. 18
3.1.4 Uganda’s Forests in the International Arrangements ................................................. 21
3.2 NFA SITUATION ........................................................................................................................... 24
3.2.1 Integrity of Central Forest Reserves.............................................................................. 24
3.2.2 Management of Urban Central Forest Reserves......................................................... 24
3.2.3 Products & Services......................................................................................................... 25
3.2.4 Organizational Arrangements......................................................................................... 26
3.2.5 Stakeholder Analysis ....................................................................................................... 29
3.2.6 Analysis of the NFA Operating Environment................................................................ 31
4: STRATEGIC DIRECTION OF THE BUSINESS PLAN ............................................................ 36
4.1 VISION AND MISSION ................................................................................................................... 36
4.2 STRATEGIC OBJECTIVES ............................................................................................................... 36
4.3 OBJECTIVE 1: IMPROVE MANAGEMENT OF CENTRAL FOREST RESERVES..................................... 37
4.3.1 Priority 1: Restoration of the Physical and Legal Integrity of CFRs.......................... 37
4.3.2 Priority 2: Promotion of the Multiple Functions of Urban CFRs................................. 37
4.3.3Priority 3: Responsible Management of CFRs.............................................................. 38
4.3.4 Priority 4: Biodiversity Conservation and Sustainable Use ........................................ 38
4.3.5 Priority 5: Restoration of Degraded Natural Forests ................................................... 39
4.3.6 Priority 6: Development of Forest Plantations.............................................................. 39
4.3.7 Priority 7: Sustainable Management of Woodland CFRs ........................................... 40
4.3.8 Priority 8: Development, Maintenance and Dissemination of Forestry Information41
4.3.9 Priority 9: Infrastructure Development for Effective Management Of CFRs............ 42
4.4 OBJECTIVE 2:
EXPAND PARTNERSHIP ARRANGEMENTS .......................................................... 43
4.4.1 Priority 1: Improving the Sanctity of CFRs through Partnership Arrangements...... 44
4.4.2 Priority 2: Partnerships for Improvement of Local Community Livelihoods ............. 45
from Forest-Based Enterprises ................................................................................................ 45
4.4.3 Priority 3: Partnership for Improvement of Knowledge and Skills in Forest
Resource Management ............................................................................................................. 45
4.4.4 Priority 4: Private-Public Sector Partnerships for Increased Social and
Environmental Services from Central Forest Reserves ....................................................... 46
4.5 OBJECTIVE 3:
SUPPLY OF FOREST AND NON-FOREST PRODUCTS AND SERVICES................... 46
4.5.1 Priority 1: Supply of Quality Tree Seed and Planting Materials ................................ 46
4.5.2 Priority 2: Supply of Wood Products from CFRs ......................................................... 47
4.5.3 Priority 3: Supply of Non-Wood Products and Services from CFRs......................... 47
4.5.4 Priority 4: Supply of Non-Forest-Related Products and Services ............................. 48
4.5.5 Priority 5: Business Partnerships with the Private Sector to Increase Supply of
Forest Products and Services .................................................................................................. 48
4.6 OBJECTIVE 4: ORGANISATIONAL SUSTAINABILITY ....................................................................... 49
4.6.1 Priority 1: Corporate Governance for Organisational Sustainability ......................... 49
4.6.2 Priority 2: Resource Mobilisation for Sustainability ..................................................... 50
4.6.3 Priority 3: Strengthen the Human Resource Capacity of NFA .................................. 50
vi
5. PRODUCTS AND SERVICES........................................................................................................ 52
5.1 SEED AND SEEDLINGS ................................................................................................................... 52
5.2 WOOD PRODUCTS ......................................................................................................................... 52
5.3 NON-WOOD PRODUCTS AND SERVICES ......................................................................................... 53
6. FINANCIAL PROJECTIONS ........................................................................................................ 55
6.1 REVENUE PROJECTIONS ................................................................................................................ 55
6.2 EXPENDITURE PROJECTIONS ......................................................................................................... 59
6.3 FUNDING GAP ............................................................................................................................... 59
7. IMPLEMENTATION, MONITORING AND EVALUATION ................................................... 64
7.1 INSTITUTIONAL ARRANGEMENTS ................................................................................................. 64
7.2 ANNUAL OPERATIONS P LANS & BUDGETS ................................................................................... 64
7.3 REPORTING ................................................................................................................................... 64
7.4 MONITORING & EVALUATION ...................................................................................................... 64
7.4.1 Field Visits ......................................................................................................................... 64
7.4.2 Monitoring Team............................................................................................................... 65
7.4.3 NFA Board of Directors ................................................................................................... 65
7.4.4 Performance Agreement Monitoring Committee ......................................................... 65
7.4.5 Value for Money Audits ................................................................................................... 65
8:
ASSUMPTIONS AND RISKS ................................................................................................... 66
8.2 KEY ASSUMPTIONS ....................................................................................................................... 66
8.2 RISKS AND STRATEGIES TO OVERCOME THEM ............................................................................. 66
8.2.1 Encroachment................................................................................................................... 66
8.2.2 Forest Fires ....................................................................................................................... 67
8.2.3 Influx of Illegal Forest Products from Neighbouring Countries .................................. 67
8.2.4 Loss of Forest Estate....................................................................................................... 67
8.2.5 Increased Expenses of Dealing with Forest Crime ..................................................... 67
8.2.6 Fluctuations of Prices ...................................................................................................... 67
8.2.7 Unreliable Weather Patterns .......................................................................................... 68
8.2.8 High Population Growth Rate ......................................................................................... 68
9. BIBLIOGRAPHY............................................................................................................................. 69
10. APPENDICES ................................................................................................................................ 70
10.1 ANALYSIS OF STAKEHOLDERS IN RELATION TO THE NFA BP OBJECTIVES ..................................... 70
10.2 PESTEL ANALYSIS OF NFA OPERATING ENVIRONMENT .......................................................... 71
10.3 SWOT ANALYSIS........................................................................................................................ 73
10.3.1 SWOT MATRIX ....................................................................................................................... 73
10.4 EXPENDITURE PROJECTIONS ....................................................................................................... 75
10.5 MONITORING FRAMEWORK FOR THE BUSINESS PLAN ................................................................ 87
vii
LIST OF LIST OTABLES
Table 1: Progress in achievements for Area and Quality of Forest Cover ........................................ 2
Table 2: Indicators for reduction in illegal activities........................................................................... 3
Table 3: Level of Investments in Forest Assets & Infrastructure.......................................................... 3
Table 4: Level of sustained yield and quality of forest products ........................................................ 4
Table 5: Efficiency of Human Resource Use ......................................................................................... 4
Table 6: Area under Collaborative Forest Management....................................................................... 5
Table 7: MoUs between NFA & Partners .............................................................................................. 5
Table 8: Licensed Private Tree Growers in CFRs ................................................................................. 5
Table 9: Sawlog production from plantations (2004-2006) ................................................................... 6
Table 10: Production of Sawn Timber from Plantations .................................................................... 7
Table 11: Production of Sawlogs from Natural Forests ........................................................................ 7
Table 12: Revenue from Charcoal & firewood ...................................................................................... 7
Table 13: Delivery of Public Goods ........................................................................................................ 8
Table 14: Performance of NTSC ............................................................................................................ 8
Table 15: Revenue from Training and Advisory Services ..................................................................... 9
Table 16: Revenue earned from Consultancies ................................................................................... 10
Table 17: Revenue from maps and digital data.................................................................................... 10
Table 18: Revenue from Eco-tourism ................................................................................................. 11
Table 19: Total Revenue Collections.................................................................................................... 11
Table 20: Cash Flow Position Judged through Levels of Donor Support .......................................... 12
Table 21: NFA Balance Sheet .............................................................................................................. 12
Table 22: Sources of revenue 2004/05 – 2007/08................................................................................. 12
Table 23: Investment and Expenditure ................................................................................................ 13
Table 24: Changes in Forest Cover in Uganda between 1990 and 2005 ............................................ 17
Table 25: Stocking of Timber Trees in Production zones of Uganda’s 5 Main CFRs with TMF...... 20
Table 26: Current Status of Employment in the Formal Forestry Sub-sector................................... 21
Table 27: Category of Central Forest Reserves by Function............................................................... 24
Table 28: Boston Matrix - Products and Services Offered by NFA .................................................... 25
Table 29; Projected Seeds and Seedlings for the five years ................................................................. 52
Table 30: Projected Wood products for the next five years ................................................................ 53
Table 31: Projected Non-wood Products and Services for the next five years.................................... 53
Table 32: Revenue Forecasts................................................................................................................ 55
Table 33: Assumptions ......................................................................................................................... 57
Table 34: Summary of Revenue Projections from Products and Services .......................................... 60
Table 35: Summary of Expenditure by Priority ................................................................................... 61
Table 36: Funding Gap without payments for Ecosystem Services .................................................... 62
Table 37: Projected Financial Position after fully receiving payments for Ecosystem services ........ 63
List of Figures
Figure 1: Land use/Cover types in Uganda, 2005 .............................................................................. 17
Figure 2; Timber Supply and Demand Projections........................................................................... 19
Figure 3: NFA Organisational Structure ........................................................................................... 28
Figure 4; Trend Analysis Of Revenue And Expenditure .................................................................. 62
Figure 5: Trend Analysis of revenue and expenditure ...................................................................... 63
viii
EXECUTIVE SUMMARY
BACKGROUND
The Uganda Government Forestry Policy (2002) summarises the mandate of the
National Forestry Authority (NFA) as sustainable management of the government’s
Central Forest Reserves (CFRs) and promotion and development of private forestry.
Government of Uganda (GoU) expects NFA to operate in a business-like manner,
according to the functions enshrined in section 54 of the National Forestry and Tree
Planting Act, 2003. NFA is mainly charged with managing 506 CFRs totalling 1,
265,742 hectares spread across the country.
Against this background, NFA has prepared this as its second Business Plan (BP)
since it started operations in April 2004. Apart from NFA, other beneficiaries of the
BP are expected to be forest adjacent communities, private investors, dealers in
forest produce, international communities, private industry, and the environment
related sectors – energy, agriculture, health, education, water, trade and tourism,
among others.
A review of the first BP indicates that NFA has made strides in implementing its
mandate of managing the Central Forest Reserves (CFRs) on a sustainable basis,
and supplying high quality forestry-related products and services to Government,
local communities and the private sector. The successes include:
o
o
o
o
o
o
A progressive increase in the total cumulative area of new plantations in the
CFRs for both NFA own planting and private investors.
On the whole, illegal harvesting in CFRs has reduced although a lot remains
to be done.
Within individual reserves, there have been significant benefits to the
communities which have led to increasing recognition of collaborative forest
management as an important forest management practice in Uganda.
Although the volume of products sold was lower than planned, the revenue
accruing thereof was considerably higher than had been planned in the
business plan, which NFA started with, but lower than the business plan as
revised by NFA in 2004.
In natural forests, exploratory inventories (EI) were completed in the
production zones of the major timber producing CFRs and therefore
sustainable harvesting can be planned with a higher degree of certainty.
After a quarter of a century of no work on timber plantation establishment,
quality industrial timber plantations are now being established both by NFA
and licensed private investors.
Along the way, NFA has learnt a number of lessons that will inform implementation of
this BP. They include:
i. De-concentration of decision-making to the field levels breeds innovation.
ii. Institutional autonomy is key to sustainable management of natural
resources.
iii. Proper utilisation of funding from development partners leads to development.
iv. Demonstration areas stimulate learning, especially if strategically positioned.
v. Incentives promote investments in the forest sector.
vi. Public advocacy is crucial in sustainable management of natural resources.
ix
An analysis of the operating environment today shows that NFA is working against a
background of dwindling forest resources in Uganda, especially those forests outside
the protected areas system. The deforestation rate is 1.9% annually, leading to a loss
of 90,000 ha of forests per year. This loss is threatening the future of Uganda’s
economy, which depends a lot on its natural resources for agricultural production,
construction and manufacturing various commodities.
The current mature timber plantations will be exhausted within 3-5 years (by 2011 –
2013), and timber stocks from private natural forests are likely to be exhausted
around this same time. The available natural forest timber stock in CFRs alone will
not be able to meet the demand for timber after 2011. Neither will the timber
plantations serve the ecological purposes of natural forests with any degree of
satisfaction.
On the international scene, the millennium development goals (MDGs) are a
framework through which Governments have agreed to pursue poverty eradication.
Uganda’s forests provide a crosscutting platform on which to implement virtually all
the MDGs.
Against this background, NFA is expected to generate its own revenue from sale of
forest-related products and services in order to finance its operations. However, over
80% of the forest estate cannot generate revenue at present and yet, its main
shareholders, the people of Uganda, expect dividends in terms of products and
especially ecological services. Therefore, NFA will have to explore innovative
sources of funding to supplement revenues from direct products, but it will also
expect the public (domestic and international) to fund management of forests for
these public goods.
THE WAY FORWARD
Accordingly, the NFA will pursue the following strategic objectives:
A. Improve the management of the Central Forest Reserves.
B. Expand partnership arrangements.
C. Supply of forest and non-forest products and services.
D. Organisational sustainability.
While the strategic objectives will take longer than 5 years to achieve, it is expected
that the priorities described under each of the objectives will be achieved during the
BP life.
In generating revenue to address these priority areas, NFA has identified more than
20 products and services which will be developed and marketed in accordance with
the needs of a wide range of clients and customers. Key among these are timber
products, ecotourism (taking advantage of the rich biodiversity and rugged terrain in
western and northern Uganda). Payment for ecosystem services is poorly
understood and rarely appreciated in Uganda but NFA will pursue this line of
innovation and similar funding mechanisms and make them major sources of its
revenue. These payments are expected from private industry, GoU and the
international community.
A summary of the revenue and expenditure projections indicates a sustainable
operation for the NFA during this BP. There will be heavy investment in the areas of
plantation establishment and maintenance, restoration of degraded natural forests
x
and maintaining the ecological integrity of CFRs in sensitive areas like watersheds,
steep hill slopes, river banks, lakeshores and wetlands. However the extent to which
investment is done will very much depend on the success in generating public
investment in ecosystem services and a buy-in by private industry. Table 0
summarises projection of the financial situation during the next 5years (2009-2014).
Table 0: Projection of the financial situation for 2009/10 -2013/14
Year
FY2009/10
FY2010/11
FY 2011/12 FY 2012/13
Summary
of Million
Million
Million
Million
total
revenue
projections
i. Own
15,712.82
17,193.98
18,660.56
20,833.34
Revenue
ii. Public Good –
8,588.50
7,440.89
7,385.59
7,386.92
funding
committed
iii. Public good 29,462.00
31,230.00
33,104.00
35,090.00
Ecosystem
Services
53,763.32
55,864.87
59,150.15
63,310.25
Total
revenue
projections
25,038.00
50,371.00
54,255.00
57,375.00
Summary
of
total expenditure
projections
Surplus
/
Funding Gap
28,725.00
5,494.00
4,895.00
5,935.00
xi
FY 2013/14
Million
Total
Million
23,228.71
95,629.41
200.00
31,001.90
37,196.00
166,082.00
60,624.71
292,713.3
60,870.00
247,909.00
-245
44,804.00
1. INTRODUCTION
1.1 THE NATIONAL FORESTRY AUTHORITY MANDATE
1. The National Forestry Authority (NFA) is a government semi-autonomous organization
that was established after the enactment of the National Forestry and Tree Planting Act,
2003 (NFTPA). It is a body corporate with an official seal and its principal mandate is
summarised in the Uganda Forestry Policy, 2001 as follows:
•
•
The sustainable management of the government’s Central Forest Reserves (CFRs).
The promotion and development of private forestry.
2. Specific functions of the authority are enshrined in section 54 of the NFTPA. As stated in
the Forestry Policy, NFA was expected to operate in a business-like manner and
consequently become financially self-sustaining by the end of its 4th year (June 2008).
1.1.1 Purpose of the Business Plan
3. In order to operate in a business-like manner, it is imperative that a BP is produced to
guide action for a specified period of time. This Business Plan (BP) is an operational
document which will give NFA its sense of direction through focussed strategic
objectives, priorities and actions.
4. The first BP for NFA was developed and approved in June 2004, covering a 5 year
period ending June 2009.
1.1.2 The Planning Process
5. This BP was developed through a participatory and consultative process using focus
group discussions, planning workshops, field visits and documentary reviews.
Participants included NFA staff, National Environment Management Authority (NEMA),
Uganda Wildlife Authority (UWA), Wetlands Inspection Division (today, Wetlands
Department), and Ministry of Water and Environment (MWE) staff among others.
1.1.3 Target Users and Beneficiaries
6. The BP is primarily intended for NFA operations. Other users are the Government of
Uganda (GoU), Development Partners, Investors and Civil Society Organizations
(CSOs). The beneficiaries of the BP are expected to be forest adjacent communities,
private investors, dealers in forest produce, International Communities, utility companies,
and environment related sectors, such as energy, agriculture, health, education, water,
trade and tourism, among others.
1.1.4 Structure of the Business Plan
7. The BP is arranged in eight chapters. Chapter one is the introduction, Chapter two deals
with the performance review of the previous BP, while Chapter three analyses the
current situation. The strategic direction of the BP is described in Chapter Four, while
Chapter Five presents products and services. The financial projections are presented in
Chapter six. The implementation modalities of the BP are described in Chapter Seven.
Risks and assumptions as well as Monitoring and evaluation are discussed in Chapter
Eight.
1
2. PERFORMANCE REVIEW OF THE PREVIOUS BUSINESS PLAN
8. NFA started its operations under an enabling policy and legal framework. Key
institutional structures were set up to facilitate implementation of the framework and
consequently the development of the first 2004-2009 BP for NFA. A number of
successes, challenges and lessons were registered during the implementation of the first
BP as discussed later in this chapter. The Performance Contract between NFA and
Government of Uganda (GoU) provided the indicators against which management of the
CFRs was assessed by objective.
2.1 OBJECTIVE A: IMPROVE THE MANAGEMENT OF CENTRAL COREST RESERVES
2.1.1. Increase in Area and Quality of Forest Cover in Central Forest Reserves
9. There was a progressive increase in the total cumulative area of new plantations in the
CFRs for both NFA own planting and private planting while the plantation area under
mature crop kept on decreasing from year to year due to harvesting. The annual targets
in both cases were not achieved and for the case of NFA, the annual planted area
decreased from year to year as resources were diverted from planting new areas to
maintenance of the planted areas. Table 1 shows the progress in achievements under
various indicators.
Table 1: Progress in achievements for Area and Quality of Forest Cover
Indicators
2004/5
Target Actual
Area of NFA Plantations
NA
2,743
(Mature 20 years plus, Baseline
2003 = 3500 ha)
Area of NFA Plantations
2,781
NA
(Immature, inherited from FD)
Area of NFA Plantations (New,
2,500
2,123
established during year)
Total cumulative Area of NFA
4400
7,647
1
Plantations
Area of Private Plantations
established on CFRs during
7,500
1,524
year
Total cumulative Area of
Private Plantations on CFRs
12,548
2
(Baseline = 11,024 ha)
17,400 20,195
Total Plantations on CFRs
Source: NFA Performance Report 2003-2008.
2005/6
Target Actual
2006/7
Target Actual
2007/8
Target Actual
NA
1,857
NA
1,613
NA
1,129
NA
2,781
NA
2,781
NA
2,781
2,500
2,118
2,500
1,361
2,500
1,552
5,600
8,879
7,600
10,196
10,100
11,064
7,500
2,493
7,500
3,499
7,500
4,573
13,517
18,600
22,397
17,016
20,600
27,012
25400
23,100
1
The actual cumulative are a in each year represents the actual mature plantation remaining, the immature crop,
the crop planted that year, and the crop actually planted during the previous years. E.g. the Cumulative total for
2006/7 equals 1,613+2,781+1361+(2,118+2,123) = 8,879 ha.
2
Total cumulative area for private plantations on CFRs includes the baseline area (11,024 ha) plus the area
actually planted that year. E.g. for 2004/05, the cumulative area = 11,024+1,524 = 12,548 ha.
2
36,464
2.1.2 Reduction in the Level of Illegal Activities
10. Over the last five years the levels of illegal activities have reduced as evidenced from
increased volumes of legally harvested timber on Kampala markets. However, the area
of CFRs that is free from encroachment reduced from 85% in 2005/6 to 80% in 2006/7
following the Presidential Executive directive in early 2006 which stopped eviction of
encroachers from the CFRs. Table 2 shows indicators for reduction in illegal activities.
Table 2: Indicators for reduction in illegal activities
Indicators
2004/5
Target Actual
Area of CFRs that is free from
encroachment (%)
79% 37.8%
Legally harvested timber on the
market in Kampala (%age)
60%
70%
Impounded timber on the market in
Kampala (volume m3)
Source: NFA Performance Report 2003-2008.
2005/6
Target
Actual
2006/7
Target
Actual
2007/8
Target
Actual
60%
60%
76%
76%
80%
85%
70%
75%
80%
90%
85%
85%
-
3,210
-
2,566
4,230
2,500
2.1.3 Level of Investments in Forest Assets and Infrastructure
11. All CFRs have forest management plans (FMPs) in place (although most of them are in
draft form). Over 400 km of roads and 7,000 kms of forest boundaries have been
opened and maintained (Table 3).
Table 3: Level of Investments in Forest Assets & Infrastructure
Indicators
2004/5
2005/6
Plantations (ha) managed by NFA
Forest plantations maintained according to
agreed standards
Area of CFR with new Forest Management
Plans
Cumulative Length of forest boundaries reopened by NFA (Km)
Forest roads re-opened and maintained (km)
Target
4,400
Actual
4,904
Target
5600
Actual
7,022
2006/7
Target
7,600
Actual
8,383
2007/8
Target
10,100
Actual
9,935
50%
50%
65%
60%
75%
68%
80%
89%
40%
40%
80%
60%
90%
90%
90%
100%
2,000
130
2,675
398
3,000
300
3,686
1,021
4,000
350
1089
268
5,000
400
6
357
Source: NFA Performance Report 2003-2008.
2.1.4 Level of Sustained Yield and Quality of Forest Products
12. In Table 4, there is no indication on the area of CFRs being managed under responsible
forest management (RFM) because the NFA was still developing the criteria and
indicators (C&I) and putting in place the framework for using these C&I to measure RFM.
To a great extent, the NFA has restored professional ethics in management of forests
(natural
forests
and
plantations)
in
Uganda.
3
Table 4: Level of sustained yield and quality of forest products
Indicators
Area (ha) of CFRs being
managed under responsible
management standards
2004/5
Target
Actual
2005/6
Target
Actual
2006/7
Target
Actual
2007/8
Target
Actual
146771
182,000
1012594
277,000
786,200
377,000
78,200
100,000
29,301
100,000
100,000
100,000
23,760
20,000
1,504
30,000
30,000
40,000
1,500
40%
40%
40%
40%
40%
40%
-
64
-
65
-
65
3
Volume (m ) of timber
harvested in plantations
100,000 81,963
3
Timber
volume
(m )
harvested in Tropical High
Forests
10,000
1,602
Average Recovery rate in
sawmills of timber harvested 30%
35%
Number
of
species
harvested for timber
50
64
Source: NFA Performance Report 2003-2008.
2.1.5 Human Resources Efficiently Used
13. Whereas the idea was to have one employee manage 4000ha of CFRs, this was not
achieved. The rate of staff deployment has been slow mainly because of inadequate
revenues to finance increased staff expenditure. In effect, some of the field management
units were merged and this led to the reduction of employee costs (Table 5).
Table 5: Efficiency of Human Resource Use
Indicators
2004/5
Target
Total No. of Employees
Area managed per staff
3,600
Employee costs as a proportion of
the total recurrent expenditure
44%
Human resource development as a
proportion
of
the
recurrent
expenditure
0.027
Source: NFA Performance Report 2003-2008.
Actual
335
3,600
2005/6
Target
2006/7
Target
3,600
Actual
338
3,600
4,300
Actual
304
3,960
37%
42%
42%
44%
1.70%
0.018
7.40%
1.50%
2007/8
Target
4,700
Actual
324
3,676
40%
46%
42%
1.60%
1%
1.5%
2.2 OBJECTIVE B: EXPAND PARTNERSHIP ARRANGEMENTS
2.2.1 Area under Collaborative Forest Management Arrangements
14. The areas of CFR managed under the collaborative forest management (CFM)
arrangements have increased from 649 hectares in 2004/5 to 10,000 hectares in
2006/07 (Table 6). Within individual reserves where agreements are being implemented,
there have been significant tangible benefits to the communities that have encouraged
more communities to join and participate in CFM activities. However, the spread from
one CFR to another is slow because:
•
•
The nature of CFM activities is localized, and the information flow to other CFRs is
inadequate.
The nine-step process leading to signing of an agreement is long and tedious.
4
•
In some cases, there is poor relationship between the communities and NFA, and hence it
takes long to build trust to a level where a meaningful CFM agreement can be signed.
Table 6: Area under Collaborative Forest Management
Indicators
2004/5
Target Actual
Total area of Central Forest
Reserves managed under CFM
1,500
agreements (Ha)
No. of households participating in
CFM agreements
No of CFM agreements signed
4
and being implemented
Source: NFA Performance Report 2003-2008.
