Investing in Trees and Landscape Restoration in Africa: What, Where and How

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Growing demand for food, fuel and other commodities, coupled with natural resource scarcity, has created an urgent need to produce more with less. A range of agroforestry and landscape restoration practices can respond to this intensification challenge, increasing soil fertility and crop productivity very significantly, often by an order of two to three times compared to current yields in many parts of the tropics. However, investment in agroforestry and other tree-based technologies has been lagging. The challenge ahead is not so much a shortage of scientific knowledge, but rather a lack of understanding of farmers specific constraints to adoption, and deficiencies in policy support and investments to scale up already well proven techniques. This collection of papers was written by teams of authors from the World Agroforestry Centre, EcoAgriculture Partners, IUCN, IIED and Trevaylor Consulting, under the supervision of the Program on Forests (PROFOR). Learn more: http://www.profor.info/profor/knowledge/mobilizing-private-investment-trees-and-landscape-restoration

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INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICAWHAT, WHERE, AND HOW

INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICAWHAT, WHERE, AND HOW

Authors:

Peter Dewees, Frank Place, Sara J. Scherr, and Chris Busswith Oluyede C. Ajayi, Dominic Elson, Duncan Macqueen, Terhi Majanen, Eliot Masters, Jeffrey C. Milder, Carole Saint-Laurent, and Seth Shames

AcknowledgmentsThis volume draws on three background papers prepared for the Investment Forum on Mobilizing Private Investment in Trees and Landscape Restoration in Africa, under the supervision of the Program on Forests (PROFOR). The World Bank, PROFOR, the World Agroforestry Centre, the International Union for Conservation of Nature, EcoAgriculture Partners and TerrAfrfica coorganized the forum, held in Nairobi, Kenya, in May 2011. The papers were written by teams of authors from the World Agroforestry Centre (Nairobi), EcoAgriculture Partners (Washington, DC), the International Union for Conservation of Nature (Gland, Switzerland), the International Institute for Environment and Development (Edinburgh), and Trevaylor Consulting. The Program on Forests is a multidonor partnership managed by a Secretariat at the World Bank. PROFOR finances in-depth forestry research and processes that support the following goals: improving peoples livelihoods through better management of forests and trees; enhancing forest governance and law enforcement; financing sustainable forest management; and coordinating forest policy with other sectors. Learn more at www.profor.info.

DisclaimerAll omissions and inaccuracies in this document are the responsibility of the authors. The views expressed do not necessarily represent those of the institutions involved, nor do they represent official policies of PROFOR or the World Bank. Suggested citation: Dewees, P., F. Place, S.J. Scherr, and C. Buss. 2011. Investing in Trees and Landscape Restoration in Africa: What, Where, and How. Washington, DC: Program on Forests (PROFOR). Published in November 2011 Printed on 100% recycled paper Material in this book can be copied and quoted freely provided acknowledgement is given. For a full list of publications please contact: Program on Forests (PROFOR) 1818 H Street, NW Washington, DC 20433, USA profor@worldbank.org www.profor.info/profor/knowledge

II

INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICA

TABLE OF CONTENTS

ACKNOWLEDGMENTS _____________________________________________________ ii FOREWORD: THE GIVING TREE ______________________________________________ 1 OVERVIEW _____________________________________________________________ 3 ABBREVIATIONS _________________________________________________________ 7 INTRODUCTION _________________________________________________________11 1. TREE-BASED AND OTHER LAND MANAGEMENT TECHNOLOGIES FOR LANDSCAPE RESTORATION AND LIVELIHOOD IN AFRICA __________________________________171.1 Introduction

________________________________________________17 ______________________ 21 37 _________________ 39

1.2 Major Tree-Based Investment Opportunities

1.3 Broader Landscape Restoration and Ecosystem Services _____________ 1.4 Value Chain Innovations for Promoting Investment 1.5 Conclusions

_______________________________________________ 42

2. WHERE DO PRIVATE MARKET INCENTIVES CONVERGE WITH LANDSCAPE RESTORATION GOALS? _________________________________________________ 452.1 Introduction

_______________________________________________ 45 ___________ 46 ___ 49 55 68

2.2 Investment in Large-Scale Landscape Restoration in Africa

2.3 Biophysical Considerations for Investment in Landscape Restoration

2.4 Potential Market Drivers for Landscape Restoration _________________ 2.5 Other Factors That Affect Opportunities for Landscape

______________ 63

2.6 Negotiating, Planning, and Coordinating Landscape-Scale Restoration ___

3. OPPORTUNITIES AND CONSTRAINTS FOR INVESTING IN FORESTS AND TREES IN LANDSCAPES _______________________________________________________713.1 Introduction

________________________________________________71 ________________________________ 72 78 82

3.2 Unlocking Investment Potential

3.3 Constraints to Investment _____________________________________ 3.4 Improving Investment Streams into Forest Landscapes ______________

