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THE ECONOMIC VALUATION OF THE PROPOSED<br />

DEGAZETTEMENT OF MABIRA CENTRAL FOREST RESERVE<br />

<strong>Nature</strong><strong>Uganda</strong><br />

Lead Consultants<br />

Dr. Yakobo Moyini<br />

Mr. Moses Masiga<br />

Series No. 7


The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira Central Forest Reserve<br />

With support from


THE ECONOMIC VALUATION OF THE<br />

PROPOSED DEGAZETTEMENT OF MABIRA<br />

CENTRAL FOREST RESERVE<br />

Reproduction <strong>of</strong> this publication for educational or o<strong>the</strong>r non commercial<br />

purposes is authorized only with fur<strong>the</strong>r written permission from <strong>the</strong> copyright<br />

holder provided <strong>the</strong> source is fully acknowledged. Production <strong>of</strong> this publication<br />

for resale or o<strong>the</strong>r commercial purposes is prohibited without prior written<br />

notice <strong>of</strong> <strong>the</strong> copyright holder.<br />

Citation: <strong>Nature</strong><strong>Uganda</strong> (2011). The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed<br />

Degazettement <strong>of</strong> Mabira Central Forest Reserve. <strong>Nature</strong><strong>Uganda</strong> Kampala<br />

Copyright<br />

©<strong>Nature</strong><strong>Uganda</strong> – The East Africa Natural History Society<br />

P.O.Box 27034,<br />

Kampala <strong>Uganda</strong><br />

Plot 83 Tufnel Drive<br />

Kamwokya.<br />

Email nature@natureuganda.org<br />

Website: www.natureuganda.org


ACKNOWLEDGEMENTS<br />

This consultancy builds on <strong>Nature</strong><strong>Uganda</strong> earlier studies to identify important biodiversity areas in <strong>Uganda</strong> or key<br />

biodiversity areas. Thirty three (33) Important Bird Areas were identified including Mabira Forest Reserve.<br />

In this study, we make a case that policy formulation about natural resources needs to be informed with facts in <strong>the</strong><br />

present and full knowledge <strong>of</strong> <strong>the</strong> future or predicted long term consequences. We are grateful to BirdLife<br />

International Partnership particularly Royal Society for <strong>the</strong> Protection <strong>of</strong> Birds (RSPB) whose initial support enabled<br />

<strong>Nature</strong><strong>Uganda</strong> to undertake this study on <strong>the</strong> <strong>economic</strong> e<strong>valuation</strong> <strong>of</strong> a section <strong>of</strong> Mabira Forest Reserve that was<br />

<strong>proposed</strong> for Degazzettement.<br />

The research work falls under our advocacy programme supported by various partners including BirdLife International<br />

through Jansen’s Foundation programme on ‘turning policy advantages into conservation gains’. It is our sincere<br />

hope that this report will trigger and sustain informed debate on conservation value <strong>of</strong> natural resources<br />

particularly critical ecosystems such as Mabira Forest Reserve. <strong>Nature</strong><strong>Uganda</strong> recognised <strong>the</strong> importance <strong>of</strong> an<br />

<strong>economic</strong> e<strong>valuation</strong> <strong>of</strong> <strong>the</strong> Mabira Central Forest Reseve at a time when <strong>the</strong>re was a debate pitting conservation <strong>of</strong><br />

natural resources against intensive use for agriculture and industry and this report will contribute useful information<br />

to <strong>the</strong> debate not only for Mabira Forest but for o<strong>the</strong>r natural resources in <strong>the</strong> country. We acknowledge <strong>the</strong> support<br />

received from <strong>Nature</strong><strong>Uganda</strong> secretariat especially <strong>the</strong> Executive Director Mr. Achilles Byaruhanga for coordinating<br />

<strong>the</strong> study and providing <strong>the</strong> consultants with all logistical requirements.<br />

We acknowledge contribution <strong>of</strong> Mr Telly Eugene Muramira who technically edited <strong>the</strong> report and Dr. Patrick Birungi<br />

<strong>of</strong> Makerere University for reading <strong>the</strong> earlier drafts as well as Dr. Panta Kasoma and Roger Skeen who pro<strong>of</strong> read <strong>the</strong><br />

report.<br />

Special tribute is paid to Dr. Yakobo Moyini (R.I.P) who was <strong>the</strong> lead consultant on this study that was conducted in<br />

2008. O<strong>the</strong>r persons who contributed to this report include Mr. Moses Masiga and Dr. Paul Segawa.<br />

We fur<strong>the</strong>r acknowledge EU support through <strong>the</strong> Important Bird Areas (IBA) monitoring project for providing <strong>the</strong><br />

funds towards printing <strong>of</strong> this report in 2011.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

V


ACRONYMS AND ABBREVIATIONS<br />

SCOUL Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited<br />

VAT Value Added Tax<br />

PAYE Pay as You Earn<br />

CFR Central Forest Reserve<br />

UNFCCC United Nations Framework Convention on Climate Change<br />

NGO Non-Governmental Organisation<br />

CHOGM Commonwealth Heads <strong>of</strong> Government Meeting<br />

PFE Permanent Forest Estate<br />

CFR Central Forest Reserve<br />

CITES Convention on International Trade <strong>of</strong> Flora and Fauna<br />

TEV Total Economic Value<br />

NTFP Non-Timber Forest Product<br />

TCM Travel Cost Method<br />

CVM Contingent Valuation Method<br />

PV Present Value<br />

NFA National Forestry Authority<br />

FGD Focus Group Discussion<br />

RIL Reduced Impact Logging<br />

MPA Management Plan Area<br />

FD Forest Department<br />

PA Protected Area<br />

THF Tropical High Forest<br />

WTP Willingness To Pay<br />

GEF Global Environment Facility<br />

Vi The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


EXECUTIVE SUMMARY<br />

The Government <strong>of</strong> <strong>Uganda</strong> received and tabled for discussion a proposal to degazette and change <strong>the</strong> land use <strong>of</strong><br />

part <strong>of</strong> Mabira Central Forest Reserve to sugar cane production. The proposal proved very contentious and resulted<br />

in civil unrest and a raging debate on <strong>the</strong> merits and demerits <strong>of</strong> <strong>the</strong> <strong>proposed</strong> land use change. Those in favour <strong>of</strong><br />

degazettement cited <strong>the</strong> numerous direct, indirect and multiplier <strong>economic</strong> impacts or benefits <strong>the</strong> change in land<br />

use will bring to <strong>Uganda</strong>. Those for conservation, on <strong>the</strong> o<strong>the</strong>r hand, cited <strong>the</strong> need to preserve <strong>the</strong> rich biodiversity<br />

<strong>of</strong> <strong>the</strong> forest, and <strong>the</strong> need to respect both regional and international agreements on <strong>the</strong> conservation <strong>of</strong> forests and<br />

<strong>the</strong> biodiversity <strong>the</strong>rein. They also cited <strong>the</strong> public trust doctrine that charges government to manage and maintain<br />

forestry resources on behalf <strong>of</strong> <strong>the</strong> citizens <strong>of</strong> <strong>Uganda</strong>.<br />

Whereas those in favour <strong>of</strong> degazettement have been quite eloquent in enumerating <strong>the</strong> <strong>economic</strong> benefits <strong>of</strong><br />

sugarcane growing, <strong>the</strong> pro-conservation groups have largely focused on <strong>the</strong> physical side <strong>of</strong> <strong>the</strong> argument and<br />

presented little <strong>economic</strong> data to support <strong>the</strong>ir arguments. The purpose <strong>of</strong> this study was to assess and compare <strong>the</strong><br />

<strong>economic</strong> implications <strong>of</strong> <strong>the</strong> two competing land use options.<br />

To undertake <strong>the</strong> assessment, a Total Economic Value (TEV) framework was applied. This was in view <strong>of</strong> <strong>the</strong> fact that<br />

forests are complex ecosystems that generate a range <strong>of</strong> goods and services. The TEV framework is able to account<br />

for both use and non-use values <strong>of</strong> <strong>the</strong> forest and elaborate <strong>the</strong>m into direct and indirect use values, option, bequest<br />

and existence values.<br />

Lack <strong>of</strong> knowledge and awareness <strong>of</strong> <strong>the</strong> total value <strong>of</strong> <strong>the</strong> goods and services provided by forests previously<br />

obscured <strong>the</strong> ecological and social impact <strong>of</strong> <strong>the</strong> conversion <strong>of</strong> forests into o<strong>the</strong>r land uses. The TEV framework helps<br />

us to understand <strong>the</strong> extent to which those who benefit from <strong>the</strong> forest or its conversion also bear <strong>the</strong> associated<br />

management costs or opportunities foregone.<br />

In undertaking this study, <strong>the</strong> biophysical attributes <strong>of</strong> Mabira CFR in general and <strong>the</strong> area <strong>of</strong> impact in particular were<br />

reviewed. The most current and relevant inventory data available for <strong>the</strong> production zone <strong>of</strong> Mabira CFR was used.<br />

The <strong>economic</strong>s <strong>of</strong> sugarcane production in <strong>Uganda</strong> and globally was also reviewed. Additional data and information<br />

were derived from an extensive survey <strong>of</strong> available literature. All this background data and information were <strong>the</strong>n<br />

used to derive <strong>the</strong> total <strong>economic</strong> value <strong>of</strong> <strong>the</strong> impact area within Mabira CFR and compare it with <strong>the</strong> potential<br />

<strong>economic</strong> yield <strong>of</strong> growing sugarcane.<br />

The analysis concluded that <strong>the</strong> benefits <strong>of</strong> conserving Mabira CFR far exceeded those <strong>of</strong> sugarcane growing. The<br />

respective total <strong>economic</strong> value <strong>of</strong> conservation was estimated at US$ 45.1 compared to US$ 29.9 million which<br />

was <strong>the</strong> net present value <strong>of</strong> <strong>the</strong> annual benefits from sugar cane growing. The study <strong>the</strong>refore concluded that<br />

maintaining Mabira Central Forest Reserve under its current land use constituted a better option than sugarcane<br />

growing. This was <strong>the</strong> case when <strong>the</strong> total <strong>economic</strong> value <strong>of</strong> <strong>the</strong> forest was considered, but also when just timber<br />

values alone were counted. The study noted however, that <strong>the</strong> degazettement <strong>of</strong> Mabira CFR could still be favoured<br />

for o<strong>the</strong>r reasons o<strong>the</strong>r than <strong>economic</strong> considerations. The study recommended that should such a situation arise,<br />

<strong>the</strong>n <strong>the</strong> developer (who is SCOUL) must undertake to compensate <strong>the</strong> National Forestry Authority for <strong>the</strong> total<br />

<strong>economic</strong> value (TEV) lost due to <strong>the</strong> change <strong>of</strong> land use. This requirement for compensation is legally provided<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

Vii


for in <strong>the</strong> National Forestry and Tree Planting Act, <strong>the</strong> National Environment Act and provisions <strong>of</strong> <strong>the</strong> multilateral<br />

environmental agreements, especially <strong>the</strong> Convention on Biological Diversity. The compensation would also<br />

conform to <strong>the</strong> social and environmental safeguard policies <strong>of</strong> <strong>the</strong> Government <strong>of</strong> <strong>Uganda</strong> and its development<br />

partners, including <strong>the</strong> need to conduct a thorough environmental impact assessment (EIA). The appropriate level <strong>of</strong><br />

compensation <strong>the</strong> developer will be required to pay is US$45.1 million, payable to <strong>the</strong> NFA to support conservation<br />

activities in <strong>the</strong> remaining part <strong>of</strong> Mabira CFR and o<strong>the</strong>r reserves.<br />

The study also noted that Government could also waive <strong>the</strong> requirement for compensation. The study however,<br />

noted that such an action would tantamount to provision <strong>of</strong> a subsidy to SCOUL amounting to US$45.1 million or <strong>the</strong><br />

total <strong>economic</strong> value <strong>of</strong> <strong>the</strong> lost value <strong>of</strong> <strong>the</strong> forest due to <strong>the</strong> <strong>proposed</strong> change in land use. The waiver would also<br />

tantamount to a gross policy failure, particularly in view <strong>of</strong> <strong>the</strong> efficiency questions surrounding SCOUL.<br />

The study also noted that if <strong>the</strong> developer paid <strong>the</strong> US$45.1 million compensation, <strong>the</strong>y would in effect be purchasing<br />

7,186 ha <strong>of</strong> Mabira CFR at a fairly high cost per hectare. Land in <strong>the</strong> vicinity currently goes for UShs 500,000 to 1,000,000<br />

per acre (or Ushs 1,250,000 –2,500,000 per hectare). If SCOUL were to pay UShs 2,500,000 per hectare, double <strong>the</strong><br />

upper range, <strong>the</strong> company would purchase 30,668 ha <strong>of</strong> land. For <strong>the</strong> equivalent <strong>of</strong> 7,186 ha, if SCOUL purchased <strong>the</strong><br />

land from private sources <strong>the</strong> company would pay UShs.17,965 million (or US$10.6 million), an amount less than <strong>the</strong><br />

compensation figure calculated in <strong>the</strong> study.<br />

The study finally noted that in addition to <strong>the</strong> financial and <strong>economic</strong> questions presented above, o<strong>the</strong>r equally valid<br />

issues needed fur<strong>the</strong>r investigation. They include <strong>the</strong> need for compensation at ‘fair and equal’ value, <strong>the</strong> current<br />

implied objective <strong>of</strong> national self-sufficiency in sugar production; and land acquisition options available to <strong>the</strong><br />

developer.<br />

Viii The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


TABLE OF CONTENTS<br />

Acknowledgements iv<br />

Acronyms and Abbreviations v<br />

Executive Summary vi<br />

Table <strong>of</strong> Contents vii<br />

List <strong>of</strong> Figures viii<br />

List <strong>of</strong> Tables ix<br />

List <strong>of</strong> Boxes x<br />

1.0. INTRODUCTION 1<br />

1.1. BACKGROUND 1<br />

1.2. THE Degazettement PROPOSAL 3<br />

1.3 SCOPE OF THE ASSIGNMENT 5<br />

1.4. METHODOLOGY 6<br />

2.0. BIOPHYSICAL CHARACTERISTICS OF MABIRA CFR 7<br />

2.1. SIZE AND LOCATION 7<br />

2.2. GEOLOGY AND SOILS 7<br />

2.3. PLANTS 8<br />

2.4. BIRDS 8<br />

2.5. MAMMALS 10<br />

2.6. AMPHIBIANS 10<br />

2.7. REPTILES 10<br />

2.8. BUTTERFLIES 10<br />

3.0. ECONOMIC EVALUATION OF THE SUGAR SECTOR IN UGANDA 13<br />

3.1. Global Sugar Production Trends 13<br />

3.2 History <strong>of</strong> <strong>the</strong> Sugar Industry in <strong>Uganda</strong> 14<br />

3.3 Sugar Production and Consumption Trends in <strong>Uganda</strong> 17<br />

3.4. Performance <strong>of</strong> <strong>Uganda</strong>’s Sugar Sector 16<br />

4.0. EVALUATION OF DECISION TO CONVERT MABIRA CFR FOR SUGARCANE<br />

PRODUCTION 18<br />

4.1 Sugar Production Model for <strong>Uganda</strong> 18<br />

4.2. The Value <strong>of</strong> <strong>the</strong> Sugar Sector in <strong>Uganda</strong> 20<br />

4.2.1 Value <strong>of</strong> Reproducible Tangible Assets ( sugarcane) 20<br />

4.2.2 Value <strong>of</strong> non-reproducible assets <strong>of</strong> sugar factory (Land at <strong>the</strong> Company owned nucleus<br />

sugarcane estate) 21<br />

4.3. Cost <strong>of</strong> Production and <strong>the</strong> Determinants <strong>of</strong> <strong>the</strong> Competitiveness <strong>of</strong> <strong>the</strong> Sugar Sector in <strong>Uganda</strong> 22<br />

4.4. Options for Improving <strong>the</strong> Competitiveness <strong>of</strong> <strong>the</strong> Sugar Coorporation <strong>of</strong> <strong>Uganda</strong> Limited (SCOUL) 25<br />

4.5. CONCLUSIONS 29<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

ix


5.0. THE CONSERVATION OPTION 31<br />

5.1. CONSERVATION OPTIONS FOR MANAGING FOREST RESOURCES 31<br />

5.2. CONSERVATION ECONOMICS 31<br />

5.2.1 Importance <strong>of</strong> <strong>economic</strong> <strong>valuation</strong> 31<br />

5.2.2 The Total Economic Value 32<br />

5.2.3 Analytical framework 35<br />

5.3. VALUATION 37<br />

6.0. DISCUSSIONS AND CONCLUSION 47<br />

6.1. DISCUSSIONS 47<br />

6.2. CONCLUSION 49<br />

x The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


REFERENCES 50<br />

Annexes 59<br />

Annex 1 Biodiversity Report 59<br />

Annex 2 Inventory Data 79<br />

List <strong>of</strong> Figures<br />

Figure 1 Map <strong>of</strong> Mabira and <strong>the</strong> Proposed Area for Degazettement 4<br />

Figure 2: Cost-benefit analysis <strong>of</strong> an alternate project, to continued conservation 6<br />

Figure 3: Centralised and contract farming model in sugar companies in <strong>Uganda</strong> 18<br />

Figure 4: Value chain for sugar cane to sugar 27<br />

Figure 5: Framework <strong>of</strong> specialisation for sugar industries 23<br />

Figure 6: The Total Economic Value <strong>of</strong> Forests 33<br />

Figure 7: Graphic Illustration <strong>of</strong> Willingness to Pay 37<br />

List <strong>of</strong> Tables<br />

Table 1: Mabira CFR Area Proposed for Degazettement 3<br />

Table 2: Species numbers recorded in Mabira from each family 11<br />

Table 3: World production and consumption <strong>of</strong> sugar (million tonnes, raw value) 13<br />

Table 4: <strong>Uganda</strong> Sugar and Sugar Crops production between 2002 and 2005 15<br />

Table 5: Sugar Companies and Production in <strong>Uganda</strong> at a glance 15<br />

Table 6: Sugarcane yield in <strong>Uganda</strong>’s sugar factory nucleus estate 15<br />

Table 7: Projected sugarcane production 16<br />

Table 8: Status <strong>of</strong> land ownership <strong>of</strong> <strong>Uganda</strong>’s sugar factories 19<br />

Table 9: Value <strong>of</strong> sugarcane for SCOUL out-growers in Mukono district, 2006 21<br />

Table 10: Sugar production costs in selected Least Developing Countries 21<br />

Table 11: Cost structure for a Kinyara Out-grower family 24<br />

Table 12: Average out-grower’s sugarcane production returns for SCOUL 26<br />

Table 13: Value for leases <strong>of</strong> land likely to be <strong>of</strong>fered to SCOUL 28<br />

Table 14: Land resource values in Kitoola 29<br />

Table 15: Example <strong>of</strong> links between value category, functions and <strong>valuation</strong> tools 34<br />

Table 16: Value <strong>of</strong> Growing Stock 38<br />

Table 17: Value <strong>of</strong> Annual Exploitable Timber Yield 38<br />

Table 18: Value <strong>of</strong> standing Timber crop, Area Proposed for degazettement in Mabira CFR 39<br />

Table 19: Visitor statistics 42<br />

Table 21: Summary <strong>of</strong> Values 46<br />

Table 20: Carbon content and loss for tropical forest conversion 46<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

xi


List <strong>of</strong> Boxes<br />

Box 1: Out-growers production and earnings with SCOUL 20<br />

Box 2: SCOUL sets terms to abandon Mabira CFR 23<br />

Box 3: SCOUL Sugar Corporation Press release summarised 27<br />

Box 4: Kabaka Land Offer Not a Donation – Govt 27<br />

Box5: Land Resource values 28<br />

xii The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


1.0. INTRODUCTION<br />

1.1. BACKGROUND<br />

The Government <strong>of</strong> <strong>Uganda</strong> received and tabled for<br />

discussion a proposal to expand sugar production by<br />

<strong>the</strong> Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited (SCOUL) in<br />

2007. The key elements <strong>of</strong> <strong>the</strong> proposal were to expand<br />

<strong>the</strong> acreage under sugar cane by <strong>the</strong> corporation by<br />

7,100 hactares within <strong>the</strong> Mabira Central Forest Reserve.<br />

The <strong>proposed</strong> expansion would however have to be<br />

preceded by <strong>the</strong> degazettement <strong>of</strong> <strong>the</strong> affected area<br />

to pave way for private use by <strong>the</strong> Sugar Corporation <strong>of</strong><br />

<strong>Uganda</strong> Limited.<br />

The proposal sparked <strong>of</strong>f a lot <strong>of</strong> controversy, with<br />

<strong>the</strong> key contentions centred on <strong>the</strong> clear need to<br />

conserve biodiversity and <strong>the</strong> permanent forest estate,<br />

notwithstanding <strong>the</strong> equally important need to expand<br />

sugar production to benefit from <strong>the</strong> large local, regional<br />

and international sugar commodity market.<br />

Mabira Central Forest Reserve was gazetted as a central<br />

forest reserve in 1900 under <strong>the</strong> famous Buganda<br />

agreement between <strong>the</strong> British Colonizers and <strong>the</strong><br />

Buganda Kingdom. The reserve is found in Buikwe and<br />

Mukono Districts in Central <strong>Uganda</strong> and covers an area<br />

<strong>of</strong> 306 Km 2 across an altitudinal range <strong>of</strong> 1070 – 1340 m<br />

above sea level. The forest reserve is currently <strong>the</strong> largest<br />

natural high forest in <strong>the</strong> Lake Victoria crescent.<br />

The Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited on <strong>the</strong> o<strong>the</strong>r<br />

hand is a limited liability company jointly owned by <strong>the</strong><br />

Mehta Family (76%) and <strong>the</strong> Government <strong>of</strong> <strong>Uganda</strong><br />

(24%). Increased sugar production by <strong>the</strong> corporation<br />

should <strong>the</strong>refore, in <strong>the</strong>ory benefit both <strong>the</strong> Mehta<br />

Family as majority shareholders and <strong>Uganda</strong>ns as<br />

minority shareholders. The converse is also true that<br />

a degradation to <strong>the</strong> value <strong>of</strong> SCOUL affects both <strong>the</strong><br />

Mehta family and <strong>Uganda</strong>ns.<br />

The Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited argues and as<br />

published in <strong>the</strong> press (The Monitor Newspaper, 2007;<br />

New Vision News Paper, 2007; East African News Paper,<br />

2007): that <strong>the</strong> allocation <strong>of</strong> an additional 7,186 ha out <strong>of</strong><br />

Mabira Central Forest Reserve will:<br />

1. Increase sugar production and save foreign<br />

exchange <strong>of</strong> US$ 20 – 25m per annum.<br />

2. Enable <strong>the</strong> generation <strong>of</strong> an additional 1-12<br />

MW <strong>of</strong> electricity which can be supplied to<br />

<strong>the</strong> national grid and onward to a number <strong>of</strong><br />

industries in and around Lugazi Town.<br />

3. Create an additional 3,500 jobs with an annual<br />

earning <strong>of</strong> Shs 3 billion.<br />

4. Lead to <strong>the</strong> development <strong>of</strong> additional<br />

infrastructure investments (schools, houses,<br />

dispensaries) worth Shs. 3.5 billion;<br />

5. Require <strong>the</strong> development <strong>of</strong> 300 km <strong>of</strong> road in<br />

<strong>the</strong> newly allotted areas, an investment <strong>of</strong> Shs.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 1<br />

2bn.<br />

6. Generate additional taxes in <strong>the</strong> form <strong>of</strong> value<br />

added tax (VAT), Excise Duty, pay as you earn<br />

(PAYE) and import duty in <strong>the</strong> range <strong>of</strong> Shs. 11.5m<br />

(per year).<br />

7. Enable <strong>the</strong> production <strong>of</strong> ethyl alcohol which can<br />

be blended with petrol to <strong>the</strong> extent <strong>of</strong> 10-15%,<br />

to form gasohol, an alternative vehicle fuel.<br />

8. Commit SCOUL and <strong>the</strong> Government <strong>of</strong> <strong>Uganda</strong><br />

not to develop any more areas near <strong>the</strong> banks<br />

<strong>of</strong> River Nile and <strong>the</strong> shores <strong>of</strong> Lake Victoria and<br />

hence preserve <strong>the</strong> ecology <strong>of</strong> <strong>the</strong> rest <strong>of</strong> Mabira<br />

CFR.<br />

9. Commit SCOUL to participate in tree planting on<br />

those areas which are not suitable for sugarcane<br />

production.


