Investment in the forestry sector

The FSR of 1986 culminated in the formulation of Sudan’s Forestry Resources Conservation Project (FRCP) to the tune of US $ 59.2 million which were to be provided by GOS, WB, USAID, FINNIDA, ODA (UK), and DANIDA. The enactment of the FNC in 1989 was part of FRCP. However for reasons other than technical, funding was received and on limited scale from some of the donors up to 1996. The FNC through its own resources, support from GOS and the donors, who opted to continue up to 1996 ran the sector activities.

Current level of investment compared to that before the implementation of nfp

Current level of expenditure/investment in forestry before and after implementation of nfp is reflected in tables 6 and 7. While the total expenditure for the period 1981-1985 stood at US $ 7 500 000 and  Ls
5 039 000, it amounted to US $ 25 130 079, DM 21 519 700, ₤ 997 000 and LS 101 209 180 since the implementation of nfp. This is beside the current budget of NFC.

Table (6). Forest Administration Budgets LS millions and in million US $ equivalent.

From 1982 to 1986 separate budgets were prepared for centre and the regions. In 1996/87 they were combined.

Equivalent in US $.

Source: WB: Sudan: Wood Energy/Forestry Project. August 1987

Between FY 1981/82 and FY 1984/85 the forestry administration recovered around 25% of its actual cost (excluding development expenditures) in royalties. Approval budget estimates allowed for the recovery of 45% of its costs but actual revenues (including royalties) have only accounted for 60% of approved estimates because the LFA has simply had no means of collecting them.

Table (7). FNC Budgets LS millions and million US $ equivalent.

a) Including LS 151.5 million from Central Treasury as development budget.

b) Including LS 247.6 million from Gum Arabic Company (5% of auction price).

c) Including LS 200.4 million from Gum Arabic Company.

d) Including LS 664.3 million from Gum Arabic Company.

e) Including LS 315.0 million from Gum Arabic Company.

40% of Royalties LS 490.4 paid to states as per council of Ministers Resolution of 1997.

40% of Royalties LS 950.4 paid to states as per council of Ministers Resolution of 1997.

40% of Royalties LS 544.4 paid to states as per council of Ministers Resolution of 1997.

40% of Royalties LS 1136.4 paid to states as per council of Ministers Resolution of 1997.

Sources of FNC Revenue

The main sources of FNC revenue are:

Royalties (on wood and non-wood products from outside forest reserves), sale of firewood from A. nilotica plantations run on long rotation (30 years) after removal of saw logs, sale of standing coupes of irrigated Eucalyptus plantation or A. nilotica riverain forests managed on short rotation (15 years), rental of gum orchards (gazetted federal forest reserves seeded with A. senegal), sale of sawn timber from FNC run sawmills (from A. nilotica riverain forests, Cupressus plantation and Kaya senegalensis high rainfall savanna forests), sale of small size sawlogs from plantation forests and royalty from gum Arabic.

The royalties on products from forests not constituted as reserves which is shared with the states makes the bulk of FNC revenue amounting to an average of 57.4% During the past decade. Table 8.

Table (8). Ratio of Royalty including that on gum arabic to all FNC revenue excluding developmental support from GOS

Table (9). Levels of investment in forestry by donor agencies and counterpart funding by GOS before and after the implementation of nfp:

 * That was funding for Phase I and II.

The main programme areas that have received attention on account of nfp process

These included:

Measures to promote private sector investment in forestry:

Various measures have been undertaken to involve the private sector in forestry. Some of them date back to the sixties when CFA tried to convince the private sector move their plants about to be established for particle board and match making out of Khartoum North to where the raw-materials existed. The advice was not heeded. The plants were established in Khartoum North, functioned for a decade or so and stopped in view of the high costs of transport of raw-material.

Perhaps the most fruitful partnership between CFA and the private sector was the one with the Gum Arabic Company (GUMCO). It started a few years after the establishment of GUMCO in 1969. The latter was established as a public company. To day the Government holds 30% of the shares, with the producers and individuals holding 18% and 52% respectively. CFA seconded a senior forest economist to GUMCO. He served there for more than 20 years. GUMCO allocated substantial financial resources for socio-economic services like drinking water, education and health in the Gum Belt of Sudan. It was through that process and during that time that the concept of rehabilitation of gum belt was conceived. It materialized in long gestation donor funded project; the Restocking of Gum Belt that was funded for some 15 years by the Netherlands and WFP and implemented by CFA, FNC, FAO and UNSO in Kordofan and Darfur. Some 15000 farmers in hundreds of villages were involved in planting of A. senegal in their holdings. The efficient forestry extension programme within the project lead to the astounding success of the project. As a result some 21000 ha were re- or afforested and gone into production.

One aspect of the various studies conducted under FRCP (2.4.2.) was the stumpage rate and FNC revenue system. Scenarios from this were presented to a gathering in El Obeid which recommended that the GUMCO incorporates in its pricing system an amount equivalent to 5% of the auction price as a royalty to be paid to the FNC. The FRCP study recommended a royalty of 13% of the farm-gate price The recommendation from El Obeid gathering was accepted by the federal ministries of Finance and Commerce. It is applicable ever since and the amount depending on the annual production of gum is paid by GUMCO directly to FNC without the latter incurring the cost of collection.

Other successful joint ventures by the FNC and private sector include the ones between FNC and Haggar Tobacco Company in conservation of biomass energy through the use of baggasse/mollasses briquettes, Industrial Research Centre on non-wood forest products and with Nile Petroleum Company in the use of LPG in domestic and industrial sectors.

