Challenges and opportunities in the Natural Resources Sector

1. DPG – Environment and Natural Resources Presentation to Honourable Minister of Natural Resources and TourismMr. Anthony Diallo • Challenges and opportunities in the Natural Resources Sector • DPG-Environment and Natural Resources • Commitment to Government Frameworks • Solutions and immediate steps

2. Challenges Natural Resources sector complexities: • Various tenure and utilisation arrangements • Stakeholders at different levels competing for resources (e.g. water for irrigation, livestock, hydropower etc.) • Need for ensuring the balance between utilisation and conservation • Use of tools such as licenses, quotas, bans etc. • Service delivery to other sectors and geographical areas (e.g. 95% of energy supplied by forests in various ways), with insufficient compensation arrangements • Global influences e.g. Climate Change with mitigation and adaptation challenges

3. Current (Pres.) attention: Drought and energy crisis with links to NR Mismanagement and good governance in NRM In general, cases of poor governance, e.g. log-scams, continues to occur… Responses: Tree planting campaign, logging and transportation ban Within existing government frameworks e.g. Forestry Policy, Act and Programme? Appropriate and adequate responses? Challenges continued…

4. Lost Opportunities for Poverty Reduction Challenges remain: • Provision exist for community-based management in legal frameworks, but not fully implemented, delayed and/or unattractive • Not sufficient number of jobs in NR industry created in Tanzania, and benefits not always shared • Un-compensated environmental services Poor depend on NR: • Own consumption e.g. firewood for cooking, fish and bush meat (about 1/3) for protein intake • Income from sale of processed/un-processed resources (e.g. honey, dried fish, charcoal, etc.) • Employment (and income) in resource utilisation, e.g. jobs in tourism, fish industry etc.

5. Lost Opportunities for Growth(Top NR based growth sectors are : Mining, Tourism, Hunting and Fisheries) Growth hampered by: • Limited knowledge about abundance and exploitation limited – sustainable growth levels difficult to predict • Current private sector experience disincentives for investments e.g. in forestry However, potential exists: • Managing state owned forest plantation (135-230,000 ha) through Private-Public-Community Concession Arrangements • Wildlife-based tourism expansion and diversification of tourism products e.g. expansion to the southern and western tourism circuit

6. Lost Opportunities for Revenue Generation However, potential is high: • Fisheries TSh9.7 billion in revenue in 2004 • Forestry TSh 11.4 billion in revenue last year • Tourism annual growth rate in revenue app. 30% - based primarily on wildlife Revenue collection suffering: • Limited info about value and lack of efficiency and transparency in revenue collection (e.g. annual license for foreign fisheries vessel equals earnings from 1 day’s catch!) • Revenue collection not used as a management tool to guide/direct resource exploitation to specific resources/species and geographical areas

7. DPG-Environment and Natural Resources • Terms of Reference ”to increase the effectiveness of Development Partners’ efforts to support a concerted environment and Natural Resources agenda and provide coordinated contributions” • Participants: Belgium, CIDA, Danida (chair), EU, FAO, Finland, GTZ, ILO, Netherlands, Norway, USAID, UNDP, UN-Habitat, UNIDO, World Bank • Produced briefs on Forestry, Fisheries and Wildlife (specifically hunting) outlining challenges and opportunities in sectors, which links the sectors to poverty reduction and good governance

8. DP commitment to Government Frameworks • MKUKUTA acknowledges natural resources challenges, and policy and legal frameworks largely in place: (a) Forestry, (b)Fisheries, (c) Wildlife (though revisions necessary). • DPs support implementation of existing legal framework & assist in addressing specific emergency cases (e.g. Independent Forest Monitoring) • DPs committed to harmonisation and alignment, good governance and and broad sector perspective – incl. private sector and civil society (e.g. forestry SWAp initiated) • DPs encourage sector coordination and dialogue: • Within MNRT: Coordination across divisions and improved policy & planning sub-sector engagement e.g. in M&E • Closer cooperation between MNRT and VPO-DoE & NEMC, and use of Environment Working Group

9. Solutions from DP point of view • Implementation of existing legal framework • Strengthening of enforcement • Increasing capacity and efficiency e.g. change management in establishment of TFS • Promoting ”correct” incentives for sustainable management for the benefit of Tanzania – in line with existing Government frameworks: • ”Healthy” private sector involvement e.g. removing barriers and creating effective market based competition • Securing rights to resources of communities, and strengthen their capacity for NR management

10. Immediate steps Time is opportune for: • Government review of the sector incl. Ministry of Finance review of NR revenue collection • High level Government retreat to discuss state of the sector – amongst others to facilitate the work of the new Cabinet Committee on Environment • Responses initiated building upon existing Government frameworks DPs committed to assist in any way possible!