The pro-conservation groups who are are opposed to<br />

<strong>the</strong> degazettement <strong>of</strong> part <strong>of</strong> Mabira CFR on <strong>the</strong> o<strong>the</strong>r<br />

hand argue that:<br />

1. Mabira Central Forest Reserve has unique bird,<br />

2<br />

plant, primate, butterfly and tree species;<br />

2. Mabira Central Forest Reserve is located in a<br />

heavily settled agricultural area close to large<br />

urban centres including Kampala, Lugazi,<br />

Mukono and Jinja. This makes it a very important<br />

refugium and eco-tourist destination;<br />

3. Whereas <strong>the</strong> forest suffered considerable<br />

destruction through illegal removal <strong>of</strong> forest<br />

produce and agricultural encroachment which<br />

activities threatened <strong>the</strong> integrity <strong>of</strong> <strong>the</strong> forest,<br />

<strong>the</strong>se have now been controlled and <strong>the</strong> forest<br />

has regained its original integrity;<br />

4. The bird species list for Mabira Forest now stands<br />

at 287 species <strong>of</strong> which 109 were recorded during<br />

<strong>the</strong> 1992-1994 Forest Department Biodiversity<br />

Inventory (Davenport et al, 1996). These include<br />

three species listed as threatened by <strong>the</strong> Red Data<br />

Books (Collar et al, 1994) i.e. <strong>the</strong> blue swallow<br />

(Hirundo atrocaerulea), <strong>the</strong> papyrus Gonolek<br />

(Laniarius mufumbiri) and Nahan’s Francolin<br />

(Francolinus nahani);<br />

5. The present value <strong>of</strong> timber benefit streams<br />

obtained from long-run sustainable yield in<br />

Mabira CFR and timber values foregone in <strong>the</strong><br />

plantations <strong>of</strong> Kifu and Namyoya ; <strong>the</strong> present<br />

value <strong>of</strong> o<strong>the</strong>r annual benefit streams from forest<br />

products, biodiversity, domestic water, carbon<br />

storage and ecotourism; and <strong>the</strong> present value<br />

<strong>of</strong> annual ground rent payments would have to<br />

be foregone if <strong>the</strong> land use for Mabira CFR was<br />

changed;<br />

6. The Mabira CFR in its entirerity is an important<br />

water catchment forest. The CFR is a source <strong>of</strong><br />

two main rivers – Musamya and Sezibwa – which<br />

flow into Lake Kyoga;<br />

7. Because <strong>of</strong> its strategic location close to <strong>the</strong> River<br />

Nile <strong>the</strong> Mabira CFR is a critical component <strong>of</strong><br />

<strong>the</strong> local and regional hydrological cycle. There is<br />

<strong>the</strong>refore a likelihood <strong>of</strong> reduced water retention<br />

<strong>of</strong> water flow to <strong>the</strong> lakes and rivers;<br />

8. A large population living in and around Mabira<br />

CFR relies on <strong>the</strong> extraction <strong>of</strong> forest products to<br />

sustain <strong>the</strong>ir livelihoods;<br />

9. <strong>Uganda</strong> is a signatory to a number <strong>of</strong> key<br />

Conventions that protect forests including <strong>the</strong><br />

UN Framework Convention on Climate Change,<br />

<strong>the</strong> Convention on Biological Diversity (CBD) and<br />

<strong>the</strong> Kyoto Protocol among o<strong>the</strong>rs;<br />

10. Change <strong>of</strong> land use in part <strong>of</strong> <strong>the</strong> forest will make<br />

it difficult to control fu<strong>the</strong>r encroachment.<br />

11. Any degradation <strong>of</strong> Mabira represents loss <strong>of</strong> a<br />

unique ecosystem and unique biodiversity and<br />

loss <strong>of</strong> known and unknown plants and animals<br />

<strong>of</strong> medicinal value;<br />

12. Mabira contributes to temperature regulation in<br />

<strong>the</strong> central part <strong>of</strong> <strong>the</strong> country, and any reduction<br />

is likely to lead to changes in temperature;<br />

13. The publicity resulting from converting part<br />

<strong>of</strong> <strong>the</strong> CFR will result in tourism becoming less<br />

attractive;<br />

14. A number <strong>of</strong> individuals, NGOs and corporations<br />

currently licensed to carry out activities in line<br />

with sustainable forest management will have<br />

<strong>the</strong>ir investment and planned activities affected;<br />

15. Investors in industrial plantations elsewhere in<br />

<strong>the</strong> country may face hostility from local people<br />

who may <strong>the</strong>mselves desire to acquire forest<br />

land, which <strong>the</strong>y see as being allocated to foreign<br />

investors;<br />

16. There are no indications that <strong>the</strong> public<br />

opposition to <strong>the</strong> degazzettement <strong>of</strong> <strong>the</strong> CFR will<br />

diminish;<br />

17. There could be insecurity to <strong>the</strong> investor over<br />

Mabira allocation;<br />

18. The <strong>proposed</strong> degazettement is likely to impact<br />

negatively on <strong>the</strong> image <strong>of</strong> <strong>the</strong> country<br />

As indicated above, both sides <strong>of</strong> <strong>the</strong> contention<br />

have strong arguments for <strong>the</strong>ir case. The arguments<br />

have however, not been translated into a common<br />

denominator to allow for impartial comparison <strong>of</strong> <strong>the</strong><br />

benefits and costs <strong>of</strong> degazetting part <strong>of</strong> <strong>the</strong> forest.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


The purpose <strong>of</strong> this study <strong>the</strong>refore is to use <strong>economic</strong><br />

analysis to determine <strong>the</strong> merits and demerits <strong>of</strong><br />

degazettement <strong>of</strong> part <strong>of</strong> Mabira Central Forest Reserve<br />

for sugar cane production.<br />

1.2. THE DEGAZETTEMENT PROPOSAL<br />

The request and <strong>proposed</strong> degazettement covers an<br />

area <strong>of</strong> 7100 ha <strong>of</strong> <strong>the</strong> production zone <strong>of</strong> <strong>the</strong> reserve<br />

representing about 24 percent <strong>of</strong> <strong>the</strong> total area <strong>of</strong> <strong>the</strong><br />

forest. From <strong>the</strong> perspective <strong>of</strong> forest management and<br />

in order not to split any compartments, SCOUL’s request<br />

would involve <strong>the</strong> degazetting <strong>of</strong> 15 compartments,<br />

giving a total area <strong>of</strong> 7,186 hectares. The area requested<br />

by SCOUL for additional sugar production is <strong>the</strong>refore<br />

7186 ha (Table 1). This size <strong>of</strong> area will <strong>the</strong>refore be used<br />

in <strong>the</strong> analysis for purposes <strong>of</strong> this study. Figure 1 shows<br />

a spatial description <strong>of</strong> <strong>the</strong> affected area.<br />

Table 1: Mabira CFR Area Proposed for Degazettement<br />

Compartment No. Name Size (ha)<br />

171 Wakisi 617<br />

172 Senda North 315<br />

173 Senda 488<br />

174 Luwala 515<br />

175 Bugule 381<br />

178 Sango East 667<br />

179 Kyabana South 424<br />

180 Kyabana Central 451<br />

181 Kyabana North 365<br />

182 Liga 403<br />

183 Naligito 415<br />

184 Mulange 611<br />

185 Kasota 679<br />

234 Ssezibwa South 586<br />

235 Nandagi 479<br />

Totals 7186<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 3


Figure 1: Map <strong>of</strong> Mabira CFR showing <strong>the</strong> Proposed sections for Degazettement<br />

B<br />

B<br />

Namulaba<br />

F/stn<br />

B<br />

Maligita F/stn<br />

Maligito<br />

Cpt 183<br />

404.813Ha<br />

Wakisi<br />

Liga<br />

Cpt 171<br />

cpt 182 613.464Ha<br />

Kyabana North<br />

Senda North<br />

cpt 181<br />

Cpt 172<br />

341.291Ha<br />

320.394Ha<br />

Naluvule F/stn<br />

262.390Ha<br />

Kyabana F/Stn<br />

Kyabana Central<br />

Cpt 180<br />

447.251Ha<br />

Kyabana South<br />

Cpt 179<br />

403.050Ha<br />

Malunge<br />

Cpt 184<br />

579.919Ha<br />

4 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

Senda<br />

cpt 173<br />

499.419Ha<br />

Nagojje F/tsn<br />

Luwala<br />

Cpt 174<br />

516.500Ha<br />

Kasota<br />

Cpt 185<br />

694.248Ha<br />

Luwala South<br />

Cpt 175<br />

357.846Ha<br />

Sango East<br />

Cpt 178<br />

653.244Ha<br />

Sesibwa<br />

Cpt 234<br />

563 Ha<br />

Buwoola<br />

F/Stn<br />

B<br />

Wanande F/stn<br />

Najjembe F/stn<br />

B<br />

Nandagi<br />

Cpt 235<br />

442Ha<br />

Scale 1:140,000M<br />

0 2,<br />

050<br />

4,100 8,200 Meters<br />

Lwankima<br />

F/stn<br />

Outlines <strong>of</strong> blocks Forest Station Blocks <strong>proposed</strong> for degazettement


1.3 SCOPE OF THE ASSIGNMENT<br />

The overall purpose <strong>of</strong> <strong>the</strong> study was to compare <strong>the</strong><br />

<strong>economic</strong> merits <strong>of</strong> degazetting a section <strong>of</strong> Mabira CFR<br />

for sugar cane growing to those <strong>of</strong> maintaining it. This<br />

comparative study required <strong>the</strong> computation <strong>of</strong> <strong>the</strong><br />

respective costs and benefits <strong>of</strong> <strong>the</strong> two alternative land<br />

uses with a view to determining <strong>the</strong> most preferable<br />

option. The benefits decision framework is summarised<br />

as follows:<br />

T<br />

T<br />

If∑ Bs∂t � ∑ Bc∂t<br />

, T<br />

T<br />

grow sugarcane; and if<br />

t = oB<br />

∂t<br />

� t = oB<br />

∂t<br />

, conserve<br />

∑<br />

t = o<br />

c<br />

Where:<br />

∑<br />

t = o<br />

s<br />

∑B s ∂t – sum <strong>of</strong> present value <strong>of</strong> net benefit <strong>of</strong> sugarcane<br />

growing<br />

∑B c ∂t – sum <strong>of</strong> present value <strong>of</strong> net benefit <strong>of</strong><br />

conservation<br />

The conceptual scope <strong>of</strong> <strong>the</strong> study limited it to <strong>the</strong><br />

most direct costs and benefits <strong>of</strong> land use change to<br />

sugar cane farming or <strong>the</strong> converse. Hence <strong>the</strong> primary<br />

analysis in this study dealt with sugar cane farming vis a<br />

vis forest conservation and applied farm gate or forest<br />

gate prices to all transactions. The estimates <strong>of</strong> all costs<br />

and benefits <strong>the</strong>refore related to sugar cane production<br />

and excluded <strong>the</strong> associated production <strong>of</strong> sugar, sugar<br />

by-products and <strong>the</strong> respective inputs.<br />

The study assessed a number <strong>of</strong> questions on <strong>the</strong> two<br />

components <strong>of</strong> <strong>the</strong> study viz? <strong>the</strong> sugar estate and <strong>the</strong><br />

forest estate. The key questions on <strong>the</strong> first component<br />

included:<br />

» What is <strong>the</strong> value <strong>of</strong> sugarcane estate <strong>of</strong> SCOUL?<br />

» Is it possible for SCOUL (and <strong>the</strong> sugar industry<br />

as a whole) to achieve increased output through<br />

options, such as increasing productivity, and<br />

increasing <strong>the</strong> number <strong>of</strong> out-growers, o<strong>the</strong>r<br />

than using Mabira CFR?<br />

» Are <strong>the</strong> o<strong>the</strong>r sugar companies in <strong>Uganda</strong>, o<strong>the</strong>r<br />

than SCOUL, able to meet <strong>the</strong> demand sought<br />

without having to convert part <strong>of</strong> Mabira CFR<br />

into permanent agriculture?<br />

» Are <strong>the</strong>re alternative pieces <strong>of</strong> land, to Mabira<br />

CFR, that could be used and <strong>the</strong> implications <strong>of</strong><br />

using <strong>the</strong>se alternative lands for SCOUL?<br />

The key questions on <strong>the</strong> second component (<strong>the</strong> forest<br />

estate) included:<br />

» What annual benefit flows are associated with<br />

<strong>the</strong> Central Forest Reserve;<br />

» What are <strong>the</strong> potential consequences <strong>of</strong> <strong>the</strong><br />

<strong>proposed</strong> ecosystem degradation;<br />

» How will <strong>the</strong> annual flow <strong>of</strong> benefits change<br />

following <strong>the</strong> <strong>proposed</strong> degazettement?<br />

» What is <strong>the</strong> opportunity cost <strong>of</strong> maintaining <strong>the</strong><br />

forest estate?<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 5


The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettment <strong>of</strong> Mabira CFR<br />

___________________________________________________________________________________<br />

Figure 2: 2: Key Key Elements <strong>of</strong> <strong>the</strong> <strong>of</strong> Conservation <strong>the</strong> Conservation versus Degazettement versus Degazettment Options Options <strong>of</strong> Part <strong>of</strong> <strong>of</strong> Mabira Part Central<br />

Forest <strong>of</strong> Mabira Reserve Central Forest Reserve<br />

1.4. METHODOLOGY<br />

This <strong>economic</strong> analysis was carried out in three phases including a detailed review <strong>of</strong><br />

1.4. METHODOLOGY<br />

literature and media reports on <strong>the</strong> subject, assessment <strong>of</strong> standing stock and inventory<br />

This <strong>economic</strong> analysis was carried out in three phases<br />

information on <strong>the</strong> potential impact on <strong>the</strong> forest, key informant interviews, community<br />

including<br />

consultations<br />

a detailed<br />

followed<br />

review<br />

by<br />

<strong>of</strong><br />

data<br />

literature<br />

computations<br />

and media<br />

and interpretation. The study also involved<br />

reports detailed on <strong>the</strong> description subject, assessment <strong>of</strong> <strong>the</strong> biodiversity <strong>of</strong> standing stock <strong>of</strong> Mabira Central Forest Reserve, <strong>economic</strong><br />

and e<strong>valuation</strong> inventory <strong>of</strong> information <strong>the</strong> agricultural on <strong>the</strong> potential impact <strong>of</strong> <strong>the</strong> area and detailed analysis <strong>of</strong> <strong>the</strong> sugar<br />

on commodity <strong>the</strong> forest, market. key informant interviews, community<br />

Description <strong>of</strong> <strong>the</strong> biodiversity <strong>of</strong> Mabira CFR relied on literature reviews. The<br />

agricultural <strong>economic</strong> e<strong>valuation</strong> relied on both budgeting techniques and cost benefit<br />

analysis, using <strong>the</strong> Net Present Value as <strong>the</strong> decision-making<br />

chapters.<br />

criteria. Assessment <strong>of</strong> <strong>the</strong><br />

conservation value <strong>of</strong> <strong>the</strong> forest estate relied on both cost benefit analysis and <strong>the</strong><br />

concept <strong>of</strong> total <strong>economic</strong> value (TEV). The detailed analytical frameworks are<br />

described in subsequent chapters.<br />

____________________________________________________________________<br />

By Yakobo Moyini, PhD<br />

6<br />

Biodiversity<br />

Conservation<br />

Down stream<br />

water services<br />

Recreation<br />

Extraction <strong>of</strong><br />

forest products<br />

Cost <strong>of</strong><br />

conservation<br />

Net decrease in<br />

ecosystem benefits<br />

Biodiversity<br />

Conservation<br />

Down stream<br />

water services<br />

Recreation<br />

Extraction <strong>of</strong><br />

forest products<br />

Decreased<br />

Biodiversity<br />

Conservation<br />

Decreased Down<br />

stream water<br />

services<br />

Decreased<br />

Recreation<br />

Reduced Extraction<br />

<strong>of</strong> forest products<br />

Less foregone cost<br />

<strong>of</strong> conservation<br />

Gross<br />

decrease in<br />

ecosystem<br />

benefits<br />

Opportunity<br />

cost <strong>of</strong><br />

foregone<br />

ecosystem<br />

benefits<br />

Cost <strong>of</strong><br />

conservation<br />

With Conservation Without Conservation Cost benefit analysis <strong>of</strong> conservation<br />

Source: Pagiola et al., (2004)<br />

decision<br />

consultations followed by data computations and<br />

interpretation. The study also involved detailed<br />

description <strong>of</strong> <strong>the</strong> biodiversity <strong>of</strong> Mabira Central Forest<br />

Reserve, <strong>economic</strong> e<strong>valuation</strong> <strong>of</strong> <strong>the</strong> agricultural<br />

potential <strong>of</strong> <strong>the</strong> area and detailed analysis <strong>of</strong> <strong>the</strong> sugar<br />

commodity market.<br />

Description <strong>of</strong> <strong>the</strong> biodiversity <strong>of</strong> Mabira CFR relied on<br />

literature reviews. The agricultural <strong>economic</strong> e<strong>valuation</strong><br />

relied on both budgeting techniques and cost benefit<br />

analysis, using <strong>the</strong> Net Present Value as <strong>the</strong> decisionmaking<br />

criteria. Assessment <strong>of</strong> <strong>the</strong> conservation value <strong>of</strong><br />

<strong>the</strong> forest estate relied on both cost benefit analysis and<br />

<strong>the</strong> concept <strong>of</strong> total <strong>economic</strong> value (TEV). The detailed<br />

analytical frameworks are described in subsequent<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

7


2.0. BIOPHYSICAL CHARACTERISTICS<br />

OF MABIRA CFR<br />

2.1. SIZE AND LOCATION<br />

Mabira Central Forest Reserve covers an area <strong>of</strong> 306<br />

square kilometers (km 2 ) (30,600ha) mostly in Mukono<br />

and Buikwe Districts <strong>of</strong> Central <strong>Uganda</strong>. The forest lies<br />

in an altitudinal range <strong>of</strong> 1,070 to 1,340 metres above<br />

sea level. The dominant vegetation in <strong>the</strong> forest may<br />

<strong>the</strong>refore be broadly classified as medium altitude moist<br />

semi-deciduous forest. Mabira CFR is predominantly a<br />

secondary forest with <strong>the</strong> most distinctive vegetation<br />

types representing sub-climax communities following<br />

several decades <strong>of</strong> human influence. Three forest types<br />

are discernable including a young forest dominated<br />

by Maesopsis eminii (about 25 percent); a successional<br />

forest represented by young mixed Celtis-Holoptelea<br />

tree species (about 60 percent) and riverine forests<br />

dominated by Baikiaea insignis (about 15 percent).<br />

Although <strong>the</strong> forest suffered extensive human<br />

interference in <strong>the</strong> seventies and early eighties, <strong>the</strong><br />

forest remains a significant conservation forest system.<br />

This report is aimed at providing a comprehensive<br />

account <strong>of</strong> <strong>the</strong> present state <strong>of</strong> knowledge <strong>of</strong> <strong>the</strong> flora and<br />

fauna <strong>of</strong> Mabira Forest Reserve in Mukono District. There<br />

has been a considerable amount <strong>of</strong> previous work in this<br />

forest and effort has been made to document all <strong>the</strong><br />

information. The main body <strong>of</strong> <strong>the</strong> report provides fairly<br />

detailed accounts on <strong>the</strong> following taxa: plants; birds;<br />

mammals and butterflies <strong>of</strong> <strong>the</strong> reserve. Compared with<br />

o<strong>the</strong>r <strong>Uganda</strong>n forests, Mabira is relatively biodiverse,<br />

with total species diversity (an index <strong>of</strong> species richness<br />

per unit area) being average for all taxa except butterflies<br />

which were above average. In terms <strong>of</strong> <strong>the</strong> ‘conservation<br />

value’ <strong>of</strong> <strong>the</strong> species represented (based on knowledge<br />

<strong>of</strong> <strong>the</strong>ir world-wide distributions and occurrence in<br />

<strong>Uganda</strong>n forests), Mabira is above average for birds, and<br />

butterflies, and average for <strong>the</strong> remaining taxa. As a basis<br />

for fur<strong>the</strong>r comparison with o<strong>the</strong>r sites, 81 species may<br />

be classified as restricted-range (recorded from no more<br />

than five <strong>Uganda</strong>n forests). Details <strong>of</strong> <strong>the</strong> biodiversity<br />

attributes <strong>of</strong> Mabira CFR are presented in Annex 1.<br />

Site description<br />

Mabira Forest Reserve lies in <strong>the</strong> counties <strong>of</strong> Buikwe and<br />

Nakifuma in <strong>the</strong> administrative district <strong>of</strong> Mukono. It was<br />

established under <strong>the</strong> Buganda Agreement in 1900 and<br />

is situated between 32 52° - 33 07° E and 0 24° - 0 35° N. It<br />

is found 54 km east <strong>of</strong> Kampala and 26 km west <strong>of</strong> Jinja.<br />

Mabira Central Forest Reserve is <strong>the</strong> largest remaining<br />

forest reserve in Central <strong>Uganda</strong> (Roberts, 1994) and<br />

lies in an area <strong>of</strong> gently undulating land interrupted by<br />

flat-topped hills that are remnants <strong>of</strong> <strong>the</strong> ancient African<br />

peneplain (Howard, 1991). Although <strong>the</strong> reserve lies<br />

close to <strong>the</strong> shores <strong>of</strong> Lake Victoria it drains to <strong>the</strong> north<br />

eventually into Lake Kyoga and <strong>the</strong> Victoria Nile. The<br />

vegetation in <strong>the</strong> reserve may be classified as medium<br />

altitude moist semi-deciduous forest. The dominant tree<br />

vegetation is mostly sub-climax tree species, with clear<br />

signs <strong>of</strong> previous disturbance and human interference.<br />

The reserve has a number <strong>of</strong> community enclaves. The<br />

enclaves are however, not part <strong>of</strong> <strong>the</strong> gazetted area <strong>of</strong><br />

<strong>the</strong> forest. Mabira Central Forest Reserve is covered by<br />

<strong>the</strong> <strong>Uganda</strong> Lands and Surveys Department map sheets<br />