2005/6
Target Actual
2006/7
Target Actual
2007/8
Target Actual
649
5,000
7,998
10,000
10,000
20,000
10,000
-
-
-
-
250
-
250
15
15
20
21
10
2.2.2 Develop and Implement Memorandums of Understanding with Partners
15. Table 7 shows Memoranda of Understanding (MoUs) signed with partners.
Table 7: MoUs between NFA & Partners
Indicators
Target
2005/06
MoUs with partners managed
Achieved
2005-06
Achieved
2006-07
4
Target
2007-08
Achieved
2007-08
3
Target
2008-09
10
Source: NFA Performance Report 2003-2008.
2.2.3 Area of Plantations Managed On Contracts
16. NFA is supposed to contract management of some CFRs to partners but this has not
been possible because partners still believe that NFA should continue to manage CFRs.
In fact, many would like to see the NFA extending beyond CFRs. However, NFA has
licensed private tree growing in some CFRs as detailed in Table 8.
Table 8: Licensed Private Tree Growers in CFRs
Indicators
2004/5
Target
Actual
Number of active licenses issued
2,600
out for private tree growing in
2,500
CFRs
Area (ha) of CFRs licensed for the
establishment of private forest 46,000 12,548
plantations (ha)
Source: NFA Performance Report 2003-2008.
2005/6
Target Actual
2006/7
Target Actual
2007/8
Target Actual
2,800
2,600
3,100
2,786
3,400
3228
51,000
13,517
55,000
17016
61,000
254007
17. The area licensed for private tree growing has exceeded the target mainly due to the
incentives for tree growing, including:
i.
ii.
Financial support from Sawlog Production Grant Scheme (SPGS),
Affordable land licence fees for CFR land and enabling payment arrangements (on annual basis
and for area planted),
iii. Profitability of the investment, and
iv. Lessons from NFA demonstration plots.
5
2.3. OBJECTIVE C: SUPPLY OF OTHER PRODUCTS AND SERVICES
2.3.1 Resource Base
18. There are a total of 506 CFRs under the management of NFA, altogether occupying a
total area of 1, 265,742 hectares. These reserves provide a number of products and
services.
2.3.2 Forest Products and Services
19. The products and services that were harvested/accessed from the CFRs include:
Products:
Sawlogs, construction poles, utility poles, fuel wood, sawn timber, medicinal plants,
forest food, fibre and fodder
Services:
Research and training, ecotourism, watershed protection, carbon sequestration,
protection of fragile ecosystem and biodiversity conservation
20. Below are the analyses of the performance of the various products and services.
2.3.3 Sawlog Production (Plantations)
21. During the first two years of the BP, the standing volume advertised for harvesting was
below the annual allowable cut (AAC) of 100,000 cubic metres per year. Table 9 shows
production of sawlogs from plantations.
Table 9: Sawlog production from plantations (2004-2006)
Indicators
2004/05
2005/06
3
Volume harvested (bidding) m
67,801
60,448
3
Casual Licenses (m )
19,154
18,060
22. Actual revenue from standing volume was below the anticipated revenue mainly in the
Performance Contract because bidding was a new approach in the disposal of sawlogs.
As a result, bidders speculated, offered unrealistic prices, and consequently failed to
raise enough capital to pay for what they had bidded.
23. To address revenue shortfalls within the same period, NFA sold some of the standing
volumes through causal licences at reserve prices for volumes that could not be bought
through bidding. Casual licenses were also issued in respect of standing volume of
patches of crop scattered in otherwise felled areas. This was done to prepare the land
for re-planting and salvage the deteriorating crop.
24. In addition, NFA decided to dispose off some of the unsold volume through own milling,
mainly to improve milling recovery, and promote quality of timber through grading &
seasoning to demonstrate best practice in sawmilling. This own milling started towards
the end of FY 2005/06. In the process, additional revenue was earned. Table 10 shows
the details of performance during the period.
6
Table 10: Production of Sawn Timber from Plantations
Indicators
3
Volume of roundwood harvested (m )
3
Volume of timber produced (m )
Recovery %
Value of the Timber (million)
Source: NFA Performance Report 2003-2008.
2004/5
0
0
0
0
2005/6
0
0
0
0
2006/7
2007/08
8,488
3,508
41
1,228
23,706
9,935
42
3,800
2.3.4 Sawlog Production (Natural Forests)
25. Although the projected volume of sawlogs during the BP period, was 100,000 m3 (mainly
from the major reserves of Budongo, Bugoma, Itwara and Kalinzu), just under 5,000 m3
was actually harvested (Table 11).
Table 11: Production of Sawlogs from Natural Forests
Indicators
2004/5
2005/6
Estimated
vol 10,000
20,000
3
(M )
1,723
Actual harvested 1,602
3
(m )
Income
0
278,078,000
Source: NFA Performance Report 2003-2008.
2006/7
30,000
2007/8
40,000
30,000
1500
65,095,000
79,047,000
26. Low sales were due to uncontrolled harvesting from private natural forests. The trees
from private forests remained much cheaper than those from CFRs. In addition, there
were delays in establishing procedures for disposal of sawlogs in natural forests. Even
where sales from CFRs were carried out, bidders highly speculated on price and
subsequently failed to pay for most of the volume they had bidded for.
2.3.5 Charcoal and Firewood
The sale of charcoal was not budgeted for, but in the 2004/5 financial year when the
responsible Minister instructed NFA to monitor movement of forest produce irrespective of
the source, sale of impounded charcoal and licenses issued for charcoal production in the
process of land clearing by private farmers earned NFA 34 million.
27. Most of the revenue from firewood came from the activities of rehabilitating the pole and
fuel plantations, and sale of sawmilling slabs. As these operations continue, it is
anticipated that the volumes and revenue from firewood will increase.
28. Table 12 shows the performance of charcoal and firewood.
Table 12: Revenue from Charcoal & firewood
Indicators
2004/5
2005/6
Target
Actual
Target
Actual
Charcoal
34,393,0
23,119,0
(Shs)
00
00
Fire wood 16m
80.249m
69.07m
(Shs(000)
Source: NFA Performance Report 2003-2008.
Target
2006/7
Actual
34,719,00
0
116.312m
Target
2007/8
Actual
41,650,0
00
87.735m
7
2.3.6 Deliveries of Public Goods and Services on Contract with Government of Uganda
Table 13: Delivery of Public Goods
Indicators
Biomass
monitoring
reports
covering the different regions of the
country produced
Land area mapped using the most
recent satellite images
Area (ha) of seed orchards
established and maintained
2004/5
Target Actual
2005/6
Target Actual
2006/7
Target Actual
2007/8
Target Actual
1
-
2
-
3
-
4
-
10%
10%
50%
25%
80%
80%
100%
100%
17
2.25
17
25
10
13.5
16
-
3
5
8
20
10
30
-
Number of District awareness
campaigns by the Private Forestry
Promotion Centre
5
Source: NFA Performance Report 2003-2008.
2.3.7 Seeds and seedlings
29. National Tree Seed Centre (NTSC) of NFA has endeavoured to collect, test, and store
sufficient quantities of seed, both indigenous and exotic, to meet the growing demand for
forestation and re-forestation programmes in the country. The demand for pine seed
increased significantly, largely as a result of the Sawlog Production Grant Scheme
(SPGS) financial support to farmers. This was enhanced by increased awareness
campaigns and training events launched by NFA, resulting in greater appreciation of the
use of good quality planting materials by tree farmers.
Table 14: Performance of NTSC
Indicators
2004/5
Target Actual
Seed collection (local) Kg
2,000
7,291
Seed imports (Kg)
0
213
Seed sales (local) Kg
1,500
1,921
Seed sales (imported) Kg
0
183
Seedlings sales No. in ‘000)
300
503
Revenue from seed (UGX in
“000)
100,395
145,261
Revenue from seedlings
(UGX in ‘000)
86,250
87,738
Area (ha) of seed orchards
established and maintained
17
2.25
Number of local communities
employed (casual labour)
15
25
Private
seed
suppliers
identified,
trained
and
registered
0
0
Source: NFA Performance Report 2003-2008.
2005/6
Target Actual
2006/7
Target Actual
2007/8
Target Actual
4,000
600
2,050
400
1,400
6,000
0
3,000
0
1,000
5,955
568
3,904
568
1,049
4,000
245
2,845
345
1,175
6,573
660
2,627
660
1,539
239,445
349,645
366,000
458,263
755,000
-
98,000
209,540
200,000
351,097
321,500
-
17
25
10
13.5
16
-
30
35
40
43
50
-
25
40
0
0
0
-
30. The demand for agro-forestry species has also fostered species diversification and the
expansion of the vegetative unit to produce grafted/budded materials for fruits. Table 14
provides the detailed progress in the performance of NTSC since 2004.
8
31. In most cases, seed and seedling sales went above the projected levels, mainly
because:
i.
ii.
iii.
iv.
v.
vi.
vii.
Private sector investment in tree growing increased above expectations.
Many Non-Governmental Organisations (NGO) and Community-Based Organisations (CBOs)
went into promotion of tree growing.
Incentives for tree growing, such as SPGS stimulated interest.
There was increased production capacity, including skills and infrastructure .
Increased customer confidence in the NFA to supply quality seed and seedlings.
Expanded seed sources, including imports.
Establishment of nursery networks upcountry.
2.3.8 Services and Other Public Goods
32. The provision of services such as advisory services, consultancies, inventory and
surveys were not included as an indicator in the Performance Agreement, but they
became significant over time.
Advisory Services
33. Advisory services delivery has been instrumental in increasing awareness, development
of skills, and interesting stakeholders in consuming NFA’s products and services. In the
process, NFA has generated some revenue from skills training, principally as a means of
cost recovery (Table 15). There is need to actively exploit this avenue to promote best
practices and attract more private sector investment in the sector.
Table 15: Revenue from Training and Advisory Services
Indicators
2004/5
2005/6
Training
and
Services (Shs’ 000)
Advisory
Target
-
Actual
5,650
Target
-
Actual
30,122
2006/7
Target
-
Actual
70,008
2007/8
Target
-
Consultancies
34. NFA inherited over 100 years of professional experience from its predecessor, the
former Forestry Department. With this experience, combined with a calibre of well
trained staff, NFA offers consultancy services to her clientele over a wide range of
specialised services which include but are not limited to forest management planning
(FMP), Environmental Impact Assessments (EIA), Environmental Audits, Geographical
Information Systems (GIS) & Remote Sensing products, and Carbon Trade. It has been
assisting and encouraging the corporate world to invest in tree planting as part of their
corporate social responsibility. Table 16 shows the revenue earned from consultancy
services.
35. While there are high opportunities in consultancy services, the potentials have not been
adequately exploited for most of them.
9
Actual
55,303
Table 16: Revenue earned from Consultancies
Indicators
2004/5
EIA (Shs’ 000)
FMP (Shs’ 000)
Other Social
(Shs’ 000)
Responsibility
Target
-
2005/6
Actual
Target
-
0
0
0
2006/7
Actual
13,189
0
Target
-
0
2007/8
Actual
11,925
13,659
Target
-
30,000
36. This has been mainly an internal service to NFA. The mature plantations have been
inventoried and a new harvesting plan was produced in 2005. Every year, total
enumeration and demarcation of felling coupes totalling 100,000 m3 of roundwood is
carried out to enable sales by competitive bidding.
37. In natural forests, exploratory inventories (EI) were completed in the production zones of
the major timber producing CFRs. In addition, Integrated Stock Survey and Management
Inventory (ISSMI) was carried out annually to determine the trees to be harvested.
2.3.10 National Biomass Monitoring and Land Cover Mapping
38. This is one of the public good activities. In monitoring woody biomass, a total of 1,779
plots were measured in the Western, Eastern and Central parts of Uganda. Land
use/cover mapping based on the 2005 satellite images has covered the whole country,
and final interpretation and report writing are on-going. In addition, NFA has been able to
earn some revenue out of sale of maps and digital data, as indicated in Table 17.
2006/7
Target
Actual
Target
Actual
Target
Maps (Shs’ 000)
-
36,373
-
41,144
-
Images/consultancies
(Shs’ 000)
-
0
-
64,631
-
Actual
960
0
30,000
2.3.9 Inventory and Surveys
Table 17: Revenue from maps and digital data
Indicators
2004/5
2005/6
Actual
2007/8
Target
Actual
50,781
-
59,026
404,730
-
71,255
2.3.11 Eco-tourism
39. Ecotourism is increasingly being given attention as one of the non-consumptive uses of
forests. In addition to the NFA’s ecotourism centres, there has been significant interest
by the private sector to invest in eco-tourism development in CFRs. In the process NFA
generated revenue as shown in Table 18.
10
Table 18: Revenue from Eco-tourism
Indicators
2004/5
Target
2005/6
Actual
Sites
License fees (Shs’ 000)
Entrance fees (Shs’ 000)
Research fees (Shs’ 000)
Camping fees (Shs’ 000)
Accommodation (Shs’ 000)
Guiding fees (Shs’ 000)
Nature
Walks/
Bird
Watching (Shs’ 000)
Target
3
13,225
18,263
10,305
1,589
8,525
4,652
8,182
2006/7
Actual
Target
4
27,574
25,780
7,964
2,514
25,139
9,486
2,267
Chimp Tracking (Shs’ 000)
Filming (Shs’ 000)
Chimp Habituation (Shs’
000)
Total
138,379
Source: NFA Performance Report 2003-2008.
2007/8
Actual
6
14,475
16,641
25,772
1,902
5,779
1,648
1,160
Target
Actual
10
80,000
10,000
5,000
3,000
10,000
5,000
3,000
-
-
12,000
5,000
2,000
100,724
67,377
135,000
2.4 OBJECTIVE D: FINANCIAL SUSTAINABILITY
2.4.1 Net Revenue and Expenditure According To Annual Budgets
40. GoU contribution that had been intended for the provision of public goods within the
CFRs kept on dwindling from year to year (Table 19). This meant that some of the vital
ecological activities were not carried out.
Table 19: Total Revenue Collections
Indicators
2004/5
2005/6
2006/7
2007/8
Target
4,300
Actual
4,828
Target
6,500
Actual
5,513
Target
7,200
Actual
6,616
Target
7,900
Actual
10,538.4
565
611
1,300
171
1,500
176
1,600
321.7
40
70
50
100
60
67
72
121.8
39%
47%
55%
61%
60%
65%
90%
150
163
150
194
600
24
725
Percentage
of
total
29%
48%
budget funded from own
revenue and GoU
Source: NFA Performance Report 2003-2008.
56%
62%
70%
62%
85%
Revenue collected from
forest produce (million
shillings)
Revenue
for
other
products and services
(Shs m)
Revenue collected from
non-consumptive uses
e.g. tourism (Shs m)
Ratio of recurrent costs
funded by own revenue
should be increasing
GoU contribution to NFA
budget (Shs m)
42
11
2.4.2 Updated Net Cash Flow Positive from Year 4
Table 20: Cash Flow Position Judged through Levels of Donor Support
Indicators
2004/5
2005/6
2006/7
2007/8
Target
Actual
Target
Actual
Target
Actual
Target
Actual
Annual
cash
flow
forecast
positive
from
2007-08
and
3
onwards
See next
indicator
See next
indicator
See next
indicator
See next
indicator
See next
indicator
See next
indicator
See next
indicator
See next
indicator
Amount
of
donor support
(Shs m)
12,600
6,679
6,350
7,281
4,800
6,012
3,343.8
3,582.2
2.4.3 NFA’s Balance Sheet Stable or Increasing
Table 21: NFA Balance Sheet
Indicators
2004/5
2005/6
2006/7
2007/8
Target
Actual
Target
Actual
Target
Actual
Target
Actual
Assets
7,000
4,404
7,100
5,583
7,600
5,302
8,000
4809
Net Assets level (Shs
m)
7,000
3099
7,100
7,164
7,600
6,678
8,300
11,255
Non-current
level (Shs m)
Total Assets incl. 62,000 7,504
value of plantations
(Shs million)4
57,500 12,747 59,600 1198
65,300 16,055
Source: NFA Performance Report 2003-2008.
2.4.4 Sources of Funding
41. Over the last four years, NFA has had three main sources of revenue namely: locally
generated revenue (own revenue), Official Development Assistance (ODA) and GoU
contributions. Donor funds have contributed a significant proportion of NFA's revenue for
the last four years, while government contributions drastically decreased starting
2006/07. The proportion of locally generated revenue has been increasing. Table 22
shows revenue performance over the last four years.
Table 22: Sources of revenue 2004/05 – 2007/08
Actual 2004/05
Actual 2005/06
Financial Years
(Shs (000)
Shs (000)
5,420,077
6,438,911
Own Revenue
163,939
194,155
Government subvention
6,679,431
7,281,306
Grants
12,263,447
13,914,372
Total Income
Actual 2006/07
Shs (000)
8,262,837
23,965
6,012,607
14,299,409
Actual 2007/08
Shs (000)
10,981,990.4
42,356
3,582,183
14,606,529.4
3
The Performance Agreement states that the indicator for positive net cash-flow, demonstrating
financial sustainability, is the level of donor support necessary to balance the budget. Therefore, a
more reliable measure is the level of donor support over the period which will be declining over time.
4
The annual targets include the value of forest plantations inherited from FD, while the actual
achieved were for plantations established by NFA annually
12
2.4.5 INVESTMENT & EXPENDITURE PERFORMANCE
42. Table 23 shows the investments and expenditure over the past four years. Out of the
total expenditure in the financial years 2004/05 to 2007/08, 27% was injected in
investments and capital.
Table 23: Investment and Expenditure
Financial Years
Actual
2004/05
Expenditure
Shs (000)
Payroll costs
Actual
2005/06
Actual
2006/07
Actual
2007/08
Shs (000)
Shs (000)
Shs (000)
4,306,576
4,599,420
4,192,150
3,890,684.5
809,128
992,895
1,052,130
857,549.5
Direct forest based costs
1,784,528
2,352,497
2,401,507
2,818,754.4
Administrative Expenses
3,296,072
4,193,336
3,695,303
3,012,838.9
0
0
0
-
532,521
1,080,120
1,296,253
1,466,043.4
10,728,825
13,218,268
12,637,343
-
Capital
2,373,121
2,258,314
1,104,894
265,228.8
Investment in capital stock
1,062,211
2,602,510
3,559,476
1,822,863.4
18,079,092
17,301,713
27%
27%
Other personnel costs
Saw-millings Expenses
Depreciation
Total Recurrent Costs
Total Operating Expenses
Percentage
investment
of
14,164,157
capital
24%
Note: The reported figures for 2007/08 are interim figures. The approved final accounts are
not yet ready.
2.5 MANAGEMENT OF RISKS & ASSUMPTIONS
43. The first BP identified the following risks and assumptions.
2.5.1 Political Acceptance of NFA’s Autonomy
44. It was envisaged that there would be temptation for political leaders to over-control the
activities of the NFA and not allow the new Board and management team enough
freedom to operate but this did not happen. The political leadership at national level
gave full support to NFA and nurtured it during its establishment and operations. NFA
also enjoyed the support and confidence of Parliament and advocacy groups.
2.5.2 Clarity of its Responsibilities
45. It was feared that the role of NFA would not be understood, and that Government
officials would ask it to perform tasks for which it did not have a mandate or funding, thus
jeopardising its financial sustainability. In the early years this did not happen, but it
began to manifest itself towards the end of the BP.
13
2.5.3 Private Sector Involvement
46. It was thought that it would be difficult to attract private sector investment in forestry. On
the contrary, the response of the private sector, especially in plantation establishment,
has been over-whelming. The private sector has been licensed to grow industrial timber
plantations, invest in eco-tourism, and engage in processing of forest products. This
interest was boosted by various incentives.
2.5.4 Collaboration with Local Communities
47. It was anticipated that NFA would not manage CFRs openly using concessions and
various forms of partnership agreements. NFA has endeavoured to promote
partnerships through CFM agreements but the concession arrangements have not
worked well. 110 years of forest management by Government is a long time and
therefore the slow up-take is understandable.
2.5.5 Promotion of Sustainable Forest Management outside the Reserves
48. It was anticipated that Government would contract NFA to support the District Forestry
Services (DFS). Government has not yet engaged NFA in the promotion of RFM outside
the CFRs, but NFA has the capacity to do it, should the funds become available.
2.5.6 Competent and Motivated Work Force
49. It was assumed that NFA would train its new staff and retain them by giving them
adequate remuneration and working conditions. Some training has been done but in
terms of staff retention, there has been limited deliberate action.
50. Key risks associated with the establishment and operations of NFA were seen to be the
following:
2.5.7 Market Development
51. It was feared that timber from illegal harvesting and imports and low prices from private
forest owners with limited awareness about the value of their forest products would
undermine the market prices of timber and sawlogs. Subsequently, NFA would not
achieve the anticipated revenue levels. NFA has tried to curb illegal activities and
continues to do so. The volume of imported timber has reduced with the improved
security in neighbouring countries. In addition, NFA introduced the bidding system for
sale of sawlogs, which resulted in improved revenue collection from plantations.
2.5.8 Shortfall in Funding Commitments
52. It was feared that Government would not fulfil all its funding commitments necessary for
the establishment of NFA. Indeed, Government did not live to its commitment, and
therefore NFA had to abandon some of the planned activities. There was also
uncertainty about the approval of the Norway funding but it was later approved.
2.5.9 Political Constraints on CFR Operations and Management
14
53. It was feared that NFA would not be given the autonomy necessary for the fulfilment of
its mandate and become financially viable. NFA has largely been given the autonomy to
operate as planned but financial sustainability is still elusive because about 85% of the
forest area in CFRs does not yield cash revenue.
2.6 KEY SUCCESS FACTORS
54. Since the inception of the NFA, a number of successes have been registered, largely as
a result of the following factors:
i.
ii.
iii.
iv.
v.
vi.
Development Partners provided technical and financial support.
An enabling policy, strong legal and institutional framework.
Political commitment to the success of NFA in the first years of its operations.
A strong foundation inherited from Forestry Department
De-concentration of decision making and use of resources (budget, staff).
Competitive and transparent bidding processes
2.7 LESSONS LEARNT
i.
ii.
iii.
iv.
v.
vi.
De-concentration of decision-making to the lower levels breeds innovation.
Institutional autonomy is key to sustainable management of natural sources.
Proper utilisation of funding from development partners fosters progress
Demonstration areas stimulate learning, especially if strategically positioned
Incentives promote investments in the forest sector
Public advocacy is crucial in sustainable management of natural resources
55. In conclusion, improving management of CFR is at the centre of NFA’s Mission. It is the
very reason NFA exists. The terrain of partners in RFM is ever changing in scope and
complexity and will therefore continue to be one of the key avenues for mobilising
resources. Supply of quality forest products and services is closely linked to RFM and
therefore is at the heart of NFA’s long-term engagements.
56. In terms of financial sustainability, NFA has developed a good level of capacity to
generate revenue from directly tradable forest products. However, with about 85% of the
forestland being managed for ecological purposes, a lot remains to be done in the area
of tapping revenue from ecosystem services (PES).
15
3: ANALYSIS OF CURRENT SITUATION
3.1 NATIONAL SITUATION
3.1.1 Government Policy Objectives
57. The Uganda Constitution 1995, as revised in 2005, and Vision 2035 aim at sustainable
national development that takes into account environmental conservation, social
development and economic growth. It empowers Government, including local
governments, to hold in trust for the people and protect forest reserves (FRs) and other
land for the common good of the citizens of Uganda. In accordance with these
constitutional provisions, the National Forestry Policy (2001) sets out Government
development objectives and direction for the forestry sector in Uganda. It sets out the
overall goal for forestry development as ‘’an integrated forest sector that achieves
sustainable increases in economic, social and environmental benefits from
forests and trees by all the people of Uganda, especially the poor and vulnerable’’.
In this Policy, Government commits itself to, among others:
i.
Hold forests in protected areas as permanent forest estate (PFE) in trust for all the people
of Uganda
ii. Promote profitable development of plantation forests
iii. Promote development of well established and run forest industries,
iv. Enhance the rights of the forest adjacent communities to access and utilize land and
resources in FRs by managing the resources together with NFA and local governments
responsible for the FRs
v. Promote conservation of biodiversity in order to sustain the forest resource base and other
products and environmental benefits accruing from forests,
vi. Promote conservation and rehabilitation of watersheds to ensure sustained supply of
adequate and clean water for domestic consumption, industrial development, production
and generation of hydro electricity,
vii. Promote urban forestry for beautification, environmental sanitation from industrial
emissions and provision of tree products,
viii. Promote forestry research and training,
ix. Promote development and supply of quality tree seeds and planting materials for
afforestation.
