Dorothy Nakaweesi
29 January 2008
Kampala — COMMERCIAL tree planting is not a conventional type of business in Uganda but a UK-based firm has cast its expectation wide and with over $10.2 million (Shs17.3 billion) invested in tree planting the prospects for good returns is mouth watering.
A government forest policy says the country needs to recover 20 per cent of the lost forest cover, which is about 250,000 hectares of new trees planted at least by 2015.
This opportunity created by the government for the private sector to venture, is what New Forest Company (NFC) took up for a massive investment campaign since 2005 expecting to raise 4.3 million commercial trees mainly of the Pine and Eucalyptus species.
With Uganda's construction industry not showing any slowdown in the near future, the demand for timber and other timber products is certain to grow providing a huge market for tree dealers and timber vendors. The regional market in Southern Sudan and Rwanda will also come in hardy to provide wider and virgin markets.
Timber plantations offer attractive rates of return on one's investment, according to Ms Meredith Bates the company's corporate responsibility manager, in the order of 15-18 percent (more with well grown Eucalypts).
"Our business mixes commercial plantation forestry with protection and regeneration of indigenous tree species and the promotion of bio-diversity and environmentally sustainable land use management," she told Business Power.
She said their projects are underwritten by carbon credits, which require sound environmental land use management in compliance with the Clean Development Mechanism. The company targets to plant 65,000 acres of trees although a total of 7,245 acres has since 2005 been planted.
According to the Executive Director Uganda Investment Authority Dr Maggie Kigozi, NFC has already established itself as the biggest tree planter and the dominant player in Uganda.
The company that has so far created 1,600 jobs and forecasts another 2,500 in the next five years, operates in three districts of Mubende, Bugiri and Kiboga.
"The workforce is highly motivated and productive, for many of the rural workers and contractors this is their first real job so there is considerable training required to help make the transition to full time employment," Ms Bates said.
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