61/4, 62/3, 71/2 and 72/1 (series Y732) at 1:50,000.<br />

2.2. GEOLOGY AND SOILS<br />

Pallister (1971) indicated that <strong>the</strong> principal rock types<br />

underlying Mabira Forest Reserve are granitic gneisses<br />

and granites with overlying series <strong>of</strong> metasediments<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 7


which include schist’s, phyllites, quartzites and<br />

amphibolites. The gneisses and granites are generally<br />

fairly uniform and give rise to little variation in resistance<br />

to soil erosion o<strong>the</strong>r than along joints and fracture<br />

planes. Under humid conditions, granitic rocks are very<br />

liable to chemical decomposition and, in most parts <strong>of</strong><br />

<strong>the</strong> area, <strong>the</strong> rocks are now wea<strong>the</strong>red to a considerable<br />

depth. The overlying metasediments, by contrast, are<br />

heterogeneous and include hard resistant bands <strong>of</strong><br />

quartzite and, to a lesser extent, amphibolite, alternating<br />

with s<strong>of</strong>t, easily eroded schist’s.<br />

Soils<br />

The soils in <strong>the</strong> forest reserve are strongly influenced<br />

by <strong>the</strong> local topography. The forest lies on <strong>the</strong> Buganda<br />

catena which comprises <strong>of</strong> red soils with incipient<br />

laterisation? on <strong>the</strong> slopes and black clay soils in <strong>the</strong><br />

valley bottoms. There are four principal members <strong>of</strong><br />

this catena which are described as follows, starting with<br />

those at <strong>the</strong> highest altitude:<br />

a. Shallow Lithosols <strong>of</strong> <strong>the</strong> highest ridge crests<br />

8<br />

consisting <strong>of</strong> grey and grey brown sandy loams<br />

overlying brashy, yellowish or reddish brown<br />

loam with laterite or quartzite fragments and<br />

boulders.<br />

b. Red Earths (Red Latosols) which cover most<br />

<strong>of</strong> <strong>the</strong> land surface and are strikingly apparent<br />

in <strong>the</strong> large conical termitaria dotting a ra<strong>the</strong>r<br />

monotonously green landscape. The soil pr<strong>of</strong>ile<br />

consists <strong>of</strong> up to 30 cm <strong>of</strong> brown sandy or clay<br />

loam overlying uniform orange-red clay to a<br />

depth <strong>of</strong> 3 m or more.<br />

c. Grey Sandy Soils appearing at <strong>the</strong> base <strong>of</strong> <strong>the</strong><br />

slopes <strong>of</strong> <strong>the</strong> catena <strong>the</strong>se may be derived from<br />

hill-wash or river alluvium. Underlying <strong>the</strong> sandy<br />

topsoils are fine sandy clays <strong>of</strong> a very pale grey<br />

colour mottled to orange brown.<br />

d. Grey clay usually water logged and occupied by<br />

papyrus stand at <strong>the</strong> base <strong>of</strong> <strong>the</strong> catena. Below<br />

this are sandy and even pebbly clays. Despite<br />

<strong>the</strong> waterlogged condition for most <strong>of</strong> <strong>the</strong> year,<br />

surface peat accumulation is rarely more than a<br />

few inches thick. The last two members <strong>of</strong> <strong>the</strong><br />

catena are very acid in reaction (pH 3.8 – 4.8) and<br />

are deficient in all plant nutrients except sulphur<br />

and magnesium.<br />

Due to <strong>the</strong> wea<strong>the</strong>ring, <strong>the</strong> soils are not so fertile and<br />

<strong>the</strong> fertility that is <strong>the</strong>re is because <strong>of</strong> <strong>the</strong> forest litter<br />

that decomposes and releases nutrients. However, <strong>the</strong><br />

cutting away <strong>of</strong> <strong>the</strong> forest will result into fur<strong>the</strong>r soil<br />

degradation because <strong>of</strong> <strong>the</strong> removal <strong>of</strong> <strong>the</strong> forest cover<br />

and subsequent loss <strong>of</strong> litter. It will also lead to quicker<br />

leaching <strong>of</strong> nutrients and higher soil erosion levels.<br />

2.3. PLANTS<br />

Three hunded sixty five plant species are known to occur<br />

in Mabira forest as recorded by Howard & Davenport<br />

(1996) and Ssegawa (2006). Of <strong>the</strong> species recorded in this<br />

reserve, nine are uncommon and have been recorded<br />

from not more than five <strong>of</strong> <strong>the</strong> 65 main forest reserves in<br />

<strong>Uganda</strong> (Howard & Davenport, 1996). Trees and shrubs<br />

recorded in Mabira but not previously known in <strong>the</strong><br />

floral region include Acacia hecatophylla, Aeglopsis<br />

eggelingii, Alangium chinense, Albizia glaberrima,<br />

Aningeria adolfi-friederici, Bequaertiodendron<br />

oblanceolatum, Cassipourea congensis, Celtis adolfi-<br />

fridericii, Chrysophyllum gorungosanum, Dombeya<br />

goetzenii, Drypetes bipindensis, Elaeis guineensis,<br />

Elaeophorbia drupfera, Ficus dicranostyla, Khaya<br />

antho<strong>the</strong>ca, Lannea barteri, Manilkara multinervis,<br />

Musanga cecropioides,Myrianthus holstii, Neoboutonia<br />

macrocalyx, Rawsonia lucida, Rhus ruspolii, Rinorea<br />

beniensis, Schrebera alata, Tapura fischeri and Warburgia<br />

ugandensis. Restricted-range trees and shrubs recorded<br />

from Mabira include Caesalpinia volkensii, Antrocaryon<br />

micraster, Chrysophyllum delevoyi, Elaeis guineensis,<br />

Lecaniodiscus fraxinfolius, Tricalysia bagshawei,<br />

Chrysophyllum perpulchrum, Ficus lingua and Picralima<br />

nitida. The Mahogany species namely, Entandrophrama<br />

cylindricum, Entandrophragma angolense and Khaya<br />

antho<strong>the</strong>ca are listed as globally threatened species<br />

(IUCN, 2000). O<strong>the</strong>rs include Hallea stipulosa, Lovoa<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


swynnertonii and Milicia excelsa. The species that are<br />

known to occur in Mabira forest are given in Table A1.<br />

2.4. BIRDS<br />

Mabira Forest Reserve is an Important Bird Area<br />

(Byaruhanga et al 2001), globally recognized as an<br />

important site for conservation <strong>of</strong> biodiversity (key<br />

biodiversity area) using birds as indicators. Over 300<br />

species <strong>of</strong> birds is known to occur in Mabira forest with<br />

one <strong>of</strong> <strong>the</strong> highest diversity <strong>of</strong> species in <strong>Uganda</strong>. It is<br />

<strong>the</strong> biggest block <strong>of</strong> forest in central <strong>Uganda</strong> which<br />

makes Mabira Forest a refugium <strong>of</strong> species that existed<br />

in central <strong>Uganda</strong> forests. Forty-eight per cent <strong>of</strong> <strong>the</strong>se<br />

are forest dependent representing 45% <strong>of</strong> <strong>the</strong> <strong>Uganda</strong><br />

total. Nahan’s Francolin (Francolinus nahani) is a globally<br />

endangered species occurring only in Mabira in central<br />

<strong>Uganda</strong>. O<strong>the</strong>r globally threatened species include Blue<br />

Swallow (Hirundo atrocaerrulea, Grey Parrot (Psittacus<br />

erithacus) and Hooded Vulture (Necrosyrtes monanchus<br />

listed as globally Vulnerable. Also listed are Papyrus<br />

Gonolek (Laniarius mufumbiri) a ‘near-threatened’<br />

species.<br />

Mabira Forest Reserve supports a rich avifauna <strong>of</strong><br />

significant conservation value. O<strong>the</strong>r regionally<br />

threatened species include Brown Snake-Eagle<br />

(Circaetus cinereus), Crowned Eagle (Stephanoaetus<br />

coronatus), White-headed Saw-wing (Psalidoprocne<br />

albiceps), Toro Olive Greenbul (Phyllastrephus<br />

hypochloris), and Green-tailed Bristlebill (Bleda eximia).<br />

A number <strong>of</strong> species are known to occur in Mabira that<br />

are o<strong>the</strong>rwise associated with different regions and<br />

altitudes. Their presence can possibly be explained by<br />

<strong>the</strong> fact that Mabira may have been connected to <strong>the</strong><br />

refugium forest once forming part <strong>of</strong> <strong>the</strong> extensive<br />

forest that existed across East Africa, now isolated since<br />

its retreat. Tit Hylia (Philodornis rushiae) <strong>of</strong> <strong>the</strong> race denti<br />

is a West African species and is only known in East Africa<br />

from two specimens, both collected in Mabira (Britton,<br />

1981). Purple-throated Cuckoo Shrike (Camphephaga<br />

quiscalina) is also known from West Africa where it<br />

is uncommon. It is known in East Africa in scattered<br />

locations where it is generally found in high altitude<br />

sites. In <strong>Uganda</strong> it is also known from lower altitude<br />

sites such as Mabira and Sango Bay Forest Reserves.<br />

Two species, Fine-banded Woodpecker (Campe<strong>the</strong>ra<br />

tulibergi) and Grey Apalis (Apalis cinerea) recorded in<br />

Mabira are normally restricted to high altitude areas.<br />

Mabira is a particularly valuable forest for lowland forest<br />

species sharing many rare species with o<strong>the</strong>r lowland<br />

forests in <strong>Uganda</strong> such as Semliki National Park and<br />

Sango Bay Forest Reserve. Examples <strong>of</strong> <strong>the</strong>se include<br />

White-bellied Kingfisher (Alcedo leucogaster), Blue-<br />

headed Crested -Flycatcher (Trochocercus nitens).<br />

Restricted-range birds recorded from Mabira include<br />

Little Bittern (Ixobrychus minutus), Banded Snake Eagle<br />

(Circaetus cinerascens), African Hawk Eagle (Hieraaetus<br />

spilogaster), Gabar Goshawk (Micronisus gabar),<br />

Nahan’s Francolin(Francolinus nahani), Allen’s Gallinule<br />

(Porphyrio alleni), Caspian Plover(Charadrius asiaticus),<br />

European Cuckoo(Cuculus canorus), Madagascar Lesser<br />

Cuckoo(Cuculus rochii), Cassin’s Spinetail(Neafrapus<br />

cassini), White-bellied Kingfisher(Alcedo leucogaster),<br />

African Dwarf Kingfisher (Ispidina lecontei), Blue-<br />

cheeked Bee-eater (Merops persicus), Eurasian Roller<br />

(Coracias garrulous), Little SpottedWoodpecker<br />

(Campe<strong>the</strong>ra cailliautii), Bearded Woodpecker<br />

(Dendropicos namaquus), Blue Swallow(Hirundo<br />

atrocaerulea), Banded Martin (Riparia cincta), African<br />

Penduline Tit (Anthoscopus caroli), Purple-throated<br />

Cuckoo-Shrike (Campephaga quiscalina), Leaflove<br />

(Pyrrhurus scandens), Isabelline Wheatear (Oenan<strong>the</strong><br />

isabellina), Black-capped Apalis (Apalis nigriceps),<br />

White-winged Warbler (Bradypterus carpalis), Carru<strong>the</strong>rs’<br />

Cisticola (Cisticola carru<strong>the</strong>rsi), Stout Cisticola (Cisticola<br />

robustus), Trilling Cisticola(Cisticola woosnami), Grey<br />

Longbill (Macrosphenus concolor), Yellow Longbill<br />

(Macrosphenus flavicans), Tit Hylia (Pholidornis rushiae),<br />

Wood Warbler (Phylloscopus sibilatrix), Blue-headed<br />

Crested Flycatcher (Trochocercus nitens), Plain-backed<br />

Pipit(Anthus leucophrys), Papyrus Gonolek (Laniarius<br />

mufumbiri), Woodchat Shrike(Lanius senator),<br />

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Wattled Starling(Creatophora cinerea), Red-chested<br />

Sunbird(Cinnyris erythrocerca)<br />

2.5. MAMMALS<br />

A total <strong>of</strong> fifty (50) large and small mammal species<br />

are known to occur in Mabira Forest Reserve. A high<br />

proportion <strong>of</strong> <strong>the</strong> species list are forest-dependent,<br />

and includes Deomys ferrugineus and Scutisorex<br />

somereni, closed forest-dependent specalists <strong>of</strong>ten<br />

regarded as two <strong>of</strong> <strong>the</strong> most sensitive indicators <strong>of</strong> forest<br />

disturbance. The <strong>Uganda</strong>n endemic shrew Crocidura<br />

selina, only previously recorded from Mabira Forest<br />

(Nicoll and Rathbun, 1990) has not been recorded since<br />

but has been recorded in o<strong>the</strong>r forests. Species with high<br />

conservation value include Crocidura maurisca and<br />

Casinycteris argynnis – a new record for Mabira forest.<br />

O<strong>the</strong>rs protected under <strong>the</strong> CITES include Red-tailed<br />

Monkey (Cercopi<strong>the</strong>cus ascanius), Potto (Perodictictus<br />

potto), Galago (Galago senegalensis), Leopard (Pan<strong>the</strong>ra<br />

pardus), Grey Cheeked Mangabey (Cercocebus abigena)<br />

and Baboons (Papio anubis).<br />

2.6. AMPHIBIANS<br />

Some <strong>of</strong> <strong>the</strong> common amphibian species are associated<br />

with permanent wetlands, rivers or water points. Species<br />

<strong>of</strong> genera Afrana, Hyperolius, Xenopus, Hoplobatrachus<br />

and Afrixalus seem to select habitats with water all year<br />

round. The commonest species were members <strong>of</strong> family<br />

Hyperoliidae. Members <strong>of</strong> family Ranidae were also<br />

found to be common.<br />

The most common species <strong>of</strong> family Hyperoliidae<br />

are generally associated with permanent water<br />

sources. Members <strong>of</strong> genera Xenopus, Afrana and<br />

Hoplobatrachus were also quite common. Members <strong>of</strong><br />

<strong>the</strong>se genera are commonly found near water, more so<br />

for <strong>the</strong> bullfrog, which only gets out <strong>of</strong> <strong>the</strong> water to feed.<br />

Afrana angolensis is a riverine species found mainly<br />

along rivers and this was encountered along rivers in<br />

Mabira Forest Reserve (Table A4). One member <strong>of</strong> family<br />

Arthroleptidae, Artholeptis adolfifriederici is a new<br />

record for Mabira Forest Reserve.<br />

10<br />

2.7. REPTILES<br />

Mabira Central Forest Reserve has a variety <strong>of</strong> reptiles.<br />

More than 23 species <strong>of</strong> reptiles have been identified in<br />

<strong>the</strong> reserve. Reptiles are highly mobile and live in a range<br />

<strong>of</strong> habitats. They may be encountered in aquatic, bush,<br />

forest, rocky or riverine terrain. The tolerance <strong>of</strong> reptiles<br />

to a range <strong>of</strong> habitat types explains <strong>the</strong> large diversity<br />

<strong>of</strong> reptile species in <strong>the</strong> forest reserve.The key reptiles<br />

in <strong>the</strong> reserve however, include chameleons, geckos,<br />

forest and nile monitor lizards, skinks, snakes including<br />

tree and house snakes, pythons, cobras, mambas, puff<br />

adders and vipers. A list <strong>of</strong> <strong>the</strong> key reptile species in<br />

<strong>the</strong> forest reserve toge<strong>the</strong>r with an indication <strong>of</strong> <strong>the</strong>ir<br />

respective conservation status is included in Table A5 in<br />

<strong>the</strong> annex.<br />

2.8. BUTTERFLIES<br />

A total <strong>of</strong> 199 species <strong>of</strong> butterflies is known to occur<br />

in Mabira forest. Nine (9) Papilioidae, twenty four (24)<br />

Pieridae, twenty five (25) Lycaenidae, one hundred<br />

and twenty eight (128) Nymphalidae aud thirteen (13)<br />

Hesperiidae. A relatively high proportion (73 percent) <strong>of</strong><br />

<strong>the</strong> total were forest-dependent butterflies. Details <strong>of</strong><br />

<strong>the</strong> number <strong>of</strong> species taken from each family, and each<br />

subfamily in <strong>the</strong> case <strong>of</strong> <strong>the</strong> Papilionidae, Pieridae and<br />

Nymphalidae, are provided in Table 2.<br />

It can be seen that <strong>the</strong> reserve supports at least 16 percent<br />

<strong>of</strong> <strong>Uganda</strong>’s Rhopaloceran fauna, including 24 percent<br />

<strong>of</strong> <strong>the</strong> country’s Pieridae, 29 percent <strong>of</strong> <strong>the</strong> Nymphalidae<br />

and 38 percent <strong>of</strong> <strong>the</strong> subfamily Charaxinae (Howard<br />

& Davenport, 1996). Of <strong>the</strong> species registered, those<br />

<strong>of</strong> particular interest included Sallya natalensis a new<br />

record for <strong>Uganda</strong> (Howard & Davenport, 1996). This<br />

butterfly is a migratory insect so unusual distribution<br />

records are not too surprising, however, its previous<br />

known range was from Natal to parts <strong>of</strong> Kenya (Larsen,<br />

1991). Charaxes boueti, meanwhile, a member <strong>of</strong> one <strong>of</strong><br />

<strong>the</strong> more commonly studied subfamilies, represents a<br />

new record for this forest (Howard & Davenport, 1996):<br />

one <strong>of</strong> <strong>the</strong> few areas in <strong>the</strong> country which have been<br />

comparatively well investigated for <strong>the</strong>ir Rhopaloceran<br />

fauna.<br />

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At least two sub-species endemic to <strong>Uganda</strong> were<br />

registered, Tanue<strong>the</strong>ira timon orientius; <strong>Uganda</strong>n<br />

forests being <strong>the</strong> eastern limit <strong>of</strong> <strong>the</strong> species’ range and<br />

Acraea lycoa entebbia, known only from central and<br />

eastern <strong>Uganda</strong>. Acraea agan ice ugandae, meanwhile,<br />

an uncommon butterfly is restricted to <strong>the</strong> nor<strong>the</strong>rn<br />

shoreline <strong>of</strong> Lake Victoria (Howard & Davenport, 1996).<br />

O<strong>the</strong>r species <strong>of</strong> limited range include <strong>the</strong> skipper<br />

Ceratrichia mabirensis (Mabira being <strong>the</strong> Type Locality)<br />

with a patchy distribution, limited to parts <strong>of</strong> <strong>Uganda</strong>,<br />

Tanzania and western Kenya (Larsen, 1991), and<br />

Pseudathyma plutonica a scarce insect ranging from<br />

eastern Democratic Republic <strong>of</strong> Congo (DRC) to western<br />

Kenya. Moreover, Fseudacraea clarki, a comparatively<br />

large and conspicuous butterfly has records from<br />

Cameroon to Gabon and West Kenya, although Larsen<br />

(1991) maintains its absence from <strong>the</strong> latter. It is certainly<br />

not a common insect in East Africa.<br />

Mabira Forest Reserve may be considered rich in terms<br />

<strong>of</strong> its butterfly fauna, supporting a high percentage <strong>of</strong><br />

forest-dependent butterflies, as well as a number <strong>of</strong><br />

uncommon and restricted-range species (Howard &<br />

Davenport, 1996). Despite a recent history <strong>of</strong> intensive<br />

human disturbance in this forest (as reflected by <strong>the</strong><br />

fact that almost a quarter <strong>of</strong> <strong>the</strong> species recorded are<br />

associated with forest edge and woodland habitats), <strong>the</strong><br />

butterfly fauna has shown marked resilience (Howard &<br />

Davenport, 1996). Two species <strong>of</strong> Nymphalidae Acraea<br />

rogersi and Bicyclus mesogena, both reliant on dense,<br />

undisturbed forest demonstrate <strong>the</strong> environmental<br />

flexibility <strong>of</strong> some invertebrate communities (Howard &<br />

Davenport, 1996).<br />

Table 2: Species numbers recorded in Mabira from each family and from Papilionidae, Pieridae and<br />

Nymphalidae subfamilies<br />

Family <strong>Uganda</strong> Forest % <strong>Uganda</strong><br />

Subfamily Total Total Total<br />

Papilionidae 31 9 29<br />

Papilioninae 31 9 29<br />

Pieridae 100 24 24<br />

Coliadinae 10 3 30<br />

Pierinae 90 21 23<br />

Lycaenidae 460 25 5<br />

Nymphalidae 447 128 29<br />

Danainae 13 7 54<br />

Satyrinae 71 20 28<br />

Charaxinae 65 25 38<br />

Apaturinae 1 1 100<br />

Nymphalinae 195 50 26<br />

Acraeinae 101 24 24<br />

Liby<strong>the</strong>inae 1 1 100<br />

Hesperiidae 207 13 6<br />

TOTAL 1245 199 16<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 11


Restricted-range butterflies recorded from Mabira<br />

include Belenois victoria Victoria White, Dixeia charina<br />

African Small White, Epitola catuna, Lachnocnema<br />

bibulus Woolly Legs, Tanue<strong>the</strong>ira timon, Cacyreus<br />

audeoudi Audeoud’s Bush Blue, Amauris hecate Dusky<br />

Danaid, Charaxes port hos, Charaxes pythodoris Powder<br />

Blue Charaxes, Palla ussheri, Apaturopsis clenchares<br />

Painted Empress, Euryphura albimargo, Euryphura<br />

chalcis, Pseudathyma plutonica, Pseudacraea clarki,<br />

12<br />

Neptis trigonophora, Sallya natalensis Natal Tree<br />

Nymph, Hypolimnas dubius Variable Diadem, Acraea<br />

aganice Wanderer, Acraea rogersi Rogers’ Acraea,<br />

Acraea semivitrea, Acraea tellus, Celaenorrhinus bettoni,<br />

Celaenorrhinus proxima, Gomalia elma African Mallow<br />

Skipper, Ceratrichia mabirensis, and Caenides dacena.<br />

The list <strong>of</strong> known butterflies <strong>of</strong> Mabira forest are given<br />

in Table A6.<br />

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3.0. ECONOMIC EVALUATION OF THE<br />

SUGAR SECTOR IN UGANDA<br />

3.1. GLOBAL SUGAR PRODUCTION<br />

TRENDS<br />

More than 130 countries produce sugar world wide. Of<br />

<strong>the</strong>se, 66 percent process <strong>the</strong>ir sugar from sugarcane.<br />

The rest produce sugar from sugar beet. Sugarcane<br />

primarily grows in <strong>the</strong> tropical and sub-tropical zones<br />

<strong>of</strong> <strong>the</strong> sou<strong>the</strong>rn hemisphere, while sugar beet is<br />

largely grown in <strong>the</strong> temperate zones <strong>of</strong> <strong>the</strong> nor<strong>the</strong>rn<br />

hemisphere (ED&F Man, 2004). Prior to 1990, about 40<br />

percent <strong>of</strong> sugar was made from beet but sugarcane<br />

production has grown more rapidly over <strong>the</strong> last two<br />

decades because <strong>of</strong> <strong>the</strong> lower costs associated with its<br />

production.<br />

The top seven sugar producing countries in <strong>the</strong> world<br />

include Brazil, India, <strong>the</strong> European Union, China,<br />

Thailand, South Africa and Mauritius. The above seven<br />

countries produce up to sixty (60) percent <strong>of</strong> total global<br />

output (USDA, 2006). Projections indicate increased<br />

sugar production in 2006/07 due to higher production<br />

in Brazil, India, China and Thailand. Production in <strong>the</strong><br />

EU was expected to decline by 5 million tonnes, from<br />

21.8 million metric tonnes to 16.8 million metric tonnes<br />

(USDA, 2007).<br />

Over seventy (70) percent <strong>of</strong> global sugar production<br />

is consumed in <strong>the</strong> country <strong>of</strong> origin, implying that<br />

only thirty (30) percent is traded in <strong>the</strong> world sugar<br />

market (ED&F Man, 2004). As indicated in Table 3, world<br />

consumption <strong>of</strong> sugar was higher than production for<br />

2005 and 2006 (Table 3). Africa, Asia, Greater Europe<br />

(outside EU) and North America were <strong>the</strong> regions<br />

with <strong>the</strong> largest sugar deficit (Table 3). In Africa, <strong>the</strong><br />

deficit was 2.8 and 2.7 million tonnes in 2005 and 2006<br />

respectively (FAO, 2006). More than 60 percent <strong>of</strong> <strong>the</strong><br />

global consumption <strong>of</strong> sugar takes place in developing<br />

countries, with China and India leading <strong>the</strong> way. In<br />

addition, it is <strong>the</strong> developing countries particularly in<br />

Asia, which are expected to be <strong>the</strong> primary source <strong>of</strong><br />

future demand growth (Sserunkuma and Kimera, 2006).<br />

Table 3: World production and consumption <strong>of</strong> sugar (million tonnes, raw value)<br />

