Tanzania’s forests are responsible for almost 20% of its national output—almost five times higher than government estimates—that is according to a new, government-backed report published by the Tanzania Forestry Research Institute.
“Our analysis shows that ecosystem services—like carbon storage, water regulation, soil fertility and pollination—contribute upwards of 16.7% towards the country’s GDP,” according to Dr Felician Kilahama, former director of the Forestry and Beekeeping Division at the Ministry of Natural Resources & Tourism and lead author of the study. “When you add the 3.3 per cent from traded wood products, forestry’s true share of the economy reaches 20 per cent—far above the official 2 to 4 per cent reported by the National Bureau of Statistics.”
The discrepancy, Dr Kilahama warned, stems from decades of overlooking non-market benefits: “Ignoring non-traded services has left a gaping hole in our economic accounting,” he said, before highlighting how services support other vital industries, including hydropower—which generates nearly 80 per cent of Tanzania’s electricity—that relies on healthy forest catchments. Agriculture depends on reliable water flows, pollination, and fertile soils, while tourism thrives on the country’s rich biodiversity and stunning landscapes.
As it stands, Tanzania is home to more than 48.1 million hectares of forest—about 55 per cent of its land area—making it one of the world’s biodiversity hotspots. And while natural woodlands host 10,000 plant species, including hundreds found nowhere else, they face significant risks: 1,456 species are likely threatened, and another 805 are potentially so. Approximately 45 per cent of the forest cover—21 million hectares—is legally protected under reserves and wildlife areas, and an additional 20.1 million hectares are designated as production forests, where harvesting is permitted.
Beyond immediate economic value, Tanzania’s forests play a critical role in climate mitigation. They store an estimated 5.8 gigatonnes of carbon dioxide equivalent and act as a net sink, sequestering approximately 0.3 Gigatonnes of Carbon Dioxide Equivalent each year. Mangrove ecosystems alone hold 79 tonnes of carbon per hectare and absorb 2.7 million tonnes of CO₂e annually. This untapped potential could position the country to participate in the global carbon market.
Despite these benefits, deforestation in Tanzania is threatening the country’s forests at an alarming rate. The report estimates the country loses roughly 470,000 hectares each year to shifting cultivation, illegal logging and wildfires. If these trends continue, the study cautions, growth in energy production, agriculture and tourism could be undermined. Restoration and sustainable management will be essential to safeguard future development.
To bridge this gap, researchers are pushing for the adoption of green accounting frameworks that integrate ecological values into Tanzania’s national statistics. To do this, they propose a payment-for-ecosystem-services system that requires industries—including hydroelectric utilities and agribusinesses—to fund forest conservation: “Valuing our forests properly ensures everyone benefits from their services,” said Amina Msuya, an ecotourism operator in the Rufiji Delta.
- To learn more about the push to better recognise ecosystem services, click here for Wood Central’s coverage from 2023.