58. The National Forestry and Tree Planting Act, 2003, (NFTPA) is the main legislative
framework for the forestry sub-sector. Among other things, the Act provides the legal
basis for the forestry sub-sector institutional framework that includes the following
arrangements:
Ministry
of
Environment
Water
National Forestry Authority
Local Governments (LGs)
Private Forest Owners
&
The technical arm is the Forestry Sector Support Department (FSSD)
whose main functions include supervision of policy implementation,
regulation, and providing technical support
Its main function is to manage CFRs in a sustainable manner
The main operating arm is the District Forest Service (DFS) which
includes the District Forest Office, Service Providers and farmers. The
main functions of LGs are to manage Local Forest Reserves (LFRs) &
community forests, and to guide management of private forests
Their main function is to manage private forests
16
59. Other laws which are relevant to the forestry sub-sector include:
•
•
•
•
•
•
•
•
•
The National Environment Act (CAP 53)
Uganda Wildlife Act (CAP 200)
Local Governments Act (CAP 243)
Land Act (CAP 227)
The Traditional Rulers (Restitution of Assets and Properties) Statute (CAP 247)
The Inspector General of government Act (CAP167)
The Leadership Code (CAP 168)
The Magistrates Act (CAP 16)
The Police Act (CAP 303), and The Evidence Act (CAP 6)
60. The principles of RFM have been integrated into other Government macro-policy
instruments like the Decentralization Policy, Poverty Eradication Action Plan, and Plan
for Modernization of Agriculture. Sector policies which affect or are affected by forestry
include the Gender Policy (1997), Culture Policy (2006), National Environment
Management Policy (1994), National Policy for the Conservation and Management of
Wetland Resources (1995), The Wildlife Policy (1999) and The National Water Policy
(1999).
3.1.2 The Forestry Resources in Uganda
61. Preliminary data from the National Biomass Study Unit of the NFA (2007) shows that
Uganda’s forest cover is now 3,554,594 ha, representing about 17% of the total land
area and 15% of the total surface area of Uganda (Figure 1).
Figure 1: Land use/Cover types in Uganda, 2005
Figure 1: Land Use/Cover Types in Uganda (2005)
Other
16%
Wetland
3%
Farmland
37%
Forests
15%
Bushland
12%
Grassland
17%
Source: NFA-National Biomass Study Preliminary data (2007)
62. This represents a forest cover reduction of 28% from the 1990 level, which is reported in
the National Forestry Plan, 2002. Table 24 shows the changes in land cover from 1990
to 2005.
Table 24: Changes in Forest Cover in Uganda between 1990 and 2005
Year/
Land Broad
Conifer
THF
well THF
low Wood land
cover/use
leaved
stocked
stocked
Total Forest
Cover
17
1990
18,682
16,384
650,150
274,057
3,974,102
4,933,375
2005
14,593
17,174
616,307
187,420
2,719,102
3,554,594
Change
in
Area
Change
in
Area per year
-4,089
790
-33,843
-86,637
-1,255,000
-1,378,781
-273
53
-2,256
-5,776
-83,667
-91,919
% Change in
Area
%
Change
per year
-22%
5%
-5%
-32%
-32%
-28%
-1.5%
0.3%
-0.3%
-2.1%
-2.1%
-1.9%
Source: NFA-National Biomass Study Preliminary data (2007)
63. Out of the total forest cover, 64% of the forests and woodlands are found outside the
Permanent Forest Estate (PFE)5. These forests are managed by private land owners
and regulated by LGs. The PFE is 1.9 million ha, of which 33.6% is managed by Uganda
Wildlife Authority (UWA), 0.3% by LGs, and 61.4% by the National Forestry Authority.
4.7% of the PFE is under joint management of NFA and UWA.
3.1.3 Forestry in National Development
General Development
64. The total economic value of Uganda's forests, including all marketable and nonmarketable values, was estimated in 2004 at 593.24 billion shillings (or about 749 billion
today at an average annual inflation rate of 6%), roughly equivalent to 5.2% in Gross
Domestic Product (GDP) terms (Glenn Bush, Simon Nampindo & Andrew Plumptre,
2004). Currently, forest products are consumed largely on the domestic market, although
some products like plywood, block-board, flush doors, decorative veneers, and
chipboard are exported within the East African region.
65. Forest products and services support the livelihoods of about 24 million Ugandans at
subsistence and market levels. In the rural areas, the people depend on forests and tree
resources for their basic needs such as firewood, building poles, furniture, medicine, etc.
The average annual household income from the different forest types is Shs. 332.3 billion
or US$195.5 million (Glenn Bush, et al 2004).
66. In terms of growth, Uganda Bureau of Statistics (UBOS), 2006 estimates that the
forestry sub-sector grew at an average rate of 5.7% during the period 2001/02 –
2005/06, thus contributing directly to the growth of the economy which also grew at a
rate of 5.7% during the same period.
5 The Forestry Policy, 2001 defines the Permanent Forest Estate (PFE) as “land that is set aside for forestry activities in perpetuity.”
18
Forest Products
67. Timber contributes greatly to the construction and industrial sectors. With the current
growth in these sectors averaging 10% over the last 5 years, the demand for timber is
estimated at UGX 57 billion (US$ 32 million) annually.
68. Currently timber harvesting in Uganda is way above sustainable levels. Statistics at the
NFA show that the volume of timber harvested and moved by licensed pitsawyers
jumped from 55,000m3 during FY 2004/05 to 100,000m3 during FY 2005/06 (NFA
Database, 2005/06). Probably twice this volume is not recorded because it is used at
source or it is moved illegally. This puts annual consumption at about 300,000m3 of
timber or nearly 1 million m3 of roundwood at recovery levels of below 30%. Most of the
timber from natural forests comes from outside protected areas (PAs). It is harvested
illegally and goes to the market unrecorded.
69. The mature forest plantations are almost depleted. Figure 2 shows available and
projected timber resources from forest plantations in Uganda.
Figure 2; Timber Supply and Demand Projections
2500000
Uganda's Round wood demand for saw logs and available Timber Supply from
Industrial Plantations 2008-26
2000000
Thinning Volume
Final harvest Volume
1500000
1000000
500000
Year
Vol. m3,Ub
Demand Volume (m3)
0
2008
2009
2 0 10
2 0 11
2 0 12
2 0 13
2 0 14
2 0 15
2 0 16
2 0 17
2 0 18
2 0 19
2020
2021
2022
2023
2024
2025
2026
Source: NFA Reports
70. Roundwood consumption for sawntimber is expected to continue increasing at a rate of
3.7% per annum; reaching about 1.5 million m3 of roundwood per year by 20256 to meet
timber needs only (NFA, 2005). To meet this demand, an average of 5,000 ha of mature
crop will be required annually, translating into about 100,000 ha of industrial timber
plantations by 2025. Another 200,000 ha of forest plantations will be needed to enter the
regional export market and meet the need for other wood products like transmission
poles, pulp, and charcoal.
71. The current mature timber plantations will be exhausted within 3-5 years (by 2011 –
2013), and timber stocks from private natural forests are likely to be exhausted around
this same time. At the current sustainable harvesting levels of 53,000m3/year from
6
Assumes increased unit area production (average of 350m3/ha) and increased efficiency in
sawmilling (averaging 48% recovery)
19
2027
7
natural forest CFRs over the next 30 years (assuming all the species will be accepted
by the market), the available stock in natural forests (Table 25) alone will not be able to
meet the demand for timber after 2011. This means Uganda will have to import
timber.
Table 25: Stocking of Timber Trees in Production zones of Uganda’s 5 Main CFRs with TMF
Forest
Itwara
Budongo
Bugoma
Mabira
Kalinzu
Total
Stocked
Area
4,496
29,445
24,550
13,640
7,035
79,166
Net
volume
(m3)/ha
60
63
77
75
70
69
Net volume
(m3)
266,056
1,839,826
1,699,447
1,028,045
490,262
5,323,636
Harvestable
volume (m3) in
30 years
89,920
588,900
491,000
272,800
140,700
1,583,320
Annual
Sustainable
harvest (m3)
2,997
19,630
16,367
9,093
4,690
52,777
Source: NFA Inventory Data, 2007
72. Fuelwood is the main source of energy for domestic cooking, lighting and heating.
About 97% of households in Uganda use firewood and charcoal for cooking (UBOS,
2002). This trend is unlikely to change in the foreseeable future. Nearly 27 million tonnes
of fuelwood (43.2 million m3) was consumed in 20078, valued at Shs 324 billion, or US$
191 million. In most districts of Uganda the declining forest cover has led to a fuelwood
deficit, resulting in people walking longer distances to collect firewood.
73. The services sector such as hotels and restaurants use charcoal and firewood for their
energy needs. This sector has grown substantially over the recent years with an
estimated growth of 9.6% in 2005/06, contributing about 45% of the overall GDP
(Ministry of Finance, Planning & Economic Development [MoFPED], 2006). As
urbanisation increases, the services sector will continue growing and therefore
consumption of firewood and charcoal will also continue to rise.
Ecological Services of Forests
74. Uganda's forests contribute significantly to the protection and stabilisation of the
environment. In 2004, the combined contribution of forests to soil and water
management, carbon sequestration, and future uses for Uganda's biodiversity was
valued at Shs. 222.2 billion (US$ 130.7 million) annually (Glenn Bush op cit). This
represents the amount of money which government would have to spend annually to
provide fertilizers, drill new boreholes and clean air pollution if the forests were
destroyed.
75. Forests, woodlands and trees render ecological services and support to other sectors
principally agriculture, livestock production, industry, water, energy, health, wildlife, and
tourism, although these are often taken for granted or are poorly understood. Virtually
all CFRs (over 1 million ha) serve the important functions of protecting biodiversity, water
catchments, riverbanks, lakeshores and stabilising steep slopes.
7
8
Natural forest timber trees will remain mainly in CFRs in 3-5 years time
Assumes an average requirement of 1 tonne of fuelwood per person per year
20
76. The Uganda National Household Survey 2005/06 (Agriculture Module) revealed that
43% of all national crop plots suffered from damage, mainly due to rain shortage (19%),
followed by crop disease (10%) (Kazoora, 2007). Therefore, the whole country would be
rendered unviable for cattle grazing and agriculture if these CFRs were destroyed. The
Government’s ‘water for production’ programme in support of the PEAP, and later the
National Development Plan, would be rendered unviable because it requires these
natural regulators and reservoirs of water flow.
77. Forests are important in the protection of water catchment areas. Deforestation in the
Lake Victoria Catchment Areas has resulted in the reduction of the water levels in the
lake, which has, in turn, led to lowering of hydro-power output. This has severely
affected industrial production, with growth in industrial output declining from 10.8% in
2004/05 to 4.5 percent in 2005/06 (MoFPED, 2006). Most manufacturers have been,
either forced to reduce production, or to continue using generators at a higher unit cost.
Current employment in the Forest Sector
78. The status of employment in the forestry sector today shows that the formal segment in
the forestry sub-sector is estimated to be 140,000 jobs a year (Table 26). Future trends
show that by 2025, about 100,000 jobs will have been created from forest plantations
alone. Even more employment opportunities will be found in processing, community
level forest based enterprises (FBEs), management of natural forests, ecotourism, and
urban forestry among others. The total of 1 million jobs estimated in the National Forest
Plan (NFP), 2002, will rise to 3 million jobs using a modest annual growth rate of 5%.
Table 26: Current Status of Employment in the Formal Forestry Sub-sector
Category
No of Workers/ Assumptions
Man years
Poles, Fuelwood and Charcoal
113,000
Nursery
700 10 million seedlings per year
Forest Plantation Establishment and
14,000 7,000 ha per year
maintenance
Forest protection
500 2-3
Patrolmen
per
Forest
Supervisor
Forest Industries, harvesting
9,000 1500 employed at sawmills and
7500 Pitsawyers
Non Wood products and services
1,000 Ecotourism, Rattan, Beekeeping
Forestry Institutions
1,000 (NFA, DFS, MUK-FNC, Nyabyeya,
NaFORRI, FSSD)
Total
139,200
3.1.4 Uganda’s Forests in the International Arrangements
Millennium Development Goals
79. The Millennium Development Goals (MDGs) are important in the struggle to increase the
focus on the poor. The forestry sub-sector in Uganda is contributing to the achievement
of all the MDGs as demonstrated below.
Goal No. 1: Eradicate extreme poverty and hunger
21
80. Most Ugandans depend on forest and tree products for energy, building materials,
medicine, wild foods, supply of clean water, and maintenance of soil fertility. FBEs (e.g.
crafts, bee-keeping, fuel-wood production, poles, charcoal, fruits, fodder), are gaining
prominence in raising the cash incomes of the poor.
Goal No. 2: Achieve Universal Primary education
81. Availability and access to forest resources can greatly contribute to the achievement of
Universal Primary Education. In Uganda, primary school enrolment more than doubled
from 3.1 million pupils in 1996 to 7.4 million in 2004. This necessarily required a
corresponding expansion of infrastructure. Forestry products have played a key role in
expanding this infrastructure by providing timber and furniture.
Goal No. 3: Promote gender equality and empower women
82. Gender differentiation has far-reaching implications for women and children in terms
carrying out other productive work. Establishment of about 7,000 ha of fuelwood
plantations in the urban and peri-urban areas between 1990 and 2000 (FD Records,
2002) has greatly contributed towards reducing the distance women and children who
live in these areas have to walk to collect firewood for domestic use.
Goal Nos. 4, 5, & 6: Child Mortality; Improve Maternal Health Care and Combat HIV/AIDS,
Malaria & Other Diseases.
83. In Uganda, many people still depend on herbal medicine. Data about the population
segment that uses herbal medicine in Uganda is hard to come by, but World Health
Organisation (2003) estimates that in Ghana, Mali, Nigeria and Zambia, the first line of
treatment for 60% of children with high fever resulting from malaria is the use of herbal
medicines at home. The situation is much the same in Uganda. As a result there are a
lot of palliative and treatment herbal medicines from forests and trees for HIV/AIDS,
maternal health care, malaria control, treatment of children’s diseases and other human
ailments. The National Chemotherapeutics Research Laboratory is now taking the lead
role in the development of herbal medicine from Uganda’s forests.
Goal No. 7: Ensure environmental sustainability.
84. Forests, trees and ecosystems based on woody vegetation are a key component of the
environment. Therefore RFM is important for ensuring environment sustainability. In
Uganda, forests protect water catchments, ensuring sustainable supply of water for
domestic consumption, industrial use and generation of energy. Access to safe drinking
water has been rising, now standing at 61% (UBOS, 2006) due to drilling of boreholes,
protection of wells & springs and treatment of water from open reservoirs. All these
sources are dependent on watersheds that are protected by forests.
Goal No. 8: Develop a global partnership for development
85. Because of its crosscutting nature, forestry provides a platform for global partnerships in
the areas of biodiversity conservation, climate change, carbon sequestration,
conservation of water resources, sustainable land management and improvement of
governance. Uganda subscribes to the Paris Declaration on Aid Effectiveness, 2005 in
22
which Governments, multi-lateral and bi-lateral development institutions committed
themselves to, among others:
i.
Strengthen partner countries’ national development strategies and associated operational
frameworks (e.g., planning, budget, and performance assessment frameworks).
ii. Increase alignment of aid with partner countries’ priorities, systems and procedures and
help to strengthen their capacities.
iii. Enhance donors’ and partner countries’ respective accountability to their citizens and
Parliaments for their development policies, strategies and performance.
iv. Eliminate duplication of efforts and rationalise donor activities to make them as costeffective as possible.
v. Reform and simplify donor policies and procedures to encourage collaborative behaviour
and progressive alignment with partner countries’ priorities, systems and procedures.
vi. Define measures and standards of performance and accountability of partner country
systems in public financial management, procurement, fiduciary safeguards and
environmental assessments, in line with broadly accepted good practices and their quick
and widespread application.
Other International Forestry Policy Frameworks
86. In order to consolidate its commitment to environmental sustainability, Uganda has
ratified a number of international forest policy frameworks such as the Convention on
Biological Diversity, the United Nations Framework Convention on Climate Change
(UNFCCC), Kyoto Protocol, the United Nations Convention to Combat Desertification
(UNCCD), the Ramsar Convention and the Non-Legally Binding Instrument on All Types
of Forests. In the Non-Legally Binding Instrument (2007), members states recognise
that:
i.
Sustainable forest management (SFM) aims to maintain and enhance the economic, social
and environmental values of all types of forests, for the benefit of present and future
generations
ii. Implementation of SFM is critically dependent upon good governance at all levels
iii. The impact of climate change on forests and SFM, as well as the contribution of forests to
addressing climate change
iv. Effective implementation of SFM is critically dependent upon adequate resources, including
financing, capacity development and the transfer of environmentally sound technologies
v. The need to mobilize increased financial resources, including those from innovative
sources, for developing countries
vi. Continued deforestation and forest degradation, as well as the slow rate of afforestation
and forest cover recovery and reforestation, results in adverse impact on economies, the
environment, including biological diversity, and the livelihoods of many people. Therefore it
emphasizes the need for more effective implementation of SFM at all levels to address
these critical challenges
87. Due to its crosscutting nature, RFM provides a platform for synergies among the MultiLateral Environment Agreements (MEAs) and Uganda is implementing the decisions
emerging from these MEAs.
23
3.2 NFA SITUATION
88. The NFA is mandated to manage CFRs in a sustainable manner. The main functions of
the CFRs are ecological & biodiversity protection, and production of forest goods &
services to meet economic & social needs of society (Table 27)
Table 27: Category of Central Forest Reserves by Function
Category
No.
of Total Area
CFRs
(ha)
Ecological
and
biodiversity
importance
Industrial forest plantations
Forest reserves for production of
assorted forest goods & services
Total
353
108
45
1,073,983
151,193
40,566
506
1,265,742
Remarks
Protection of steep slopes, water
catchments, river banks, lakeshores
and wetlands
Mainly in the cattle corridor
Small CFRs, especially suited for
small-scale investments
Source: NFA Technical Report, 2005
3.2.1 Integrity of Central Forest Reserves
89. The total external boundary of the 506 CFRs under the management of NFA is 11,000
Km, out of which 1,000 Km consists of the natural features like rivers, swamps, lakes
and ridges, and the remaining 10,000 Km constitute the cut-line requiring re-opening and
regular maintenance. Approx. 4,500 Km have been re-opened, out of which 800 Km has
been verified and confirmed. There is need to re-open the remaining 5,500 Km of the
cut-line, but also mark some 700 Km of natural boundary to stop incursion across
swamps, ridges, valleys, etc. into the CFRs by the farmers.
90. Other issues associated with boundary demarcation that need to be addressed include
conflict management, rationalisation, revision of Boundary Plan maps and production of
cadastral maps, replacement of boundary infrastructure, planting of live-markers, and
production of boundary information for all CFRs.
91. The integrity of the CFRs is further complicated by encroachment. This is the movement
of people with their activities (cultivation, settlements and livestock grazing) into FRs
without permission, and in contravention of the NFTPA (2003). The current area under
encroachment is approx. 270,000 ha, with about 240,000 encroachers (NFA database,
2005). The various activities of encroachers has resulted in massive loss of the forest
cover, soil erosion, reduced volume and quality of water, reduced forest products,
erosion of biological diversity, loss of investment opportunities in the forest sub-sector,
and loss of revenue to NFA in these reserves.
92. Furthermore, CFRs have continued to suffer from illegal extraction of forest produce,
which has resulted into creaming some CFRs of high-value timber species and loss of
the quality of these reserves. The woodland CFRs have suffered most from illegal
activities such as charcoal burning, firewood extraction, agriculture & livestock grazing,
and as a result, many have been reduced to bush land.
3.2.2 Management of Urban Central Forest Reserves
93. As a result of a long period of lapse in management, the urban CFRs are currently under
pressure of land-use change for urban expansion. Currently, there are 37 CFRs located
24
in urban centres (city, municipalities and towns), and these are at different levels of
degradation, encroachment, and management arrangements. During the last BP, at
least five urban authorities have shown interest to find alternative land to swap with the
respective CFRs in order to utilise the current land for alternative developments. The
legal processes are still on-going.
94. Many of the remaining CFRs have been heavily settled, cultivated, rented out and
planted with Eucalyptus by private tree farmers to supply poles and fuelwood. Therefore
there is need to finalise the legal process with the urban authorities, improve the
management of the alternative land, and zone the CFRs for multiple-use functions
(urban environment, open green space, recreation, leisure, areas of scientific
importance, etc), and re-vitalise their management in accordance with the management
plans.
3.2.3 Products & Services
95. NFA products and services have been analysed in terms of the level of revenue returns,
and the level of investment required. As a result, the products and services have been
categorised in the adapted Boston Matrix Table 28.
Table 28: Boston Matrix - Products and Services Offered by NFA
Investment
HIGH
Revenue
HIGH
LOW
CATEGORY 1
Eco-tourism
Milled timber
Round wood (plantation)
Round wood (natural forests)
GIS and Mapping products
services
CATEGORY 4
Clay
Sand
Stones
Watershed services
Soil conservation services
slopes)
Carbon Credit
Urban cleaning services
and
(steep
LOW
CATEGORY 2
Seed and seedlings
Firewood
Charcoal
Land Rent and Tele masts
Grazing
Construction poles
Utility poles
Donations
CATEGORY 3
Pit sawing
Bamboo
Rattan canes
Minerals
Advisory services
Source: Adopted from Boston Matrix Prepared by NFA Planning Workshop, 2008
Category 1: High Investment, High Revenue (stars)
96. These products & services require high levels of investment, but they also yield high
revenues. The NFA can only invest in these if it can mobilise the necessary funding.
Given its revenue collection levels, it will often be difficult to invest in producing these
goods and services without additional financial support (e.g. grants, long term loans,
partnerships).
Category 2: Low investment, high revenues (cash cows)
25
97. These products and services require low levels of investment, but they yield high
revenues. These are the products & services in which NFA can invest, even with the
revenue it collects. Therefore more efforts can be directed at developing them to
optimise revenue.
Category 3: Low investment, low revenue (Dogs)
98. These products require low levels of investment but they also yield low revenue. With
more focus on product development, these products & services can become Category 2.
Category4: High investment, low revenue (problem child)
99. These products and services require high levels of investment but the revenue collected
from them is low. Some of them are public goods and services whose economic value
lies in supporting other sectors like agriculture, fisheries, water, health and power
generation among others. The ecological services fall in this category because
management of forests for ecological and environmental services requires a lot of
resources and yet no one is paying for these services at present. NFA will therefore
devote resources in working towards institutionalisation of payment for ecosystem
services (PES) by Global, Regional and National Organisations/Institutions and
governments. Then these products can move to Category 1.
3.2.4 Organizational Arrangements
100. NFA falls within the Portfolio of the Ministry of Water and Environment (MWE) with
the Minister as the political head. The Directorate of Environment is responsible for
environmental policy guidance within the Ministry and FSSD is responsible for the
forestry policy guidance and regulation within the Directorate. By law, the NFA reports to
the Minister but on a day-to-day basis, it works with FSSD and the MWE Permanent
Secretary on behalf of the Minister.
101. Within the NFA, policy is set by a Board of Directors composed of seven members,
representing various stakeholders in the natural resources sector. At management level,
the NFA is headed by an Executive Director who, together with 4 Directors, constitutes
the Senior Management Team. The total NFA work force is 348 strong. Figure 3 shows
the organisation structure.
Executive Directors Office
102. There are 6 Units in the Executive Director’s Office, namely; Law Enforcement,
Public Relations, Marketing, Internal Audit, Legal Affairs and Procurement. All of them
report to the Executive Director.
26
Directorate of Corporate Affairs
103. The Directorate serves a secretariat function to the NFA, delivering expertise in
corporate planning, reporting, image building, environment impact assessment,
monitoring & evaluation, information technology, consultancy services, Geographical
Information Systems (GIS), and surveys & mapping. These services are cross-cutting
and therefore have been placed under one directorate in order to facilitate the
standardisation of systems and procedures across NFA.
104. Headed by a Director, it has Managers and Coordinators who head the various units,
supported by specialists and technicians.
Directorate of Finance and Administration
105. The Directorate is responsible for financial management, budgeting, maintenance of
books of accounts, financial reporting, human resources management and
administration. Additionally, its institutional mandate includes development &
management of financial management systems, improving efficiency and effectiveness,
guiding in prioritisation of financial resource allocation, diversifying revenue sources,
efficient management of assets, machinery, plants, equipment, vehicles and resource
centres. It has the following administrative Units: - Financial Accounting, Management
Accounting, Human Resources, Administration, Transport, Stores and the Library.
Directorate of Natural Forests
106. The Directorate carries out the main business of NFA. It manages the bulk of the
CFRs (over 1 million ha) and is directly responsible for all matters relating to the
management of CFR’s excluding plantations.
Its institutional mandate includes
conservation of biodiversity, sustainable forest utilisation, and land development &
management.
107. There are 2 Coordinators at NFA Headquarters (Natural Forest Conservation and
Forest Utilisation) who provide coordination functions, technical, administrative and
management support to Range Managers. In addition, there are 6 subject matter
Specialists for Natural Forest Management, Partnerships Development, Eco-tourism and
Land Management. At the field level, the country is divided into 7 Ranges, each headed
by a Range Manager who reports to the Director. Each Range Manager is assisted by a
number of Sector Managers and Forest Supervisors who are the frontline field technical
staff.
Directorate of Plantations
108. The Directorate is responsible for all activities geared at plantations development,
promotion of private forestry, advisory services, harvesting activities and supply of
products such as timber, seeds and seedlings to the market. The plantations are the
major source of revenue and the business arm of NFA.
109. The Directorate is comprised of the following Units: Advisory Services, Plantation
Development, Saw Mill Centre and the National Tree Seed Centre. Each of these Units
is headed by a Coordinator or a Manager (for Centres) and has subject matter
specialists. There are 7 Plantation Managers at field level, responsible for the main
plantation areas. These are assisted by a number of Sector Managers and Forest
Supervisors.
27
Figure 3: NFA Organisational Structure
Minister
Board of Directors
Executive Director
•
•
•
•
•
•
Public Relations
Marketing
Internal Audit
Procurement.