World’s Regions<br />

Production<br />

2005 2006<br />

Consumption<br />

2005 2006<br />

World 145.2 149.7 147.2 149.9<br />

Developing countries 101.9 106.9 99.5 102.0<br />

Latin America and <strong>the</strong> Caribbean 50.5 49.9 26.5 27.1<br />

Africa 5.3 5.6 8.1 8.3<br />

Near East 7.7 7.7 11.1 11.5<br />

Far East 38.1 43.4 53.6 55.1<br />

Oceania 0.4 0.4 0.1 0.1<br />

Developed countries 43.3 42.8 47.7 47.9<br />

Europe, <strong>of</strong> which: 27.2 26.8 29.8 29.9<br />

European Union (25) 22.1 21.3 18.1 18.1<br />

Eastern Europe in Europe) 5.1 5.1 5.1 5.1<br />

North America 7.4 7.1 10.4 10.5<br />

Oceania 5.4 5.4 1.4 1.4<br />

O<strong>the</strong>rs 3.3 3.6 6.0 6.1<br />

Source: FAO (2006)<br />

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The demand for sugar has also been growing in <strong>the</strong><br />

eastern Africa region. In order to achieve growth targets<br />

<strong>the</strong>refore, <strong>the</strong> sugar industry has been classified as<br />

a sensitive industry that requires effective safeguard<br />

measures (Serunkuma and Kimera, 2006). In Kenya, <strong>the</strong><br />

area under sugarcane was 151,014 hectares by <strong>the</strong> end<br />

<strong>of</strong> 2006 and <strong>the</strong> average yield was 71.46 mts/ha. The<br />

amount <strong>of</strong> cane crushed was 4,850,333 mts. The amount<br />

<strong>of</strong> sugar produced by Kenyan sugar factories was<br />

475,669 mts. In 2006, production fur<strong>the</strong>r declined to 475<br />

653 mts against a demand <strong>of</strong> 718,396 mts (Kenya Sugar<br />

Board in <strong>the</strong> East African Standard, 2007). In Tanzania,<br />

<strong>the</strong> annual sugar production was about 115,000 tonnes,<br />

while <strong>the</strong> demand <strong>of</strong> sugar is estimated at 300,000<br />

tonnes. As such, Tanzania imports about 200,000 tonnes<br />

per annum to <strong>of</strong>fset <strong>the</strong> shortfall (Tanzania Ministry <strong>of</strong><br />

Agriculture, Food and Cooperatives, 2007).<br />

3.2 HISTORY OF THE SUGAR INDUSTRY IN<br />

14<br />

UGANDA<br />

Sugarcane production in <strong>Uganda</strong> dates back to 1924<br />

when <strong>the</strong> first sugar factory was established in <strong>Uganda</strong><br />

and East Africa. The factory was <strong>the</strong>n known as <strong>Uganda</strong><br />

Sugar Factory Limited. The factory has since changed<br />

to <strong>the</strong> Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited (SCOUL)<br />

(Serunkuma and Kimera, 2006). The Sugar Corporation<br />

<strong>of</strong> <strong>Uganda</strong> Limited was established by <strong>the</strong> late Najir<br />

Kalidas Mehta who came to <strong>Uganda</strong> from India in 1901.<br />

The second sugar factory opened at Kakira in 1930. It<br />

was started by <strong>the</strong> late Muljibhai Madhvani who also<br />

came to <strong>Uganda</strong> from India in 1908. Two o<strong>the</strong>r sugar<br />

establishments were made at Sango Bay in Rakai District<br />

and at Kinyara in Masindi District. Sugar production at<br />

Sango Bay started in 1972 but was shut down in 1973<br />

following <strong>the</strong> expulsion <strong>of</strong> <strong>the</strong> Asian owners during<br />

<strong>the</strong> Idi Amin government. The National Sugar Works in<br />

Kinyara near Masindi (Kinyara Sugar Works) was initiated<br />

in <strong>the</strong> 1960s and implemented in <strong>the</strong> early 1970s.<br />

<strong>Uganda</strong> has good physical attributes for <strong>the</strong> successful<br />

production <strong>of</strong> sugar. Peak production reached 152,000<br />

mts in 1968, and by 1969, <strong>Uganda</strong> was able to export<br />

about 48,000 mts <strong>of</strong> sugar. In <strong>the</strong> 1950s and 1960s, with<br />

just SCOUL and Kakira Sugar Works, <strong>Uganda</strong> was one <strong>of</strong><br />

<strong>the</strong> world leaders in <strong>the</strong> sugar industry with production<br />

at a tune <strong>of</strong> 140,000 mts <strong>of</strong> sugar per year. For example,<br />

about 20,000 mts <strong>of</strong> sugar/year were exported to <strong>the</strong><br />

United States <strong>of</strong> America and regionally to neighbouring<br />

countries. <strong>Uganda</strong>’s premier position in <strong>the</strong> sugar sector<br />

declined following <strong>the</strong> <strong>economic</strong> and political upheavals<br />

<strong>of</strong> <strong>the</strong> Amin and Obote II regimes. Sugar production<br />

actually plummeted to almost zero by 1983. Sugar<br />

estates were abandoned, machinery fell into disrepair,or<br />

were looted, and <strong>the</strong> physical and social infrastructure<br />

deteriorated (AfDB, 2002). The country became entirely<br />

dependent on imported sugar. The sector has however<br />

partly recovered following <strong>the</strong> return <strong>of</strong> Asians in <strong>the</strong><br />

mid 1980s. In 1988, <strong>the</strong> Mehta Group repossessed and<br />

commissioned <strong>the</strong> rehabilitation <strong>of</strong> <strong>the</strong> SCOUL factory<br />

in Lugazi. Between 1985 and 1995 Kakira Sugar Works<br />

1985 Ltd underwent rehabilitation and Kinyara Sugar<br />

Works was rehabilitated between 1986 and 1996 1 .<br />

The Economic Recovery Program initiated in 1987 and<br />

<strong>the</strong> Structural Adjustment Programme <strong>of</strong> <strong>the</strong> early<br />

1990s promoted <strong>the</strong> rehabilitation <strong>of</strong> <strong>the</strong> agricultural<br />

sector, including <strong>the</strong> sugar industry. The rehabilitation<br />

in <strong>the</strong> sugar industry looked at <strong>the</strong> rehabilitation <strong>of</strong><br />

sugarcane yields <strong>of</strong> <strong>the</strong> nucleus plantation; e<strong>valuation</strong> <strong>of</strong><br />

current systems and methods <strong>of</strong> sugarcane production<br />

and set up methods and means to achieve production<br />

<strong>of</strong> sugarcane at minimum costs. It also examed advice<br />

on options for <strong>the</strong> diversification <strong>of</strong> <strong>the</strong> industry and <strong>the</strong><br />

institutional and legislative requirements to improve<br />

management <strong>of</strong> <strong>the</strong> industry.<br />

The sugar industry employs about 21,749 persons<br />

on a permanent, contract and casual labour basis. Of<br />

<strong>the</strong>se eighty to ninety (80–90) percent are members<br />

<strong>of</strong> <strong>the</strong> National Union <strong>of</strong> Plantation Workers <strong>of</strong> <strong>Uganda</strong><br />

(NUPAWU) (<strong>Uganda</strong> Land Coalition, 2006). In addition,<br />

<strong>the</strong> sugar industry engages approximately 40,000<br />

1 Between 1985 and 1988, <strong>the</strong>re was no sugar production<br />

as all factories were under rehabilitation<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


workers, when both direct and indirect employment<br />

are considered, including out-grower farmers (Fashoyin<br />

et al., 2004). The total sugarcane production increased<br />

from 2002 to 2003 and 2003 to 2004 (Table 4) by nearly<br />

six percent and nine percent, respectively but declined<br />

by two and a half percent from 2004 to 2005 (FAO,<br />

2007). By late 2005, <strong>Uganda</strong> had three operational<br />

sugar factories SCOUL, Kakira Sugar Works (1985) Ltd,<br />

and Kinyara Sugar Works Ltd. In <strong>the</strong> second half <strong>of</strong> 2006,<br />

a new company known as G.M. Sugar Limited, located<br />

at Nakibizzi in Mukono District, emerged as <strong>the</strong> fourth<br />

local sugar factory. Unlike <strong>the</strong> o<strong>the</strong>r three operators,<br />

this fourth factory does not have a nucleus sugarcane<br />

plantation. Instead G.M. Sugar Limited buys all its<br />

sugarcane from out-growers.<br />

Table 4: <strong>Uganda</strong> Sugar and Sugar Crops production between 2002 and 2005<br />

2002 2003 2004 2005<br />

Production quantity (000 tonnes) 1,877.62 1,995.08 2,202.88 2,149.67<br />

Increased sugarcane production (%) -- 5.89 9.43 -2.48<br />

Import quantity (000 tonnes) 82.25 60.17 88.18 180.01<br />

Export quantity (000 tonnes) 5.14 0.82 15.19 95.64<br />

Food consumption quantity (000 tonnes) 1,229.01 1,329.09 1,428.97 1,554.54<br />

Source: FAO (2007)<br />

Table 6: Sugarcane yield in <strong>Uganda</strong>’s sugar factory nucleus estate<br />

Cane yield<br />

(Tonnes/ha)<br />

Average Age <strong>of</strong><br />

Cane harvested<br />

(Months)<br />

Kakira Sugar Works 108.9 18.94 5.69<br />

Kinyara Sugar Works 89.9 18.7 4.78<br />

Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Ltd 83.3 18.1 4.64<br />

Source: (USCTA, 2003)<br />

Cane Productivity<br />

(Tonnes/ ha /m)<br />

Though yields remain low, short-term projections indicate anticipated growth in cane production for <strong>the</strong> three sugar<br />

plantations as indicated below:<br />

3.3 SUGAR PRODUCTION AND<br />

CONSUMPTION TRENDS IN UGANDA<br />

Three issues influence productivity <strong>of</strong> <strong>the</strong> sugar sector in<br />

<strong>Uganda</strong>. They include yield per hectare, sugar recovery<br />

ratios and import export demand. Cane productivity in<br />

Ugnada may be ranked medium to low. Nucleus estate<br />

yields are normally higher than outgrower yields due<br />

to better agronomic practices. Typical nucleus estate<br />

yields range between 83.3 tonnes per hectare at Sugar<br />

Corporation <strong>of</strong> <strong>Uganda</strong> Limited (Table 6), 89.9 mts per<br />

hectare at Kinyara Sugar Works to 108.9 tonnes per<br />

hectare at Kakira Sugar Works (Isingoma, 2004). Cane<br />

yields <strong>of</strong> 120 mts per hectare are however, achievable<br />

at nucleus estates (AfDB, 2002). The major factors<br />

influencing yield include rain and irrigation, <strong>the</strong> later<br />

being very underdeveloped.<br />

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Table 7: Projected sugarcane production<br />

Sugar factories<br />

16<br />

Projected Sugarcane production<br />

2003 2004 2005<br />

(tonnes) % (tones) % (tonnes) %<br />

Kakira Sugar Works 980,854 49 1,067,417 46 1,235,955 47<br />

Kinyara Sugar Works 560,406 28 666,217 29 683,813 26<br />

Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Ltd 456,141 23 600,000 26 700,000 27<br />

Total Projection 1,997,401 100 2,333,687 100 2,619,768 100<br />

Adapted from: (USCTA, 2003)<br />

The average sugar recovery ratios are also low. Kinyara<br />

has <strong>the</strong> highest standing at 9.6 percent compared to<br />

Kakira’s 8.9 percent and SCOUL’s 8.4 percent. Following<br />

a crop improvement campaign, Kinyara improved its<br />

cane to sugar ratio to 10 percent in <strong>the</strong> financial year<br />

2004/05. The same campaign helped Kinyara to surpass<br />

its production target <strong>of</strong> 64,000 tonnes <strong>of</strong> sugar per year<br />

by 958 tonnes and to upgrade to a new production<br />

target <strong>of</strong> 93,000 tonnes per year for 2008. Although <strong>the</strong><br />

outgrower contribution also increased to eight hundred<br />

farmers (800), sugar producers remained wary <strong>of</strong> cheap<br />

imported sugar, which makes competition a nightmare.<br />

They also complained <strong>of</strong> a poor road network and argued<br />

that it made <strong>the</strong> expansion <strong>of</strong> <strong>the</strong> outgrower scheme<br />

very difficult. Similar issues were raised at both Kakira<br />

Sugar Works and at <strong>the</strong> Sugar Corporation <strong>of</strong> <strong>Uganda</strong><br />

Limited. Both factories however, suffered production<br />

short falls. The shortfalls were fur<strong>the</strong>r exercebated by<br />

<strong>the</strong> low cane to sugar conversion ratios.<br />

3.4. PERFORMANCE OF UGANDA’S<br />

SUGAR SECTOR<br />

Kakira Sugar Works Limited is <strong>the</strong> largest sugar factory<br />

in <strong>Uganda</strong> in terms <strong>of</strong> yield and output. The company<br />

accounts for forty two (42) percent <strong>of</strong> overall national<br />

output and operates a nucleus estate <strong>of</strong> 12 000 hectares.<br />

The estate benefited from a contentious takeover <strong>of</strong><br />

1,200 hectares that were previously part <strong>of</strong> Butamira<br />

Central Forest Reserve 2 . The company also services up<br />

to 10,000 hectares <strong>of</strong> out-grower contract production.<br />

A systematic expansion <strong>of</strong> <strong>the</strong> SCOUL nucleus plantation<br />

increased cultivable land by thirty three (33) percent<br />

from 9,000 to 12,000 hectares. In October 2006, RAI<br />

Holdings, a Kenyan consortium, paid Ush62 billion<br />

($33.5 million) for a fifty one (51) percent stake in Kinyara<br />

Sugar Works Limited 3 (KSWL) (New Vision Newspaper,<br />

2006). Kinyara Sugar Works factory produces more<br />

than 50,000 tonnes <strong>of</strong> sugar per year from over 500,000<br />

mts <strong>of</strong> sugarcane. The company collaborates with over<br />

800 outgrower farmers operating over 4,600 hectares<br />

<strong>of</strong> cane plantation. Among <strong>the</strong> three sugar factories,<br />

Kakira Sugar Works has <strong>the</strong> largest nucleus estate and<br />

cane output. SCOUL has <strong>the</strong> lowest output (Table 5).<br />

The overall sugar production output from <strong>the</strong> three<br />

factories was 198,000 metric tones. This fell short <strong>of</strong> total<br />

annual demand currently put at 240,000 metric tones by<br />

over 40,000 metric tonnes (East African, 2007).<br />

2 The land use in Butamira CFR changed to permanent<br />

agriculture. The move triggered a law suit by a civil society group. While<br />

<strong>the</strong> group won <strong>the</strong> case, it would appear this was a pyrrhic victory.<br />

3 10 % <strong>of</strong> <strong>the</strong> shares in Kinyara Sugar Works were <strong>of</strong>fer to <strong>the</strong><br />

out-growers <strong>of</strong> Kinyara Sugar Works, ano<strong>the</strong>r 10 % to <strong>the</strong> Bunyoro Kitara<br />

Kingdom and 30 percnet <strong>of</strong> <strong>the</strong> shares are to be traded to <strong>the</strong> public on <strong>the</strong><br />

Kampala Stock Exchange<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Table 5: Sugar Companies and Production in <strong>Uganda</strong> at a glance<br />

Company SCOUL Kakira Kinyara<br />

Location Lugazi; Mukono District<br />

Ownership<br />

Mehta Family (76%)<br />

GoU (24%)<br />

Kakira, Jinja<br />

Distict<br />

East African<br />

Holdings<br />

(100%)<br />

Area 15,000 ha 22,000 ha 11,000 ha<br />

Commissioned 1924 1930 1976<br />

Sugarcane tonnage 480,000 900,000 500,000<br />

Sugar tonnage 44,000 90,000 64,000<br />

Products<br />

Sugar, spirit, vegetables,<br />

and cut flowers<br />

Permanent & contract staff 6,000 2,300 3,900<br />

Casual workers 4,200<br />

Out-growers 700+ 3,600+ 800<br />

Out-grower area (ha) 3,000 10,000 4,600<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

Kinyara, Masindi District<br />

RAI Holdings (51%), Bunyoro Kitara<br />

Kingdom (10%), Kinyara sugar works<br />

out-growers (10%), and public (29%)<br />

Sugar, molasses, spirit<br />

Cane <strong>of</strong> out-growers 160,000 mts/year 200,000 tonnes/year<br />

Primary schools 13 1<br />

Secondary schools 1 1<br />

Health care<br />

Clinic & maternity with<br />

20 beds<br />

Company policy Against child labour<br />

*Conversion sugar (%) 9.1 10 10.91<br />

Source: Sserunkuuma and Kimera (2006) *calculated from existing data<br />

Clinic and maternity-primary health<br />

care only; 2 doctors, midwives and<br />

nurses plus ambulance<br />

17


The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettment <strong>of</strong> Mabira CFR<br />

___________________________________________________________________________________<br />

4.0. EVALUATION OF DECISION TO<br />

CONVERT MABIRA CFR FOR SUGAR<br />

CANE PRODUCTION<br />

4.0. EVALUATION OF DECISION TO CONVERT MABIRA CFR FOR<br />

SUGARCANE PRODUCTION<br />

4.1 Sugar Production Model for <strong>Uganda</strong><br />

<strong>Uganda</strong>’s sugar industry employs a mixed production model consisting <strong>of</strong> a nucleus sugar<br />

4.1 cane plantation SUGAR PRODUCTION which is MODEL normally FOR owned and production managed and quality by a depending sugar company on <strong>the</strong> soil fertility. and<br />

registered UGANDA and non-registered out-grower farms. The nucleus estate is <strong>of</strong>ten fairly large<br />

<strong>Uganda</strong>’s and supplies sugar industry more than employs 50% a mixed <strong>of</strong> sugarcane production to <strong>the</strong> The mill sugar in companies order to provide secure sugarcane some guarantee <strong>of</strong> a certain<br />

model <strong>of</strong> throughput consisting <strong>of</strong> for a <strong>the</strong> nucleus plant sugar (Figure cane 3). plantation The Sugar quantity Company and acceptable also owns quality a processing from out-growers plant by<br />

which (Serunkuma is normally and owned Kimera, and managed 2006). by For a sugar a farmer <strong>the</strong> to provision become <strong>of</strong> an standard out-grower land preparation, he has to seedlings, be<br />

company registered and at registered <strong>the</strong> out and grower non-registered Department out- <strong>of</strong> <strong>the</strong> agrochemicals, Company. supervising The successful production applicant and technical<br />

receives a quota <strong>of</strong> <strong>the</strong> expected production and<br />

grower farms. The nucleus estate is <strong>of</strong>ten fairly large assistance quality depending to all out-growers. on <strong>the</strong> The soil supporting fertility. service<br />

and supplies more than 50% <strong>of</strong> sugarcane to <strong>the</strong> mill costs are deducted from <strong>the</strong> total price to be paid to<br />

The sugar companies secure sugarcane <strong>of</strong> a certain quantity and acceptable quality from<br />

in order to provide some guarantee <strong>of</strong> throughput for small farmers at <strong>the</strong> harvest time. With <strong>the</strong> level <strong>of</strong><br />

out-growers by <strong>the</strong> provision <strong>of</strong> standard land preparation, seedlings, agrochemicals,<br />

<strong>the</strong> plant (Figure 3). The Sugar Company also owns a follow up on extension, farm practices and cane quality;<br />

supervising production and technical assistance to all out-growers. The supporting<br />

processing plant (Serunkuma and Kimera, 2006). For a it is envisaged that <strong>the</strong> sugar processing companies are<br />

service costs are deducted from <strong>the</strong> total price to be paid to small farmers at <strong>the</strong> harvest<br />

farmer time. to become With <strong>the</strong> an out-grower level <strong>of</strong> follow he has to up be registered on extension, able farm to establish practices production and conditions cane quality; on <strong>the</strong> registered it is<br />

at envisaged <strong>the</strong> out grower that Department <strong>the</strong> sugar <strong>of</strong> <strong>the</strong> processing Company. The companies out-grower are farms able that to are establish identical to <strong>the</strong> production<br />

conditions on<br />

successful conditions applicant on <strong>the</strong> receives registered a quota out-grower <strong>of</strong> <strong>the</strong> expected farms that are identical to <strong>the</strong> conditions on <strong>the</strong>ir<br />

<strong>the</strong>ir own own nucleus plantation.<br />

Figure Figure 3: 3: Centralised Centralised and and contract contract farming farming model model in sugar in sugar companies companies in <strong>Uganda</strong> in <strong>Uganda</strong><br />

Sugar company nucleus plantation<br />

Source: <strong>Uganda</strong> Land Coalition (2006)<br />

Source: <strong>Uganda</strong> Land Coalition (2006)<br />

Sugar company – <strong>the</strong> sponsor<br />

Company owned sugar factory<br />

Company’s out growers Department<br />

Registered<br />

out growers<br />

Association<br />

Nonregistered<br />

out growers<br />

_____________________________________________________________________ 21<br />

18<br />

The By Economic Yakobo Valuation Moyini, <strong>of</strong> PhD <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


