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THE OVERALL FLOW OF FUNDS BETWEEN GOVERNMENT AND THE FORESTRY SECTOR

A summary of the overall flow of funds between the forestry sector and government in 1999 is shown in Table 7. For the countries analysed here, this table shows that, on average, the sources of funding to support government expenditure on forestry policies and programmes are split fairly evenly as follows:

26% from forest revenue;

33% from net domestic government expenditure (i.e. total government expenditure from domestic funding less forest revenue); and

41% from external funding.

 

Table 7 Summary of total forest revenue collection, government expenditure on forestry and sources of funding in 1999

Country

Forest revenue

Government expenditure

Sources of funds

Domestic funding

External funding

Total

Forest revenue

Government (net)

External

Burkina Faso

780

2,201

2,328

4,530

17%

31%

51%

Burundi

50

193

1,198

1,391

4%

10%

86%

Central African Republic

5,566

1,030

n.a.

1,030

<541%

n.a.

n.a.

Chad

60

471

3,960

4,431

1%

9%

89%

DR Congo

803

1,277

0

1,277

63%

37%

0%

Côte d'Ivoire

41,561

32,971

7,566

40,538

103%

-21%

19%

Ethiopia

2,283

21,345

3,865

25,209

9%

76%

15%

Gambia

225

242

445

686

33%

2%

65%

Ghana

12,559

31,294

n.a.

31,294

<40%

n.a.

n.a.

Guinea

902

7,362

8,551

15,913

6%

41%

54%

Kenya

1,845

17,407

1,054

18,461

10%

84%

6%

Lesotho

44

521

119

639

7%

75%

19%

Liberia

3,100

7,317

0

7,317

42%

58%

0%

Madagascar

2,734

4,385

7,255

11,641

23%

14%

62%

Malawi

110

3,992

n.a.

3,992

<3%

n.a.

n.a.

Mali

321

4,830

9,896

14,726

2%

31%

67%

Mauritius

770

5,603

0

5,603

14%

86%

0%

Namibia

68

2,548

2,787

5,335

1%

46%

52%

Niger

351

773

6,612

7,385

5%

6%

90%

Nigeria

2,572

12,580

8,241

20,821

12%

48%

40%

Senegal

1,579

12,969

444

13,413

12%

85%

3%

Uganda

763

1,282

2,386

3,668

21%

14%

65%

United Republic of Tanzania

2,763

7,567

31,773

39,340

7%

12%

81%

Zimbabwe

908

2,132

1,254

3,386

27%

36%

37%

Total (excluding CAR, Ghana and Malawi)

64,482

145,975

99,735

245,709

26%

33%

41%

Source: country reports. Note: all figures are in US$ ‘000 at 1999 exchange rates.

However, this table also shows the tremendous variation between countries, in terms of their ability to finance their forestry policies and programmes from different sources of funds. Only Central African Republic and Côte d’Ivoire appear to collect sufficient forest revenue to cover their current levels of total government expenditure on forestry. None of the other countries collect sufficient revenue to cover their total expenditure or even their expenditure from domestic sources. Thus, in all of these countries, there is a net flow of money from the government to the forestry sector.

Figure 19 The main sources of funding for forestry in Africa in 1999

The other main point highlighted by this table is that there is a great difference between countries in terms of where this net flow comes from. With the exception of Ethiopia, the countries with the lowest contribution from forest revenue collection are also the countries with the highest levels of external support. Countries with generally higher levels of forest revenue collection tend to have levels of domestic funding that are relatively higher than their levels of external support. These differences are shown in Figure 19, which shows the main source of funding for government expenditure on forestry in each country.

 

 

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