Law enforcement
Legal Affairs
Natural Forests
Directorate
•
•
•
•
•
•
Forest
Conservation
Land
Management
Forest
management
Ranges
Forest Utilization
Partnership
Development
Finance &
Administration
Directorate
• Accounting
• Financing
• Human Resource
• Administration
• Transport
• Stores
Corporate
Affairs
Directorate
• Planning
• Consultancies
• Information Technology
• GIS and Mapping
• Inventory and Surveys
Plantations Directorate
• Plantation
Development
• Tree Seed Centre
• Sawmill Unit
• Plantation
management
• Advisory Services
28
3.2.5 Stakeholder Analysis
110. Since the functions of forests are cross-cutting, there is a wide range of interests
and roles of various stakeholder groups in the forestry sector and thus the work of
NFA. These interests and roles are analysed below.
Policy Makers
111. They decide on national and LG policies and laws affecting forestry, and solicit &
allocate funds, among others. They include political leaders and government
technocrats like members of Cabinet, Members of Parliament, line government
departments, and LG Councils, among others.
112. According to the NFP, NFA is the Lead Institution in the Forestry Sub-sector.
Therefore, NFA will be proactive in guiding policy makers in making informed
decisions that lead towards RFM.
Regulatory Agencies
113. This category of stakeholders is responsible for regulation of forestry activities,
determination of operating standards & guidelines, and planning for the sub-sector.
They also ensure technical adherence to standards and regulations during
implementation of forest management activities, and discipline in management of
operations (accountability, transparency, integrity & professionalism). They include
agencies like Inspectorate of Government, Public Accounts Committees, FSSD,
NEMA, and District Forest Officers.
114. As the Lead Institution in the sub-sector, NFA will observe discipline in
management of its operations. In terms of forest management operations, NFA is
expected by law to work with Government to prepare technical guidelines and
support the DFS in developing towards RFM. This, however, is premised on the
availability of funding for these purposes. Therefore NFA will initiate proposals
towards this end and submit them to government and other public funding agencies.
Producers
115. This category includes all stakeholders who are engaged in the primary
production of forest products and services. Essentially, they grow & manage the
forests & trees, and produce non-timber products. They include, but are not limited to
tree growers, private forest owners and managers of the PFE like UWA, and DFS
116. Many of these producers use CFRs under license to grow their own forests and
process products linked to forests and trees. The NFA in turn derives revenue from
the licensing operation. Therefore, NFA will uphold and improve the current secure,
transparent and enabling licensing mechanisms to ensure confidence of private
sector and community in their investments. This group of stakeholders is where the
NFA will look for public-private partnership (PPP) arrangements in investment.
Service Providers
117. This category provides technical and technological support to the other
stakeholders. They include NGOs (some of these have their main role as advocacy),
government institutions who support farmers & processors, researchers, and
consulting companies, among others. NFA will establish partnerships with this group
of stakeholders to provide RFM-related services to the local communities.
29
Consumers
118. This group includes the whole gamut of stakeholders who consume the forest
products and services. Local communities, those involved in the construction
industry, processing companies (as far as they utilise the raw materials and/or use
biomass energy for processing) belong to this group. Others include schools,
hospitals, hotels, and government institutions like Uganda Prisons & Uganda
Peoples’ Defence Forces.
119. Together with the processors, these are the main NFA clients in terms of
revenue. Therefore, NFA will work towards understanding the details of this
stakeholder category in order to develop good customer relations and thus optimise
on revenue. NFA will also position itself to provide technical support services to
Government, LGs and communities on contract terms.
Processors
120. This category is different from consumers in the sense that they add value to the
primary forest products. They include sawmillers & pitsawyers, charcoal burners,
veneer & plywood manufacturers, furniture makers, honey processors, and
processors of herbal medicines, among others.
121. Like the consumers, this is another stakeholder group that will be targeted as a
revenue source for NFA.
Research and Training Institutions
122. These are engaged in development of technologies and the attendant capacity
building. They innovate, help to solve management and processing problems, and
impart skills and knowledge. These institutions include universities, technical training
institutions and research institutions.
123. In order to improve forest management and utilisation, technological
improvement is paramount. Therefore, NFA will seek to enter into partnership with
this group of stakeholders in pursuit of targeted research and skills development.
NFA will also proactively seek to influence the research and training programmes of
these institutions to ensure value addition and technological advancement.
Advocacy Groups
124. These groups are engaged in advocating for policies that facilitate RFM. They
also advocate for good governance, especially in support of the poorer &
disadvantaged sections of society. These groups include advocacy NGOs, and the
media.
125. This group of stakeholders is important in helping the NFA to put up the case for
the PFE and the need for provision of public funding to manage public goods. These
organisations are also key to enhancing the image of NFA. But in order for this to
work for mutual benefit, NFA will itself strive to observe good governance and
provide information to these organisations.
30
Funding & Technical Cooperation Agencies, Governments
126. This category includes agencies that fund forest management and utilisation.
Many of these organisations also provide technical assistance, especially in terms of
technology transfer. They include official funding & technical cooperation agencies,
GoU Ministries, LG Finance Departments, international private organisations, Trust,
and provident funds like insurance & social security funds.
127. NFA will seek to strengthen and expand its partnerships with these institutions
through maintenance of good forest governance, and demonstration of commitment
to RFM. NFA will also develop capacity for preparation of bankable project proposals
in line with the mandates of the different Funding & Technical Cooperation Agencies.
Law Enforcement Agencies
128. These agencies make sure that the relevant laws are enforced and those who
break the laws are apprehended so that they receive due justice. The agencies
include the Police, State Attorneys, Judicial Service Units, and the Local Council
Courts among others. These agencies help NFA to restore and maintain the integrity
of CFRs. In order to effectively protect the CFRs, closer ties will be developed with
these stakeholders.
129. On the other hand, NFA will seek to minimise expenditure on litigation which can
become devastating to NFA’s financial sustainability. This litigation results mainly
from inadequate knowledge on how to handle forest crimes on the ground.
Therefore, NFA will seek support from these agencies to train its staff in
management of forest crimes.
130. The links of this stakeholder analysis to the strategic objectives of NFA is shown
in Appendix 10.1. During the next five years of this BP, the NFA will use this
stakeholder analysis to work towards formal partnership arrangements in
management and use of forest resources.
3.2.6 Analysis of the NFA Operating Environment
131. In order to gain an understanding of the internal and external environment in
which the NFA is operating, the PESTEL (political, economic, social, technological,
environmental and legal) (Appendix 10.2) and SWOT (Strengths, Weaknesses,
Opportunities and Threats) tools have been used (Appendix 10.3). The analysis
reveals the following key issues that will be taken into account during design and
implementation of this BP:
Internal Environment
Strengths
a. NFA is mandated to manage 1.2 million hectares of CFRs. Some of this forestland
can be used to grow trees for cash, license private investment, and enter into joint
arrangements to harness the immense investment opportunities. In addition, some of
the CFRs are endowed with natural resources like timber stands, biological diversity,
and an attractive rugged terrain suitable for tourism. The investment opportunities
here are immense.
b. NFA is blessed with some of the best technical and professional staff. It will only
invest in training and retooling of the staff to cope with the changing technologies.
31
c. On policy and legal status, NFA is operating under a semi-autonomous framework
which enables it to operate without the usual encumbrances associated with line
government departments.
Weaknesses
d. There are low levels of production and processing technologies especially in timber
processing, nursery practices and plantation establishment, both within the NFA and
the private sector. NFA will deliberately address technology transfer and
development in order to maximise its income and efficiency in operations.
e. There has been no clear programme on staff development and retention. As a result,
a number of staff have left to pursue further studies without being certain that they
will be accepted when they come back. There has also been no clear programme to
strengthen skills in the priority areas. Thus the organisation has continued to operate
with inefficient production methods in nursery operations, ecotourism, harvesting,
sawmilling among others.
f.
The different salaries paid to individual staff, in spite of being in the same hierarchical
staff category, have continued to cause low morale among some sections of staff.
This is exacerbated by the policy of re-concentration of decision-making in most
management operations to the Senior Management Team at Headquarters. NFA will
explore ways of moving from command and control methods of human resources
management to those of addressing human concerns.
g. The internal decision-making process has not focussed on the core functions of the
NFA, which are largely concerned with managing the CFRs. As a result, many staff
often fail to observe them in practice.
h. Inefficiencies in cash flow to the field have led to poor performance of the annual
operational plans. There has been more focus on revenue collection without a
corresponding focus on financing the revenue generation activities, especially for the
non-traditional revenue sources.
i.
In relating to the other stakeholders, especially at the community level, NFA staff act
without explaining their mandate and roles. As a result, there is growing hostility
between NFA and local communities in some areas.
j.
The forest resource base in CFRs has been deteriorating at an average rate of 0.9%
per year since 1990. This will have a direct bearing on revenue earned, especially as
the area and quality of mature plantations (where the bulk of NFA revenue comes
from) decline. NFA will be proactive in restoring the functions of natural forests.
The External Environment
Opportunities
a. Environmentally-conscious consumers of forest-related products are increasingly
showing preference for products from responsibly managed forests. NFA will direct
32
forest management towards standards that are internationally accepted in order to
cash in on this emerging niche market.
b. There is international goodwill for RFM in general. In particular, recent developments
at the Bali Climate Conference in December 2007 have opened the way towards
funds for forest restoration activities as a way of mitigating climate change. NFA will
take this opportunity to access funding under the Bali Conference and similar
arrangements.
c. The emerging global consensus on the role of forestry and trees in reversing climatic
change trends and related disasters provides an opportunity for global funding for
forest restoration and plantation establishment for carbon sequestration. It also
provides an opportunity for working towards PES to finance the public goods function
of CFRs
d. The timber from natural forests on private land is getting exhausted. This provides an
opportunity (although not a gleeful one) for NFA to sell more of the species from its
natural forests which cannot be readily marketed today.
e. The construction sector is developing at a fast rate (averaging 10% over the last 10
years) leading to increased demand for construction timber. NFA will position itself to
tap into this market. This is the same for other forest products and services like
honey, ecotourism, Christmas trees, etc.
f.
Generally, the NFA has a good public image, coming from the efficiency with which it
managed forests in the first years of its operation. This was reinforced by the events
in 2006 when it stood up in defence of CFRs against the intended land use change
to commercial agriculture. As a result, there are many institutions which are willing to
partner with NFA, thus providing opportunities for synergies in partnership.
g. Investment in industrial timber plantations yields returns of up to 15% per year. NFA
will seek to invest in this area in order to secure its long-term financial sustainability.
h. As a result of intense promotion of the opportunities including financial and technical
incentives for investing in industrial timber plantations, private sector interest has
been increasing at high rates. This gives an opportunity to the NFA to license CFR
land earmarked for tree growing, thus generating revenue and increasing the forest
resource base, and at the same time shading off the burden and expense of
unprofitably managing these CFRs.
Threats
i.
The high rate of deforestation on private lands (1.9 % per year) will exert severe
pressure on CFRs, resulting into high social and economic costs of protection. NFA
will proactively develop partnerships with various stakeholders to slow down the
deforestation rate.
j.
The NFA is expected to operate in a business like manner but paradoxically, it is
admonished not to engage in activities that are best done by the private sector. This
creates a dilemma for NFA since it is also expected to generate its own revenue and
become financially self-sufficient. The business nature of NFA is further threatened
33
by the bureaucratic procedures which NFA must operate under (e.g. procurement),
but which are not conducive to normal business management.
k. The increasing prices of energy (fuel and hydro-power) will translate into higher
demand for the cheaper forest products, which in turn will exert higher pressure on
forests leading to increased illegal harvesting. NFA will have to devote more
resources to forest protection in order to remain within sight of its stated mission.
l.
Government and international funding agencies expect NFA to be self-sustaining
financially after its 4th year of operation but the bulk of the CFRs will not generate
cash revenue in the near future. However, they play an invaluable service role to
other sectors of the economy and therefore, NFA cannot be self-sustaining unless
these services are monetised and funds received as revenue to NFA through public
programmes like Plan for Modernisation of Agriculture (PMA), National Agricultural
Advisory Services (NAADS), rural water and health programmes and other relevant
programmes funded by GoU, ODA and the private sector. Therefore NFA will press
for financing arrangements in which NFA will commit itself to deliver ecosystem
services against agreed payment
m. The politics of “bread & butter” is threatening the very survival of Uganda’s PFE.
During elections, politicians abdicate their responsibility in protecting the
environment, resulting into increased illegal clearing of forests. This makes the
private tree growers and other investors doubt the commitment of government and
thus the ability of NFA to protect their investments. This uncertain political
commitment could be attributed to limited direct political benefits that accrue from
good forest management. Therefore NFA will work towards making CFRs more
visibly relevant to the local voters in terms of benefits and access.
n. The sometimes conflicting directions of implementing government policies in rural
development are a threat to the very survival of NFA. The drive to convert CFRs to
other land uses which are perceived to be more economically rewarding is a case in
point. This makes investment in establishment and/or management of CFRs a very
risky business
o. Uncontrolled harvesting on private lands dumps cheap products on the market and
thus depresses prices. This has a negative effect on revenues for NFA and its
partners and clients. NFA will partner with the DFS to help private forest owners
generate realistic income from their trees.
p. The biggest threat to management of CFRs is posed by forest crime, especially
encroachment and illegal harvesting. These crimes destroy the environmental
functions of forests, their support to community livelihoods and the revenue for NFA.
In addition, illegal harvesting dampens market prices for forest products, thus
adversely affecting NFA’s clients, which translates into lower revenues collected by
NFA.
q. An increasing number of legal cases against the NFA is threatening the cash flow of
NFA, leading to diversion of resources from productive activities. The outflow of
resources to pay for cases decided against the NFA can threaten the very survival of
NFA as an institution. It portends very expensive risks.
34
r.
NFA has been financing management of CFRs for supply of public goods through
ODA (e.g. European Union and NORAD). This ODA is now being diverted to
plantation establishment through the private sector. This diversion of resources is a
threat to effective management of natural forests (constituting over 80% of the CFR
area) and yet these forests do not generate direct revenue at the moment to pay for
their own management. The NFA generated revenue will not be adequate to finance
most of its activities, which is also a threat to the very survival of the natural forests
and the public goods function they serve.
132.
Appendix 10.2 and 10.3 shows the details of the PESTEL and SWOT Analysis
35
4: STRATEGIC DIRECTION OF THE BUSINESS PLAN
133. This Business Plan maintains the same Vision and Mission contained in the first
Plan since it is clear that the Vision embraces the whole forestry sub-sector, and
NFA will continue to contribute to this Vision. Management will place special
attention to making both the Vision and Mission widely known to the staff and the
general public through refocusing the objectives and public awareness.
134. This chapter therefore re-states the Vision, Mission, and strategic objectives. It
also presents the priority areas of activities for the next five years.
4.1 VISION AND MISSION
135. The National Forestry Authority has a vision of “A sufficiently forested,
ecologically stable and economically prosperous Uganda”.
136. The mission of the National Forestry Authority is “to manage the Central Forest
Reserves on a sustainable basis, and to supply high quality forestry-related
products and services to Government, local communities and the private
sector”.
137. The NFA will continue with its commitment towards the achievement of this
mission within the context of the Uganda Forestry Policy (2001), the National Forest
Plan (2002), the National Forestry and Tree Planting Act (2003), and other
environment-related policies and laws.
4.2 STRATEGIC OBJECTIVES
138. The major theme of this Business Plan is sustainable forest management and
utilisation, and therefore the strategic objectives focus on the approaches to achieve
this desired theme. These strategic objectives do not significantly differ from those of
the previous plan, but some of them have been re-worded to allow for re-focusing of
priorities and take into consideration emerging environmental and management
concerns. The following are therefore the strategic objectives for the NFA’s Business
Plan for the next 5 years:
A. Management of the Central Forest Reserves Improved – targeting improved
conservation of biodiversity, sustainable yield of forest products and environmental
health through agreed plans, research, investments, and responsible management
B. Partnership Arrangements Expanded – with a wide range of stakeholders, aiming
at increasing the area of forest cover, responsible management of CFRs, new
investments, benefit sharing, and efficient resource utilisation.
C. Forest & Non-Forest Products and Services Supplied Equitably – aiming at
providing both the public and private consumers, on commercial basis, with quality
forest products, planting materials, forest services, and other non-forest products &
services such as maps and technical advice, taking due consideration for the
livelihoods of the forest adjacent communities.
D. Organisational sustainability – this objective has been modified from that of the
previous BP in order to include all aspects of sustainability required for an
36
organization’s stability that engenders environmentally conscious economic and
social progress.
4.3 OBJECTIVE 1: IMPROVE MANAGEMENT OF CENTRAL FOREST RESERVES
139. Under this strategic objective, the priority areas for the next five years are
described below.
4.3.1 Priority 1: Restoration of the Physical and Legal Integrity of CFRs
140. The restoration of the physical and legal integrity of CFRs is a pre-requisite for
RFM. A clear and well demarcated forest boundary shows the extent of the CFR in
relation to private land, warns and informs the public, is a requirement for certification
of forests, and above all, reduces the cost of maintenance and strengthens the ability
of field staff to deal with illegal activities.
141. NFA will build on the achievements from the previous BP to undertake activities
that will lead to total restoration of the CFRs. By the end of Year 5, 80 % of the CFRs
boundaries will have been re-demarcated, 95% of the CFR area will be free from
encroachment and 300,000ha of woodland reserves free from illegal extraction of
forest produce. This will be achieved through implementation of the following
strategies:
i.
ii.
iii.
iv.
v.
vi.
vii.
Undertake boundary re-demarcation, rationalisation and regular maintenance.
Remove encroachers from CFRs.
Manage conflicts arising from forest management activities.
Regenerate formerly encroached areas.
Strengthen law enforcement at all levels of management.
Strengthen capacity for litigation at all levels of management.
Undertake threat-reduction assessment and conduct regular monitoring.
4.3.2 Priority 2: Promotion of the Multiple Functions of Urban CFRs
142. The urban CFRs are very important as they provide to the urban population, and
Uganda at large, a great variety of benefits, both in material and environmental
services. These include the supply poles, fodder, grass, food/spices,
herbs/medicines, fibres, fuel wood needs and a long list of environmental services to
the growing urban population. CFRs are therefore important safety nets for the bulk
of the urban population, especially the urban poor.
143. In urban areas, CFR also protect urban wildlife/biodiversity, modify urban climate,
provide urban green spaces, break the monotony of buildings, control noise levels
and clean the air in urban centres.
144. Due to these important roles, NFA will urgently bring urban CFRs under proper
management as insurance for both the material and environmental sustainability of
the urban centres. By end of Year 5 of this BP, 75% of the urban CFRs will be under
proper management. This priority area will be achieved through implementation of
the following strategies:
i.
Complete the legal process of swapping and improve the management of alternative
land.
37
ii.
Develop and implement management mechanisms for urban CFRs with Urban authorities
and the private sector.
iii. Pilot innovations for income generation for the urban population, especially the poor and
vulnerable.
4.3.3Priority 3: Responsible Management of CFRs
145. RFM is management that is ecologically/environmentally sustainable,
economically profitable and socially acceptable. It entails applying management
approaches that promote ecological sanctity and balances with social and economic
benefits to the public.
146. In this BP, NFA aims at directing management of forests and processing of forest
products towards forest certification. This will facilitate access to profitable markets
and result in higher incomes. Uganda may not be exporting a lot of forest products at
the moment, but this is bound to change as the country pursues a private sector-led
development path enshrined in its Forestry Policy. International markets are looking
for forest products sourced from certified forests in developing countries. NFA will
aim to take an early lead in the Eastern Africa Region in accessing such markets.
147. NFA has already developed draft technical standards for certification that
includes the required criteria and indicators for internal monitoring. The standards
are being field-tested. NFA will undertake self-audit/evaluation based on the C&Is to
determine progress towards RFM. This will be the basis for formally embarking on
the phased approach towards certification.
148. By end of Year 5, at least three natural CFRs (Budongo, Mabira and Kalinzu),
and two plantation CFRs (Rwoho and Kasagala) will be certified as being managed
responsibly. This priority area will be achieved through implementation of the
following strategies:
i.
ii.
Review the FMPs of priority CFRs in line with the C&Is for certification.
Develop and use technical guidelines for implementation of FMPs of priority CFRs in line
with the C&Is for certification.
iii. Undertake an audit to identify information and process gaps with a view of updating the
C&Is and the technical guidelines.
iv. Initiate the process of certification by an international certifying agency.
4.3.4 Priority 4: Biodiversity Conservation and Sustainable Use
149. In order to enhance the conservation of the forest biological diversity, this BP
focuses on the 65
biodiversity CFRs which constitute the network of critical
biodiversity sites and the associated biodiversity corridors. To a greater extent more
investments will be made in areas of non-consumptive uses of biodiversity
resources, such as eco-tourism, recreation and cultural tourism, in order to increase
their conservation status. In particular, eco-tourism will be promoted to tap into the
growing eco-tourism industry and demonstrate the financial returns that accrue from
the non-consumptive use of these CFRs.
150. The private sector will be encouraged to invest in these non-consumptive uses
while NFA will prepare the current eco-tourism sites under its management for
eventual privatization. NFA will also invest in the development of two new ecotourism
38
sites (West Bugwe CFR in the Eastern, and Agoro-Agu CFR in the Northern
Uganda). This will not only serve to expand the ecotourism industry, but also to
generate interest in private sector investment in eco-tourism in these regions.
151. It is expected that by the end of Year 5, 80% of the key biodiversity CFRs will be
managed in accordance with the conservation objectives contained in the Forest
Nature Conservation Master Plan (FNCMP). Special attention will be given to the
woodland reserves in Northern Uganda (such as Agoro-Agu, Nyangea Napore, Mt
Kei, Mt. Otzi, and Morongole.
152.
This priority will be achieved though the followings strategies:
i.
Demarcate biodiversity conservation zones and manage them in accordance with their
respective objectives as contained in FNCMP.
ii. Support affirmative actions to increase the abundance of threatened/ endangered tree
species (ex & in-situ).
iii. Develop new eco-tourism sites.
iv. Maintain and prepare current eco-tourism centres for privatization of services.
v. Identify and improve on the management of biodiversity corridors.
vi. Pilot conservation-friendly initiatives.
4.3.5 Priority 5: Restoration of Degraded Natural Forests
153. Natural forests in Uganda are composed of woodlands, bushlands and Tropical
Moist Forests (TMFs). These natural forests provide the bulk of the environmental
services compared to plantation forests. They form unique ecosystems that are
responsible for stabilisation of ecological/environmental conditions that support other
sectors of the economy. Human activities, including encroachment and rampant
harvesting of forest produce, have enormously disturbed the ecological sanctity of
these natural forests, leading to reduced ability to serve their functions.
154. This BP will build on the previous achievements, and will focus on the restoration
of the degraded TMF with fragile landscapes like river banks, lakeshores, steep
slopes (bare hills) and biodiversity hotspots & corridors. Restoration will involve
aiding natural regeneration by affirmative silviculture, and instituting effective
protection measures. By the end of Year 5 of this BP, 100% of the degraded area of
priority TMF will be in the early stages of natural and/ assisted regeneration through
the following strategies:
i.
ii.
iii.
iv.
v.
Determine levels of forest degradation and prioritise the TMFs for restoration.
Develop and implement effective protection measures to support natural regeneration.
Undertake tree planting in formerly encroached areas of TMF.
Undertake affirmative silviculture through enrichment, gap planting and tending.
Promote natural forest regeneration through felling damage repair and liberation tending
in the degraded areas of CFRs.
4.3.6 Priority 6: Development of Forest Plantations
155. When FRs were being gazetted, it was envisaged that the area of natural forests
would not be sufficient to meet future demands of Uganda’s increasing population for
forest products. Therefore, grasslands and bushlands were reserved for
development of forest plantations to supplement the natural forests. However,
woodland and bushland reserves have continued for long without deliberate and
39
effective management, and yet most of these grassland, woodland and bushland
CFRs have very high potential for commercial plantation development.
156. NFA will take advantage of the enabling policy & legal framework, the rising
demand for forest products, the interest of the private sector to invest part of their
surplus money in tree growing and the enabling incentives for private tree planting to
promote investment in forest plantations. To this end, NFA will continue to implement
its Timber Plantation Investment Programme (NFA, 2006), which aims at planting a
total of 150,000 ha of new plantations in CFRs by the year 2025, (i.e. 100,000 ha by
private sector and 50,000 ha by NFA).
157. During this BP period, NFA will continue to invest in plantation development at a
rate of 2,500 ha per year while maintaining the existing and subsequent young crops
by regular weeding, pruning, thinning and fire protection. In addition, the physical
integrity of all promising coppice crops of eucalyptus in West Nile, Gulu, Masaka,
Mubende, Rukungiri and other Districts will be rehabilitated and/or planted anew.
158. NFA will pay attention to the private sector in plantation development within the
CFRs. Evaluation of performance of the licensed tree growers will be undertaken
with a view to withdrawing all CFR land that has for a long time not been utilized for
tree growing. The recovered land will be re-allocated to more serious investors.
159. NFA will continue to promote tree growing, establish demonstration sites, and
provide advisory services & information to the private trees growers.