A registered out-grower is a self-employed farmer<br />

usually a smallholder who owns or leases land, and<br />

produces and supplies sugarcane under contract to a<br />

plantation sugar company. The size <strong>of</strong> <strong>the</strong> small farmer’s<br />

land varies from a minimum <strong>of</strong> 2 ha to larger farms with<br />

up to 400 hectares or even more. The company retains<br />

exclusive control over purchase and marketing <strong>of</strong> <strong>the</strong><br />

out-grower–supplied sugar (Welch, 2004).<br />

The out-growers however, retain <strong>the</strong> risk <strong>of</strong> growing,<br />

harvesting and transporting <strong>the</strong>ir quota <strong>of</strong> cane to <strong>the</strong><br />

sugar mill as per production contract and under <strong>the</strong><br />

company’s supervision. The company engages to buy<br />

<strong>the</strong> estimated quota <strong>of</strong> cane agreed on, to provide<br />

technical advice, help with mechanical land preparation<br />

(bush clearing, ploughing and harrowing), planting<br />

(selection <strong>of</strong> seeds) and training and can, if required,<br />

provide financial aid in <strong>the</strong> form <strong>of</strong> loans. The company<br />

charges for all <strong>the</strong>se services to <strong>the</strong> out-grower. It<br />

should also be noted that <strong>the</strong>re is ano<strong>the</strong>r category <strong>of</strong><br />

out-growers, <strong>the</strong> non-registered small farmers whose<br />

aggregate supply <strong>of</strong> sugarcane to companies is growing.<br />

These farmers are, however, not guaranteed a market<br />

from <strong>the</strong> companies.<br />

From <strong>the</strong> status <strong>of</strong> land ownership by <strong>the</strong> three<br />

leading sugar production firms; SCOUL’s nucleus estate<br />

represents seventy five (75) percent <strong>of</strong> its total land<br />

compared to fifty nine (59) percent and 54.5 percent<br />

for Kinyara and Kakira, respectively. Kakira has <strong>the</strong><br />

largest combined sugar estate totalling 22,000 hectares<br />

followed by SCOUL totalling 15,000 hectares and Kinyara<br />

totalling 11,000 hectares (Table 8).<br />

The Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited (SCOUL)<br />

<strong>the</strong>refore has <strong>the</strong> largest nucleus estate and <strong>the</strong><br />

smallest area <strong>of</strong> outsourced cane (from 3,000 ha <strong>of</strong><br />

small outgrowers). SCOUL also utilizes 1,000 hectares<br />

<strong>of</strong> land that is directly leased from private suppliers.<br />

Among <strong>the</strong> three estates, <strong>the</strong>refore, SCOUL obtains only<br />

twenty five (25) percent <strong>of</strong> its cane from outgrowers<br />

compared to forty and forty five percent for Kakira<br />

and Kinyara, respectively. Since <strong>the</strong>y rely a lot more on<br />

<strong>the</strong> cane grown in <strong>the</strong> community, Kakira and Kinyara<br />

have to build strong links with local communities<br />

and authorities. The sugar companies depend on <strong>the</strong><br />

stability <strong>of</strong> <strong>the</strong> land tenure system and <strong>the</strong> contracts<br />

<strong>the</strong>y have with farmers. Kinyara has diversified sugarcane<br />

sources and has both large and small scale outgrowers,<br />

and large self funded groups. Kinyara may <strong>the</strong>refore<br />

have <strong>the</strong> most secure sugarcane estate. Both SCOUL<br />

and Kakira have little diverisification and carry <strong>the</strong> risk<br />

<strong>of</strong> <strong>the</strong>ir farmers defecting to o<strong>the</strong>r processors, or as in<br />

<strong>the</strong> case <strong>of</strong> Kakira forming <strong>the</strong>ir own sugar processing<br />

company. In addition, SCOUL still has 6.6 percent <strong>of</strong> its<br />

nucleus estate on private land, and as such relies on <strong>the</strong><br />

land owner’s willingeness to continue under <strong>the</strong> current<br />

arrangements. These conditions precipitate <strong>the</strong> desire<br />

for SCOUL to expand its nucleus estate into <strong>the</strong> forest<br />

reserve.<br />

Table 8: Status <strong>of</strong> land ownership <strong>of</strong> <strong>Uganda</strong>’s sugar factories<br />

Classification <strong>of</strong> land owned<br />

SCOUL<br />

(ha) (%)<br />

Kakira<br />

(ha) (%)<br />

Kinyara<br />

(ha) (%)<br />

Nucleus estate 12,000 75 11,000 54.5 6,400 59<br />

Government <strong>of</strong> <strong>Uganda</strong> lease 1,000 4.5<br />

Private land leases 1000 6.6<br />

Outsourcing 3,000 25 10,000 45.5 4,600 41<br />

Large private estates - 800 7.2<br />

Small out-growers 3,000 25 10,000 45.5 2,400 21.8<br />

Large self-funded 1,400 12.7<br />

Total 15,000 100 22,000 100 11,000 100<br />

Source: Adapted from <strong>Uganda</strong> land coalition (2005); Welch (2004)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 19


4.2. THE VALUE OF THE SUGAR SECTOR IN<br />

20<br />

UGANDA<br />

The value aspects <strong>of</strong> <strong>Uganda</strong>’s sugar estate may be<br />

classified into three categories including <strong>the</strong> following:<br />

i. reproducible tangible assets including<br />

plantations and <strong>the</strong> improvements made on<br />

<strong>the</strong>m;<br />

ii. non-reproducible tangible assets by type where<br />

land is categorised into: urban land, cultivated<br />

land and o<strong>the</strong>r lands (parks and private gardens);<br />

and<br />

iii. assets not owned such as leased land on which<br />

<strong>the</strong> sugarcane is produced (UN, 1991)<br />

Box 1: Out-growers production and earnings with SCOUL<br />

4.2.1. Value <strong>of</strong> Reproducible Tangible<br />

Assets ( sugarcane)<br />

The gross pr<strong>of</strong>it from sugarcane production for <strong>the</strong><br />

sugar factories cannot be individually disaggregated<br />

from value <strong>of</strong> <strong>the</strong> sugar and o<strong>the</strong>r by-products derived<br />

from <strong>the</strong> sugarcane. On <strong>the</strong> o<strong>the</strong>r hand, sugarcane value<br />

can be derived (for Kakira and SCOUL) from <strong>the</strong> value at<br />

which <strong>the</strong> sugar estates buy factory delivered sugarcane<br />

from out-growers (Table 9). The outgrowers receive a<br />

price ranging between Ushs20,200 per metric tone to<br />

Ushs 25,000 per metric tone <strong>of</strong> sugarcane (Welch, 2004).<br />

Consider <strong>the</strong> case <strong>of</strong> a farmer in Kasokoso village, Kawolo sub-county Mukono District:<br />

» Sugarcane takes 18 months to mature, for <strong>the</strong> first crop;<br />

» Kiwanuka got a Ushs 200,000 loan, bought sugarcane stems and planted three acres;<br />

» At that time, a tonne <strong>of</strong> sugarcane cost Ushs 17,000;<br />

» Kintu got Ushs 2.5 million from selling sugarcane to SCOUL;<br />

» The price <strong>of</strong> sugarcane rose to Ushs 20,200 per tonne;<br />

» The farmer hoped to get Ushs 8 million from his harvest in February 2006;<br />

» The contracted out-growers are assured <strong>of</strong> <strong>the</strong> market for <strong>the</strong>ir sugarcane at SCOUL;<br />

» The farmers get sugarcane stems, technical skills and tractors to plough our fields, on credit;<br />

» SCOUL can meet <strong>the</strong> transportation costs depending on <strong>the</strong> distance from <strong>the</strong> factory;<br />

» The farmer’s life has improved; he has renovated his house and bought three cows. He also plans to<br />

buy more land. The farmer (Mr. Kintu) is now also a field supervisor at SCOUL.<br />

Source: New Vision (2006)<br />

The total value <strong>of</strong> sugarcane produced by SCOUL is<br />

Ushs 12,120 million equivalent to US$ 7.128 million<br />

(Table 9). For Kakira Sugar Works <strong>the</strong> value <strong>of</strong> sugarcane<br />

is Ushs 20,200 million (equivalent to US$ 11.88 million).<br />

Estimates <strong>of</strong> <strong>the</strong> average revenue per hectare, for<br />

Busoga Sugar Cane Out-growers Association, was US$<br />

490 per ha (<strong>Uganda</strong> Land Coalition, 2005), which was<br />

only slightly higher than <strong>the</strong> estimates for farmers in<br />

Kasokoso village, Kawolo Sub-county Mukono District<br />

(New Vision, 2006).<br />

Estimates <strong>of</strong> <strong>the</strong> present value <strong>of</strong> a 5 ratoon (annual) <strong>of</strong><br />

sugar cane gave a present value <strong>of</strong> Ushs 2,822,861 per<br />

ha (US$ 1,660 per ha) and Ushs 3,207,162 per ha (US$<br />

1,887 per ha) for <strong>the</strong> sugarcane estate at SCOUL and<br />

Kakira respectively (Table 9). Therefore, a 7,186 ha estate<br />

can, at <strong>the</strong> maximum, produce cane with a present<br />

value <strong>of</strong> Ushs 20,285.08 million (US$ 12.3 million) at<br />

SCOUL and Ushs 23,046.67 million (US$ 13.6 million) for<br />

<strong>the</strong> equivalent <strong>of</strong> Kakira sugar works.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Table 9: Value <strong>of</strong> sugarcane for SCOUL out-growers in Mukono district, 2006<br />

Description <strong>of</strong> cost items SCOUL Kakira<br />

Area 15,000 22,000<br />

Sugarcane (kg) 600,000 1,000,000<br />

Price <strong>of</strong> sugarcane (Ushs/tonne) 20,200 (US$ 11.88)<br />

Per hectare value <strong>of</strong> sugarcane based on out-grower prices (‘000 Ushs/ha) 808 918<br />

Per hectare value <strong>of</strong> sugarcane based on out-grower sugar prices<br />

(US$/ha)<br />

Present value <strong>of</strong> <strong>the</strong> sugarcane at on out-grower sugar prices (‘000<br />

Ushs/ha), based on a 5 annual ratoon, at a 22% Bank Interest rate<br />

Present value <strong>of</strong> <strong>the</strong> sugarcane at on out-grower sugar prices (US$/ha)<br />

based on a 4 to 5 annual ratoon, at a 22% Bank Interest rate<br />

Value <strong>of</strong> a 7,186 ha estate <strong>of</strong> sugar cane out-grower sugar prices<br />

(‘million Ushs), based on a 5 annual ratoon, at a 22% Bank Interest rate<br />

Value <strong>of</strong> a 7,186 ha estate <strong>of</strong> sugar cane out-grower sugar prices (US$<br />

million) based on a 4 to 5 annual ratoon, at a 22% Bank Interest rate<br />

Source: Adapted from (New Vision, 2006; <strong>Uganda</strong> Land Commission, 2005)<br />

4.2.2. Value <strong>of</strong> non-reproducible assets <strong>of</strong><br />

sugar factory (Land at <strong>the</strong> Company owned<br />

nucleus sugarcane estate)<br />

In valuing non-reproducible tangible assets <strong>of</strong> <strong>the</strong><br />

nucleus estate land is valued as cultivated land located<br />

at <strong>the</strong> different sites. In Mukono District and <strong>the</strong> areas<br />

neighbouring Mabira Central Forest reserve and SCOUL<br />

sugar estate <strong>the</strong> land rates obtained from brokers ranged<br />

between Ushs 500,000 to 1,000,000 per acre equivalent<br />

to Ushs 1,250,000/ha and 2,500,000/ha. Therefore, if it<br />

was a private land estate equivalent to 7,186 ha Mabira<br />

CFR, without any o<strong>the</strong>r ecosystem values it would<br />

Table 10: Value <strong>of</strong> land based on open market prices<br />

Value <strong>of</strong> one unit <strong>of</strong> land<br />

area<br />

Land rates (range) (Ushs/acre) 500,000 – 1,000,000<br />

475.2 540<br />

2,822,861.53 3,207,161.99<br />

1,711.88 1,886.57<br />

20,285.08<br />

23,046.67<br />

12.30 13.56<br />

fetch a value <strong>of</strong> Ushs 8,0982.5 – 17,965 million (US$<br />

10.57 million to US$ 21.135 million) on <strong>the</strong> open land<br />

market (Table 10). Economic sense would suggest that<br />

SCOUL would not vie to buy such land if someone, i.e.<br />

<strong>the</strong> Government, were giving it for free. If <strong>the</strong>n <strong>the</strong><br />

government goes ahead and gives this land it would in<br />

effect be providing an equivalent subsidy (US$ 10.57 –<br />

21.14), on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> land rates in <strong>the</strong> area alone,<br />

to one <strong>of</strong> <strong>the</strong> three main sugar factories in <strong>the</strong> country,<br />

<strong>the</strong>reby creating an un-level playing field in <strong>the</strong> market<br />

place. Similar overtures might have to be extended to<br />

<strong>the</strong> o<strong>the</strong>r sugarcane estates as well.<br />

Land value (million Ushs/ha) 1,250,000 - 2,500,000 8,982.5 - 17,965<br />

Value <strong>of</strong> equivalent land on <strong>the</strong> open<br />

market (7,186 ha)<br />

US$ 735.3 – 1,470.6 5,283,823.5 - 10,567,647<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 21


4.3. COST OF PRODUCTION AND THE<br />

DETERMINANTS OF THE COMPETITIVENESS OF<br />

THE SUGAR SECTOR IN UGANDA<br />

Brazil has <strong>the</strong> lowest sugar production costs,<br />

approximately US$ 150/ mts <strong>of</strong> sugar. In Africa,<br />

Sou<strong>the</strong>rn African Development Community countries<br />

such as Zimbabwe (US$ 160/mts), Zambia (US$ 180/<br />

mts), and South Africa (US$ 220/mts) have <strong>the</strong> lowest<br />

sugar production costs (Malzbender, 2003). Yet Zambia<br />

is a landlocked country like <strong>Uganda</strong>. Additional, by-<br />

products reduce input costs: for example, bagasse is<br />

burned to achieve energy self-sufficiency in mills and<br />

filter press mud from mills is spread on fields to reduce<br />

inorganic fertiliser use. There is potential to generate<br />

additional value from current production. <strong>Uganda</strong><br />

22<br />

has one <strong>of</strong> <strong>the</strong> highest sugar production costs in <strong>the</strong><br />

Eastern and Sou<strong>the</strong>rn African region (UNCTAD, 2005).<br />

The county’s average sugar production cost (Table<br />

10) is more that two times higher than <strong>the</strong> average<br />

production cost <strong>of</strong> Zambia, three-times as high as <strong>the</strong><br />

sugar production cost in Sudan. Indeed, only Tanzania,<br />

<strong>Uganda</strong>’s neighbour to <strong>the</strong> south, has a comparable but<br />

slightly lower sugar production cost. As such, one would<br />

expect that <strong>Uganda</strong>’s sugar industry still has options for<br />

improvements in productivity and production leading<br />

to a reduction in <strong>the</strong> average sugar production costs.<br />

The higher costs for <strong>the</strong> sugar factories in <strong>Uganda</strong> are<br />

attributed to: (i) high operational costs; and (ii) <strong>the</strong> high<br />

costs <strong>of</strong> out-growers cane if <strong>the</strong> distance goes beyond<br />

20-30km;<br />

Table 11: Sugar production costs in selected Least Developing Countries<br />

Country<br />

Estimation <strong>of</strong> costs US$/<br />

tonne<br />

Ethiopia 375 56.8<br />

Bangladesh 550 83.3<br />

Tanzania 600 91.0<br />

<strong>Uganda</strong> 660 --<br />

Madagascar 550 83.3<br />

Source: adapted from UNCTAD (2005)<br />

However, <strong>the</strong> cost <strong>of</strong> producing sugar in <strong>Uganda</strong> is already<br />

much higher than regional producers. In addition, <strong>the</strong><br />

<strong>Uganda</strong>n sugar industry maintains a production cycle<br />

which subsidises out-grower sugarcane farmers and a<br />

fixed sugarcane rate.<br />

Provision <strong>of</strong> extension services aimed at ensuring<br />

that a good quality cane is available to <strong>the</strong> factory is a<br />

necessary input on <strong>the</strong> part <strong>of</strong> sugar factories. However,<br />

<strong>the</strong>re are no direct incentives for farmers to expand on<br />

Average sugar production cost as a percentage<br />

<strong>of</strong> <strong>Uganda</strong>’s production cost<br />

<strong>the</strong>ir areas or for o<strong>the</strong>r farmers, engaged in production<br />

<strong>of</strong> o<strong>the</strong>r crops, to switch from <strong>the</strong>se crops if <strong>the</strong>y can<br />

earn better prices producing sugar cane.<br />

However, <strong>the</strong> SCOUL has stated that <strong>the</strong> production<br />

costs are quite high (Box 3.3). Similarly, when <strong>the</strong> price<br />

rose in 2006 (New Vision, 4 th October, 2005), <strong>the</strong> General<br />

Manager Kakira Sugar Works attributed <strong>the</strong> higher price<br />

to a power shortage, which lead to increased investment<br />

in <strong>the</strong> factories to keep <strong>the</strong>m running.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Box 2: SCOUL sets terms to abandon Mabira CFR<br />

The Sugar Corporation <strong>of</strong> <strong>Uganda</strong> Limited will consider dropping its bid for a chunk <strong>of</strong> Mabira Forest only if<br />

<strong>the</strong> alternative land on <strong>of</strong>fer is fertile, within 20-30 Kilometres <strong>of</strong> its factory and has no squatters. Speaking<br />

on Monday to <strong>of</strong>ficials from <strong>the</strong> National Association <strong>of</strong> Pr<strong>of</strong>essional Environmentalists (Nape), SCOUL Chief<br />

Executive S.C Khanna said <strong>the</strong> company would take up <strong>the</strong> two land <strong>of</strong>fers- one by <strong>the</strong> Mengo establishment<br />

and <strong>the</strong> o<strong>the</strong>r by <strong>the</strong> Anglican Church in Mukono-only if such land met <strong>the</strong> company's expectations.<br />

"Tell us where that land is. If it is fertile land and free from squatters <strong>the</strong>n we can see what to do. But it is not a<br />

matter <strong>of</strong> any land," Mr Khanna said at SCOUL's head <strong>of</strong>fices at Lugazi. Mr Khanna spoke out for <strong>the</strong> first time<br />

in weeks while meeting Nape <strong>of</strong>ficials headed by Mr. Frank Muramuzi. Mr Khanna said that if <strong>the</strong> land Mengo<br />

was <strong>of</strong>fering is beyond <strong>the</strong> radius <strong>of</strong> 30 kilometres, <strong>the</strong>y would not buy or take it. "If <strong>the</strong> cost <strong>of</strong> transporting <strong>the</strong><br />

sugarcane exceeds <strong>the</strong> cost <strong>of</strong> producing <strong>the</strong> sugar, <strong>the</strong>n our company cannot survive.<br />

The Monitor Newspaper (2007)<br />

The main value chain for sugar worldwide consists <strong>of</strong><br />

cane production, milling, refining, and o<strong>the</strong>r valueaddition<br />

activities such as food processing, food retail<br />

until <strong>the</strong> sugar reaches <strong>the</strong> end user (Figure 3). In<br />

<strong>Uganda</strong> <strong>the</strong> chain is largely restricted to <strong>the</strong> first three<br />

chain processes. The sugar used in <strong>the</strong> beverage<br />

industry and o<strong>the</strong>r food industries, including hotels is<br />

largely imported (UBOS, 2006).<br />

If increased competition arises in <strong>the</strong> industry <strong>the</strong>re is<br />

Figure 4: value Figure chain 4: value for sugar chain for cane sugar to sugar cane to sugar<br />

likely to also be increased specialisation where <strong>the</strong> sugar<br />

companies manage <strong>the</strong>ir nucleus estate and <strong>the</strong>n buy<br />

<strong>the</strong> additional sugarcane <strong>the</strong>y need from commercial<br />

private estates and long-term contracted smallholder<br />

out-growers. The sugar factories can <strong>the</strong>n buy <strong>the</strong> cane<br />

on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> cane quality, <strong>the</strong> farmers would incur<br />

<strong>the</strong> transport costs, and in exceptional cases <strong>the</strong> actual<br />

cost <strong>of</strong> transport would be deducted from <strong>the</strong> price<br />

negotiated with <strong>the</strong> sugar factories.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettment <strong>of</strong> Mabira CFR<br />

___________________________________________________________________________________<br />

Cane<br />

Cane<br />

milling<br />

Raw<br />

sugar<br />

trade<br />

Refining at<br />

origin<br />

Refining at<br />

destination<br />

Food<br />

processors &<br />

Retailers<br />

Source: (IIED, 2004)<br />

Source: (IIED, 2004)<br />

If increased competition arises in <strong>the</strong> industry <strong>the</strong>re is likely to also be increased<br />

specialisation where <strong>the</strong> sugar companies manage <strong>the</strong>ir nucleus estate and <strong>the</strong>n buy <strong>the</strong><br />

additional sugarcane <strong>the</strong>y need from commercial private estates and long-term contracted<br />

smallholder out-growers. The sugar factories can <strong>the</strong>n buy <strong>the</strong> cane on <strong>the</strong> basis <strong>of</strong> <strong>the</strong><br />

cane quality, <strong>the</strong> farmers would incur <strong>the</strong> transport costs, and in exceptional cases <strong>the</strong><br />

actual cost <strong>of</strong> transport would be deducted from <strong>the</strong> price negotiated with <strong>the</strong> sugar<br />

factories.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 23<br />

Figure 5: Framework <strong>of</strong> specialisation for sugar industries<br />

Food<br />

retail<br />

End<br />

user


additional sugarcane <strong>the</strong>y need from commercial private estates and long-term contracted<br />

smallholder out-growers. The sugar factories can <strong>the</strong>n buy <strong>the</strong> cane on <strong>the</strong> basis <strong>of</strong> <strong>the</strong><br />

cane quality, <strong>the</strong> farmers would incur <strong>the</strong> transport costs, and in exceptional cases <strong>the</strong><br />

actual cost <strong>of</strong> transport would be deducted from <strong>the</strong> price negotiated with <strong>the</strong> sugar<br />

factories.<br />

Figure 5: Framework <strong>of</strong> specialisation for sugar industries<br />

Figure 5: Framework <strong>of</strong> specialisation for sugar industries<br />

Commercial<br />

private sugar<br />

estates<br />

The cost structure for Kinyara Sugar Works indicates that <strong>the</strong> main sources <strong>of</strong> costs for<br />

out-growers come from land developments, transport and labour (Table 11). Labour and<br />

transports costs increase after <strong>the</strong> first year while <strong>the</strong> land development costs decreased<br />

after <strong>the</strong> first year. The cost structure in Kinyara was used as a proxy for <strong>the</strong> likely costs<br />

<strong>of</strong> production for out-growers throughout <strong>Uganda</strong>’s sugar industry.<br />

land developments, transport and labour (Table 11). equivalent to Ushs 784,260/ha. Of which family labour<br />

Labour _____________________________________________________________________<br />

and transports costs increase after <strong>the</strong> first year contributed 35% <strong>of</strong> <strong>the</strong> gross production costs, which 27 is<br />

while <strong>the</strong> land development costs decreased By Yakobo after <strong>the</strong> Moyini, in line PhD with <strong>the</strong> average labour costs for Kinyara Sugar<br />

first year. The cost structure in Kinyara was used as a Works over <strong>the</strong> three year period (Table 12). The net<br />

proxy for <strong>the</strong> likely costs <strong>of</strong> production for out-growers pr<strong>of</strong>its for <strong>the</strong> out-grower are Ushs 954,974/ ha over an<br />

throughout <strong>Uganda</strong>’s sugar industry.<br />

average 18 month period leading to an income <strong>of</strong> Ushs<br />

636,649/ year.<br />

24<br />

Sugar milling<br />

and refining<br />

growers<br />

Association<br />

Long-term<br />

contracted<br />

farmers<br />

Sugar factory and its functional<br />

departments<br />

Sugar Company Nucleus Plantation<br />

The cost structure for Kinyara Sugar Works indicates that<br />

<strong>the</strong> main sources <strong>of</strong> costs for out-growers come from<br />

Sugarcane by<br />

products<br />

alcohol/ethanol;<br />

Co-generated<br />

Non-registered<br />

out growers<br />

Association<br />

However, from Table 12, <strong>the</strong> gross costs <strong>of</strong> production<br />

for <strong>the</strong> SCOUL out-grower are 45% <strong>of</strong> <strong>the</strong> gross revenue<br />

