Forestry Sector Market Opportunities in Zambia

Zambia’s forestry sector offers various opportunities to regenerate natural forests for business and create impact. There is potential to grow commercial timber plantations and add value by increasing the sector’s contribution to the growth of the economy, job creation and green growth, and to engage in circular economy, improve climate change mitigation and reduce deforestation.

SIX IDENTIFIED BUSINESS OPPORTUNITIES IN ZAMBIA’S FORESTRY SECTOR

A study “Business Opportunities in Zambia’s Forestry Sector”, published in October 2023 by the Finnish funded Accelerated Growth for SMEs in Zambia Programme (AGS), identifies six key opportunities, which potentially can contribute and increase the value of forestry sector in Zambia’s GDP and provide opportunities for Finnish companies. The value of the forestry sector is accounting estimated at 5.2% of Zambia’s GDP, which in monetary terms amounts to an estimated US$ 1.38 billion. Harnessing the potential requires a combination of innovation and technology in management and sustainable utilization of forest products, as well as growth of timber and non-timber products’ industries and services to meet the growing local and regional demands.

 

1. CARBON OFFSETS

Zambia’s total estimated Carbon Stock is 1,218 million tons, which monetary value can potentially yield up to US$ 3.7 billion.

Opportunity: Developing and implementing carbon forestry projects to compensate for carbon emissions.

 

2. MANAGEMENT OF FOREST RESOURCES

Existing commercial exotic timber plantations are currently 61,000 hectares and expansion plans are for a further 500,000 hectares. 49 million hectares are of indigenous natural forests with high-value hardwood timber trees.

Opportunity: Providing a broad range of smart forestry and smart harvesting services and technologies.

 

3. NON-TIMBER FOREST PRODUCTS

Zambia has US$ 135 million value of various Non-Timber Forest Products, while the potential market value of NTFPs is US$ 486 million. Zambia’s exports of NTFPs are rising fast, of which one example is honey products that are exported to high-end markets and are valued at US$ 14 million in 2022.

Opportunity: Harvesting and marketing of honey, fruits, nuts, mopane worms, mushrooms, medicinal plants and essential oils.

 

4. TIMBER PRODUCTS - WOODEN POLES

The estimated demand for wooden poles is 300,000 a year just for the local market. Current local output covers only a third of the demand. Large-scale clients include Zambia Electricity Supply Corporation, which, for instance, opened a tender for the supply of US$ 107 million worth of wooden poles in 2022.

Opportunity: Production of wooden poles to cater for the domestic market and potential export to regional markets. There is a need to provide treatment technologies to increase the durability of poles.

 

5. FURNITURE

Zambia’s domestic furniture market is estimated to reach US$ 160 million by 2030. Raw timber, that is exported, returns to Zambia as furniture.

Opportunity: Growing Zambia’s furniture industry to serve local and regional markets within SADC and EAC. The local furniture industry is in need of machinery, technology and upskilling.

 

6. PAPER PULP & PACKAGING

The worth of paper pulp and packaging was US$ 140 million from Zambia’s imports in 2021.

Opportunity: Developing Zambia’s existing but small paper pulp and packaging industry, in order to cater for a growing domestic and regional demand.

 

Written by and more information: Embassy of Finland, Lusaka