160. During the previous BP period, the private tree farmers established a total of
25,000 ha of plantations of various age classes. NFA will encourage the private
farmers to maintain these crops by weeding, pruning those of age, and protecting
them from fires. During this BP, these farmers are expected to plant 5,000 ha
annually, but they have exceeded this target during the first years.
161.
i.
ii.
iii.
iv.
v.
This priority will be achieved through implementation of the following strategies:
Evaluate performance of private farmers.
Continue to develop and Implement a transparent CFR land allocation system.
Establish new plantations and maintain existing ones.
Manage the Eucalyptus coppices.
Support private sector tree planting initiatives.
4.3.7 Priority 7: Sustainable Management of Woodland CFRs
162. Woodlands and bushlands constitute the largest area of CFRs (about 600,000ha)
and are well-endowed with natural biodiversity capital. Tree species like Combretum
and Terminalia have high calorific value and are often selectively favoured for
charcoal production. There are also other high value species like gum arabica, and
shea butter trees that grow in woodlands, and can be utilized for income generation
and economic development. Other products are medicinal plants, forage, honey,
shea butter oil, bush meat, etc. In addition, woodland CFRs play vital environmental
roles in protecting fragile landscapes like river banks, lakeshores, steep slopes (bare
hills) and woodland biodiversity. Woodlands also have a high eco-tourism potential
40
arising from the spectacular mix of wild animal and tree populations, and scenic
landscapes and water bodies.
163. During this BP, NFA will re-vitalize the management of priority woodland CFRs in
their natural state so as to restore their ecological functions and increase their
economic productivity by applying appropriate woodland management technologies.
By year 5 of this BP, 10 priority woodland CFRs, will be brought under productive
management through the following strategies:
i.
ii.
Determine levels of forest degradation and prioritise the CFRs for focused management.
Develop and implement technical guidelines for woodland management in line with the
FMPs.
iii. Develop and implement effective protection measures to support natural regeneration
iv. Support affirmative silviculture in woodlands.
v. Develop and pilot initiatives for economic utilization of woodlands(bee-keeping,
ecotourism, sustainable fuel wood & charcoal production, oils and other products).
vi. Develop and implement mechanisms for mitigating climatic change effects through
responsible management of woodlands (e.g. sustainable charcoal production and
regeneration).
4.3.8 Priority 8: Development, Maintenance and Dissemination of Forestry
Information
164. There is inadequate awareness of the public about the values of forests beyond
their obvious products like timber, charcoal and firewood. The inadequate
information on the total economic values of forests is one of the reasons for failure to
incorporate these values into the national accounts, leading to low budgetary
allocations to the sub-sector. On the other hand, inadequate and delayed intelligence
information is one of the reasons for failure to stop forest crime in the CFRs.
165. Efforts will be put into gathering, processing and disseminating all forestry-related
information to address the current serious information gap in the forestry sub-sector
in order to ensure effective management of forests. Therefore, NFA will invest in
development of an appropriate Forestry Information System (FIS) for effective data
collection, processing, analysis, storage and easy retrieval during the B.P. A
centralized or “information powerhouse” with all necessary accessories will be
developed and maintained at NFA Headquarters to ensure a one-stop centre for
information retrieval. Investments will also be made to strengthen the capacity of field
staff in forestry related data collection, processing, analysis and information storage
at the 7 Support Offices as backups to the “information power house” and easy
access to staff at that level.
166. The information generated, together with what is currently available will be
captured in databases with formats that are user-friendly and deposited in the
“information powerhouse”. This will facilitate simplicity in packaging and
dissemination to various stakeholders.
167. With this information, public education will be conducted to raise the profile of
forestry and stimulate Government, the private sector and farmers to increase
investments in the forestry sub-sector.
41
168. This BP aims at having a forestry information system (FIS) and an “information
powerhouse” fully operational by end of Year 5. This priority will be implemented
through the following strategies:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
Design a forestry information system (FIS), including a “power house”, training of system
managers.
Undertake an audit to establish forest information gaps.
Undertake data collection through various methodologies of forest resource surveys,
inventory and studies.
Undertake intelligence gathering for effective law enforcement.
Undertake data processing, analysis, and information packaging and publishing.
Disseminate information (sensitization, awareness creation, and education).
Conduct communication impact assessment to determine effectiveness of information
dissemination and use by the public.
Invest in relevant publications on forests, carbon trade, etc from international organisations
Link NFA web sites with relevant national, regional/international web sites on forests.
4.3.9 Priority 9: Infrastructure Development for Effective Management Of CFRs
169. Management infrastructure enhances easy access to CFRs and execution of
technical field operations. The infrastructure consists of access and management
roads, buildings (for staff accommodation, offices and specialised forestry activities
like fire management and seedling production), transport, and tools & equipment.
170. Currently NFA maintains a fleet of 90 motor vehicles and 200 motor cycles. The
vehicles have progressively become expensive to maintain in terms of mechanical
conditions given the forest conditions under which they operate. They have already
served their official life time and deserve to be disposed off. Therefore substantial
investment will be required during this business period to replace most of the
vehicles in the fleet. During the business period, special attention will be paid to
support at least five priority sector offices with motor vehicles in order to enhance
forestry activities, including revenue collection at that level. Part of the funds for
these vehicles will come from the proceeds of the disposal of the old fleet.
171. During the business period, the current 200 units of buildings will be maintained,
and three Sector offices (Mbale, Apac and West Bugwe) will be renovated.
Investment will be made to construct nine (9) new sector offices in Pakwach, Cwero,
Zoka, Mt. Kei, Moroto, Matiri, Kasongoire, Kagadi & Pingire, and 3 Beat offices in
Abim, Sembabule and Kalombi (Mpigi) with distant CFRs. This will facilitate easy
supervision of the forest sectors, increase the presence of NFA staff on the ground,
and enhance access of the clients to staff.
172. NFA will also renovate at least six (6) priority guest houses (Kisindi (Bugoma
CFR), Mafuga, Lendu, Katugo, Oruha, and Bugamba plantations) during this
business period. These will make it possible for visiting staff to stay near the forests
and carry out their activities. They will also generate revenue for NFA.
173. The optimum density of roads is about 0.06km per ha, which translates into
about 660km for the 11,000 ha of young forest plantations currently being managed
by NFA. With the planned annual expansion of about 2,500 ha of plantations by
NFA, additional 750 Km of road network will be required by end of the business
period. Therefore, to attain optimum road network for effective management of both
42
the old crop and new establishments, a total of 1,178 Km of new roads will be
constructed.
174. For private planting, there is road network deficit of 1,420 Km. With the planned
annual expansion of about 5,000 ha to be planted by the private sector, an additional
1,500 Km of new roads will be required by the end of the business period. The
private investors will maintain and construct new roads within their plantations or
provide the required funds for NFA to establish them on contract.
175. Similarly, natural forest CFRs have a network of access and management roads
totalling to about 170Km that require regular maintenance. During this business
period, a total of 60Km of new roads will be constructed to improve accessibility and
management of the 10 priority woodland CFRs, including those of biodiversity
importance like Agoru-Agu, Mt. Kei and Mt Otzi in the north, and all others that will
be brought under proper management during the Business period.
176. At field level, each supervisor will be equipped with a minimum field package of
tools & equipment containing a GPS & accessories, a panga, compass, diameter
tape, linear tape, calliper, sunto/relascope, sharpening files, and safety gears.
177. In plantation development, special tools and equipment are required, including
planting mattocks, pruning knives, bow-saws, axe, and fire pumps. Most of these are
currently either worn out or broken down, and need to be replaced. During fire
protection, water reservoirs are indispensable. Therefore as the plantation area
increases, NFA will procure new fire fighting equipment like water tanks, backpack
pumps, and communication gadgets among others.
178. Similarly, during the business period, NFA will replace, maintain, or procure new
office materials and equipment to facilitate office running. These will include
computers, furniture, printers, curtains, water dispensers, filing and map storage
cabinets and others.
179.
i.
ii.
iii.
iv.
v.
vi.
This priority will be achieved through implementation of the following strategies.
Construct new roads and maintain old ones for effective management of the CFRs.
Acquire and maintain motor vehicles and motorcycles.
Construct new office buildings and guest houses and maintain existing ones.
Replace and maintain existing tools and equipments.
Equip each staff with a minimum set of tools and equipment.
Procurement of office materials and equipment.
4.4 OBJECTIVE 2:
EXPAND PARTNERSHIP ARRANGEMENTS
180. NFA is aware of the large stakeholder base of the sub-sector, with a multitude of
interests, roles and responsibilities to participate and benefit from management of
CFRs. This provides a great opportunity for NFA to partner with various stakeholders
in order to augment its capacity to effectively manage the CFRs given the level of
human capacity it has.
181. Over the past years, NFA has developed and implemented various partnership
arrangements, including CFM, PPPs and inter-institutional cooperation through
43
MoUs and other partnership agreements.
The cardinal objectives of such
partnerships are to control illegal activities, increase the area of forest cover under
sustainable management, transfer knowledge, skills and technologies in forest
management, efficient resource utilisation & benefit sharing for improvement of
livelihoods, especially of the forest-edge local communities and the rural poor.
182. In addition, the various environmental services from forests and trees determine
not only the types, but also the volume of economic activities of these communities.
In recognition of this heavy reliance on forest products and services by the forestedge local communities, NFA is already working with 58 local community groups
around 32 CFRs under CFM arrangements. NFA will deliberately focus attention on
improvement of forest-edge community livelihoods during this business period.
Particular attention will be payed to women and the girl-children who have to walk
long distances to access products, especially for domestic use.
183. Similarly, NFA will adopt a proactive approach and expand the partnership scope
to local, regional/international institutions and organisations.
184. In order to achieve this strategic objective, NFA will focus on the following
priorities.
4.4.1 Priority
Arrangements
1:
Improving
the
Sanctity
of
CFRs
through
Partnership
185. During the last business period a lot of achievements were made towards
recovering CFRs from encroachment and illegal extraction of forest resources. Many
of these success stories can be attributed to the close ties and collaborative actions
between NFA and the other government law enforcement agencies, like police and
the army. The media and some Local Governments were among the stakeholders
that supported NFA during removal of encroachers, lobbying Government and
advocating for the sanctity of many CFRs. However, coordination of institutions
within the sector has largely remained weak.
186. During this business period, NFA will continue with implementation of exiting
MOUs and Agreements aiming at improving the sanctity of the CFRs. It will also
proactively expand the scope, especially with Urban Authorities, District Local
Governments, the Media, and NGOs. The process of signing a MoU for management
of dual areas with UWA will also be finalised and the sub-sector inter-institutional
coordination will be strengthened and geared towards RFM.
187. NFA will continue to partner with the current forest-edge local communities
through CFM arrangements and expand the scope to other CFRs, including NFA
plantations and woodland reserves. This will ensure that communities have secure
access to CFRs, manage and utilise forestry resources optimally and contribute to
improved conservation. These communities will be empowered at the lowest level
possible to make decisions on how to achieve RFM. This priority is linked to Priority
No.2 on local community partnerships and will be achieved through the following
strategies:
i.
ii.
Determine the contribution of CFM towards RFM.
Expand and implement partnership for law enforcement and legal litigation.
44
iii. Expand and implement partnership for lobbying and advocacy for sanctity of CFRs.
iv. Expand and implement CFM for RFM.
v. Expand and implement inter-institutional & public-private arrangements for responsible
forest management.
4.4.2 Priority 2: Partnerships for Improvement of Local Community Livelihoods
from Forest-Based Enterprises
188. One key ingredient of CFM agreements is benefit sharing for livelihood
improvement of the local communities that participate in forest management. In line
with this, NFA has been supporting community projects materially and in terms of
technical advice. Under partnership arrangements with NFA, additional financial and
material grants have been given to these communities by NGOs and other
organisations.
189. During this BP, NFA will undertake baseline surveys to determine the impact of
forest-based enterprises (FBEs) under CFM arrangements to the livelihoods of the
current community groups and re-focus CFM arrangements towards increased
benefits for improved livelihoods of the forest-edge local communities. The local
communities will be empowered to effectively and efficiently run their existing FBEs
and take on new and economically feasible ones. This priority will be achieved
through implementation of the following strategies:
i.
Determine the contribution of community forest-based enterprises under CFM
arrangements to the livelihoods of these communities.
ii. Review and expand support to CFM forest-based income generation enterprises.
iii. Empower CFM local community groups for effective and efficient management of forestbased enterprises.
iv. Promote market research and advice local communities on markets and marketing of
their products.
v. Encourage private sector investments that contribute to improvement of forest-edge local
community livelihoods.
vi. Expand partnership with other organisations working on improvement of local community
livelihoods.
4.4.3 Priority 3:
Partnership for Improvement of Knowledge and Skills in
Forest Resource Management
190. RFM requires a good knowledge base and skills. Knowledge and skills for forest
management are continuously changing and therefore, in order to remain relevant to
the changing situations, NFA must position itself to tap this new knowledge and skills
and apply them in management of CFRs. This entails establishment of strong
partnerships with organisations that generate, package and transfer the knowledge
and skills.
191. During the previous business period, NFA worked in partnership with a number
research and training organisations to improve the knowledge base and increase
skills. These partnerships will be expanded to bring on board more local,
regional/international organisations, especially in areas of research, training,
technology transfer, GIS and map production. This priority will be achieved through
implementation of the following strategies.
45
i.
Promote and expand partnership for research in forest resources management and
development
ii. Promote and expand partnership for transfer of knowledge and skills (technology)
iii. Promote and expand networking arrangements with regional/international forestry related
organisations.
4.4.4 Priority 4:
Private-Public Sector Partnerships for Increased Social
and Environmental Services from Central Forest Reserves
192. Forests and trees provide a lot of environmental services that are usually taken
for granted by the public, and hence not reflected on government balance sheets. Of
late, several private companies have associated with NFA to plant trees in CFRs for
environmental improvement as one of their corporate social responsibilities. Others
have offered to manage whole CFRs purely for biodiversity conservation. During this
business period, NFA will proactively engage more of these private companies to
invest their resources into improvement of the sanctity of CFRs, as part of their
corporate social responsibilities.
193. Forests play big roles in carbon sequestration and mitigation of climate change.
NFA will take deliberate actions to partner with national and international private
companies and organizations on matters of carbon trade and climate change
mitigation.
194.
This priority will be achieved through implementation of the following strategies.
i.
Explore, develop and implement partnerships with companies for cooperate social
responsibility.
ii. Explore, develop and implement partnerships for carbon trade and climate change
mitigation.
iii. Explore, develop and implement partnerships for integrated water resources
management.
4.5 OBJECTIVE 3:
SUPPLY OF FOREST AND NON-FOREST PRODUCTS AND SERVICES
195. The demand for most of the forest products is growing rapidly, and this in turn is
increasing pressure on the resource base. NFA also offers a number of specialised
non-forest products like inventory and mapping. These products and services bring
in the revenue that NFA needs to manage CFRs. NFA will ensure that it continues
the supply of these products and services to meet the demand through the following
priorities:
4.5.1 Priority 1: Supply of Quality Tree Seed and Planting Materials
196. High quality tree seed and planting materials are important components of SFM
and the general development of the forestry sector. NFA will continue to build the
capacity of NTSC so that it effectively supplies quality tree seed and planting
materials to meet the increasing demand for afforestation and reforestation activities
in the country, as well as to undertake wider seed development and research work.
NFA will also improve the production capacity of the regional nurseries to ensure that
the planting stock reaches the various parts of the country. The aim is to produce for
sale 3 million seedlings annually at NTSC, and a similar number at the regional
nurseries. In addition, these nurseries will produce 3.5 million seedlings annually to
46
meet NFA’s own plantation establishment. This priority will be achieved through
implementation of the following strategies:
i.
ii.
iii.
iv.
v.
Improve tree seed procurement, testing, storage and distribution.
Establish and maintain quality tree seed sources.
Produce quality tree seedlings and other planting materials.
Develop and implement a tree improvement programme.
Promote the multiplication and use of indigenous species (e.g. Gum Arabic, Shea butter,
Mvule, Mahogany etc).
4.5.2 Priority 2: Supply of Wood Products from CFRs
197. Since Uganda’s forests are declining (90,000 ha annually) there is increasing
shortage of some wood products in some parts of the country. Since it has become
increasingly difficult to reserve new land for forestry purposes, Ugandans will
continue to depend largely on the existing CFRs as a source of wood products.
Therefore to maintain sustainable supplies of wood products, there is urgent need for
Uganda to increase the productivity per unit area of CFRs, and promote efficient
utilisation of wood.
198. During this business period, NFA will maintain a sustainable supply of approx.
60,000m3 of timber annually from the existing mature plantations. In addition to this,
supply of sawlogs from natural forests will grow from 5,000 m3 during the first year,
reaching approx. 40,000m3 annually during the 5th year. As the young forest
plantation crop matures, NFA will progressively continue to increase the supply of
sawlogs to meet the rising demand.
199. The Eucalyptus plantations in CFRs like Mbarara, Kikumiro, Mubuku, Kaweri,
Arua, and Lokiragodo have been important sources of firewood for the tea and
tobacco industries, and poles for construction and utility. Currently the demand for
these products is increasing. NFA will aim at ensuring that sustainable supply of
fuelwood and poles meet this demand.
200.
i.
ii.
iii.
iv.
This priority will be achieved through implementation of the following strategies:
Promote grading and transparent sale of sawlogs from natural forests.
Promote transparent sale of sawlogs from plantation forests.
Promote grading and transparent sale of utility and construction poles.
Promote transparent sale of firewood.
4.5.3 Priority 3: Supply of Non-Wood Products and Services from CFRs
201. The main non-wood products which have so far stimulated demand include
honey, bamboo, rattan, resins & oils and medicinal plants, among others. NFA will
deliberately focus on developing mechanisms for harvesting and supplying these
products from the CFRs to generate additional revenue. However, there is need to
determine the abundance and the annual sustainable harvestable quantities for each
product. NFA will also be pro-active in identifying and promoting many more nonwood forest products on the market to satisfy existing demand.
202. In addition, there is increasing demand for forest herbs and shrub products for
medicine, wood carvings, and craft materials. To ensure easy access to the users,
47
NFA will promote the domestication of a wide range of non-wood species, and
supply the market.
203.
This priority will be achieved through implementation of the following strategies:
i.
Develop appropriate practices for establishing the sustainable off-take levels of the various
non-wood forest products.
ii. Introduce/improve technologies for harvesting of the products.
iii. Determine demand for these priority products.
iv. Develop mechanisms for supplying the products.
v. Identify and develop more products.
vi. Promote the domestication of non-wood forest species.
4.5.4 Priority 4: Supply of Non-Forest-Related Products and Services
204. NFA has developed the capacity for providing a number of specialised services
to the public on contract, including GIS products, training, advisory services, and
consultancies. During the BP, NFA will focus on improving the facilities in order to
effectively and efficiently deliver these services to its clients. There will be proactive
effort to develop internal capacity to bid for consultancies on the open market to
generate revenue. This priority will be achieved through the following strategies:
i. Improve facilities for effective delivery of non-forest related products and services.
ii. Develop capacity to undertake consultancy and training services on contract.
iii. Develop and implement appropriate mechanisms for stimulating the private sector
interest in forest-based activities.
4.5.5 Priority 5: Business Partnerships with the Private Sector to Increase Supply
of Forest Products and Services
205. NFA recognises the contribution of the private sector in forestry developments,
especially the establishment of industrial plantations, processing of forest products,
and development of FBEs. Focus will be put on promoting NFA-private sector
partnerships for development and marketing of products and services. The role of
PPPs in increasing economic returns from processing forest and tree products is
immense.
206. NFA will aim at increasing its capacity to process wood and non-wood forest
products, and support all actions that increase forest productivity. These will ensure
value addition. Emphasis will be placed on processing for the niche markets that
promote RFM.
207. Some of the processing industries to be promoted include: sawmilling, carpentry
and joinery, honey production & processing, charcoal and production of aromatic
oils, among others. With lessons learnt in sawmilling during the last business period,
NFA will stop hiring sawmills and operate its own. In addition, NFA will partner with
private sector to initiate and build a strong foundation for developing a robust wood
processing industry in Uganda, starting with installation of a high-capacity sawmill.
This will prepare a sure ground to absorb the volume of sawlogs from the promising
plantation crops being established. An immediate action however, is to raise the
recovery percentage of the current saw-mills to 42%, through training of both NFA
staff and private sector sawmill owners and managers. It is envisaged that efficient
48
processing will result in efficient utilisation of the timber, increases in profitability,
entry into niche markets, and resource conservation.
208. Deliberate attention will be put on harvesting and processing of non-wood forest
products like honey, bamboo, rattan, resins & aromatic oils among others. NFA will
take a pro-active role in encouraging private developers to invest in building capacity
to process these products, including identification of the right technologies. Sources
of these products will be managed responsibly leading to certification of the products.
209. NFA will partner with private dealers and consumers to promote domestication
and value addition of forest herbs and shrubs for the production of medicine, wood
carvings, and craft materials. In addition, NFA will partner with the private sector and
CSOs to effectively and efficiently deliver to the public specialised services like GIS,
mapping tourism, training, advisory services, consultancies on contractual basis to
generate revenue.
210.
This priority will be achieved through the following strategies:
i.
ii.
Prioritise value addition through forest product harvesting and processing.
Promote public-private FBEs (eco-tourism, resins, oils, bee-keeping, wood curving,
crafts, medicine).
iii. Develop and implement incentive schemes for public-private partnership.
4.6 OBJECTIVE 4: ORGANISATIONAL SUSTAINABILITY
211. The fourth strategic objective in the previous Business Plan focused on the
achievement of financial sustainability within the first four years of NFA’s operation. It
has since been realized that the sustainability of an organisation is not limited to its
financial self-reliance only, but extends further to include the social and
environmental aspects, and how these affect the survival of an organisation and vice
versa. Therefore in this BP, this objective has been modified to take into
consideration these concerns.
212. Organizational sustainability embraces the economic, social and environmental
sustainability of NFA. Economic sustainability refers to the ability of an organisation
to effectively and efficiently manage its resources in a transparent management
system that produces the expected deliverables. The ideal is that this should be
attained without additional funds from outside, but in practice the forest sub-sector
delivers a lot of non-revenue earning public goods and services that require extrarevenue funding. In addition, the internal control systems of the organisation must
allow it to operate in a social manner and within a socially acceptable environment. It
is also true that the organisation impacts upon the physical environment and vice
versa in the course of its operations. Therefore all these factors must be embraced
when considering the survival of NFA as an organisation.
213. This BP identifies three major priorities that are crucial for NFA’s sustainability as
described below.
4.6.1 Priority 1: Corporate Governance for Organisational Sustainability
49
214. NFA will continue to improve its corporate governance portfolio as a bed-rock for
the economic, social and environmental benefits attained through management of
CFRs and supplying forest products and services to Ugandans. This will be done
through observing its core values of integrity, transparency and excellence. NFA
staff will be encouraged to walk the talk in line with established policies, laws and
operational guidelines. Improved governance will ultimately lead to a motivated staff,
more effective control of illegal activities, sustainable benefits to the sub-sector
stakeholders and a good public image.
215. In order to enhance good governance, NFA will cooperate and support CSOs in
their role as watch-dogs of society to demand accountability in the management of
CFRs. The aim is to promote a common understanding on the need to govern the
forest in accordance with the policies and laws that provide for increased
participation of the people in forest management and administration.
216.
This priority will be achieved through the following strategies:
i.
Develop and implement a decentralised structure that promotes devolution of decision
making and resources to the field units.
ii. Develop NFA internal policies, standards and guidelines for effective management and
administration, including codes of professional practice and ethics.
iii. Strengthen the internal monitoring system – internal audit, monitoring and evaluation
(M&E), and discipline.
iv. Develop and implement a reward system for good governance.
v. Promote the participation of the CSOs in their pursuit for good governance.
4.6.2 Priority 2: Resource Mobilisation for Sustainability
217. Economic sustainability is the life-line of an organisation. Specifically, NFA will
strengthen its capacity to attain financial sustainability in order to effectively execute
its mandate. Currently NFA’s internally generated revenues are able to meet most of
the operational costs, but investment costs have largely been funded from external
sources.
218. NFA will continue to mobilise financial resources from Government and
Development Partners to meet the cost of delivering public goods to the people of
Uganda and the international community. In addition, NFA will mobilise funds for its
own investments in forest resource development and processing in order to address
the financial constraints related to the long pay-back period of forestry investments.
219.
This priority will be achieved through implementation of the following strategies:
i. Develop and implement mechanisms for own revenue generation.
ii. Implement fund-raising activities to support specific management activities.
iii. Develop and implement innovative mechanisms for funding management for forest-based
public goods. e.g. PES, carbon financing, etc;
iv. Develop and implement mechanisms to access ODA.
4.6.3 Priority 3: Strengthen the Human Resource Capacity of NFA
220. The importance of human capital in the organisation’s sustainability cannot be
over-emphasised. Proper functioning of the organisation requires recruitment of the
50
right persons for the right jobs at the right places and at the right time. NFA is a multidisciplinary institution which brings in various professional and technical skills and
yet must intimately web-up as a team to achieve the organisation’s mission.