Table 11: Cost structure for a Kinyara Out-grower family<br />

Land 2 ha<br />

Distance 12 Kms<br />

Costs <strong>of</strong> production distribution by percentage<br />

Plant-Harvest Ratoon 1 Ratoon 2<br />

Land developments (%) 57 26 30<br />

Transport (%) 18 31 28<br />

Labour (%) 23 42 42<br />

Source: <strong>Uganda</strong> Land Coalition (2006)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Table 12: Average out-grower’s sugarcane production returns for SCOUL<br />

Out-growers without outstanding loans a case <strong>of</strong> Busoga Sugar Cane Out-growers Association<br />

Average family members working in <strong>the</strong> plot 5<br />

Average casual workers working in <strong>the</strong> plot 12<br />

Average women workers working in <strong>the</strong> plot 25%<br />

Average daily working hours 10<br />

Average plot extension 5 acres ( 2 ha)<br />

Average gross revenue per harvest (5 acre) Ushs 3,449,600 (about US$ 1,770)*<br />

Average gross revenue per ha Ushs 1,724,800 (US$ 885)<br />

Average gross cost <strong>of</strong> production (5 acres) about 45% <strong>of</strong> <strong>the</strong> gross revenue<br />

Average gross cost <strong>of</strong> production per ha Ushs 784,260 (US$ 398)<br />

Average labour cost out <strong>the</strong> family about 35% <strong>of</strong> cost <strong>of</strong> production<br />

Average labour costs out <strong>of</strong> family Ushs 274,491 (US$ 139)<br />

Average net pr<strong>of</strong>it per harvest (5 acres) Ushs 1,909,948 (about US$ 980)<br />

Average pr<strong>of</strong>its per ha Ushs 954,974 (US$ 490)<br />

Major problems low prices, markets and credit<br />

Major problems with <strong>the</strong> company<br />

Source: <strong>Uganda</strong> land Coalition (2005)<br />

*Exchange rate used <strong>the</strong>n was 1948 indicative figures<br />

determination <strong>of</strong> prices, delays in<br />

payments, high cost <strong>of</strong> transport<br />

4.4 OPTIONS FOR IMPROVING THE COMPETITIVENESS OF THE SUGAR CORPORATION OF<br />

UGANDA LIMITED (SCOUL)<br />

Option 1: Productivity enhancement<br />

SCOUL has argued that to be competitive it needs an<br />

additional 7,186 hectares <strong>of</strong> land, from within <strong>the</strong> Mabira<br />

Central Forest Reserve. This section <strong>of</strong> <strong>the</strong> report aims<br />

at analyzing <strong>the</strong> options available to SCOUL to achieve<br />

<strong>the</strong> desired level <strong>of</strong> competitiveness. One option is<br />

productivity enhancement. This option examines <strong>the</strong><br />

possibility for SCOUL to attain <strong>the</strong> highest average<br />

yield level recorded in <strong>the</strong> country at Kakira. Even with<br />

productivity enhancement, SCOUL would still need an<br />

additional 2,208 ha <strong>of</strong> land to achieve <strong>the</strong> same output as<br />

Kakira Sugar Works (Table 11). The African Development<br />

Bank (AFDB, 2002) noted that an even higher yield <strong>of</strong><br />

120 mt/hectares is possible in <strong>Uganda</strong>. Although this<br />

has not been practically achieved on any farm in <strong>the</strong><br />

country, it demonstrates <strong>the</strong> possibility that productivity<br />

enhancement should significantly reduce <strong>the</strong> need for<br />

estate expansion by SCOUL.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 25


Table 11: Estimate sugar estate land savings, on nucleus estate, from increasing productivity <strong>of</strong> <strong>the</strong><br />

cane in <strong>Uganda</strong><br />

26<br />

Cane yield<br />

(mts/ha)<br />

Average<br />

area <strong>of</strong><br />

nucleus<br />

estate<br />

Estimated<br />

average<br />

production<br />

potential <strong>of</strong><br />

nucleus estate<br />

(mts)<br />

percentage <strong>of</strong><br />

best performer<br />

potential<br />

production<br />

on 7,186<br />

ha (mts)<br />

Kakira 108.9 11,000 1,197,900 100.00 782,555.4 0.00<br />

Additional<br />

land area<br />

needed<br />

to reach<br />

highest<br />

(ha)<br />

Kinyara 89.9 6,400 575,360 82.55 646,021.4 1518.73<br />

SCOUL 83.3 12,000 999,600 76.49 598,593.8 2208.42<br />

Option 2: Improvement in sugarcane<br />

conversion<br />

With respect to <strong>the</strong> efficiency <strong>of</strong> converting cane to sugar,<br />

SCOUL would appear to have <strong>the</strong> lowest efficiency at 8.4<br />

compared to 8.9 for Kakira and 10 for Kinyara. If SCOUL<br />

were to attain <strong>the</strong> conversion efficiency <strong>of</strong> Kinyara at its<br />

current level <strong>of</strong> productivity it would require 16 percent<br />

less <strong>of</strong> its current 15,000 ha estate to produce <strong>the</strong> same<br />

amount <strong>of</strong> sugar, if sugar is <strong>the</strong> principal product. With<br />

<strong>the</strong> improved level <strong>of</strong> efficiency in sugar conversion<br />

with sugar as <strong>the</strong> principal product, SCOUL would be<br />

requesting for 4,786 ha, which is 2,400 ha less than <strong>the</strong><br />

current request <strong>of</strong> 7,186. .<br />

Option 3: Improvement in productivity and<br />

conversion ratio<br />

A combination <strong>of</strong> <strong>the</strong> two options above, increasing<br />

productivity and <strong>the</strong> sugar conversion efficiency on<br />

<strong>the</strong>ir own could reduce SCOUL’s land requirements by<br />

4,608 ha. If <strong>the</strong> current expansion needs <strong>of</strong> SCOUL are<br />

7,186 hectares, <strong>the</strong>n this would reduce to 2,578 hectares.<br />

Table 12: Estimate savings on sugar estate land from increasing <strong>the</strong> cane to sugar conversion efficiency<br />

at SCOUL and Kakira factories<br />

Estimated sugarcane and sugar based on current estate<br />

Details used for estimating sugarcane and sugar<br />

production<br />

SCOUL Kakira Kinyara<br />

Area (hectares) 15,000 22,000 11,000<br />

Sugarcane output (tonnes) 600,000 1,000,000 649,580<br />

Yield sugarcane (tonnes/ha) 83.3 108.9 89.9<br />

Conversion cane to sugar 8.4 8.9 10<br />

Sugar output (tonnes) 48,000 84,000 64,958<br />

Savings <strong>of</strong> land from increasing sugar conversion to<br />

higest national level<br />

2,400 2420 0<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Option 4: Expanding sugarcane production<br />

to alternative lands o<strong>the</strong>r than Mabira CFR<br />

a) What if SCOUL could secure land close to it<br />

sugar estate at <strong>the</strong> current level market rates?<br />

When SCOUL applied to be given part <strong>of</strong> Mabira, <strong>the</strong><br />

government <strong>of</strong> <strong>the</strong> Kingdom <strong>of</strong> Buganda and <strong>the</strong><br />

Church <strong>of</strong> <strong>Uganda</strong> in Mukono District <strong>proposed</strong> to<br />

provide alternative land (New Vision, 2007; Monitor,<br />

2007) 4 . Additional discussions covered in <strong>the</strong> press<br />

between landlords and SCOUL indicated that some<br />

landlords did not renew <strong>the</strong>ir lease agreements because<br />

<strong>the</strong>y felt <strong>the</strong> money <strong>the</strong>y were given by SCOUL was too<br />

little (Box 4). On <strong>the</strong> o<strong>the</strong>r hand, SCOUL justifiably felt<br />

that <strong>the</strong> amounts requested for by some landlords were<br />

too high and unfeasible especially when <strong>the</strong> current<br />

4 New Vision (2007) and Monitor (2007) Kabaka <strong>of</strong>fers land to<br />

SCOUL and Church <strong>of</strong>fers land to SCOUL<br />

purchase prices are in <strong>the</strong> range <strong>of</strong> Ushs 500,000 to<br />

1,000,000 per acre 5 .<br />

SCOUL has several pieces <strong>of</strong> leased land, which it<br />

considers feasible. For example, in Kitoola village (and<br />

o<strong>the</strong>r villages) near Mabira forest, in one lease, SCOUL<br />

has acquired 934 acres equivalent to 388 ha and <strong>the</strong><br />

landlord is paid Ushs 4,500/acre (or Ushs 10980/ha) per<br />

annum. But <strong>the</strong> amounts paid on leases per year differ<br />

among farmers. Indeed, if SCOUL chose to accept <strong>the</strong><br />

<strong>of</strong>fers from <strong>the</strong> Government <strong>of</strong> <strong>the</strong> Kingdom <strong>of</strong> Buganda<br />

and from <strong>the</strong> Church <strong>of</strong> <strong>Uganda</strong> it is likely that <strong>the</strong> price<br />

<strong>of</strong>fered would be similar to that <strong>of</strong> <strong>the</strong> landlords in<br />

Kitoola. Therefore <strong>the</strong>se values can be used as a proxy<br />

indication <strong>of</strong> how SCOUL values land in <strong>the</strong> area.<br />

5 The estimates were undertaken before SCOUL request for<br />

Mabira CFR, June/July 2007. The land rates have increased by between<br />

50 -100% by March 2008 (Land Brokers interviewed, Mukono District).<br />

Box 3: SCOUL Sugar Corporation Press release summarised (dated April 07)<br />

The lease for any parcel <strong>of</strong> land between SCOUL and Kulubya expired way back in 1996. On expiry <strong>of</strong> <strong>the</strong> lease<br />

<strong>the</strong> beneficiary/ landlord wanted an outright sale <strong>of</strong> <strong>the</strong> land ra<strong>the</strong>r than a lease, as he demanded Ushs 10<br />

million as premium per acre and 50,000/= as premium per acre per annum, which were exorbitant.<br />

New vision newspaper (2007)<br />

Box 4: Kabaka Land Offer Not a Donation – Govt.<br />

Officials in Mengo said <strong>the</strong> government had no excuse to cut down Mabira to grow sugarcane after Kabaka<br />

Ronald Mutebi <strong>of</strong>fered his land to save <strong>the</strong> forest. Buganda Katikkiro Emmanuel Ssendaula said unless <strong>the</strong><br />

government has different intentions, <strong>the</strong>re's no genuine reason to defend <strong>the</strong> forest giveaway. Mukono district<br />

leadership yesterday said <strong>the</strong>y were ready to secure 30,000 hectares <strong>of</strong> land on which farmers would grow<br />

sugarcane and sell it to Mehta. LC5 chairman Mukome Lukoya asked <strong>the</strong> government to channel prosperity for<br />

all funds to <strong>the</strong> out-growers.<br />

Monitor Newspaper (2007)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 27


) Opportunity <strong>of</strong> SCOUL leasing land from land owners in areas <strong>of</strong> Mukono District<br />

As indicated in Table 13, landlords with large tracts <strong>of</strong> land lying idle would be in a better position to benefit from <strong>the</strong><br />

land leasing scheme than smallholder landowners. Small landowners and landlords would have very small revenue<br />

such that <strong>the</strong>re would be no incentive for <strong>the</strong>m to join <strong>the</strong> venture.<br />

Table 13: Value for leases <strong>of</strong> land likely to be <strong>of</strong>fered to SCOUL<br />

Number* <strong>of</strong><br />

units<br />

Land area<br />

(ha)<br />

Amount (Ushs/<br />

ha/yr)<br />

Total Amount<br />

(Ushs/yr)<br />

Mutoola IV (in Kitoola) 21 338 10,980 3,711,240<br />

If government <strong>of</strong> Buganda or <strong>the</strong> Church <strong>of</strong><br />

<strong>Uganda</strong> <strong>of</strong>fered 7,100 ha (i.e. actual variant<br />

requested for)<br />

1 7,100 10980 77,958,000<br />

1 landowner with 2 ha 3,550 2 10,980 20,980<br />

1 with 1000 ha 7 1,000 10,980 10,980,000<br />

*indicates <strong>the</strong> number <strong>of</strong> units required to satisfy <strong>the</strong> 7 100 ha land requirement for SCOUL<br />

Box 5: Land resource values<br />

Land resource values were estimated from <strong>the</strong> perspective <strong>of</strong> <strong>the</strong> net benefit streams per annum. Then <strong>the</strong><br />

present values were obtained by capitalising <strong>the</strong> average annual benefit stream using <strong>the</strong> government <strong>of</strong><br />

<strong>Uganda</strong>’s social opportunity cost <strong>of</strong> capital <strong>of</strong> 12 percent. The present value <strong>of</strong> product or service (i) equals<br />

average annual benefits (<strong>economic</strong> rent) capitalised by <strong>the</strong> social opportunity cost <strong>of</strong> capital.<br />

Where:<br />

PVt = present value <strong>of</strong> product i<br />

t = time period from 1 to m years<br />

ARt = average annual benefit from product i<br />

r = social opportunity cost <strong>of</strong> capital or discount rate (12 percent).<br />

Subsequently, <strong>the</strong> total present value <strong>of</strong> <strong>the</strong> land area to be acquired by Mabira is given by <strong>the</strong> equation:<br />

Where:<br />

TPV = total present value<br />

n = number <strong>of</strong> products<br />

t = time period from 1 to m years<br />

28 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


The present value/ha <strong>of</strong> land acquired by SCOUL is likely to be in <strong>the</strong> range <strong>of</strong> Ushs 91, 500/ha (Table 14).<br />

Table 14: Land resource values in Kitoola<br />

Details <strong>of</strong> land <strong>valuation</strong> characteristics Value for Kitoola land<br />

Average value (Ushs/ha) 10,980<br />

Social opportunity cost <strong>of</strong> capital (%) 12<br />

Present value <strong>of</strong> land resource leased by SCOUL (Ushs/ha) 91,500<br />

Average value (Ushs) for 7,186 ha 657,519,000<br />

4.5. CONCLUSIONS<br />

From <strong>the</strong> status <strong>of</strong> land ownership by <strong>the</strong> three<br />

leading sugar production firms; SCOUL has <strong>the</strong> largest<br />

proportional land ownership i.e. nucleus estate nearly<br />

double <strong>the</strong> size <strong>of</strong> that owned by Kinyara sugar works<br />

and 1,000 ha more than that <strong>of</strong> Kakira Sugar works. The<br />

sugar estates depend on <strong>the</strong> community as outgrowers<br />

to a tune <strong>of</strong> one-quarter for SCOUL, compared to<br />

40 percent and 45 percent for Kakira and Kinyara,<br />

respectively. Therefore to ensure stability <strong>of</strong> production,<br />

Kinyara and Kakira are more indebted to <strong>the</strong> stability <strong>of</strong><br />

land tenure systems and community land stewardship<br />

in <strong>the</strong> areas <strong>of</strong> operation than SCOUL.<br />

Based on estimates <strong>of</strong> <strong>the</strong> average revenue per hectare,<br />

for Busoga Sugar Cane Out-growers Association, <strong>of</strong> US$<br />

490 per ha, <strong>the</strong> value <strong>of</strong> sugarcane produced by Kakira<br />

was about US$ 4 million higher than that <strong>of</strong> SCOUL in<br />

2006.<br />

Some <strong>of</strong> <strong>the</strong> o<strong>the</strong>r options available to SCOUL o<strong>the</strong>r<br />

than acquiring part <strong>of</strong> Mabira CFR include: productivity<br />

enhancement, improving <strong>the</strong> sugarcane conversion<br />

ratio, reducing its production costs and <strong>the</strong>re by<br />

increasing its competitiveness and ability to buy, or get<br />

leases for, land at market rates and taking up <strong>the</strong> land<br />

<strong>of</strong>fers made by stakeholders opposed to <strong>the</strong> conversion<br />

<strong>of</strong> Mabira CFR. If SCOUL were to enhance its productivity<br />

to <strong>the</strong> levels <strong>of</strong> Kakira sugar works, it would require 2,208<br />

ha less <strong>of</strong> Mabira CFR than <strong>the</strong> 7,186 ha it is requesting<br />

<strong>of</strong> land. Yet <strong>the</strong> level <strong>of</strong> productivity at Kakira 108.9 mt/<br />

hectare is still below <strong>the</strong> highest attainable productivity<br />

level <strong>of</strong> 120 mt/ha noted by <strong>the</strong> African Development<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 29<br />

Bank.<br />

Similarly, if SCOUL increased its sugar conversion efficiency<br />

to <strong>the</strong> level achieved at Kinyara, <strong>the</strong> company should<br />

be requesting for 2,400 ha less than <strong>the</strong> current 7,186<br />

hectares. A combination <strong>of</strong> <strong>the</strong> two options (increasing<br />

productivity and <strong>the</strong> sugar conversion efficiency)<br />

could reduce SCOUL’s additional land requirements by<br />

4,608 ha to 2,578 ha Regionally, <strong>Uganda</strong>’s sugarcane<br />

yield is comparable with o<strong>the</strong>r countries in <strong>the</strong> region.<br />

Similarly <strong>Uganda</strong>’s sugar conversion ratios (from cane<br />

to sugar) though slightly lower, are within <strong>the</strong> same<br />

range as those <strong>of</strong> neighbouring countries. <strong>Uganda</strong>’s<br />

sugar production costs are however, <strong>the</strong> highest in<br />

<strong>the</strong> region. The implications <strong>of</strong> <strong>the</strong> above conditions<br />

are that <strong>Uganda</strong>’s sugar industry has space to improve<br />

competitiveness through increased productivity and<br />

conversion efficiency, without necessarily increasing <strong>the</strong><br />

area under sugar cane.<br />

Finally, based on <strong>the</strong> land rates obtained from brokers<br />

in Mukono District, a private land estate equivalent<br />

to 7,186 ha Mabira CFR, without any o<strong>the</strong>r ecosystem<br />

values would fetch a value <strong>of</strong> Ushs 8 to 18 billion (US$<br />

11 million to US$ 21million) on <strong>the</strong> open land market. If


<strong>the</strong>n <strong>the</strong> government goes ahead and gives this land it<br />

would in effect be providing an equivalent subsidy (US$<br />

10.57 – 21.14), on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> land rates in <strong>the</strong> area<br />

30<br />

alone. To create a level playing field in <strong>the</strong> market place<br />

<strong>the</strong> government would have to make similar overtures<br />

to o<strong>the</strong>r agricultural estate based firms in <strong>the</strong> country.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


5.0. THE CONSERVATION OPTION<br />

5.1. CONSERVATION OPTIONS FOR<br />

MANAGING FOREST RESOURCES<br />

The aim <strong>of</strong> sustainable forest management is to coordinate<br />

<strong>the</strong> diverse activities <strong>of</strong> forest users while balancing <strong>the</strong><br />

<strong>economic</strong> and ecological integrity <strong>of</strong> <strong>the</strong> forest. Forests<br />

produce a range <strong>of</strong> natural products, timber, non-<br />

timber forest products, are habitat to biodiversity and<br />

provide <strong>the</strong> opportunity to store carbon. Sustainable<br />

forest management brings out <strong>the</strong> ?compliments? <strong>of</strong><br />

<strong>the</strong> above outputs while also maintaining <strong>the</strong> quality<br />

<strong>of</strong> <strong>the</strong> ecosystem. Previously, <strong>the</strong> perceived urgency <strong>of</strong><br />

combating deforestation in tropical regions emphasized<br />

ecological criteria <strong>of</strong> management. Ecological criteria<br />

based on natural science were used to designate natural<br />

areas for protection. Human activities were restricted<br />

and human comunites relegated to surrounding areas.<br />

These command and control approaches have mostly<br />

failed (Cernea, 1986; Weber, 1996).<br />

New approaches focusing on <strong>economic</strong> criteria<br />

have now emerged. The emergence <strong>of</strong> conservation<br />

<strong>economic</strong>s, in <strong>the</strong> 1970s, defined new approaches to<br />

managing natural environments, in which <strong>economic</strong><br />

criteria were taken into account along with ecological<br />

criteria. In fact, <strong>the</strong> modern model has for <strong>the</strong> most<br />

part shifted from ecological management to <strong>economic</strong><br />

management (Pearce and Pearce, 2001). The reasoning<br />

and assumptions behind <strong>economic</strong> management <strong>of</strong><br />

tropical forests are that <strong>the</strong>y can be managed to ensure<br />

optimal use <strong>of</strong> <strong>the</strong> resource availability to society i.e.<br />

<strong>the</strong> <strong>economic</strong> management is about allocating <strong>the</strong>se<br />

resources where <strong>the</strong>y will be best used and will maximise<br />

social well-being.<br />

5.2. CONSERVATION ECONOMICS<br />

5.2.1. Importance <strong>of</strong> <strong>economic</strong> <strong>valuation</strong><br />

Economic <strong>valuation</strong> is a tool for decision-making<br />

intended to compare <strong>the</strong> advantages and disadvantages<br />

<strong>of</strong> alternative development options or alternatives. The<br />

value <strong>of</strong> forests depends not only on <strong>the</strong> market prices<br />

<strong>of</strong> its direct uses but is also based on o<strong>the</strong>r indirect uses<br />

<strong>of</strong> <strong>the</strong> forest resources that cannot be traded in <strong>the</strong><br />

market (Lette & de Boo 2002). Valuation <strong>of</strong> <strong>the</strong> goods<br />

and services provided by forests is needed because<br />

<strong>the</strong>se areas are under great pressure and are in fact<br />

disappearing. Extensive areas <strong>of</strong> Mabira CFR were<br />

severely encroached not too long ago (Karani et al<br />

1997). The natural forest cover <strong>of</strong> nearby Kifu CFR and<br />

Namyoya CFR have been completely destroyed and<br />

<strong>the</strong> areas have now reverted to plantation forests. The<br />

lack <strong>of</strong> knowledge and awareness <strong>of</strong> <strong>the</strong> total value <strong>of</strong><br />

<strong>the</strong> goods and services provided by forest resources<br />

will obscure <strong>the</strong> ecological and social impact <strong>of</strong> <strong>the</strong><br />

conversion <strong>of</strong> forests into o<strong>the</strong>r uses. Proper <strong>valuation</strong><br />

<strong>of</strong> all goods and services provided by a forest can help<br />

us understand <strong>the</strong> extent to which those who benefit<br />

from <strong>the</strong> forest or its conversion also bear <strong>the</strong> associated<br />

management costs or opportunities foregone (Balmford<br />

et al., 2003; Balmford et al., 2002; Lette & de Boo 2002;<br />

Daily & Walker 2000; Montgomery et al 1999; Ando et<br />

al 1998;;; Pimentel et al 1997; and Costanza et al 1997;).<br />

Forests in general are complex ecosystems and<br />

generate a range <strong>of</strong> goods and services. For purposes<br />

<strong>of</strong> determining <strong>the</strong> magnitudes <strong>of</strong> net benefits lost due<br />

to conversion <strong>of</strong> a forest to o<strong>the</strong>r development options,<br />

<strong>the</strong> total <strong>economic</strong> value (TEV) approach was chosen as<br />

<strong>the</strong> most comprehensive. The TEV (Figure 5) endeavours<br />

to identify and formalise <strong>the</strong> various <strong>economic</strong> benefits<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 31


expected from <strong>the</strong> environment (Lette and de Boo<br />

2002). Despite <strong>the</strong> importance <strong>of</strong> <strong>the</strong> <strong>valuation</strong> <strong>of</strong> forests<br />

and nature, under-<strong>valuation</strong> was and still is <strong>the</strong> order <strong>of</strong><br />

