Financial Evaluation of Natural Forest Management

The degradation and deforestation of natural forests in Mozambique (also known as Miombo forests) has large economic and environmental consequences. Forest degradation and deforestation is due to a combination of direct and indirect drivers linked to several sectors, primarily small-scale agriculture, biomass energy and unsustainably managed forestry. The World Bank started a forest investment program in Mozambique (MozFIP) to promote green growth. One pillar of the MozFIP is the improved management of natural forests. Due to a long standing track record on natural forest management and familiarity with the Mozambican forestry sector, UNIQUE was commissioned by the World Bank to conduct a financial analysis on current forest businesses and derive recommendations for a sustainable utilization of the Miombo forests.