TABLE OF CONTENTS

III

REFERENCES __________________________________________________________ 97 ANNEXESAnnex I. Sources of Spatial and Geographic Data for Targeting Landscape Restoration Needs, Opportunities, and Priorities in Africa ________________114 Annex II. Investor Types

_________________________________________116

Annex III. Investment Forum: Mobilizing Private Investment in Trees and Landscape Restoration in AfricaSummary of Forum Proceedings ________117 Annex IV. Investment Forum Participation ___________________________

124

FIGURESFigure I.1. Forest and Land Use Transition Curve

______________________ 12 24 28 34 67 82 83

Figure 1.1. Raw Cashew Nut Production in Brazil, India, Vietnam, and SSA __ Figure 1.2. Production of Wood Charcoal in Africa _____________________ Figure 1.3. Maize Yields of Gliricidia Intercrop and Maize Monocrop Systems over 14 years in Makoka, Malawi __________________________________ Figure 2.1. Spatial Distribution of Landscape Investments

_______________ 47

Figure 2.2. Index of African Governance _____________________________ Figure 3.1. The Resource-Led System_______________________________ Figure 3.2. Rights-Based System ___________________________________

TABLESTable 1.1. Global Export Value of Some Major Tree Products in Africa ______ Table 1.2. Estimated Production Costs and Revenue for Various Fruits in Kenya ________________________________________ Table 1.3. Per Capita Consumption of Wood Products by Region, 2008 ____ Table 1.4. Production and Consumption of Sawnwood in 2005 and Projections to 2020 and 2030 ________________________________ Table 1.5. Carbon Sequestration in Fertilizer Tree Systems _______________ Table 2.1. Changes in Forest Tenure in Africa, 20022008 ______________

18 22 26 27 35 64

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INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICA

BOXESBox 2.1. Kagera River Basin: Transboundary Agro-Ecosystem Management _________________________________________________ Box 2.2. Southern Province, Zambia: Smallholder Conservation Agriculture _________________________________________ Box 2.3. Ethiopia Landscape-Scale Sustainable Land Management Project____________________________________________ Box 2.4. Embu, Kenya: Agroforestry and Growing Markets for Tree Products _______________________________________________ Box 2.5. Western Kenya Tea Landscapes: Eco-Certification and Forest Restoration __________________________________________ Box 2.6. Southern Savannas, Niger: Farmer-Managed Natural Regeneration and Soil and Water Conservation _______________________ Box 3.1. REDD Benefits to Local Communities

49 52 54 59 61 65 76 81 84

_______________________ 73

Box 3.2. Real Estate Investment Trusts ______________________________ Box 3.3. Overcome Regulatory Barriers to Realize Investment Potential_____ Box 3.4. Developing Viable Local Business Entities in Mozambique________ Box 3.5. Partnership That Supports the People-Planet-Profit Concept

______ 88 94

Box 3.6 Farm Africa as an Intermediary in the Development of Wild Coffee Exports from Ethiopia _______________________________

TABLE OF CONTENTS

V

VI

INVESTING IN TREES AND LANDSCAPE RESTORATION IN AFRICA

FOREWORD

THE GIVING TREEIn 2011, the Horn of Africa experienced the worst drought in 60 years. Millions of people went hungry. They abandoned their farms in search of jobs or crowded refugee camps. Tens of thousands perished. The lucky ones turned to trees for timber, woodfuel, food, and fodder to cope with the lack of rainfed crops. In field after barren field, trees stood out as survivors, protectors, and providers. With their long root systems drilling toward the water table, trees are more drought-resistant than annual crops. Trees help retain moisture, nutrients, and carbon in the soil, while protecting farms from wind erosion. And trees provide critical productsfruits, leaves, nuts, gum, charcoal, and timberthat people can eat, feed to their animals, or trade for food in times of need. The good news is that smallholder farmers in Kenya, Niger, and elsewhere recognize the importance of trees on farms and are investing in saplings, nurturing trees from existing roots, and putting their trust in agroforestry. The incentives for farmers are immediate and tangible: increased crop yields, diversified income sources, and reduced vulnerability to climate extremes. Trees on farms also help support animal life, control erosion, and protect watersheds. The global benefits are less visible but crucial: Improved agricultural practices that include trees, conservation tillage, mulching, and other proven sustainable land management techniques sequester more carbon than mainstream farming techniques and can help mitigate climate change. What has always been obvious at the farm level is becoming increasingly so for larger scale private investors. Unprecedented opportunities exist for private investors and entrepreneurs in the business of planting and managing trees in forests and on farmland in Africa. Reforestation measures for degraded lands, strategies for the sustainable management of forest resources, and agroforestry practices that incorporate trees into farming systems have demonstrated their promise for producing commercialized tree products. The level of investment so far has been modest; the challenge now is to find ways to scale up promisi

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