Mozambique Industry report

The Forestry Entrepreneurship and Joint Forest Management Project started collecting baseline information from forestry sector companies in March 2004. By end of the year all of them (67) were interviewed in the Project provinces: Sofala, Zambezia and Cabo Delgado. The data collection focused on technical and economic aspects of the companies.

Also local associations (5) of the forestry sector entrepreneurs, administrators (7) and financial institutions (5) were met and briefed about the project objectives and the opportunities it will offer to them. The data presented in this report was collected during field visits between March and December 2004.

The data is structured by province. Conclusions and recommendations follow the same structure as the provincial presentations. The detailed data is presented in by companies Annex 1. The company data is shown in a structured, standard format, which includes basic registration information, species and quantities harvested and processed, principal products and markets, and the main machinery and problems the company management haveencountered. An addition, consultants listed some observations and confidential information given by the company owners, which is not included into this report; such as potential investments and credit needs. Entrepreneurs have demonstrated keen interest on the Project, and many of them are anxiously waiting for the launching of its main development instrument – the credit facility – and expecting competitive interest rates.

Despite of the rather ramshackle overall status of the industry and of the difficulties to understand the fundamental requirements of sustainability in forest management, the consultants found spirit of entrepreneurship, which can significantly contribute to the poverty alleviation targets of the Project. A major challenge now is to create a true partnership between the parties; the state administration, forest communities, entrepreneurs and the financial institution for the credit line.  

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