Perhaps the rising world awareness after the UNCED had induced such finance bodies as AfDP to impose a conditionality of forestry programmes in their finance to sugar companies like Kenana (2.2.4.c.). Incentives accruing from the overall structural adjustment programme and subsequent investment acts have induced the expansion in the distribution of LPG to domestic and services sectors. The latter received a good boost through the government cut down of LPG prices by 50%.

The FNC is currently negotiating joint ventures with other parastatals, government and private sector companies to go into manufacture of furniture.

Capacity development in forestry sector.

Forestry education at the diploma level was available in Sudan since 1935. Professional training was entirely in overseas universities up to 1975 when a department of forestry was established in the Faculty of Agriculture in University of Khartoum. By the end of the seventies professional forestry training was an option in the Faculty of Natural Resources of the University of Juba. In the mean while, the Institute of Environmental Studies together with the Department of Forestry in the Faculty of Agriculture both of U of K started to provide training at post graduate level.  The latter also continued in overseas universities. The recent expansion in higher education has rendered forestry training at diploma and degree level available in nine universities (2.2.3.c). Most of the donor assisted projects which were implemented through the FNC, forestry education or research had a staff development / capacity building components that lead to the award of certificates or degrees. The total number of forestry graduates is shown in table (10).

Table (10). Number of graduates with diploma and bachelor degrees in forestry from Sudanese universities prior to and after nfp implementation:

 Sudan University for Science & Technology established as diploma college 1948.

 Khartoum established 1974.

 Juba established 1978.

 Kordofan established 1990

*  Diploma

1) Of whom 117 diplomates were upgraded to B.Sc. in same university.

Source: Bayoumi et al (2000).

However, the past decade had witnessed a very rapid staff turnover in FNC, forestry research and education. Trained staff are lured to the oil-rich Arab countries, international and regional organizations and newly established department/faculties in federal universities. Besides FNC, graduate foresters are absorbed in wildlife management. So far very few graduates remain unemployed. The state of human resources in the forestry sector before the commencement of nfp and since is depicted in table (11).

Table 11. Human resources in forestry sector in Sudan before the implementation of nfp and since

   FAO 1988 Sudan National Forestry Corporation Human Resources, Development Survey. Report by FAO under Pre-Project Activities UTF/ SUD/043/SUD.

Study Questionnaire respondents.

Responses from distant universities not received. It is reckoned however that the total number of professionals in these universities is around 40.

State of technology and development capacity

The most tangible outcome of Sudan’s nfp in the way of forestry technology development is the achievement in forest tree seeds. A project funded by Denmark to the tune of US $ 3 230 000 and implemented by UNSO and FRC started in 1991 and ended 1996. The project established four seed centres at Soba, Damazine, Gadaref and El Obeid with a total capacity of 30 tons. Through its work in seed physiology, procurement, storage, certification and training to project and FNC staff it improved many folds the quality and record of seed used by the FNC and other stakeholders in afforestation/reforestation programmes.

Even prior to nfp implementation, reforestation/afforestation activities in Acacia nilotica riverain forests, Eucalyptus and Cupressus plantations together with tree planting in restocking of gum belt have always depended on seeds from seed stands of good from trees and desirable traits. The forest tree seed project relied on these stands and identified more. Seeds provided by the seed centres are now used in plantings of shelterbelts in MRF schemes as well as in FNC plantations. Some improvement is also realized in field practice relating to afforestation/reforestation particularly in mechanical seeding in heavy clays. Another notable improvement is in the tapping, handling and processing of gum arabic.

Capacity of other stakeholders

The most pronounced improvement in capacity building amongst other stakeholders is that of SECS. Up to 1992 SECS was run by one PhD holder. As of 2000, it is run by some 20 full time staff members. Capacity in SECS and other NGOs is depicted in table (12).

Table (12). Capacity in NGOs prior to and after nfp

Adaptability of nfp to changing situations

Both internal and external factors have necessitated the modification of nfp in the Sudan. Constitutional / administrative processes culminating in the adoption of a federal system and the civil strife which is ongoing since 1983 were perhaps the salient internal factors. The former induced the question of division of authority and ownership of forests and revenue. The latter lead to the entire suspension of forestry activities in the Southern Sudan and adjacent areas; the parts most covered with forests in the country.

The external factors were of political nature. Besides the pressure applied by some major donor nations on other donors to curtail their support to Sudan, declared and undeclared sanctions were also imposed on the country. The summation of all that dictated the premature termination of some projects and barred some Sudanese foresters from training in overseas institutions.

But all in all Sudan did survive and so did its forest service even if only just.   

The ability of the FNC and other stakeholders to accommodate the aforementioned and other changes indicates the capacity to regularly update the nfp in response to changes.

Integration of nfp in the planning process

As was indicated in 1.2.1. through 1.2.4., Sudan’s nfp was conceived in the process of a full-fledged forestry sector review. The latter was to encompass main stream forestry (protection and management, social forestry, tree planting, forest inventory), research and education.

The process was well integrated into subsequent national planning and administrative processes, such as CNS 1992-2002, Investment Act 1992 and subsequent revisions thereof, federal government legislation, higher education expansion etc.

The same capability exhibited by the FNC and other stakeholders to review/update the nfp is hopefully there to be deployed in the forthcoming 25 year vision 2002-2027.