221. The strength of NFA is dependent upon the number of staff employed, their
confidence, competence and commitment, which in turn depends on knowledge,
skills and attitude to work. In this respect, NFA aims at employing highly qualified
and experienced staff with the right attitude. During this business period, NFA will
review the current Human Resources Policy to take into account emerging issues
and concerns related to the organisational structure, staff recruitment, staff
development, staff retention, staff motivation, and human resource utilisation.
222. NFA will continue to review its organisational structure to increase effectiveness
and efficiency in management of the CFRs. The current level of frontline field staff,
especially Forest Supervisors (FS), is still too low for effective management.
Therefore, it is important to significantly increase the numbers of FS, based on the
size of “beat”, distance between beats, the magnitude of threats and workloads
associated with the beats. In addition, the current job descriptions of staff will be
reviewed and re-aligned for effective manpower utilization. Emphasis will be to
strengthen the staff overseer roles on major revenue earning activities while
maintaining the integrity of the CFRs.
223. NFA has registered a high staff turnover recently, with the resultant loss of welltrained and experienced personnel. An organisation with a high rate of staff turn
over will always remain young and inexperienced. It is equally a big drain on
resources to regularly recruit and undertake induction and training for new staff. NFA
will review its Human Resource Manual to ensure that it provides for attractive staff
recruitment, motivation and retention policies. Other issues to be covered in the
Manual include staff remuneration, accommodation, health & safety and other
motivational schemes that promote staff retention. A favourable staff retention
scheme will ensure that NFA remains the winner. NFA will pro-actively increase staff
skills through hands-on training and planned short-term vocational training in
specialised disciplines.
224. Interns are additional human resources that NFA will take regular advantage of to
augment its staffing level and create a strategic pool from which to recruit in future. A
clear policy will be put in place to absorb students on internship in relevant fields that
carry out forest-based activities.
225.
i.
ii.
iii.
iv.
v.
This strategy will be implemented through the following activities:
Review, and implement the Human Resource Manual.
Develop and implement staff training programmes.
Develop and implement staff motivational schemes.
Review the organisational structure for effective management of CFRs.
Develop a policy on internship.
51
5. PRODUCTS AND SERVICES
226. Over the next five years, NFA has positioned itself to offer a wide range of forest
and non-forest products and services to its clientele, both current and potential. The
objective has been and will continue to be provision of a wide variety of forest and
non-forest products and services that will meet the desires and demands of each
client at their convenience and maximum satisfaction. Value addition will continue to
be at the pinnacle of delivery of all the products and services as this is seen to be the
best way of maximizing utility.
227. This chapter presents the various forest and non-forest products and services
that will be available in the market over the next five years. The forest and non-forest
products and services are in line with the strategic direction of the Business Plan and
have been presented to reflect the amount in quantity that will be made available
during each year over the five year period.
5.1 SEED AND SEEDLINGS
228. NFA will provide quality seed and seedlings that will be made available at the
NTSC and the regional nurseries countrywide. Imported seed will come from
Australia, Brazil and South Africa. Local seed will be from NFA’s seed stands that
have been well maintained over a period of time. Table 29 shows the amount of
seed and seedlings that are expected to be on offer over the next five year period.
Table 29; Projected Seeds and Seedlings for the five years
Item
2009/10
20010/11
2011/12
2012/13
2013/14
600
700
750
800
850
3,500
3,850
4,235
4,659
5,124
Imported seed
Unit of
Measure
Kg
Local seed
Kg
Pine seedlings
No.
4,000,000
7,200,000
7,260,000
7,986,000
8,784,600
Eucalyptus
seedlings
Indigenous
seedlings
Fruit seedlings
No.
1,000,000
1,200,000
1,210,000
1,331,000
1,464,100
No.
100,000
100,000
100,000
100,000
100,000
No.
50,000
60,000
72,000
86,400
103,680
5.2 WOOD PRODUCTS
229. These will come from NFA’s managed plantations and natural forests. Notable
plantations that will provide some of these products are Lendu, Mwenge, Katugo,
Bugamba, Rwoho and Mafuga. Other wood products will be supplied from natural
forests such as Budongo, Bugoma, Itwara, and Kalinzu, to mention but a few.
Fuelwood will mostly be supplied from woodland CFRs. All the wood products will
be of high value as the emphasis will be placed on value addition. Table 30 shows
the amounts of the various wood products that will be made available.
52
Table 30: Projected Wood products for the next five years
Item
2009/10
20010/11
Pine & Cypress
2011/12
2012/13
2013/14
60,000
60,000
60,000
60,000
10,000
10,000
10,000
10,000
10,000
3
5,000
10,000
20,000
30,000
40,000
3
9,545
5,600
5,600
5,600
5,600
No.
No.
10,000
20,000
2,500
20,000
2,000
20,000
1,500
20,000
1,000
20,000
No.
9,000
9,900
10,890
11,979
13,177
30,000
100,000
30,000
100,000
30,000
100,000
30,000
100,000
30,000
100,000
5,000
25,000
30,000
35,000
3
60,000
3
M
Eucalyptus
M
Natural
Forests
Spp.
Own milled timber
M
Utility poles
Construction
poles
Fencing posts
Firewood
Charcoal
(fees
from Private Tree
Planters)
Own Charcoal
M
3
M
Bags (No.)
Bags (No.)
-
5.3 NON-WOOD PRODUCTS AND SERVICES
230. Besides seed, seedlings and wood products, NFA will make available a range of
non-wood products and services. These will range from land for private tree planting,
to maps, bee products, carbon and forest minerals such as sand, clay, stones and
gravel. Services will include ecotourism and a range of consultancy services. All
these will be of high quality and value and will be tailored to meet specific customer
needs. Table 31 presents the range of non-wood products and services with
respective quantities over the five year period.
Table 31: Projected Non-wood Products and Services for the next five years
Unit
2009/10
20010/11
2011/12
Telecom masts
No.
30
30
30
Tree planting licenses Ha
1,500
3,000
4,500
(Cluster A)
Tree planting licenses Ha
2,400
3,000
4,500
(Cluster B)
Item
2012/13
30
6,000
2013/14
30
7,500
6,000
7,500
Tree planting licenses
(Cluster C)
Tree planting licenses
(Cluster D)
Land licenses (tree
planting)
9
Grazing (Casual)
Ha
4,950
5,500
8,250
11,000
13,750
Ha
2,200
2,200
3,300
4,400
5,500
No.
150,000
150,000
150,000
150,000
150,000
Maps
Ecotourism
No.
3,000
3,150
3,308
3,473
3,647
License fees
Sites (No.)
8
8
8
8
8
Entrance fees
Sites (No.)
5
5
5
5
5
Ha
9
Grazing cannot be relied upon as revenue because when the situation on encroachment turns
for the better, grazers will not be allowed in CFRs
53
Item
Unit
Research fees
No.
5
5
5
5
5
Camping fees
Sites (No.)
5
5
5
5
5
Accommodation
(bandas)
Guiding fees
Sites (No.)
5
5
5
5
5
Sites (No.)
5
5
5
5
5
Nature walk & bird hike
Sites (No.)
5
5
5
5
5
Afforestation
Tons Co2e
6640
6640
6640
6640
6640
Charcoal
Tons Co2e
16000
16000
16000
16000
16000
Bamboo
No.
200
200
200
200
200
Apiary
(Honey,
beeswax and propolis)
Tons
8
40
40
40
40
Consultancy-Advisory
services
Consultancy-training
No.
10
10
10
10
10
No.
4
4
4
4
4
Consultancy-EIAs
No.
2
2
2
2
2
Consultancy- FMPs
No.
2
2
2
2
2
Consultancy-GIS
&
Mapping
Demarcation of land for
private investors
Sharpening of saws,
etc.
No.
2
2
2
2
2
No.
2
2
2
2
2
No.
100
100
100
100
100
2009/10
20010/11
2011/12
2012/13
2013/14
Carbon credits
Services
54
6. FINANCIAL PROJECTIONS
231. This chapter translates the strategic directions presented in chapter four into
monetary terms to help determine the annual financing and expenditure
requirements. The first part of the chapter will present revenue projections while the
second part will focus on expenditure projections as per the strategic priorities.
6.1 REVENUE PROJECTIONS
232. A good part of the revenue projections is anticipated to come from the products
and services that have been described in chapter five and this will constitute the
locally generated revenue (own revenue). The other source of revenue will be
financial support for public goods and services from Development Partners and
Government of Uganda as presented in Table 32.
No
1
2
3
4
5
6
Table 32: Revenue Forecasts
Products
Annual
Quantity
Year
Roundwood
Pine & Cypress
60,000
Eucalyptus
10,000
Natural
Forests
20,000
sawlogs
Sawn timber
Own milled timber
5,600
Poles and Fencing Posts
Utility poles
10,000
Construction poles
20,000
Fencing posts
9000
Firewood and Charcoal
Firewood
30,000
Charcoal
(fees
100,000
from Tree Planters)
Own Charcoal
5,000
Seeds and Seedlings
Imported seed
500
Local seed
3,500
Pine seedlings
6,000,000
Eucalyptus
seedlings
Indigenous
seedlings
Fruit seedlings
50,000
Land use fees
Telecom masts
30
Unit
Rates
Shs
‘000
m3
m3
m3
m3
No
No
No
m3
No of
Bags
No of
Bags
Kg
Kg
No
Projections
2009/10
(mill Shs)
2010/11
(mill Shs)
2011/12
(mill Shs)
2012/13
(mill Shs)
4,200
500
200
5,236
525
420
5,082
551.25
882
5,590
578.81
1,389.20
70
50
40
390
3,722.40
30
1
3
2,446.10
300
20
27
2,739.60
75
20
29.70
3,068.40
60
20
32.70
2013/14
(mill Shs)
6,149
607.75
1,944.81
3,436.60
45
20
35.90
30
20
39.50
5
2
150
200
165
240
181.50
288
199.70
345.60
219.60
414.70
20
-
100
525
661.50
810.30
1,280
50
0.3
768
175
1,200
100
896
192.50
2,160
120
960
211.75
2,178
121
1,024
232.93
2,395.80
133.10
1,088
256.22
2,635.38
146.41
20
20
20
20
20
125
150
180
216
259.20
No
2.5
No
28,320
849.60
883.92
901.60
919.63
866.59
Tree
planting
licenses (Cluster A)
Tree
planting
34.50
69
103.50
138
172.50
35.76
44.70
67.05
89.40
111.75
55
No
Products
Annual
Quantity
Unit
Year
7
8
9
licenses (Cluster B)
Tree
planting
licenses (Cluster C)
Tree
planting
licenses (Cluster D)
Grazing (Casual)
Maps
Ecotourism
License fees
Entrance fees
Research fees
Camping fees
Accommodation
(bandas)
Guiding fees
Rates
Shs
‘000
150,000
3000
No
No
6
40
Projections
2009/10
(mill Shs)
2010/11
(mill Shs)
2011/12
(mill Shs)
2012/13
(mill Shs)
49.01
54.45
81.68
108.90
136.13
14.52
14.52
21.78
29.04
36.30
900
120
900
126
8
5
No
No
6,233
17.37
74.81
173.75
5
No
2,400
12
5
5
No
9.13
No
900
138.92
89.77
107.72
208.50
250.20
14.52
13.20
32.85
27.38
3,600
900
132.30
18
2013/14
(mill Shs)
900
145.86
129.27
300.24
155.12
360.29
15.97
17.57
47.30
56.70
39.42
25.92
31.10
37.32
79.22
95.06
114.07
21.60
5
No
16.5
55.01
66.01
10
11
12
13
14
15
Nature walk & bird
hike
Jane
Goodall
Institute
Carbon credits
Afforestation
25,000
Charcoal
40,000
Bamboo
Minerals
Sand
Clay
Stones
Murram
Apiary
Services
ConsultancyAdvisory services
ConsultancyBiomass inventory
Consultancytraining
Consultancy-EIA's
ConsultancyFMP's
Consultancy-GIS &
Mapping
Demarcation
of
land for private
planting
Other
Sharpening
of
saws, etc.
5
1
200,000
100
40
No
720
6.22
7.46
38.59
40.52
42.54
35
35
6.64
166
166
166
166
166
16
640
640
640
640
640
0.2
No
3,000
Tons
7,000
4
5.18
4.32
36.75
No
Tons
CO2e
Tons
CO2e
No
3.60
40
44
300
5
20
30
56
16
48.40
300
5
20
30
280
16
53.24
300
5
20
30
280
16
58.56
300
5
20
30
280
16
300
5
20
30
280
4
No
16
Lump sum
No
Lump sum
No
19.78
21.76
23.94
26.33
28.97
Lump sum
Lump sum
No
No
10.96
3.71
12.05
4.08
13.26
4.48
14.58
4.93
16.04
5.43
Lump sum
No
66.86
73.55
80.90
88.99
97.89
Lump sum
No
50
50
50
50
50
Lump sum
No
2.45
2.69
2.96
3.26
3.58
56
No
Products
Annual
Quantity
Unit
Year
16
Rates
Shs
‘000
Fines
Lump sum
House rent
Lump sum
Compound Hire
Lump sum
Proceeds
from Lump sum
disposals
Bids/Application/
Renewal
for
licenses
Own Revenue
Public goods (Public funding)
GoU Contribution
Support from World
Bank
Support
from
Norway Gov't
FRCMP
no
no
no
2009/10
(mill Shs)
114.50
1.45
30
19.78
2010/11
(mill Shs)
125.95
1.60
30
21.76
2011/12
(mill Shs)
138.54
1.76
30
23.94
2012/13
(mill Shs)
152.40
1.93
30
26.33
2013/14
(mill Shs)
167.64
2.13
30
28.97
50
50
50
50
50
15,712.85
17,193.98
18,660.56
20,833.34
200
2,500
200
2,500
200
2,500
200
2,500
4,619
4,619
4,619
4,619
23,228.71
200
-
1,150
MERECEP
-
-
-
-
56.61
66.59
67.92
-
55.50
USAID
17
Projections
64
Sub-total
Payment for Ecosystem Services
Watershed
500,000 ha
services
Biodiversity
480.5 ha
Soil Conservation
500,000 ha
Sub-total
Total
65.28
7,440.8
8,588.5
7,385.6
7,386.9
200
21.5
10,797
11,445
12,132
12,859
13,631
2.06
35.2
1049
17,616
29,462
1,112
18,673
31,230
1,179
19,793
33,104
1,250
20,981
35,090
1,325
22,240
37,196
53,763.32
55,864.87
59,150.15
63,310.25
60,624.71
233. To be able to generate the revenue forecasts above, the following assumptions
will be taken into consideration. The assumptions are presented in Table 33 for ease
of understanding.
Table 33: Assumptions
Products
Assumptions
Marketing Strategies
Pine & Cypress
Price increases by 10% per year. Sell
additional 8000 m3 in 2nd year due to use of
own sawmills only
Price increases by 5% per year due to supplies
from private land
Price increases by 5% per year due to supplies
from private land and Yr1=5000, Yr2=10,000,
Yr3=20,000, Yr4=30,000, Yr5=40,000
Advertisement, Competitive
Bidding, casual licenses
Eucalyptus
Natural Forests (saw logs)
Sawn timber
Own milled timber
3
Use only 3 NFA mills Katugo=4200m , 1 NFA
3
mill Mwenge=1400 m from Yr2. Price increase
by 12% per year due to raw material and other
input costs.
Casual licenses
Advertise, Auction,
uses of the products
New
Use of Sales Agents, word
of mouth, publicity, strategic
partnership,
sponsoring,
Branding
57
Products
Assumptions
Timber auctions
Role of impounding timber will revert to DFS as
it becomes more effective
Poles and Fence Posts
Utility poles
Construction poles
Fencing posts
Firewood and Charcoal
Firewood
Charcoal (fees from Tree
Planters)
Own Charcoal
Seeds and Seedlings
Imported seed
Local seed
Pine seedlings
Area of mature crop for poles will progressively
reduce
Demand and supply will remain constant
Treatment at Mbarara, Oruha, Arua
10% increase in volume sales annually
20% increase in price annually
Marketing Strategies
Bidding,
Advertisement,
Sourcing
Advertisement, Exhibition
Advertise in Papers, Radios
and Posters
Branding and Packaging
Production Yr2=25,000 bags, Yr3=30,000,
Yr4=35,000 and price increases of 5% per year
Diversify outlet
Early booking
Diversify outlet
Indigenous seedlings
20% increase in number annually
1.4 million from NTSC, 3.6 Million from
Regional Nurseries in Yr1, 10% increase
annually after year one.
0.5 million from NTSC, 0.5 Million from
Regional Nurseries in Yr1, 10% increase
annually after year one.
No projected increase in demand
Fruit seedlings
Increase in demand at 20% annually
Advisory services
Land use fees
Tele masts
Depreciation of Uganda Shilling at 2% annually
N/A
Eucalyptus seedlings
Tree
planting
licenses
(Cluster A)
Tree
planting
licenses
(Cluster B)
Tree
planting
licenses
(Cluster C)
Tree
planting
licenses
(Cluster D)
Land licenses (tree planting)
10
Grazing (Casual)
Maps
Ecotourism
License fees
Increase at 20% annually
Entrance fees
Increase at 20% annually
Research fees
Increase at 10% annually
Early booking
Deliver for bulk purchase
Increase in area planted at 10% annually
Increase in area planted at 10% annually
Increase in no of maps sold at 5% annually
10
Grazing will only be licensed as a way of moving towards removing cattle grazers from the
reserves. Therefore, it is not a normal revenue source
58
Products
Assumptions
Camping fees
Increase at 20% annually
Accommodation (bandas)
Guiding fees
Increase at 20% annually
Increase at 20% annually
Nature walk & bird hike
Increase at 20% annually
Payment
services
Unit value/ha for watershed, biodiversity and
soil conservation is Shs. 21,594, 2,060, &
35,233 respectively, based on a study by Glenn
Bush, 2004. Increase by 6% annually to cater
for inflation. Respective CFR areas are
500,000ha, 480,500ha and 500,000ha.
New ideas that require more research to be
carried about them
New ideas that require more research to be
carried about them
New ideas that require more research to be
carried about them
for
ecosystem
Block boards
Veneer & Plywood
Pre fabricated houses
Marketing Strategies
Proposals for private &
public funding, negotiations
with
funding
agencies,
including the private sector
Advertisement, exhibition
Advertisement, exhibition
Advertisement, exhibitions
234. Revenue from “Payment for Ecosystem Services” (watershed, biodiversity & soil
conservation) is expected from public funds (GoU & ODA) and private companies
whose business relies on these services. NFA will negotiate payment arrangements
with companies that generate hydro-power and supply water on commercial basis,
among others. This is because over 80% of the CFR area will be managed for these
services rather than generation of revenue from sales of products from them. The
public (NFA shareholders) need to recognise that in order for them to continue
realising these ecosystem dividends, they need to invest. Without this input from
public and private sector funds, NFA will scale down considerably on its
management activities and focus on only the CFRs that generate revenue from sales
of products.
235. New sources of revenue have been identified. However, no revenue projections
have been made on them as they are still new ideas that require more research to be
carried about them. Most of these potential revenue sources will require value
addition on the current products and services. It is important to note that these new
revenue potentials will be explored further at a later stage. Some of these potential
sources are blockboards, veneer, plywood and pre-fabricated houses.
6.2 EXPENDITURE PROJECTIONS
236. The expenditure projections are based on priority areas as identified in the
strategic direction of the BP, explained in chapter four. Appendix 10.4 details out the
expenditure projections under each strategic objective.
6.3 FUNDING GAP
The details above have been summarised in Tables 34 and 35.
59
Table 34: Summary of Revenue Projections from Products and Services
No
1
Roundwood
4,900.00
6,181.00
6,515.25
FY
2012/13
(Shs mill)
7,558.16
8,701.78
33,856.19
2
Sawn timber
3,722.40
2,446.08
2,739.61
3,068.36
3,436.57
15,413.02
3
Poles and Fencing
Posts
Fuel wood
347
124.7
112.67
100.94
89.53
774.84
350
505
994.5
1,206.75
1,444.67
4,500.92
2,388.00
3,538.50
3,670.75
4,021.83
4,405.21
18,024.29
6
Seed
and
Seedlings
Land use fees
983.39
1,049.26
1,157.93
1,266.94
1,376.31
5,833.83
7
Grazing (Casual)
900
900
900
900
900
4,500.00
8
Maps
9
Ecotourism
10
Carbon credits
11
Bamboo
12
Minerals
13
Apiary (Honey, bee
wax and propolis)
14
Consultancy
Services
Others
4
5
15
Products
Own Revenue
16
GoU Contribution
17
19
Support from World
Bank
Support
from
Norway
Government
FRCMP
20
MERECEP
18
21
USAID
22
Public
Good
funding
Committed
Watershed services
23
Biodiversity
FY2009/10
(Shs mill)
FY 2010/11
(Shs mill)
FY 2011/12
(Shs mill)
FY 2013/14
(Shs mill)
Total (Shs
mill)
120
126
132.3
138.92
145.86
663.08
399.54
473
560.77
665.68
791.15
2,890.14
806
806
806
806
806
4,030.00
40
44
48.4
53.24
58.56
244.20
355
355
355
355
355
1,775.00
56
280
280
280
280
1,176.00
167.31
177.44
188.58
200.84
214.32
948.49
218.18
232
247.2
263.92
282.31
1,243.61
15,712.82
17,193.98
18,660.56
20,833.34
23,228.71
95,629.41
200
200
200
200
200
1,000.00
2,500.00
2,500.00
2,500.00
2,500.00
-
10,000.00
4,619.00
4,619.00
4,619.00
4,619.00
-
18,476.00
1,150.00
-
-
-
-
1,150.00
55.5
56.61
-
-
-
112.11
64
65.28
66.59
67.92
-
263.79
8,588.50
7,440.89
7,385.59
7,386.92
200
31,001.90
10,797
11,445
12,132
12,859
13,631
60,864
1,049
1,112
1,179
1,250
1,325
5,915
24
Soil Conservation
17,616
18,673
19,793
20,981
22,240
99,303
25
Public
Good
funding
Ecosystem
Services
Total
29,462
31,230
33,104
35,090
37,196
166,082
53,763.32
55,864.87
59,150.15
63,310.25
60,624.71
292,713.3
60
Table 35: Summary of Expenditure by Priority
OBJECTIVE / Priority
FY2009/10
FY2010/11
(mill Shs)
(mill Shs)
STRATEGIC OBJECTIVE A: IMPROVE MANAGEMENT OF CFRS
FY2011/12
(mill Shs)
FY2012/13
(mill Shs)
FY2013/14
(mill Shs)
1. Restore the physical and ecological
4,212
7,012
7,012
6,012
4,812
integrity of the CFRs
2. Promote the multiple Functions of
64
116
145
141
198
Urban CFRs
3. Promote responsible management of
76
127
203
278
46
CFRs
4. Promote biodiversity conservation and
325
628
775
515
624
sustainable use
5. Promote the restoration of degraded
674
970
1,225
1,517
1,928
natural forests
6. Promote development of forest
5,815
6,145
6,475
6,815
7,404
plantations
7. Promote sustainable management of
65
907
897
936
476
woodland CFRs
8. Develop, maintain and disseminate
433
693
457
433
409
forestry information
9.
Infrastructure
development
for
3,319
6,774
7,204
7,834
8,524
effective management of CFRs
STRATEGIC OBJECTIVE B: EXPAND PARTNERSHIP ARRANGEMENTS
1. Improving the sanctity of CFRs
75
215
185
185
215
through partnership arrangements
2. Promote partnerships for Improvement
83
108
108
108
138
of Local Community Livelihoods from
Forest-based activities
3. Promote partnership for Improvement
80
80
80
80
80
of knowledge and skills in forest resource
management
4.
Promote
private-public
sector
80
80
80
80
80
partnerships for increased social and
environmental services from CFRs
STRATEGIC OBJECTIVE C: SUPPLY OF FOREST AND NON-FOREST PRODUCTS AND SERVICES
1. Promote Supply of quality tree seed
3,350
4,265
5,133
6,055
7,161
and planting materials
2. Promote supply of wood products from
80
79
94
113
132
CFRs
3. Promote supply of non-wood products
15
65
65
65
65
and services from CFRs
4. Promote supply of non forestry related
90
90
90
90
90
services
5. Promote harvesting and value addition
890
597
656
720
791
to increase supply of forest products and
services
STRATEGIC OBJECTIVE D: ORGANISATIONAL SUSTAINABILITY
1. Increase good governance and public
165
165
165
165
165
accountability in forest management
2. Promote Resource mobilization for
70
170
170
120
120
sustainability
3. Strengthen the human resource
16,507
18,104
19,897
21,870
capacity of NFA
4. Management and Administration
5,077
4,579
4,932
5,216
5,533
Total
25,038
50,372
54,255
57,375
60,861
61
TOTAL
(mill Shs)
29,060
664
730
2,867
6,314
32,654
3,281
2,425
33,655
875
545
400
400
25,964
498
275
450
3,654
825
650
76,378
25,337
247,901
Table 36: Funding Gap without payments for Ecosystem Services
Year
FY2009/10
FY 2010/11 FY 2011/12 FY 2012/13
(mill Shs)
(mill Shs)
(mill Shs)
(mill Shs)
Summary of total revenue projections
(i) Own Revenue
15,712.82
17,193.98
18,660.56
20,833.34
(ii) Public Good
8,588.50
7,440.89
7,385.59
7,386.92
committed
24,301.32
24,634.87
26,046.15
28,220.25
Total
revenue
projections
25,038
50,372
54,255
57,375
Summary
of
total
expenditure
projections
Funding Gap
-737
-25,737
-28,209
-29,155
FY 2013/14
(mill Shs
95,629.41
31,001.90
23,428.71
126,631.30
60,861
247,901
-37,432
-121,270
238. To be able to bridge the funding gap, NFA will request for public funds (GoU and
ODA) to finance expenditure on CFRs that do not generate cash revenue but which
are important for ecological/environmental reasons. Such CFRs include those which
constitute the network of critical biodiversity sites and those protecting steep slopes,
river banks and lake shores. The rest will be mobilised through partnerships to
enable NFA expand its revenue base. Also, NFA will take steps to ensure that
payment for ecosystem services are mobilised and received in full.