<strong>the</strong> day, as a result <strong>of</strong> market and policy failures (Lette &<br />

de Boo 2002). Market failure has been identified as one<br />

<strong>of</strong> <strong>the</strong> major causes <strong>of</strong> under-<strong>valuation</strong> (Lette & de Boo<br />

2002). For example, when determining <strong>the</strong> <strong>economic</strong><br />

value <strong>of</strong> a forest, decision-makers usually only take into<br />

account <strong>the</strong> easily quantifiable – financial – costs and<br />

benefits related to goods and services traded on <strong>the</strong><br />

market, whereas <strong>the</strong>re are numerous functions <strong>of</strong> forests<br />

for which markets malfunction, are distorted or simply<br />

do not exist (Lette & de Boo 2002). Markets only exist<br />

for some <strong>of</strong> <strong>the</strong> production functions <strong>of</strong> forests, such as<br />

timber, fuelwood, and non-timber products. However,<br />

even if markets exist, market prices for <strong>the</strong>se goods may<br />

not reflect <strong>the</strong>ir real value, since markets can be distorted,<br />

for example by subsidies which represent policy failures<br />

(Lette & de Boo 2002). The authors suggest that <strong>the</strong><br />

market price <strong>of</strong> a particular good may not reflect all <strong>the</strong><br />

costs involved in producing that good because <strong>the</strong>re<br />

may be benefits or costs enjoyed or borne by o<strong>the</strong>rs not<br />

directly involved in <strong>the</strong> production <strong>of</strong> <strong>the</strong> good, what<br />

economists call externalities (Lette & de Boo 2002).<br />

In using <strong>the</strong> total <strong>economic</strong> value approach, <strong>the</strong> value is<br />

usually sub-divided into: (i) direct use values – benefits<br />

that accrue directly to <strong>the</strong> users <strong>of</strong> forests, whe<strong>the</strong>r<br />

extractive (e.g. timber and NTFPs) or non-extractive (e.g.<br />

ecotourism). Direct use values are most <strong>of</strong>ten enjoyed<br />

by people visiting or residing in <strong>the</strong> ecosystem itself; (ii)<br />

indirect use values – benefits that accrue indirectly to<br />

users <strong>of</strong> forests, primarily ecological or environmental<br />

32<br />

services; (iii) option value – <strong>the</strong> amount that individuals<br />

would be willing to pay to conserve a forest for future<br />

use (e.g. biodiversity values) <strong>of</strong> resources <strong>the</strong>y may<br />

not be using at present; (iv) bequest value – <strong>the</strong> value<br />

attached to <strong>the</strong> knowledge that o<strong>the</strong>rs might benefit<br />

from a forest area in <strong>the</strong> future; and (v) existence value<br />

– <strong>the</strong> value placed by non-users on <strong>the</strong> knowledge that<br />

something exists, i.e. its intrinsic value.<br />

5.2.2. The Total Economic Value<br />

Various <strong>valuation</strong> tools have been developed to<br />

estimate <strong>the</strong> monetary value <strong>of</strong> non-marketed goods<br />

and services (Lette & de Boo 2002). Munasinghe’s<br />

classification <strong>of</strong> major value categories has proved to<br />

be a useful analytical tool to link value categories and<br />

<strong>the</strong>ir underlying environmental goods and services<br />

with specific <strong>valuation</strong> tools (Munasinghe 1992; Lette<br />

& de Boo 2002) as shown in Table 15. While <strong>the</strong> direct<br />

use value <strong>of</strong> goods and services traded on <strong>the</strong> market<br />

can be easily translated into monetary terms by taking<br />

<strong>the</strong>ir market prices, <strong>the</strong>re are a lot <strong>of</strong> o<strong>the</strong>r goods and<br />

services <strong>of</strong>ten conceived as having direct use values.<br />

These functions can be better valued by means <strong>of</strong><br />

o<strong>the</strong>r <strong>valuation</strong> tools (e.g. Related Goods Approach,<br />

Hedonic Pricing or Travel Cost Method). The regulation<br />

functions <strong>of</strong> forests from which indirect use value is<br />

perceived can also be valued by various <strong>valuation</strong><br />

tools (e.g. Replacement Cost Technique, Production<br />

Function Approach). To capture option, bequest and<br />

existence values, Contingent Valuation Method (CVM) is<br />

used to estimate <strong>the</strong> monetary value <strong>of</strong> environmental<br />

amenities ( Lette & de Boo, 2002).<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Method). The regulation functions <strong>of</strong> forests from which indirect use value is perceived<br />

can also be valued by various <strong>valuation</strong> tools (e.g. Replacement Cost Technique,<br />

Production Function Approach). To capture option, bequest and existence values,<br />

Contingent Valuation Method (CVM) is used to estimate <strong>the</strong> monetary value <strong>of</strong><br />

environmental amenities ( Lette & de Boo, 2002).<br />

Figure 6: The Figure Total 6: Economic The Total Economic Value <strong>of</strong> Forests Value <strong>of</strong> Forests<br />

Direct<br />

use<br />

Outputs that<br />

can be<br />

consumed<br />

directly<br />

Values <strong>of</strong><br />

functions<br />

related to:<br />

- Food<br />

- Biomass<br />

- Recreation<br />

- Health<br />

Use values<br />

Indirect<br />

use values<br />

Functional<br />

benefits<br />

Values <strong>of</strong><br />

functions<br />

related to:<br />

- Ecological<br />

functions<br />

- Flood control<br />

- Storm<br />

protection<br />

Total <strong>economic</strong> value<br />

Option values Bequest<br />

values<br />

Future direct<br />

and indirect use<br />

values<br />

Values <strong>of</strong><br />

functions<br />

related to:<br />

- Biodiversity<br />

- Conserved<br />

habitats<br />

Value <strong>of</strong><br />

leaving use<br />

and non-use<br />

values for<br />

<strong>of</strong>fspring<br />

Values <strong>of</strong><br />

functions<br />

related to:<br />

- Habitats<br />

- Irreversible<br />

changes<br />

Non-use values<br />

Decreasing “tangibility” <strong>of</strong> value to individuals or specific groups<br />

Existence<br />

Value form<br />

knowledge <strong>of</strong><br />

continued existence,<br />

based on e.g. moral<br />

conviction<br />

Values <strong>of</strong><br />

functions<br />

related to:<br />

- Habitats<br />

- Endangered<br />

species<br />

Source: Lette & de Boo (2002); Munasinghe (1992)<br />

Source: Lette & de Boo (2002); Munasinghe (1992)<br />

“It must be emphasised that none <strong>of</strong> <strong>the</strong>se <strong>valuation</strong> tools provides comprehensive<br />

answers. All <strong>of</strong> <strong>the</strong>m value only part <strong>of</strong> <strong>the</strong> goods and services provided by forests and<br />

“It must be emphasised nature. They all that have none limitations <strong>of</strong> <strong>the</strong>se and <strong>valuation</strong> should be chosen chosen and and used used with care. with care. Using Using several several <strong>valuation</strong> tools<br />

<strong>valuation</strong> tools for a single object case, contributes to a more complete <strong>valuation</strong>”<br />

tools provides comprehensive answers. All <strong>of</strong> <strong>the</strong>m value for a single object case, contributes to a more complete<br />

only part <strong>of</strong> <strong>the</strong> _____________________________________________________________________<br />

goods and services provided by forests <strong>valuation</strong>”<br />

36<br />

By Yakobo Moyini, PhD<br />

and nature. They all have limitations and should be<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 33


Table 15: Example <strong>of</strong> links between value category, functions and <strong>valuation</strong> tools<br />

USE<br />

FUNCTIONS<br />

VALUATION TOOLS<br />

34<br />

USE VALUES NON-USE VALUES<br />

1. Direct use value<br />

Wood products<br />

(timber, fuel)<br />

Non-wood<br />

products (food,<br />

medicine, genetic<br />

material)<br />

Educational,<br />

recreational and<br />

cultural uses<br />

Human habitat<br />

2. Indirect use<br />

value<br />

Watershed<br />

protection<br />

Nutrient cycling<br />

Air pollution<br />

reduction<br />

Micro-climatic<br />

regulation<br />

Carbon storage<br />

3. Option value 4. Bequest value<br />

Possible<br />

future uses<br />

<strong>of</strong> <strong>the</strong> goods<br />

and services<br />

mentioned<br />

in 1&2 (Use<br />

Values) by actual<br />

stakeholders<br />

Possible future uses <strong>of</strong><br />

<strong>the</strong> goods and services<br />

mentioned in 1&2 (use<br />

Values) by <strong>the</strong> <strong>of</strong>fspring<br />

<strong>of</strong> actual stakeholders<br />

5. Existence<br />

value<br />

Biodiversity<br />

Culture, heritage<br />

Benefits to<br />

stakeholders <strong>of</strong><br />

only knowing <strong>of</strong><br />

<strong>the</strong> existence <strong>of</strong><br />

goods or services<br />

without using<br />

<strong>the</strong>m<br />

Tool to be used: Tool to be used: Tool to be used: Tool to be used: Tool to be used:<br />

Market Analysis<br />

Related Goods<br />

Approaches<br />

Travel Cost<br />

Method<br />

Contingent<br />

Valuation Method<br />

Hedonic Pricing<br />

Source: Lette & de Boo (2002)<br />

Restoration Cost<br />

Preventive<br />

Expenditure<br />

Production<br />

Function<br />

Approach<br />

Replacement<br />

Costs<br />

The foregoing tools have been successfully applied in<br />

<strong>the</strong> <strong>valuation</strong> <strong>of</strong> several tropical high forests and o<strong>the</strong>r<br />

ecosystems. Naidoo & Adamowicz (2005) quantified <strong>the</strong><br />

costs and benefits <strong>of</strong> avian biodiversity in Mabira CFR<br />

through a combination <strong>of</strong> <strong>economic</strong> surveys <strong>of</strong> tourists,<br />

spatial land-use analyses, and species-area relationship.<br />

The results showed that revising entrance fees and<br />

redistributing ecotourism revenues would protect 114<br />

<strong>of</strong> <strong>the</strong> 143 forest bird species under current market<br />

conditions. This total would increase if entrance fees<br />

Contingent<br />

Valuation<br />

Method<br />

Contingent Valuation<br />

Method<br />

Contingent<br />

Valuation<br />

Method<br />

were optimised to capture <strong>the</strong> tourists’ willingness to<br />

pay for forest visits and <strong>the</strong> chance <strong>of</strong> seeing increased<br />

numbers <strong>of</strong> bird species.<br />

Beukering & Cesar (2001) calculated <strong>the</strong> total <strong>economic</strong><br />

value <strong>of</strong> <strong>the</strong> Leuser ecosystem in <strong>the</strong> Philippines<br />

under conservation and deforestation scenarios using<br />

extended Cost-Benefit Analysis and found that <strong>the</strong><br />

conservation scenario far outweighed <strong>the</strong> deforestation<br />

scenario. Their study concluded that conservation <strong>of</strong><br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


<strong>the</strong> forest ecosystem would be in <strong>the</strong> best interest <strong>of</strong><br />

<strong>the</strong> local population, local and national governments,<br />

and <strong>the</strong> international community. Hadker et al (1997)<br />

used <strong>the</strong> Contingent Valuation Method to estimate<br />

willingness-to-pay on <strong>the</strong> part <strong>of</strong> residents <strong>of</strong> Bombay<br />

(Mumbai) for <strong>the</strong> maintenance <strong>of</strong> Borivli National<br />

Park, located within <strong>the</strong> City’s limits. The study arrived<br />

at a willingness-to-pay <strong>of</strong> 7.5 rupees per month per<br />

household, which amounted to a total present value <strong>of</strong><br />

1033 million rupees (or US$ 31.6 million). The authors<br />

suggested that this figure could be used to influence<br />

policy decisions, given that <strong>the</strong> Protected Area at <strong>the</strong><br />

time ran on a budget <strong>of</strong> 17 million rupees (US$ 520 000).<br />

Menkhaus & Lober (1995) used <strong>the</strong> Travel Cost Method<br />

(TCM) to determine <strong>the</strong> value that tourists from <strong>the</strong><br />

US placed on Costa Rican rainforests as ecotourism<br />

destinations using <strong>the</strong> Monteverde Cloud Reserve as<br />

a sampling site. Consumer surplus was estimated to<br />

be approximately US$ 1150, representing <strong>the</strong> average<br />

annual per person <strong>valuation</strong> <strong>of</strong> <strong>the</strong> ecotourism value <strong>of</strong><br />

PAs in Costa Rica. The ecotourist value <strong>of</strong> <strong>the</strong> Monteverde<br />

Cloud Forest Reserve was obtained by multiplying<br />

<strong>the</strong> total number <strong>of</strong> visitors by <strong>the</strong> average consumer<br />

surplus. This resulted in a total annual US ecotourism<br />

value <strong>of</strong> US$ 4.5 million for <strong>the</strong> Monteverde Reserve.<br />

Janssen & Padilla (1999) used a combination <strong>of</strong> Cost-<br />

Benefit Analysis and Multi-Criteria Analysis to assess <strong>the</strong><br />

opportunity cost <strong>of</strong> preservation and analyse trade<strong>of</strong>fs<br />

to be made in deciding whe<strong>the</strong>r to preserve or convert<br />

a mangrove forest in <strong>the</strong> Philippines. The result showed<br />

that <strong>the</strong> aquaculture alternatives performed better<br />

than <strong>the</strong> forestry preservation alternative in terms <strong>of</strong><br />

<strong>economic</strong> efficiency.<br />

Kramer et al (1995) used a combination <strong>of</strong> <strong>valuation</strong> tools<br />

(Contingent Valuation combined with Opportunity Cost<br />

Analysis and Recreation Demand Analysis) to investigate<br />

changes in environmental values resulting from <strong>the</strong><br />

creation <strong>of</strong> Mantadia National Park in Madagascar.<br />

Kramer et al (1993) used Contingent Valuation Method<br />

to determine <strong>the</strong> value <strong>of</strong> tropical rainforest protection<br />

as a global environmental good. Using two approaches<br />

<strong>the</strong> authors determined <strong>the</strong> average willingness-to-pay<br />

<strong>of</strong> US citizens at US$ 24 to31 and extending to all US<br />

households, total willingness-to-pay was estimated at<br />

US$ 2180 to 2820 million per year.<br />

Sikoyo (1995), used <strong>the</strong> Contingent Valuation Method<br />

to determine community direct use benefits from<br />

Bwindi Impenetrable Forest National Park in <strong>Uganda</strong>;<br />

while Moyini & Uwimbabazi (2001) used <strong>the</strong> Travel<br />

Cost Method and <strong>the</strong> Contingent Valuation Method<br />

to determine <strong>the</strong> Mountain gorilla tourism value <strong>of</strong><br />

Bwindi Impenetrable Forest National Park. The results<br />

showed a consumer surplus <strong>of</strong> US$ 100. Muramira<br />

(2000) estimated <strong>the</strong> value <strong>of</strong> <strong>the</strong> overall impact <strong>of</strong><br />

Wayleave construction through Mabira at US$ 340,202<br />

and suggested that this money be set aside to address<br />

<strong>the</strong> environmental impacts <strong>of</strong> <strong>the</strong> development. The<br />

author used inventory and market analysis, secondary<br />

information on resource usage and willingness-to-pay<br />

studies in comparable areas and project data.<br />

5.2.3 Analytical framework<br />

The analytical approach adopted in this report consists<br />

<strong>of</strong> <strong>the</strong> following.<br />

1. Resource values were estimated from <strong>the</strong><br />

perspective <strong>of</strong> net benefit streams, annualised,<br />

and <strong>the</strong>n <strong>the</strong>ir present values obtained by<br />

capitalising <strong>the</strong> average annual benefits stream<br />

using <strong>the</strong> Government <strong>of</strong> <strong>Uganda</strong>’s social 6<br />

opportunity cost <strong>of</strong> capital <strong>of</strong> 12 percent. Benefit-<br />

cost analysis is based on discounting <strong>the</strong> benefits<br />

and costs attributable to a project over time<br />

and <strong>the</strong>n comparing <strong>the</strong> present value <strong>of</strong> costs<br />

(PVC) with <strong>the</strong> present value <strong>of</strong> benefits (PVB).<br />

The present value <strong>of</strong> benefits is <strong>the</strong> sum <strong>of</strong> <strong>the</strong><br />

discounted values <strong>of</strong> benefits in each year. Thus:<br />

6 A social time preference rate (STP), reflecting <strong>the</strong> preference<br />

society has for present as opposed to future consumption, or <strong>the</strong> relative<br />

value it puts on <strong>the</strong> consumption <strong>of</strong> future generations. Discount rates<br />

for projects in developing countries usually range from 8% to 12%. The<br />

evaluator is best advised to use 10% or 12%<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 35


PVB =<br />

PVC =<br />

Where:<br />

36<br />

∑ = t n<br />

t = 1<br />

∑ = t n<br />

t = 1<br />

Bt<br />

t<br />

( 1+<br />

i)<br />

Ct<br />

t<br />

( 1+<br />

i)<br />

n = number <strong>of</strong> years being considered; t = each<br />

individual year; and i = <strong>the</strong> discount rate expressed as a<br />

decimal fraction<br />

» The decision-making criteria; After <strong>the</strong><br />

NPV<br />

=<br />

discounting has been completed, <strong>the</strong> present<br />

value <strong>of</strong> <strong>the</strong> benefits (PVB) is compared to <strong>the</strong><br />

present value <strong>of</strong> all <strong>the</strong> costs (PVC). For a project<br />

to be considered pr<strong>of</strong>itable at a given discount<br />

rate, <strong>the</strong> present value <strong>of</strong> benefits should exceed<br />

that <strong>of</strong> costs i.e. PVB > PVC. The net present<br />

value (NPV). This is sometimes called “net<br />

present worth”, and it is obtained by subtracting<br />

<strong>the</strong> present value <strong>of</strong> costs from that <strong>of</strong> benefits<br />

i.e. NPV = PVB - PVC or, ma<strong>the</strong>matically:<br />

∑ = t n<br />

t = 1<br />

Bt<br />

− Ct<br />

t<br />

( 1+<br />

i)<br />

Where: t = individual years; n = number <strong>of</strong> years over<br />

which <strong>the</strong> project is evaluated; B = <strong>the</strong> sum <strong>of</strong> benefits<br />

in a given year; C = <strong>the</strong> sum <strong>of</strong> costs in a given year; and<br />

i = <strong>the</strong> discount rate expressed as a decimal.<br />

For a project to be acceptable, PVB > PVC i.e. <strong>the</strong> net<br />

present value should be positive. The net present value<br />

gives a good idea <strong>of</strong> <strong>the</strong> total pr<strong>of</strong>it, in present value<br />

terms, <strong>of</strong> <strong>the</strong> project. The NPV shown above is used<br />

to give a present value for a single ecosystem service.<br />

However, for all <strong>the</strong> different ecosystem services that<br />

are obtained from Mabira CFR, <strong>the</strong> Total Present Value is<br />

caculated. The Total Present Value is <strong>the</strong> sum <strong>of</strong> <strong>the</strong> net<br />

present values <strong>of</strong> all <strong>the</strong> ecosystem services i.e.<br />

TPV =<br />

Where:<br />

m<br />

∑ NPVs<br />

s=<br />

1<br />

TPV = Total Present Value; NPV= Net Present Value; and<br />

s (1-m) = all ecosystem services from 1 to m<br />

Note: Simple calculus shows that TPV is equivalent to <strong>the</strong><br />

quotient <strong>of</strong> <strong>the</strong> NPV divided by <strong>the</strong> discount rate (i)<br />

TPV = NPV<br />

i<br />

The approach is a good measure <strong>of</strong> <strong>the</strong> opportunity cost<br />

(or forest benefits foregone) as a result <strong>of</strong> alternative<br />

development initiatives in Mabira CFR.<br />

2. For Mabira CFR, <strong>the</strong> volume <strong>of</strong> <strong>the</strong> standing<br />

timber is <strong>the</strong> capital stock from which benefits<br />

are derived, and not <strong>the</strong> stream <strong>of</strong> benefits<br />

<strong>the</strong>mselves.<br />

3. In calculating <strong>the</strong> streams <strong>of</strong> benefits arising<br />

from timber, poles and firewood, stumpage<br />

values and not market prices were used.<br />

4. The basis for calculating <strong>the</strong> value <strong>of</strong> forests for<br />

ecotourism is <strong>the</strong> consumer surplus, representing<br />

<strong>the</strong> price tourists are willing-to-pay, up and<br />

above what <strong>the</strong>y actually pay for <strong>the</strong> ecotourism<br />

experience (Figure 6). Ecotourism is an important<br />

activity in Mabira CFR.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


4. The basis for calculating <strong>the</strong> value <strong>of</strong> forests for ecotourism is <strong>the</strong> consumer<br />

surplus, representing <strong>the</strong> price tourists are willing-to-pay, up and above what <strong>the</strong>y<br />

actually pay for <strong>the</strong> ecotourism experience (Figure 6). Ecotourism is an important<br />

activity in Mabira CFR.<br />

Figure 7: Graphic Illustration <strong>of</strong> Willingness to Pay<br />

Figure 7: Graphic Illustration <strong>of</strong> Willingness to Pay<br />

Willingness-to-pay<br />

(WTP)<br />

consumer surplus<br />

actual price paid<br />

No. <strong>of</strong> days<br />

5. Non-timber forest products are harvested in Mabira CFR. This study used <strong>the</strong><br />

extensive research <strong>of</strong> Bush et al (2004) on community livelihoods in<br />

5. Non-timber forest products are harvested in<br />

_____________________________________________________________________<br />

Mabira CFR. This study used <strong>the</strong> extensive<br />

enclaves extend into Mabira CFR and 40will<br />

be<br />

By Yakobo Moyini, PhD<br />

research <strong>of</strong> Bush et al (2004) on community<br />

impacted by <strong>the</strong> development. This land is owned<br />

livelihoods in representative forests in <strong>Uganda</strong>.<br />

by individuals who should be compensated.<br />

The results <strong>of</strong> <strong>the</strong>ir research were used in this However, <strong>the</strong> <strong>valuation</strong> <strong>of</strong> <strong>the</strong> lands is outside<br />

study, augmented by <strong>the</strong> Consultants’ household<br />

<strong>the</strong> scope <strong>of</strong> this study since <strong>the</strong> analysis focuses<br />

survey and Focus Group Discussions (FGDs),<br />

exclusively on <strong>the</strong> CFR.<br />

among o<strong>the</strong>rs.<br />

6. Carbon sequestration values were derived<br />

from Bush et al (2004) where average values <strong>of</strong><br />

tonnes <strong>of</strong> carbon per unit area per year have<br />

been estimated multiplied by <strong>the</strong> appropriate<br />

domestic market price prevailing <strong>the</strong>n for carbon.<br />

There are two carbon values – carbon stored in<br />

growing stock; and carbon sequestered annually<br />

as a result <strong>of</strong> growth.<br />

7. Biodiversity values were estimated using<br />

secondary data from research in comparable<br />

areas.<br />

8. Small parts <strong>of</strong> Buwoola and Namusa community<br />

5.3. VALUATION<br />

A. VALUE OF TIMBER GROWING STOCK<br />

Table 16 Shows estimates <strong>of</strong> volumes and values <strong>of</strong><br />

standing timber on a compartment by compartment<br />

basis for <strong>the</strong> area <strong>proposed</strong> to be gazetted (also see<br />

Annex 2). Total timber volume (40cm dbh +) was<br />

estimated at 547 541m 3 . Based on existing inventory<br />

data and information from <strong>the</strong> current management<br />

plan, <strong>the</strong> total volume is made up <strong>of</strong>: 20.8 percent <strong>of</strong><br />

