GOVERNMENT has launched a K3 billion forestry development credit facility aimed at providing affordable financing to the micro, small and medium enterprises in the forestry sector.

Tourism, Environment and Natural Resources Minister, Patrick Kalifungwa, said the money has already been released to his ministry for disbursement.

Mr Kalifungwa said this during the official launch of the credit facility at Andrews Motel in Lusaka yesterday.

He said the money would be disbursed according to the criteria to be worked out by the various stakeholders, which guidelines would also be used to invite applications from eligible Zambians.

"This facility will ensure rational use of the forest as credit to develop the forest land," he said.

He explained that the money would be available as credit to develop the forest resource through activities such as planting of trees, training in optimal utilisation of forest resources and re-capitalisation of forest resources.

Mr Kalifungwa said the money would also be used for processing of wood and non-wood products to produce quality finished products for local consumption and export.

And Mr Kalifungwa has said about 200,000 - 300,000 hectares of land were being deforested annually.

Meanwhile, Christopher Sichinga from the private sector said one of the major problems faced by the private sector in the forest sector was pricing of the products.

Mr Sichinga also said bureaucracy involved in obtaining certificates for export of timber products in Zambia was a hindrance to the sector.

He said while timber products were easily exported from Zimbabwe to Botswana, Zambian products were hindered.

"Although we should not celebrate about the problems being faced by Zimbabwe, we should take advantage by exploiting this sector even more," he said.