Ecosystem services – from carbon storage to pollination – underpin hydropower, agriculture and tourism.
Tanzania's forests account for almost 20% of the country's gross domestic product – nearly five times more than the calculations made in the country itself, according to a new, government-backed report published by the Tanzania Forestry Research Institute.
“Our analysis indicates that ecosystem services such as carbon storage, water regulation, soil fertility and pollination account for more than 16.7% of the country's GDP,” says Dr Felician Kilahama, former director of the Forestry and Beekeeping Division at the Ministry of Natural Resources and Tourism and the study's lead author. “If you add the 3.3% from traded timber products, forestry's true share of the economy reaches 20% – far more than the official 2-4% reported by the National Bureau of Statistics.”
Kilahama stressed that these discrepancies have arisen because so-called non-traded benefits were left out of account for decades. Ignoring non-financial services has created an enormous gap in the country's economic accounting. He noted that ecosystem services support other important sectors, including hydropower, which generates almost 80% of Tanzania's electricity and depends on healthy catchments in forested areas. Agriculture depends on predictable water flows, pollination and fertile soils, while tourism thrives thanks to the country's rich biodiversity and captivating landscapes.
Tanzania currently has more than 48.1 million hectares of forest, roughly 55% of the country's land area, which makes it one of the world's biodiversity “hotspots”. And although its natural forests are home to around 10,000 plant species, including hundreds found nowhere else, they face considerable threats – 1,456 species are likely to be endangered and a further 805 are potentially endangered. Around 45% of the forest area – 21 million hectares – consists of legally protected reserves and dedicated wildlife areas. The remaining 20.1 million hectares are production forests, where logging is permitted.
Beyond their immediate economic value, Tanzania's forests are vitally important in mitigating climate change. They store around 5.8 gigatonnes of carbon dioxide equivalent and act as net carbon dioxide sinks, absorbing roughly 0.3 gigatonnes of carbon dioxide equivalent each year. Mangrove ecosystems alone store 79 tonnes of carbon per hectare and absorb 2.7 million tonnes of CO₂ a year. This untapped potential could allow the country to take part in the global carbon market.
Despite these advantages, deforestation at an alarming rate is putting Tanzania's forests at risk. The report estimates that the country loses around 470,000 hectares of forest every year, driven by uncontrolled agriculture, illegal logging and forest fires. The study warns that if these trends continue, they could jeopardise growth in energy generation, sustainable farming and tourism. Restoration and sustainable management will be crucial to securing future development.
To address this discrepancy, the researchers call for the adoption of so-called green accounting systems that integrate ecological values into Tanzania's national statistics. To achieve this, they propose introducing a payments for ecosystem services scheme under which industries, including hydroelectric power stations and agricultural businesses, would fund forest conservation. “Valuing our forests properly ensures that everyone benefits from the services they provide,” says Amina Msuya, a Tanzanian ecotourism operator in the Rufiji Delta.