Figure 4; Trend Analysis Of Revenue And Expenditure
Trend Analysis of Revenue and Expenditure
Uganda Shilings in
Millions
(mill
23,228.71
200
237. As observed from the projections above, it can be seen that the revenue
forecasts are far below the expenditure projections without payment for ecosystem
services. This funding gap in the financial projections is due to the increasing need to
manage the CFRs for public goods and other ecosystem services. The gap keeps
widening from year to year due to the anticipated improvements in the management
of the CFRs for delivery of public goods (Table 36 and Figure 4).
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00
FY2008/09
Total
Shs)
FY2009/10 FY 2010/11 FY 2011/12 FY 2012/13
Financial Years
Own Revenue
Public Good funding
Total revenue projections
Summary of total expenditure projections
62
239. When payments for ecosystem services are received in full, the funding gap will
be eliminated as seen in Table 37 and Figure 5
Table 37: Projected Financial Position after fully receiving payments for Ecosystem
services
Year
FY2009/10
FY 2010/11
FY 2011/12
FY 2012/13
FY 2013/14
Total
Summary
of
total
revenue projections
(i) Own Revenue
(ii) Public Good –
funding committed
(iii)Public good Ecosystem Services
Total
revenue
projections
Summary
of
total
expenditure
projections
Surplus / Funding Gap
Million
Million
Million
Million
Million
Million
15,712.82
8,588.50
17,193.98
7,440.89
18,660.56
7,385.59
20,833.34
7,386.92
23,228.71
200
95,629.41
31,001.90
29,462
31,230
33,104
35,090
37,196
166,082
53,763.32
55,864.87
59,150.15
63,310.25
60,624.71
292,713.3
25,038
50,371
54,255
57,375
60,870
247,909
28,725
5,494
4,895
5,935
-245
44,804
Figure 5: Trend Analysis of revenue and expenditure
Uganda Shillings in
Millions
Trend Analysi of Revenue and Expenditure
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00
FY2008/09
FY2009/10
FY 2010/11
FY 2011/12
FY 2012/13
Financial Years
Own Revenue
Public Good – funding committed
Public good Ecosystem Services
Total revenue projections
Summary of total expenditure projections
240. If the public goods are not funded from outside NFA own revenue, then NFA will
prioritise CFRs and activities which generate cash revenue and scale down on:
o
o
o
o
Maintenance of ecological integrity.
Restoration of degraded areas.
Biodiversity conservation.
Establishment of new plantations.
63
7. IMPLEMENTATION, MONITORING AND EVALUATION
7.1 INSTITUTIONAL ARRANGEMENTS
241. Implementation of this business plan will be done through the organisational
arrangements that have been discussed in Chapter 4 under the strategic objective of
organisational sustainability. The strategic direction for maximising revenue
collection shows that NFA will engage in some activities which compete with private
businesses. In order to avoid the bureaucracies associated with public bodies, NFA
will strengthen each of the revenue-generating units and make them self-accounting
to facilitate faster decision-making. NFA will also introduce performance-related pay
based on output. Any revenue-generating unit that exceeds its targets will be paid for
extra output at agreed rates.
7.2 ANNUAL OPERATIONS PLANS & BUDGETS
242. The BP will be operated through annual operations plans (AOPs) and budgets
following the normal NFA financial procedures available at the Directorate of Finance
and Administration. Each new AOP will be prepared on the basis of the provisions of
this BP, the FMP, and lessons learnt from the previous AOP. During preparation of
the 3rd AOP, the BP will be revised and up-dated to incorporate emerging issues
and lessons learnt during the first two years of implementation. The M&E periodic
reports will also feed into this review.
7.3 REPORTING
243. Regular reporting will follow the normal NFA reporting procedures as shown in
the Communication Strategy available with the NFA Public Relations Manager. The
reports will cover the targets in the Performance Contract between NFA & GoU. In
addition, the NFA Monitoring Team (composed of the M&E Specialist, the relevant
Coordinators and the NFA Internal Auditor) will prepare monitoring reports.
244. Government has also established a Performance Review Committee chaired by
the Permanent Secretary, MWE. This committee will report separately to the relevant
organs of government.
7.4 MONITORING & EVALUATION
245. Implementation of the business plan will be monitored through a more detailed
monitoring plan prepared from the broad framework shown in Appendix 10.5. This
monitoring plan will be prepared during the first six months of implementing this BP.
The main ways of monitoring will include:
7.4.1 Field Visits
246. Headquarter staff, including members of the Senior Management Team, will visit
the field regularly to inspect activities at forest level. In the same way, Range and
Sector Managers will also monitor forest-level activities.
64
7.4.2 Monitoring Team
247. NFA will constitute a monitoring team composed of the M&E Specialist, the
Internal Auditor and the relevant subject matter Coordinator/Specialist. Assessment
of BP performance will then be done once a year, just before starting work on
preparing a new AOP. Experiences and lessons learnt will feed into the new AOP.
248. The Team will undertake a mid-term evaluation at the end of year 2 of the BP
performance so that it can be reviewed to take into account emerging issues,
lessons learnt and experiences gained.
7.4.3 NFA Board of Directors
249. One of the roles of the Board is to monitor performance of the NFA. Once a year,
the Board will formally assess performance based on the monitoring plan.
7.4.4 Performance Agreement Monitoring Committee
250. NFA has signed a performance agreement with GoU. Performance under this
contract is monitored through a Committee set up by GoU. This Committee carries
out a formal monitoring exercise once every six months. This arrangement will
continue unless the provisions of the performance contract change.
7.4.5 Value for Money Audits
251. This type of monitoring will be carried out by the NFA’s Internal Audit Unit
according to an Audit Plan. This plan will be prepared quarterly and become the
aggregated Annual Audit Plan.
65
8:
ASSUMPTIONS AND RISKS
8.2 KEY ASSUMPTIONS
252. The assumptions below will determine the extent to which the priorities in this BP
will be achieved. The NFA will monitor them closely and adjust activities accordingly.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
The current area of the PFE will remain stable to strengthen the confidence of
the private sector and other financing and technical cooperation partners. This is
a particularly important assumption in view of the on-going debate on the land
law and policy.
Government will legally adopt arrangements for payment of ecosystem services
in order to generate funds to finance management of natural forests for public
goods.
International goodwill and commitment to the cause of environment and natural
resources will be sustained, especially the adoption of the international
arrangements on Reducing Emissions due to Deforestation and Degradation
(REDD) for natural forests.
International & local markets for products from responsibly managed forests in
developing countries will continue to grow and offer premium prices.
Conducive investment climate and incentives to support forestry developments
will be created and sustained (e.g. integrity of CFR, fiscal incentives, integrity of
licenses).
There will be continued positive political will to maintain the current levels of the
PFE as the Forestry Policy (2001) provides. This will be demonstrated when the
government ban on removal of encroachers is lifted.
The NFA mandate to manage CFRs in a semi-autonomous institutional
arrangement will be maintained through policy and law
All planned revenues will be collected.
The fluctuation of energy prices (especially hydropower & fossil fuel), interest
rates and foreign exchange rates will remain within predictable ranges in order to
keep investment at the planned levels.
8.2 RISKS AND STRATEGIES TO OVERCOME THEM
8.2.1 Encroachment
253. Encroachment remains one of the most important risks for investment in
development and management of forests. Investors are reluctant to take on licenses
in CFRs where there is running conflict. This is especially so today when investors
are striving to certify their forest management operations and to demonstrate good
corporate social responsibility. Conflict is a major issue with many CFRs
(encroachers, boundary conflicts). Recent events have shown that local people tend
to discourage investors by destroying their trees.
254. In order to deal with this risk, NFA will continue to work with Government to make
sure that the current strategies proposed by the Minister to Cabinet lead to peaceful
vacation of encroachers from CFRs.
66
8.2.2 Forest Fires
255. In view of the planned forest plantation area, forest fires will become a major risk
to investments. Therefore NFA will adopt fire management as a major budget line in
its Annual Operations Plans (AOP).
8.2.3 Influx of Illegal Forest Products from Neighbouring Countries
256. The fact that some of the countries neighbouring Uganda continue to show signs
of inadequate control of their forest resources rises the risk of cheap illegal forest
products (e.g. timber) getting on the regional markets. This will affect NFA revenues
negatively. To deal with this, NFA will work with Government to promote crossborder arrangements (bilateral & multi-lateral) in which activities will be jointly
implemented.
8.2.4 Loss of Forest Estate
257. If the current uncertainties regarding Government Policy on CFR land eventually
lead to de-gazzetting of some of the CFR areas, NFA will lose part of its estate. This
risk is likely to intensify towards the parliamentary elections in 2011. On the other
hand, the result of the current discussions on the revisions of the Land Act could lead
to loss of part of the forest estate.
258. The risks associated with the above possible developments will endanger
investments for NFA & Private Sector. NFA may suffer litigation leading to high
compensation costs that may threaten the very existence of the NFA. It will also lose
credibility among funding agencies, making it difficult for the NFA to finance its
operations.
259. To mitigate this risk, NFA will step up dialogue with Government and other
stakeholders to enable them internalize the importance of maintaining the PFE at the
current levels as provided for in the Forestry Policy (2001).
8.2.5 Increased Expenses of Dealing with Forest Crime
260. If the current difficulties in relations between the NFA and some local leaders are
not conclusively resolved, the expenses on dealing with forest crime will rise
because of increased costs of law enforcement and litigation, thus negatively
affecting other forest management activities.
261.
To mitigate this risk, the NFA will maintain dialogue with the local leaders.
8.2.6 Fluctuations of Prices
262. A great risk lies in fluctuations of energy prices (hydropower & fossil fuel). This
could be exacerbated by foreign exchange fluctuations. When the fluctuations lead to
rises beyond what is expected, it will result in high operating costs and negatively
affect the cash flow.
67
263. In order to mitigate this risk, NFA will monitor prices and adjust its operations
accordingly.
8.2.7 Unreliable Weather Patterns
264. Due to the effects of climate change, unreliable weather patterns will make it
difficult to plan for tree planting and this might make it more expensive in terms of
replacement of dead trees and protection of other wooded lands from fires.
265. To deal with this risk, the NFA will pay careful attention to planning seasonal
activities and use dry land practices in tree planting.
8.2.8 High Population Growth Rate
266. Population growth will continue and therefore clearing of forests for agriculture
and human settlement is likely to continue. This will increasingly exert more pressure
on forests in CFRs, thus raising costs of protection and escalating conflicts between
NFA and local people and their leaders.
68
9. BIBLIOGRAPHY
1. Glenn Bush, Simon Nampindo. The Value of Uganda's Forests: A livelihoods and
ecosystems approach.
2. Uganda Bureau Of Statistics. Uganda Population and Housing Census Report, 2002
3. Uganda Bureau Of Statistics. Statistical Abstract, 2006.
4. Uganda Bureau Of Statistics. Uganda National Household Survey (Socio-Economic
Module), 2005/06: April 2007.
5. Ministry of Water, Lands and Environment. National Forestry Policy, 2001
6. Ministry of Water, Lands and Environment. National Forestry Plan, 2002
7. Andrew Plumptre, et al. Extent and Status of Forests in the Ugandan Albertine Rift,
2002.
8. Ministry of Finance, Planning and Economic Development. Background to the budget
for Financial Year 2006/07: June 2006.
9. Ministry of Finance, Planning and Economic Development. Background to the budget
for Financial Year 2005/06: June 2005.
10. Ministry of Finance, Planning and Economic Development (2007). National Budget
Framework Paper for Financial Years 2007/08 – 2009/10, 2007.
11. National Forestry Authority. Annual Reports for 2004/05, 2005/06, 2006/07
12. Cornelius Kazoora (2007). Environment and Natural Resources as a Core Asset in
the IGAD Region for wealth creation, Poverty Reduction and Sustainable
Development. Draft Report, September 2007.
13. Simon Nampindo, et al. The Impact of Conflict in Northern Uganda on the
Environment and Natural Resource Management.
14. National Biomass Study, NFA. National Biomass Study – Technical Report, 2003
15. Uganda Bureau Of Statistics. 2002 Uganda Population And Housing Census,
Analytical Report. Household Characteristics, 2006.
16. World
Health
Organisation.
Fact
Sheet
on
Traditional
Medicine:
http://www.who.int/mediacentre/factsheets/fs134/en/.
69
10. APPENDICES
10.1 ANALYSIS OF STAKEHOLDERS IN RELATION TO THE NFA BP OBJECTIVES
Policy makers
√
√
Regulatory
Organisations
√
Producers
√
Service
Providers
√
√
√
Consumers
√
√
Processors
Research&
training
Advocacy
groups
Funding
agencies
√
√
√
√
√
√
√
√
√
√
√
√
Regulatory
Organisations
Law
enforcement
agencies
Stake / Area
of interest
Financial
Sustainabilit
y
Products &
Services
Partnerships
BP (2004/05 – 2008/09) Objectives
Forest Mgt
Stakeholder
Sustainable sector contribution to
development and environmental
sanctity.
Sustainable forest management
(social,
economic,
cultural,
ecological,
legal,
technical)
accountability,
transparency,
integrity,
professionalism).
(Standards
and
regulations;
Sustainable resource use
Most of the producers use CFRs
land (security of tenure & use rights.
Environmental services for best
production of various products
Provide services to the beneficiaries
(e.g. contractors, NGOs who provide
technical & financial support to local
communities)
Access rights, e.g. CFM group;
products & services for income &
livelihood
Sustainable
supply
of
forest
products/raw materials
Development in forest management;
improved technologies
Sustainable environmental services;
access rights to interest groups.
Sustainable forest management;
environmental
sanctity;
organizational stability
Discipline
in
management
(accountability,
transparency,
integrity,
professionalism).
Standards
and
regulations;
Sustainable resource use
Curbing illegal activities.
√
70
10.2 PESTEL ANALYSIS OF NFA OPERATING ENVIRONMENT
Forest management
Political
Economic
Social
Technological
Partial political support for
forest management; Non
tangible political benefits out
of good forest management;
There is international goodwill
for responsible forest
management
The increasing prices of
energy affect the disposable
income of communities; nature
of investment in forestry is a
long-term venture. Relatively
low investment risk; lack of
long-term investment finance
in forestry
Poor communities around
CFRs; Poverty exacerbates
illegal activities in CFRs.
Conflicts in forest resource
management & use;
The increasing distance
travelled to collect fuelwood
due to depletion of forests;
increasing demand for forest
products and services leads to
increased illegal activities
Low levels of production
technologies;
growing
Partnerships
There is increasing private
sector investment in CFRs
CFM is slowly growing; many
potential partners;
Products and service
Organizational sustainability
Increasing international
funding for climate change
mitigation
Improved management of
CFRs by a semi-autonomous
organisation like NFA is
perceived as a threat to local
political survival
Most forest products are
traded locally; increasing
energy prices affects
production and cost of biomass
energy sources; illegal
activities dampen market
prices; high return on
investment in timber
plantations; increasing demand
for forest products and
services; undervaluation of
forest products and services in
the national accounts
Employment generation;
changing stakeholder values
and lifestyle; increasing
preference for products from
sustainable sources
Inflation
affects
financial
projections and impacts on
outputs
Low levels
technologies;
of
High rate of staff turnover
(labour market, further studies,
greener pastures, morale)
processing
71
Forest management
Environmental
Legal
professional skills;
Increasing change of land use
from forestry; inability to pay
for environmental services.
Low level of environmental
services. The increasing prices
of energy leads to increased
use of biomass energy &
increased deforestation
Strong and enabling policy and
legal framework; Separation of
responsible bodies hinders
effective coordination of law
enforcement;
Partnerships
Products and service
Environment related CSOs are
becoming stronger in their
advocacy roles
Renewable / alternative energy
sources are being promoted;
increased awareness of the
climate change mitigation
services
Strong and enabling policy and
legal framework; law
enforcement and justice
officials have low levels of
appreciation of the impact of
illegal activities
Strong and enabling policy and
legal framework
Organizational sustainability
Strong and enabling policy and
legal framework; high
incidence of litigation I a threat
the survival of NFA;
72
10.3 SWOT ANALYSIS
STRENGTH
i.
ii.
iii.
iv.
v.
vi.
vii.
Skilled staff with experience in forestry related
services.
Mandate to manage 1.26 million ha CFRs
land.
Superior and higher quality forestry products,
e.g. seed and seedlings and timber.
Capacity to import seed and raise quality
seedlings.
Knowledge of customers and their points of
contact
Product branding capacity.
Country wide distribution channels.
OPPORTUNITIES
(i)
A fast developing construction sector
(ii)
A favourable climate for growing trees
(iii)
Many willing partners for leverage and
synergy.
(iv)
High demand for forest products
(v)
Carbon credits/financing business
mechanisms.
(vi)
Increasing interest in tree planting by the
private Sector.
(vii)
Local competitors have poor products e.g.
seed/seedlings.
(viii)
Favourable policy of semi-autonomy.
Hence NFA can engage in many money
making businesses.
(ix)
Donor support.
(x)
Unfulfilled customer needs
(xi)
New technologies e.g. clonal eucalyptus,
use of hydro-gels for very dry areas.
WEAKNESSES
No value addition on forestry products.
Absence of a clear staff development
programme
iii. Demoralised staff
iv. Poor internal coordination
v. Poor human resource management
vi. Deteriorating forest resource base
vii. High levels of staff loss to the high-paying
private sector
viii. Rigidity in policy and procedure of doing
things
ix. Small number of marketing and sales staff
and agents.
x. Inefficient and limited budget and cash flow
xi. Poor customer care
xii. Undeclared conflict of interest
xiii. Poor staff attitude and unwillingness to
innovate
xiv. Delayed decision making leading to wastages
and losses
xv. Limited staff capacity (technical and
numbers).
xvi. Poor reputation among some segments of
customers e.g. tree planters, timber dealers
xvii.
High pay roll costs.
xviii.
Poor commitment to the NFA values of
Transparency and Integrity
i.
ii.
THREATS
(i)
Forest crimes, especially encroachment
and illegal cutting of trees.
(ii)
Low of political will to deal with forest
crime in CFRs.
(iii)
Rising legal cases against the
organization leading to possible out flow
of scarce resources.
(iv)
Increasing agitation to change the
NFTPA.
(v)
Increasing use of substitute products –
iron bars, fabricated plastic chairs and
tables
(vi)
Climate change/environmental effects –
drought, flooding.
(vii)
Existing core business distribution risks
(viii)
Negative publicity from some clients .e.g.
tree planters.
10.3.1 SWOT MATRIX
To develop strategies that take into account the SWOT profile, a matrix of the
environmental factors also known as SWOT Matrix was constructed as shown below.
73
SWOT Matrix
Strength
Weaknesses
Opportunity
S-O strategies
W-O strategies
Threats
S-T strategies
W-T strategies
S-O Strategies to pursue opportunities:
• Expand the already existing high demand for NFA products through continuous
advertisements.
• Emphasize continuous expansion of partnerships and private sector participation in
forest management.
• Lobby for more donor support.
• Expand business portfolio in product and service delivery.
• Research in better quality products and services.
W-O Strategies to minimize weaknesses and exploit opportunities:
• Increase earnings through product value addition and targeting international markets.
• Recruit more staff in marketing and enlist more agents for forestry products across
the whole country.
• Establish an appropriate forum in which NFA can present its budget constraints to
the government and lobby for more public funding since the biggest share of its
resources goes into provision of a public good.
• Invest in fundable project proposal writing skills among key staff to increase chances
of accessing donor funds for forestry work.
• Train NFA staff in customer care improvement skills.
• Sensitize staff to avoid conflict of interest.
• Uplift staff attitude at work through motivation.
• Ensure timely decision making among management staff.
• Improve NFA reputation through intensive publicity.
• Scrap off and/or merge some positions in the organization which duplicate services
to reduce payroll costs.
S-T Strategies to build on the strengths:
• Ensure optimal use of the available experienced staff.
• Encourage partnerships directed towards saving local and private forests
• Invest in improved tree species varieties for the market.
• Expand customer base;
• Develop the quality of the existing distribution channels and create more channels.
W-T Strategies to avoid threats:
• Enhance public awareness and lobby for positive political involvement and support
in forest activities.
• Strengthen law enforcement and forest patrols by recruiting and training more staff.
• Emphasize production of better quality products to counter competition from
substitute products.
• Improve NFA reputation through intensive publicity education and awareness.
• Expand business portfolio.
• Increase public awareness about NFA mandate and train NFA staff to minimize legal
cases against the organization.
These strategies have been built into the activities in the Business Plan.
74
10.4 EXPENDITURE PROJECTIONS
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
STRATEGIC OBJECTIVE A: IMPROVE MANAGEMENT OF CFRS
A1. Restore the physical and ecological integrity of the CFRs
i.
Undertake boundary re6,000 Km of forest reserve
demarcation, rationalisation and
boundaries
re-demarcated,
regular maintenance
maintain and put on cadastral
maps by EOY 5
ii.
Remove encroachers from
CFRs
200,000ha
reclaimed
encroachers by EOY 5
iii.
Manage conflicts arising
from forest management activities.
Target 20
annually
iv.
Regenerate
formerly
encroached areas
v. Strengthen law enforcement on
illegal activities at all levels of
management
Target 20,000 ha
problematic
from
CFRs
Units
FY2010/11
(mill)
FY2011/12
(mill)
FY2012/13
(mill)
FY2013/14
(mill)
1,200
Km
Ha
400
No
40
Ha
2,000
Ha
500
4,000
400
400
No
72
2,000
40
3,000
1,800
400
400
40
40
2,000
2,000
500
500
72
72
2,000
40
200
500
vi. Strengthen capacity for legal Target at sectors and 50% of
litigation
at
all
levels
of Forest supervisor
management.
Sub total A1
A2. Promote the multiple Functions of Urban CFRs
i.
Complete the legal process of To Swap 5 CFRs with Urban
swapping
and
improve
the Authorities by NFA by EOY 5
management of alternative land
300
TOTAL (mill)
14,000
4,000
10
1
Target 30 Urban CFRs by EOY
5, Yr1=3, Yr2=5, Yr3=6, Yr4=6,
Yr5=10
FY2009/10
(mill)
2,000
1 million ha of CFRs effectively
protected
ii.
Develop
management
mechanisms for urban CFRs with
Urban authorities and the private
sector
Unit
10,000
2,000
500
2,000
500
72
4,212
7,012
5,000
5
No
12
4,000
72
7,012
5
No
20
2,500
360
6,012
4,812
29,060
5
25
5
5
24
40
24
120
75
Objective/Priority/Strategy
Strategy and
Target
iii. Zone and develop multiple use
functions for urban CFRs to blend
well with the urban landscapes and
environmental functions
Target 30 Urban CFRs by EOY
5, Yr1=3, Yr2=5, Yr3=6, Yr4=6,
Yr5=10
15,000
iv.
Pilot innovations like urban
recreation and eco-tourism for
revenue generations to NFA
Target 1 per year and 5 Urban
CFRs by EOY5
10,000
v. Pilot innovations for income
generation
for
the
urban
population, especially the poor and
vulnerable
No
of
(‘000s)
Units
FY2009/10
(mill)
FY2010/11
(mill)
Review of 5 FMPs to include C&I
for RFM
2,000
Develop
Guidelines
10
guidelines for plantations and
Natural forests and disseminate
25,000
iii. Undertake the audit to identify
information and process gaps with
a view of updating the C&Is and the
technical guidelines
iv. Initiate process of certification
by international agency
Assess Yr3 and Yr4 and Target 5
CFRs
50,000
In Yr3
50,000
FY2011/12
(mill)
15
No
45
No
1
No
1
Subtotal A2
64
No
1
No
75
No
-
10
3,000
i.
Review the FMPs of priority
CFRs in line with the C&Is for
certification
ii.
Develop and disseminate
technical guidelines for field
implementation of FMPs of priority
CFRs in line with the C&Is for
certification
i.
Demarcate
biodiversity
conservation zones and manage
them in accordance with their
respective objectives as contained
in FNCMP
Unit
6
90
200 Km of conservation zones
demarcated annually
Km
100
500
450
90
150
20
2
1.8
1.2
20
53
6
16
50
100
300
25
25
50
-
200
20
50
100
50
No
76
TOTAL (mill)
145
141
198
664
A3. Promote responsible management of CFRs
3
10
2
3
1
-
Sub total A3
FY2013/14
(mill)
116
75
-
FY2012/13
(mill)
320
127
203
278
46
730
A4. Promote biodiversity conservation and sustainable use
100
100
500
100
100
76
Objective/Priority/Strategy
Strategy and
Target
ii.
