An Appraisal of the Licensing and Forest Revenue System in Zambia

Table of Contents

Project: TCP/ZAM/8925(A) - Strengthening of revenue collection in the Forestry Sector

An Appraisal Of The Licensing And

Forest Revenue System In Zambia

by

Adrian Whiteman

Forestry Officer (Outlook Studies)

FAO, Rome

This report is one of a series of reports produced as part of a Technical Co-operation Project between the Food and Agriculture Organization of the United Nations and the Government of Zambia. The author wishes to acknowledge the help and co-operation given by staff of the Forestry Department of the Ministry of Environment and Natural Resources. The conclusions and recommendations presented here are those of the author and do not represent the official policy of the Food and Agriculture Organization of the United Nations or the Government of Zambia.

The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

LIST OF ABBREVIATIONS

EXECUTIVE SUMMARY

INTRODUCTION

Structure of this report

SOME GUIDING PRINCIPLES UNDERLYING THE DESIGN OF ANY FOREST REVENUE SYSTEM

Forest charges and economic objectives

Using the forest charging system to promote forestry policy

Institutional aspects of forest charges

Political aspects of forest charges

THE LEGAL BASIS FOR FOREST CHARGES AND LICENSING

Sections of the 1999 Forests Act establishing different types of forest and the need for a licence

Types of licences described in the 1999 Forests Act

Other legal documents related to licences, restrictions and forest charges

Appraisal of the legal basis for licensing and forest charges

THE CURRENT STRUCTURE OF LICENSES AND THE STRUCTURE AND LEVEL OF FOREST CHARGES

Structure and amount of charges

Appraisal of the existing licensing system

Appraisal of the forest revenue system

SUGGESTIONS FOR MODIFICATIONS TO THE LICENSING AND FOREST REVENUE SYSTEM

Using the licensing and forest revenue system to encourage sustainable forest management

Improving the efficiency of revenue collection and using production monitoring to improve forest management

Increasing revenues and revenue sharing

Transparency and accountability

An overall proposal for the structure of licences and forest charges in Zambia

REFERENCES

ANNEX 1: TERMS OF REFERENCE - FOREST REVENUE EXPERT

ANNEX 2: ECONOMIC RENT AND FOREST CHARGES

ANNEX 3: THE ADVANTAGES AND DISADVANTAGES OF ALTERNATIVE FOREST CHARGE STRUCTURES

ANNEX 4: THE ECONOMICS OF CHARCOAL PRODUCTION AND IMPLICATIONS FOR THE COLLECTION OF REVENUES FROM THIS SECTOR

ANNEX 5: AN EXAMPLE OF HOW THE PURPOSE OF DIFFERENT TYPES OF FOREST MIGHT BE EXPLAINED TO STAKEHOLDERS