Malawi Govt bows down to pressure

Malawi Government has succumbed to pressure from people harvesting timber in Viphya Plantations, popularly known as Chikangawa Forest, in Mzimba by reducing the cost of the commodity.

The current price is K10 000 (US$31) per cubic metre, but cooperatives will be buying timber at K1 500 (US$4) per cubic metre when the deal is finalised.

The revised prices follow complaints from cooperative union members, involved in buying timber, to government over the exorbitant price which resulted in their making losses.

There are seven cooperatives in Chikangawa namely, Chamatete, Viphya, Zikomo, Luwawa, Chibwaka, Kalungulu and Lusangazi. They are affiliates of the umbrella union called Timber Millers Cooperative Union.

In the 2010/11 budget, former minister of Finance Ken Kandodo announced that timber would go up from K1 500 to K10 000 per cubic metre.

Kandodo’s argument for the proposed increase was that government needed money to replant trees in areas that were being harvested.

He told Parliament that in the past, government used to operate a Forestry Management Fund whose money was being used for afforestation programmes, training of forestry management officers and forestry extension-related activities.

However, the fund collapsed, but there was need for massive reforestation in Chikangawa Forest and other areas such as Ndirande, Chilomoni and Bangwe hills in Blantyre and other areas.

Said Kandodo: “To address the situation, Mr. Speaker Sir, government has decided to reintroduce the Forestry Management Fund to begin conserving and developing our forest reserves.

“From 1st July [2010], government will be charging a fee of K10 000 per cubic metre for all forestry products sold across the country. The new price is comparable to prices obtained in the region, for example, South Africa [K12 000] [US$37], Tanzania and Kenya [K11 250] [US$35).”

But some observers argued that government increased the timber prices to fund the zero-deficit budget it had introduced after most donors had withdrawn aid.

Cooperative union members, though, were not happy with the prices and made it clear to government.

“We have been engaging government to consider the price because, honestly, not many members were making profits. At first, it was difficult [to reason with the former government], but the current government is listening to us,” said umbrella union president Ben Nyondo.

Nyondo said the seven cooperatives will be selling the timber to the union which will in turn be exporting.

Currently, Raiply is the only company operating under concession in Chikangawa Forest.

Eric Zangazanga, Viphya Plantations manager, disclosed in an interview last week that while union members currently pay K10 000 per cubic metre, Raiply pays $10 (about K3 450) per cubic metre.

Raiply is operating what used to be Viphya Plywood and Allied Industries (Viply), under a privatisation deal.

The company secured 20 000 hectares in Chikangawa Forest under concession. However, union members complained that Raiply was being favoured for purchasing timber at a lower price than local businesspeople.

Zangazanga defended the cost prices given to Raiply saying the company does replanting.

But Nyondo said the union is also doing replanting basing on an agreement that was signed when establishing unions.

“We have been replanting trees for more than two years now. We even imported hybrid seeds from Zimbabwe, a sign that we are committed to replanting Chikangawa Forest,” said Nyondo.

But Zangazanga said Raiply is doing more than replanting trees. It looks after them.