Support affirmative actions to
increase
the
abundance
of
threatened/
endangered
tree
species
35,000 seedlings of threatened /
endangered species planted in
harvested gaps and maintained
annually
Mvule,
Mahogany,
Prunus, Cordia
3
iii. Develop new eco-tourism sites
in the northern and eastern regions
2
new
eco-tourism
sites
developed
by
EOY
5
(W/Bugwe&Agoru)
200,000
iv. Identify, package and advertise
new sites for private sector ecotourism development
v.
Maintain and improve current
eco-tourism
centres
for
privatization of services
vi. Identify and improve on the
management
of
biodiversity
corridors
20 New ecotourism identified for
private sector development
5,000
(3) Mabira, Mpanga and Kalinzu
No
of
(‘000s)
Units
Unit
FY2009/10
(mill)
FY2010/11
(mill)
FY2011/12
(mill)
53
No
21
No
20
(3) Budongo-Bugoma, ItwaraMuzizi, Morongole, NyangeaNapole-Kidepo
30,000
vii.
Pilot
conservation-friendly 7 CFRs and 3 Corridors
initiatives in both Biodiversity
corridors and Buffer Zones in CFRs
Subtotal A4
5. Promote the restoration of degraded natural forests
i.
Determine levels of forest degradation and prioritise the TMFs for
restoration
5,000
150
No
9
No
5
10
10
ii.
Develop and implement
effective protection measures to
support natural regeneration
Link to priority no.1
iii. Promote affirmative silviculture
through enrichment, gap planting
and tending
iv.
Promote natural forest
regeneration
through
felling
damage repair and liberation
tending in the logged over and
3 Million seedlings in Lake Shore
CFRs
1
Kalinzu, Bugoma, Budongo,
Itwara and Lake Shore CFRs
30
30
20
100
50
30
9
5
5
400
100
900
108
20
50
515
624
400
80
-
2,867
120
20
-
20
30
775
120
Ha
40
300
15
628
420
20
30
325
210
200
300
No
TOTAL (mill)
809
No
300,000
FY2013/14
(mill)
105
120
20
FY2012/13
(mill)
-
60
-
-
-
780
No
600
Ha
70
5,426
1,014
70
1,318
1,714
119
154
91
488
77
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
Units
Unit
FY2009/10
(mill)
FY2010/11
(mill)
FY2011/12
(mill)
FY2012/13
(mill)
FY2013/14
(mill)
TOTAL (mill)
degraded areas of CFRs
i. Develop and implement a
transparent CFR land allocation
system
ii. Evaluate performance of private
farmers
iii. Establish new plantations by
NFA
Subtotal A5
674
970
Ha
200
Ha
100
Ha
2,500
3,000
Ha
2,970
30
10
200
10
1,000
iv. Maintain the existing plantations
of NFA
12,500 ha of profitable &
productive
forest
plantation
planted by EOY 5
9000 ha of new existing forest
plantations in the CFRs
v. Manage Eucalyptus coppices for
Pole and fuelwood
2000ha
(W/Nile,
Kasese,
Rukungiri and Mubende
150
vii. Support private sector tree planting initiatives
100
500
100
100
3,600
4,320
5,184
2,700
2,430
2,160
1,890
120
120
15
15
20
15
300
12,150
300
Ha
1,000
25
6,145
5
6,475
125
Ha
5,000
25
100
15
5,815
of
100
18,604
No
Sub total A6
7. Promote sustainable management of woodland CFRs
i. Determine levels of forest Target CFR with area
degradation and prioritise the CFRs >3000ha
for proper woodland management
ii. Develop and implement technical Target 20,000 ha in 10 CFRs
guidelines
for
woodland
management in line with the FMPs.
iii. Develop and implement effective
protection measures to support
natural regeneration
iv. Support affirmative silviculture in 10,000ha at 200 sph
woodlands
1,225
1,517
1,928
6,314
6. Promote development of forest plantations
200
1,000
200
200
6,815
250
-
50
-
50
-
-
-
-
-
Ha
-
-
No
1
32,654
75
50
-
7,404
600
600
2,000
600
200
78
Objective/Priority/Strategy
Strategy and
Target
v. Develop and pilot initiatives for
economic utilization of woodlands
(bee-keeping,
ecotourism,
sustainable fuel wood & charcoal
production, oils and other products)
8 pilot activities
vi.
Develop
and
implement
mechanisms for mitigating climatic
change effects through responsible
management of woodlands (e.g.
sustainable charcoal production
and regeneration)
Sub total A7
8. Develop, maintain and disseminate forestry information
i. Undertake an audit to establish carry out in house
forest information gaps
ii. Develop and implement a
forestry information system (FIS),
including training of system and
database managers at Hqs, and
link and back to 7 Field Mgt Offices
No
of
(‘000s)
Units
Unit
FY2009/10
(mill)
30,000
FY2010/11
(mill)
-
FY2011/12
(mill)
72
FY2012/13
(mill)
60
No
216
20,000
907
-
897
20
36
36
300
240
150
765
15
65
936
-
476
iv.
Undertake
intelligence
information for effective law
enforcement.
v. Undertake data processing,
analysis,
and
information
packaging and publishing
20,000
vi.
Disseminate
information
(sensitization, awareness creation,
and education)
200,000
20
-
60,000
100,000
3,281
-
No
iii. Carry out spatial data collection
using various methodologies of
forest resource surveys, inventory
studies, Licensing, infrastructure,
logistics, staff deployment
TOTAL (mill)
72
No
30,000
FY2013/14
(mill)
288
No
48
No.
100
No.
20
No.
20
No.
200
100
20
20,000
20
200
72
480
48
24
100
100
20
20
20
20
200
200
100
500
20
100
20
100
200
1,000
79
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
Units
vii. Conduct communication impact
assessment
to
determine
effectiveness
of
information
dissemination and use by the
public.
viii. Invest in relevant publications
on forests, carbon trade, etc from
international organisations
30,000
ix. Link NFA web sites with relevant
national, regional/international web
sites on forests.
5,000
90 vehicles, 200 m/cycles
No.
30
No.
10
No.
5
150
30
30
10
10
5
5
50
5
457
639
TOTAL (mill)
10
5
-
FY2013/14
(mill)
30
10
693
FY2012/13
(mill)
25
433
409
802
873
2,425
730
Km
3,044
-
ii. Maintain motor vehicles and
motorcycles
9 new sector offices and 3 at
beats
FY2011/12
(mill)
30
2,000
-
iv. Renovate/ Maintain existing
buildings
v. Maintain existing tools and
equipments
FY2010/11
(mill)
433
ii. Motor vehicles and motorcycles
running
costs
including
5%
insurance cost
iii. Construct new office buildings
for Sectors and Beats
FY2009/10
(mill)
10,000
Sub total A8
9. Infrastructure development for effective management of CFRs
i. Construct new roads and 750 km new in new plantations,
maintain old ones for effective 428km
backlog
in
new
management of the CFRs
plantations, 60 km new in natural
forests, 232km in plantations and
170 km in natural forests for
maintenance
ii. Acquire, and dispose motor
vehicles and motorcycles
Unit
8,800
No
480
1,520
2,000
2,400
2,400
No
2,079
2,495
2,994
3,593
4,311
660
660
No
660
660
660
15,471
50,000
-
300
300
3,300
-
No
2,000
-
200
160
No
-
600
-
-
60
400
20
20
60
60
60
240
80
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
Units
vi. Assess condition & renovate
priority Guest houses
50,000
vii. Replace worn out/broken tools
&
equipments
for
fieldwork
including fire fighting equipment
-
viii. Procure minimum field package
of tools and equipment
2,000
ix. Procurement of office materials
and equipment
-
Unit
FY2009/10
(mill)
No
FY2010/11
(mill)
-
-
FY2011/12
(mill)
100
100
600
FY2012/13
(mill)
FY2013/14
(mill)
100
300
100
-
100
100
100
-
400
-
No
600
-
100
100
100
Sub total A9
TOTAL (mill)
500
100
100
8,524
3,319
6,774
7,204
7,834
-
30
-
-
33,655
STRATEGIC OBJECTIVE B: EXPAND PARTNERSHIP ARRANGEMENTS
B1. Improving the sanctity of CFRs through partnership arrangements
i.
Determine the contribution of
CFM towards responsible forest
management.
ii.
Expand and implement
partnership for law enforcement
and legal litigation
iii.
Expand
and
implement
partnership for lobbying and
advocacy for sanctity of CFRs
30,000
iv. Expand and implement CFM
for responsible forest management
20,000
v.
Expand and implement interinstitutional
&
public-private
arrangements for responsible forest
management.
30,000
vi.
Strengthen the sub-sector
institutional
coordination
for
responsible forest management
-
60
30
15,000
15
75
75
No
10,000
10
No
Sub total B1
75
B2. Promote partnerships for Improvement of Local Community Livelihoods from Forest-based activities
50
215
10
20
20
30
30
50
50
185
215
50
100
30
30
-
10
20
20
30
75
10
10
20
315
75
150
50
185
200
875
81
Objective/Priority/Strategy
i. Determine the contribution of
community
forest-based
enterprises
under
CFM
arrangements to the livelihoods of
these communities
ii. Review and expand support to
CFM
forest-based
community
income generation enterprises
iii. Empower CFM local community
groups for effective and efficient
management
of
forest-based
enterprises.
iv. Promote new forest-edge
community income generation
enterprises
v. Promote market research and
advise local communities on
markets and marketing of their
products.
vi. Encourage private sector
investments and NGOs that
contribute to improvement of forestedge local community livelihoods.
Strategy and
Target
No
of
(‘000s)
Units
Unit
FY2009/10
(mill)
FY2010/11
(mill)
30,000
20 community groups
20 community groups
FY2011/12
(mill)
No
30
No
15
No
20
No
10
5,000
20
10
10,000
20,000
-
-
20
8
No
TOTAL (mill)
-
60
50
215
50
50
20
20
10
10
20
20
8
8
20
100
10
50
20
No
2,000
FY2013/14
(mill)
30
50
10,000
FY2012/13
(mill)
80
8
8
40
Sub total B2
83
108
108
108
138
545
B3. Promote partnership for Improvement of knowledge and skills in forest resource management
i. Promote and expand partnership
for research in forest resources
management and development
-
ii. Promote and expand partnership
for transfer of knowledge and skills
(technology)
-
iii. Promote and expand networking
arrangements
with
regional/international
forestry
related organisations.
-
10
No
10
10
50
20
10
50
50
20
20
50
50
20
50
10
250
20
100
Sub total B3
80
80
80
80
80
400
B4. Promote private-public sector partnerships for increased social and environmental services from CFRs
82
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
Units
i. Explore, develop and implement
partnerships with companies for
Cooperate social responsibility
ii. Explore, develop and implement
partnerships for carbon and trade
and climate change mitigation
-
iii. Explore, develop and implement
partnerships for integrated water
shed/catchments management.
-
Unit
FY2009/10
(mill)
FY2010/11
(mill)
FY2011/12
(mill)
20
FY2012/13
(mill)
50
STRATEGIC OBJECTIVE C: SUPPLY OF FOREST AND NON-FOREST PRODUCTS AND SERVICES
C1. Promote Supply of quality tree seed and planting materials
i. Improve tree seed procurement, start with 1000 Kg imported seed
250
testing, storage and distribution
and 5500 kg local seed of quality
Kg
tree
seed
produced
from
identified seed sources annually
ii. Establish and maintain quality
tree seed sources
80 new seed sources of
minimum standards established
by EOY 5
600
iii. Produce quality tree seedlings
and other planting materials
150 seed sources of minimum
standards maintained by EOY 5
600
iv. Develop and implement a tree
improvement programme
10.5 million quality tree seedlings
produced annually
0
v. Promote the multiplication and
use of indigenous species (e.g.
Gum Arabic, Shea butter, Mvule,
Mahogany etc)
Tree improvement for 5 priority
species
developed
and
implemented
by EOY 5
10,000
Sub total C1
C2. Promote supply of wood products from CFRs
20
50
50
10
10
250
10
10
Sub total B4
100
20
50
50
10
TOTAL (mill)
20
20
-
FY2013/14
(mill)
50
80
80
80
80
80
1,625
1,950
2,340
2,808
3,370
100
100
100
100
375
375
2,722
3,266
50
50
6,055
7,161
400
12,093
No
10
No
90
No
1,575
No
50
275
410
375
1,490
11,721
3,350
1,890
2,268
50
50
4,265
5,133
250
25,964
83
Objective/Priority/Strategy
Strategy and
Target
No
of
(‘000s)
Units
i. Promote grading and transparent
sale of sawlogs from natural
forests
ii. Promote transparent sale of
sawlogs from plantation forests
iii.
Promote
grading
and
transparent sale of utility and
construction poles
iv. Promote transparent sale of
firewood
Sub total C2
C3. Promote supply of non-wood products and services from CFRs
i. Promote private FBEs (ecotourism,
resins,
oils
beekeeping, wood curving, crafts,
medicine)
ii. Support value addition through Focus on bamboo, Rattan cane
forest product harvesting and
processing
iii.
Develop
and
implement
incentive schemes for publicprivate partnership
Sub total C3
C4. Promote supply of non forestry related services
i. Improve facilities for effective
delivery of non forest related
products and services
ii. Develop capacity to undertake
consultancy and training services
on contract
iii.
Develop
and
implement
appropriate
mechanisms
to
stimulate private sector interest in
forest based activities
Sub total C4
Unit
FY2009/10
(mill)
FY2010/11
(mill)
2
FY2011/12
(mill)
20
m3
10
m3
35
No
20
m3
15
1
79
-
-
50
5
-
35
3
2
15
15
34
75
113
132
50
10
10
50
50
5
5
65
65
50
200
5
65
65
50
50
50
25
20
20
90
100
20
20
20
20
90
90
20
20
90
50
20
20
-
275
250
50
-
498
10
5
15
35
179
10
-
80
15
94
10
-
210
60
4
15
80
TOTAL (mill)
35
5
1
FY2013/14
(mill)
40
39
2
FY2012/13
(mill)
100
90
450
C5. Promote harvesting and value addition to increase supply of forest products and services
84
Objective/Priority/Strategy
Strategy and
Target
i. Support value addition through
forest product harvesting and
processing
ii.
Develop
and
implement
incentives
for
public-private
partnership in processing
Sub total C4
No
of
(‘000s)
Units
Unit
FY2009/10
(mill)
FY2010/11
(mill)
157
FY2011/12
(mill)
587
m3
FY2012/13
(mill)
3,604
10
STRATEGIC OBJECTIVE D: ORGANISATIONAL SUSTAINABILITY
D1. Increase good governance and public accountability in forest management
i. Develop and implement a
decentralised
structure
that
promotes disaggregated decision
making in managing CFRs
ii. Develop NFA internal policies,
standards and Guidelines for
effective management of CFRs
-
iii.
Strengthen
the
internal
monitoring system – internal audit,
M&E, and discipline
-
iv. Develop and implement a
reward
system
for
good
governance
v. Deliberate engagement of civil
society organisations and political
leaders in the management of
CFRs
Sub total D1
D2. Promote Resource mobilization for sustainability
i.
Develop
mechanisms for generation of own
revenue
ii.
Develop mechanisms
for
fundraising
for
specific
management activities
-
597
656
20
20
10
20
10
10
20
20
15
15
100
100
75
100
165
500
165
165
825
50
50
20
20
15
100
20
20
3,654
100
100
-
791
20
15
50
720
50
15
-
10
10
20
165
10
100
10
165
781
50
20
-
710
10
10
890
TOTAL (mill)
646
880
-
FY2013/14
(mill)
250
50
50
20
20
20
100
85
Objective/Priority/Strategy
Strategy and
Target
iii.
Develop
and
implement innovative forest funding
mechanism for specific public
goods management
iv.
Develop and implement
mechanisms to access ODAs from
Development Partners
vi. Management and administration
Sub total D3
Total
Unit
FY2009/10
(mill)
FY2010/11
(mill)
-
FY2011/12
(mill)
50
FY2012/13
(mill)
50
FY2013/14
(mill)
TOTAL (mill)
-
100
-
-
-
50
50
200
50
iii.
Review and Implement
human resource manual
v.
Develop and implement a
policy on internship
Units
-
Sub total D2
D3. Strengthen the human resource capacity of NFA
i.
Review the organizational
structure for effective management
of CFRs
ii.
Develop and Implement staff
training programmes
iiv.
Develop and Implement staff
motivational schemes
No
of
(‘000s)
70
32,217
100,000
-
10% of annual wage bill
3,222
600
170
170
120
50
120
650
-
68,890
-
14,870
16,322
100
100
20
17,952
19,745
100
100
20
20
1,795
1,975
30
30
400
20
80
-
6,889
1,487
1,632
30
30
120
5,077
4,579
4,932
5,216
5,533
25,337
16,507
25,038
16,507
50,372
18,104
54,255
19,897
57,375
21,870
60,861
76,379
247,901
86
10.5 MONITORING FRAMEWORK FOR THE BUSINESS PLAN
Intervention Logic
Means &
Sources of
Verification
To contribute to a sufficiently forested, ecologically stable and economically prosperous Uganda
Vision
Mission
Baseline
Objectively Verifiable
Indicators
Frequency
of
Monitoring
Responsible
for Monitoring
To manage the Central Forest Reserves on a sustainable basis, and to supply high quality forestry-related products and services to
Government, local communities and the private sector”
Strategic Objectives & Priorities
1
1.1
Improve the management of the Central Forest Reserves
Restoration of the
45% of the
By end of year (EOY) 5, 90% of
physical and legal
boundaries have
the CFRs boundaries reintegrity of CFRs
been re-opened
demarcated according to NFA
standards
1.2
Promote the multiple
Functions of Urban CFRs
1.3
Promote responsible
management of CFRs
NFA annual
reports; physical
inspections
annually
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
annually
annually
NFA Monitoring
Team
Baseline,
Year 1; midterm, Year 3,
Final, Year 5
Baseline,
Year 1; midterm, Year 3,
Final, Year 5
NFA Monitoring
Team
80% of the CFR area
is free from
encroachment
Average TRA index
for Kalinzu, Bugoma,
West Bugwe,
Lwamunda &
Kasagala is 30%
very little purposeful
management of
urban CFRs
95% of the CFR area free from
encroachment by EOY 5
By EOY 5 of this BP, 75% of the
urban CFRs will be under proper
management
RFM audits
No CFR has been
certified, Draft FMPs
and draft internal
SFM standards
available
By EOY 5, at least three natural
forest CFRs, and two plantation
CFRs will be certified as being
managed responsibly
RFM audits
TRA index in 50% of woodland
reserve area stands at 70% by
EoY 5
NFA Monitoring
Team (M&E
Specialist,
Internal
Auditor, the
relevant
Coordinator)
NFA Monitoring
Team
Independent
international
Certifying Body
87
Intervention Logic
Baseline
Objectively Verifiable
Indicators
By EOY 5, 80% of the key
biodiversity CFRs will be
managed in accordance with the
conservation objectives contained
in the FNCMP
By EOY 5, 75% of the degraded
area of priority TMF will be in the
early stages of natural & or
assisted regeneration
Means &
Sources of
Verification
RFM audits
Frequency
of
Monitoring
Baseline,
Year 1; midterm, Year 3,
Final, Year 5
RFM audits
Baseline,
Year 1; midterm, Year 3,
Final, Year 6
1.4
Promote biodiversity
conservation and
sustainable use
Biodiversity zones
demarcated in all
CFRs in the Albertine
Rift
1.5
Promote the Restoration
of Degraded Natural
Forests
40,000 ha at various
stages of degradation
1.6
Promote development of
forest plantations
11,000 ha of young
plantations for NFA &
25,000 ha for private
sector
2,500 ha of new plantations
established in CFRs by NFA &
7,500 ha by the private sector
annually
NFA annual
reports; physical
inspections
annually
11,000 ha of young
plantations for NFA &
25,000 ha for private
sector
23,500 ha of new timber and pole
plantations being maintained by
EOY 5
NFA annual
reports; physical
inspections
annually
100,000 m3 being put
on the market
annually
no CFR is under
deliberate productive
management
60,000 M3 will be harvested
annually
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
annually
Baseline,
Year 1; midterm, Year 3,
Final, Year 6
annually
1.7
Promote sustainable
management of woodland
CFRs
By EOY 5, 10 priority woodland
CFRs, representing about
20,000ha will be brought under
productive management
1.8
Develop, maintain and
disseminate forestry
information
a well functioning IT
system
A forestry information system and
an “information powerhouse” fully
operational by end of Year 5
Audit of the FIS
1.9
Infrastructure
development for effective
management of CFRs
200 Units being
maintained
The existing 200 units of buildings
well maintained by EOY 5
NFA annual
reports; physical
inspections
annually
Responsible
for Monitoring
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team
NFA Monitoring
Team
88
Intervention Logic
402
Baseline
2 Sector Offices
being constructed at
the start of 2009/10
402 km of roads
no package
Objectively Verifiable
Indicators
Nine new Sector and 3 Beat
offices constructed by EOY 3
2,980 km of new roads
constructed in plantation &
woodland CFRs by EOY 5
each supervisor equipped with a
minimum field package of
essential tools and equipment by
EOY 2
2
2.1
Expand Partnership Arrangements
Improving the sanctity of
58 communities
CFRs through partnership around 32 CFRs
arrangements
2.2
Promote partnerships for
IRR not known today
20 community forest-based
Improvement of Local
income generation activities with
Community Livelihoods
at least a 10% return on
from Forest-based
investment by EOY5.
activities
Promote partnership for
MoUs signed with 6
Arrangements with at least 10
Improvement of
training & research
training and/or research
knowledge and skills in
organisations
organisations fully operational by
forest resource
EOY 5
management
Promote private-public
At least 100,000 ha of forest
sector partnerships for
(plantations & degraded natural
increased social and
forests) under formal
environmental services
arrangements with carbon trade
from CFRs
organisations by EOY 5
Supply of Forest & no-forest products and Services
2.3
2.4
3
Forest edge communities
engaged in formal partnership
arrangements with NFA &
covering at least 150 CFRs
Means &
Sources of
Verification
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
Frequency
of
Monitoring
annually
Responsible
for Monitoring
annually
NFA Monitoring
Team
annually
NFA Monitoring
Team
NFA annual
reports; physical
inspections
annually
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team;
Performance
Contract
Review Team
NFA Monitoring
Team
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team
NFA Monitoring
Team
89
Intervention Logic
Baseline
3.1
Promote supply of quality
tree seed and planting
materials
3.2
Promote supply of wood
products from CFRs
3 million seedlings
being sold annually at
the NTSC and
regional nurseries
100m3 of roundwood
harvested from
plantations
average of 1,500 m3
being sold annually
3.3
Promote supply of nonwood products and
services from CFRs
3.4
Promote supply of nonAverage of Shs. 40
forest-related products
million over the last
and services
two financial years
Promote business
there are no
partnerships with the
commercial joint
private sector to increase investments between
supply of forest products
NFA & private
and services
companies
Develop & implement
innovative mechanisms
for increasing markets for
forest products and
services
Organisational Sustainability
Promote good
HR Manual
governance and public
accountability in forest
management
3.5
3.6
4
4.1
Objectively Verifiable
Indicators
Means &
Sources of
Verification
NFA annual
reports; physical
inspections
Frequency
of
Monitoring
annually
Responsible
for Monitoring
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team
annually
NFA Monitoring
Team
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team
NFA annual
reports; physical
inspections
NFA annual
reports; physical
inspections
annually
NFA Monitoring
Team
annually
NFA Monitoring
Team
innovative marketing mechanisms
being implemented for at least 2
new products annually
quarterly &
annual reports
quarterly
NFA Monitoring
Team
a clear and working policy that
gives meaningful decision-making
at the field levels
SMT minutes and
Board
Resolutions
quarterly
NFA Board;
GoU
Performance
Monitoring
Review
9.5 million seedlings of assorted
tree species being sold annually
from NFA nurseries
60,000 M3 of roundwood for
timber being harvested from NFA
plantations annually.
supply of sawlogs from natural
forests raising from 5,000M3
during the first year & reaching
40,000 M3 annually during the
5th year
At least 2 products currently
bringing in less than Shs. 12
million developed to yield at least
Shs. 60 million annually by EOY 3
Income from consultancies &
training reaching Shs. 200 million
annually
The value joint investments (NFA
& private sector) growing at an
average rate of 20% annually by
EOY 5
NFA Monitoring
Team
90
Intervention Logic
Baseline
Objectively Verifiable
Indicators
Means &
Sources of
Verification
Frequency
of
Monitoring
Responsible
for Monitoring
Committee
HR Manual
4.2
Promote mobilisation of
Investments in
management of CFR
4.3
Strengthen the human
resource capacity of NFA
professional code of ethics that
works
HR manual,
independent
reviews
annually
investment levels averaging 25%
of the annual expenditure
NFA Annual
audited accounts
annually
HR Manual
Training Programme that works
Formal
operational
training
programme;
independent
reviews
annually
Contents of the
Human Resources
Manual
Clear incentive scheme for staff
formal operational incentive
scheme; independent reviews
NFA Board;
GoU
Performance
Monitoring
Review
Committee
NFA Board;
GoU
Performance
Monitoring
Review
Committee
NFA Board;
GoU
Performance
Monitoring
Review
Committee
NFA Board;
GoU
Performance
Monitoring
Review
Committee
91