Class I timber utilisation class; 31.3 percent <strong>of</strong> Class II;<br />

and 47.9 percent <strong>of</strong> Class III.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 37


Table 16: Value <strong>of</strong> Growing Stock<br />

Class Volume (m 3 ) Value (Shs millions)<br />

I 113,889 19,677<br />

II 171,380 17,568<br />

III 262,272 22,657<br />

Totals 547,541 59,902<br />

Source: NFA (2007)<br />

From information based on a pilot study at <strong>the</strong> NFA<br />

and based on estimates used by Moyini (2006), average<br />

stumpage values per cubic metre (at 100 percent<br />

management costs) for <strong>the</strong> different utilisation classes<br />

were: Ushs 172,770 for Class I; Ushs 102,511 for Class<br />

II; and Ushs 86,386 for Class III 7 (Table 17). From <strong>the</strong><br />

foregoing, <strong>the</strong> value <strong>of</strong> <strong>the</strong> standing timber in <strong>the</strong><br />

Compartments <strong>proposed</strong> for degazettement would be<br />

as follows above:<br />

Therefore, <strong>the</strong> value <strong>of</strong> <strong>the</strong> standing timber is Ushs<br />

59,902,000,000 or US $ 35,236,471.<br />

7 Historically, purchasers <strong>of</strong> standing timber have paid in<br />

excess <strong>of</strong> <strong>the</strong> NFA’s reserve prices during timber auction exercises.<br />

Hence, <strong>the</strong> reserve prices should be considered relatively conservative.<br />

Table 17: Value <strong>of</strong> Annual Exploitable Timber Yield<br />

38<br />

Value <strong>of</strong> annual timber benefit stream<br />

According to Karani et al (1997) a forest inventory<br />

carried out in 1993 revealed that Mabira had an annual<br />

exploitable timber yield based on trees <strong>of</strong> diameter<br />

50cm and above and a 60-year felling cycle <strong>of</strong> 1m 3 /ha/<br />

year. This is based on selective logging or what is known<br />

as reduced impact logging (RIL). Allowing for in-growth<br />

and considering a felling regime based on 40cm instead<br />

<strong>of</strong> 50cm dbh as a minimum, <strong>the</strong> harvestable volume is<br />

increased by 24 percent. Hence <strong>the</strong> estimates <strong>of</strong> Karani<br />

et al (1997) were adjusted upwards by 24 percent, to<br />

give annual exploitable volume <strong>of</strong> 1,868m 3 /year Class<br />

I, 2,803 m 3 /year Class II and 4,240 m 3 /year for Class III<br />

(Table 18). Using <strong>the</strong> same average stumpage values as<br />

reported earlier, <strong>the</strong> annual stream <strong>of</strong> timber benefits<br />

which would be foregone are as follows:<br />

Class Volume (m 3 /year Value (Shs / year)<br />

I 1,868 332,734,360<br />

II 2,803 287,338,333<br />

III 4,240 366,276,640<br />

Totals 8,911 986,349,333<br />

Source: Karani et al. (1997)<br />

From <strong>the</strong> foregoing, <strong>the</strong> value <strong>of</strong> <strong>the</strong> annual exploitable<br />

timber yield which would be foregone as a result <strong>of</strong><br />

degazettement becomes Ushs 986,349,333/year. The<br />

equivalent present value at 12 percent social cost <strong>of</strong><br />

capital would be Ushs 8,219,577,775 (or US$ 4,835,046).<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Table 18: Value <strong>of</strong> standing Timber crop, Area Proposed for degazettement in Mabira CFR<br />

CPT Area<br />

Mean Vol<br />

per ha DBH<br />

40-50<br />

Mean Vol per<br />

ha DBH 50 +<br />

Mean Vol/<br />

ha dbh<br />

40cm+<br />

Total Vol<br />

(m3 ) dbh 40-<br />

50 cm<br />

Total Vol (m3 )<br />

dbh 50 cm+<br />

Total<br />

Volume<br />

(m3) 40cm+<br />

dbh<br />

180 447 15 61 76 6,526 27,330 33,855.78<br />

181 341 15 61 76 4,979 20,849 25,827.34<br />

182 362 15 61 76 5,285 22,133 27,417.88<br />

183 405 15 61 76 5,913 24,762 30,674.70<br />

184 580 4 25 28 2,094 14,210 16,303.80<br />

185 694 25 46 71 17,336 31,667 49,003.34<br />

171 613 15 61 76 8,950 37,479 46,428.62<br />

172 320 15 61 76 4,672 19,565 24,236.80<br />

173 489 15 61 76 7,139 29,897 37,036.86<br />

174 516 15 61 76 7,534 31,548 39,081.84<br />

175 358 15 61 76 5,227 21,888 27,114.92<br />

178 653 15 113 129 9,932 73,985 83,917.03<br />

179 403 15 61 76 5,884 24,639 30,523.22<br />

234 563 15 61 76 8,220 34,422 42,641.62<br />

235 442 15 61 76 6,453 27,024 33,477.08<br />

106,143 441,397 547,540.83<br />

Source: NFA Databank<br />

POLES AND FIREWOOD<br />

The Management Plan for Mabira CFR 1997-2007 did<br />

not encourage <strong>the</strong> harvesting <strong>of</strong> poles from <strong>the</strong> forest.<br />

The Plan had this to say in Prescription No. 30.<br />

“Though a limited quantity <strong>of</strong> poles is<br />

permitted for domestic use, <strong>the</strong>re are<br />

attempts to collect and sell poles due<br />

to socio<strong>economic</strong> pressures. There is<br />

absolute need to watch out for any<br />

large quantities collected by people<br />

neighbouring <strong>the</strong> reserves, as a small<br />

business. The FD (now <strong>the</strong> NFA) staff<br />

will investigate any suspected cases and<br />

take appropriate steps to stamp out <strong>the</strong><br />

practice”.<br />

Karani, et al (1997).<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

Similarly, for fuelwood or woodfuel (representing<br />

firewood and charcoal), <strong>the</strong> Management Plan 1997-<br />

2007 Prescription 31 said thus.<br />

“ Fuelwood cutting (sic) and charcoal<br />

production are destructive to a standing<br />

crop, as licence holders are indiscriminate<br />

i.e. cutting young trees <strong>of</strong> marketable<br />

species. Fuelwood cutting (sic) and<br />

charcoal production shall not be allowed<br />

in <strong>the</strong> MPA (Management Plan Area)”.<br />

Karani et al (1997).<br />

From <strong>the</strong> foregoing, harvesting <strong>of</strong> both poles and<br />

firewood in commercial quantities is prohibited.<br />

However, harvesting <strong>the</strong> products in limited quantities<br />

for own use is permissible. Hence <strong>the</strong> approach to<br />

estimating <strong>the</strong> combined stream <strong>of</strong> values from<br />

firewood and poles was <strong>the</strong> one Bush et al (2004) used<br />

39


ased on household livelihoods.<br />

Bush et al. (2004) estimated <strong>the</strong> total livelihood value<br />

<strong>of</strong> timber (largely poles and firewood) and non-timber<br />

products from a typical protected tropical high forest<br />

in <strong>Uganda</strong> at UShs 18,074 per ha per year, <strong>of</strong> which 47<br />

percent was timber and 53 percent non-timber forest<br />

products. Hence <strong>the</strong> combined annual stream <strong>of</strong> poles<br />

and firewood values was estimated at UShs 8,495/ha.<br />

Since <strong>the</strong> impact area in Mabira CFR is estimated at<br />

7186ha, this gives a benefit stream <strong>of</strong> UShs 61,045,070/<br />

year. Capitalising this annual benefit stream by 12<br />

percent gives a net present value for poles and firewood<br />

<strong>of</strong> UShs 508,708,917. Bush et al (2004) cautioned as<br />

follows.<br />

40<br />

“It is important to note at this point that<br />

<strong>the</strong> values calculated do not imply that<br />

<strong>the</strong> level <strong>of</strong> <strong>economic</strong> value derived is<br />

sustainable. (They estimated <strong>economic</strong><br />

value based on <strong>the</strong> current levels <strong>of</strong> use).<br />

However, it is reasonable to assume that<br />

protected THF [Tropical High Forest]<br />

values are closer to sustainable harvest<br />

rates considering <strong>the</strong> management<br />

efforts <strong>of</strong> <strong>the</strong> NFA”.<br />

In summary, <strong>the</strong> values <strong>of</strong> poles and firewood were<br />

arrived at as follows.<br />

Poles + Firewood livelihood value<br />

UShs 8,495/ha/year<br />

Size <strong>of</strong> Impact Area<br />

7186 ha<br />

Total annual benefit stream<br />

UShs 61,045,070/year<br />

Present Value <strong>of</strong> Poles + Firewood benefits<br />

UShs 508,708,917 (or (US$ 299,241)<br />

B. NON-TIMBER FOREST PRODUCTS<br />

Prescription 32 <strong>of</strong> <strong>the</strong> Mabira Forest Management Plan<br />

1997-2007 had this to say about handicrafts materials.<br />

“Demand for handicraft products,<br />

including easy chairs, stools, mats<br />

and baskets is rising. Although limited<br />

quantities, for domestic use, are permitted<br />

free <strong>of</strong> charge under <strong>the</strong> Forests Act, a<br />

system shall be devised to monitor, record<br />

and control harvesting. Any collection/<br />

harvesting for commercial purposes shall<br />

be fully charged at appropriate rates <strong>of</strong><br />

such forest product”. Karani et al (1997).<br />

For o<strong>the</strong>r non-timber forest products, Prescription 33 <strong>of</strong><br />

<strong>the</strong> Mabira Forest Management Plan 1997-2007 stated<br />

as follows:<br />

“Domestic collection <strong>of</strong> medicinal herbs,<br />

edible plants and o<strong>the</strong>r food materials<br />

does not pose any immediate danger<br />

to <strong>the</strong> resource or <strong>the</strong> standing forest<br />

crop. Such collection may promote<br />

protection and conservation <strong>of</strong> <strong>the</strong><br />

respective forest resource in <strong>the</strong> MPA by<br />

neighbouring communities. However,<br />

levels <strong>of</strong> harvesting shall be controlled<br />

and in case <strong>of</strong> commercial interests,<br />

corresponding fees shall be charged. In<br />

case <strong>of</strong> any destruction to standing forest<br />

crop, e.g. debarking and uprooting, <strong>the</strong><br />

FD (now NFA) <strong>of</strong>ficers shall take steps to<br />

immediately stop such actions” Karani et<br />

al. (1997).<br />

To estimate <strong>the</strong> benefits stream from non-timber forest<br />

products, <strong>the</strong> Bush et al. (2004) study was used. The<br />

results <strong>of</strong> <strong>the</strong> research showed that typical tropical<br />

high forest protected areas (PAs) on average generate<br />

UShs 9,579/ha/year, an amount much lower than<br />

Afromontane forest PAs, private THFs and savanna<br />

woodland/bushland. None<strong>the</strong>less, <strong>the</strong> value for tropical<br />

high forest PA is thought to be <strong>the</strong> closest to <strong>the</strong> Mabira<br />

situation. Using <strong>the</strong> approach similar to <strong>the</strong> one for poles<br />

and firewood, <strong>the</strong> present value <strong>of</strong> <strong>the</strong> benefits stream<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


from non-timber forest products was estimated at UShs<br />

573,622,450 as shown below.<br />

NTFPs livelihood value<br />

UShs 9,579/ha/year<br />

Size <strong>of</strong> impact area<br />

7186 ha<br />

Annual benefit stream<br />

UShs 68,834,694/year<br />

Present Value <strong>of</strong> NTFPs<br />

UShs 573,622,450 (or US$337,425)<br />

C. PHARMACEUTICAL VALUE<br />

Mabira CFR is rich in biodiversity. The area <strong>of</strong> impact <strong>of</strong><br />

<strong>the</strong> <strong>proposed</strong> degazettement represents 24 percent<br />

<strong>of</strong> <strong>the</strong> total and, <strong>the</strong>refore, is likely to affect overall<br />

biodiversity richness. Some biodiversity will definitely<br />

be lost.<br />

Biodiversity richness <strong>of</strong> a forest represents an option<br />

value; and it is perhaps one <strong>of</strong> <strong>the</strong> least tangible<br />

benefits <strong>of</strong> <strong>Uganda</strong>’s forests (Bush et al 2004). The value<br />

<strong>of</strong> biodiversity lies partly in <strong>the</strong> development <strong>of</strong> plant-<br />

based pharmaceuticals (Bush et al 2004; Emerton &<br />

Muramira 1999; Mendelsohn & Balik 1997; Howard<br />

1995; Pearce & Moran 1994; Ruitenbeek 1989). In<br />

addition to undiscovered plant-based pharmaceuticals,<br />

Howard (1995) reported that <strong>the</strong>re is potential in wild<br />

c<strong>of</strong>fee genetic material. According to Bush et al (2004),<br />

<strong>Uganda</strong>’s farmed c<strong>of</strong>fee is being hit by a Fusarium wilt<br />

against which no known cultural or chemical practices<br />

appear to succeed and wild c<strong>of</strong>fee is known to be<br />

resistant to it (Bush et al 2004).<br />

Various estimates have been made <strong>of</strong> <strong>the</strong> value <strong>of</strong><br />

forest biodiversity. Ruitenbeek (1989) estimated <strong>the</strong><br />

biodiversity <strong>of</strong> Korup Park in Cameroon at ₤0.1/ha/<br />

annum. Pearce & Moran (1994) provided a range <strong>of</strong><br />

values for tropical forest, ranging from US$0.1/ha to US<br />

$ 21/ha.<br />

Mendelsohn & Balik (1997) produced a value for<br />

undiscovered plant-based drugs in tropical forest with<br />

average plant endemism <strong>of</strong> US$3/ha. Howard (1995)<br />

suggested that <strong>Uganda</strong>’s forests are not as species rich<br />

as Korup Park and <strong>the</strong> country would be less competitive<br />

in say supply <strong>of</strong> Prunus africana. Bush et al (2004),<br />

suggest an average value for biodiversity at US$1.50/ha/<br />

year. Simpson et al (1994) estimated <strong>the</strong> pharmaceutical<br />

value <strong>of</strong> ‘hot spot’ land areas in various countries <strong>of</strong> <strong>the</strong><br />

world. Their estimate <strong>of</strong> <strong>the</strong> willingness to pay (WTP) <strong>of</strong><br />

<strong>the</strong> pharmaceutical companies was $2.10 for Tanzania<br />

and $1.1 for Ivory Coast. Hence <strong>the</strong> Bush et al (2004) is a<br />

very reasonable estimate. Using this estimate <strong>the</strong> future<br />

pharmaceutical opportunities foregone in <strong>the</strong> impact<br />

area would be UShs 18,324,300/year (using an exchange<br />

rate <strong>of</strong> 1 US$ = UShs 1700). This annual benefit stream<br />

translates into a present value <strong>of</strong> UShs 152,702,500 (or<br />

US$898,825).<br />

D. DOMESTIC WATER CONSERVATION<br />

During Focus Group Discussions with communities<br />

surrounding Mabira CFR and living in <strong>the</strong> forest enclaves,<br />

<strong>the</strong>y revealed that to <strong>the</strong>m <strong>the</strong> most important use <strong>of</strong><br />

<strong>the</strong> forest was for water collection. All <strong>the</strong> surrounding<br />

communities and those living in <strong>the</strong> forest enclaves, said<br />

<strong>the</strong>y get <strong>the</strong>ir water from <strong>the</strong> forest. This view tallies with<br />

<strong>the</strong> observation <strong>of</strong> Bush et al (2004), where <strong>the</strong> forests<br />

surveyed across <strong>Uganda</strong> represented important sources<br />

<strong>of</strong> water for local communities.<br />

Bush et al (2004) estimated <strong>the</strong> mean value <strong>of</strong> water<br />

provision for both humans and livestock per household<br />

at UShs 18,415 per annum, and ranges from UShs 12,078<br />

per annum for Budongo CFR to UShs 30,928 per annum<br />

for Rwenzori Mountains National Park. In this report,<br />

<strong>the</strong> value for Budongo CFR which is relatively similar to<br />

Mabira CFR was used in estimating community water<br />

benefits.<br />

Muramira (2000) estimated <strong>the</strong> number <strong>of</strong> households<br />

in <strong>the</strong> enclaves and within <strong>the</strong> proximity <strong>of</strong> Mabira at<br />

15,631. Assuming population growth rate <strong>of</strong> 3.4 percent<br />

per annum (UBOS 2002), by 2007, this population would<br />

have increased to about 19,753 households. Therefore<br />

multiplying <strong>the</strong> mean value <strong>of</strong> water provision <strong>of</strong> UShs<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 41


12,078 per annum by <strong>the</strong> number <strong>of</strong> households gives<br />

a total value <strong>of</strong> UShs 238,576,734 per annum. However,<br />

<strong>the</strong> impact area is 7186ha out <strong>of</strong> <strong>the</strong> total size <strong>of</strong> about<br />

30,000ha. Therefore, <strong>the</strong> value <strong>of</strong> water provision in<br />

impact area which will be lost is equivalent to UShs<br />

57,258,416 per annum. Holding this value constant over<br />

<strong>the</strong> project period, <strong>the</strong> net present value <strong>of</strong> domestic<br />

water provision translates into a conservative estimate<br />

<strong>of</strong> UShs 477,153,468 (or US $ 280,679) 8 .<br />

E. ECOTOURISM<br />

According to Pearce & Pearce (2001) ecotourism is a<br />

growing activity and contributes a potentially valuable<br />

non-extractive use <strong>of</strong> tropical forests. A review <strong>of</strong> some<br />

estimates <strong>of</strong> tourism values shows enormous variations<br />

in unit values <strong>of</strong> ecotourism. For example Maille and<br />

Mandelsohn (1991) estimated <strong>the</strong> value <strong>of</strong> tropical<br />

forest ecotourism in Madagascar at $360 – 468/ha<br />

based on a study <strong>of</strong> consumer’s surplus using <strong>the</strong> travel<br />

cost method (TCM). On <strong>the</strong> o<strong>the</strong>r hand, o<strong>the</strong>r tropical<br />

forest ecosystem values are as follows: $650/ha benefit<br />

<strong>of</strong> no logging over continued logging in a forest in <strong>the</strong><br />

Philippines (Hodgson & Dixon 1988); consumer’s surplus<br />

estimates <strong>of</strong> $ 1/ha for a site in Mexico (Adger et al 1995);<br />

$740/ha for forest recreation areas in Malaysia (Garrod<br />

&Willis 1997); and $950 – 2305/ha for two forested<br />

parks in Costa Rica (Shultz et al 1998). Generally, very<br />

8 The estimate is conservative because <strong>the</strong> population in<br />

<strong>the</strong> enclaves and <strong>the</strong> surrounding areas will increase over <strong>the</strong> years.<br />

However, it is possible with increased development, alternative water<br />

sources may be developed.<br />

Table 19: Visitor statistics<br />

Year<br />

42<br />

Foreigners/<br />

Foreign Residents<br />

high popularity sites generate much higher values as<br />

demonstrated by <strong>the</strong> Schultz et al study.<br />

Ecotourism in Mabira CFR is popular due to its proximity<br />

to large urban centres and above average biodiversity<br />

richness. The lower case value ($360/ha) for Madagascar<br />

from <strong>the</strong> study <strong>of</strong> Maille and Mandelsohn (1991)<br />

could be a reasonable average estimate. Multiplying<br />

<strong>the</strong> Madagascar value by <strong>the</strong> 7186 ha <strong>proposed</strong> for<br />

degazettement, one estimate <strong>of</strong> <strong>the</strong> ecotourism value <strong>of</strong><br />

Mabira CFR would be $2,586,960/year; and <strong>the</strong> present<br />

value at $21,558,000.<br />

On <strong>the</strong> o<strong>the</strong>r hand, according to Muramira (2000),<br />

<strong>Uganda</strong>’s tropical high forests have some <strong>of</strong> <strong>the</strong> richest<br />

biodiversity <strong>of</strong> plant and animal life in <strong>the</strong> world. However,<br />

compared to o<strong>the</strong>r national forests, <strong>the</strong> biodiversity<br />

inventory for Mabira CFR revealed that <strong>the</strong> forest has<br />

average biodiversity attributes (Davenport et al 1996).<br />

The ecotourism value <strong>of</strong> Mabira lies in <strong>the</strong> fact that it<br />

is <strong>the</strong> only THF protected area within <strong>the</strong> Lake Victoria<br />

shore crescent. Fur<strong>the</strong>rmore, Mabira CFR is close to <strong>the</strong><br />

urban centres <strong>of</strong> Kampala (53km) and Jinja (21km). There<br />

is increasing interest in ecotourism in Mabira CFR as<br />

shown in Table 20. Finally, in addition to <strong>the</strong> Ecotourism<br />

Centre operated by <strong>the</strong> NFA, new developments are<br />

ei<strong>the</strong>r nearing completion (for example <strong>the</strong> facility <strong>of</strong><br />

Ecolodges) or are in <strong>the</strong> early stages <strong>of</strong> development (for<br />

example <strong>the</strong> plans <strong>of</strong> MAFICO). These developments,<br />

amongst o<strong>the</strong>rs, point to an accelerated growth in<br />

ecotourism in Mabira CFR.<br />

Locals Total<br />

2005/06 1,989 2,854 4,843<br />

1999 1,312 2,880 4,172<br />

1998 1,450 1,125 2,575<br />

1997 1,304 1,094 2,398<br />

1996 1,097 515 1,612<br />

Source : data for 2005/06 fiscal year from <strong>the</strong> NFA<br />

: data for remaining years, Muramira (2000)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


The basis to estimating <strong>the</strong> annual value <strong>of</strong> ecotourism<br />

is <strong>the</strong> consumer surplus, <strong>the</strong> difference between <strong>the</strong><br />

price tourists are willing to pay and <strong>the</strong> price <strong>the</strong>y<br />

actually paid. Naidoo & Adamowicz (2005) found that<br />

an entrance <strong>of</strong> US$47 would maximise tourism value<br />

compared to <strong>the</strong> amount foreign and foreign residents<br />

<strong>of</strong> <strong>Uganda</strong> are currently charged (US$5) to visit Mabira<br />

CFR (Naidoo & Adamowicz 2005). This dramatic under-<br />

<strong>valuation</strong> <strong>of</strong> <strong>the</strong> willingness to pay <strong>of</strong> tourist visitors is<br />

consistent with results from o<strong>the</strong>r tropical areas and<br />

suggests much room for improvement in entrance fee<br />

policy (Naidoo & Adamowicz 2005).<br />

From <strong>the</strong> above, <strong>the</strong> consumer surplus for foreigners<br />

and foreign residents is US$42 per tourist. In <strong>the</strong> absence<br />

<strong>of</strong> data on <strong>the</strong> local tourists’ willingness-to-pay and<br />

considering <strong>the</strong>ir low income levels, this study assumes<br />

a zero consumer surplus pertaining to local tourists. For<br />

foreigners and foreign residents US$ 42 or UShs 71,400<br />

(at exchange rate <strong>of</strong> UShs 1700 to <strong>the</strong> US$) – was used.<br />

Fur<strong>the</strong>rmore, using <strong>the</strong> 2005/06 data for foreigners and<br />

foreign residents <strong>of</strong> 1,989 tourists, <strong>the</strong> annual value <strong>of</strong><br />

ecotourism for <strong>the</strong> whole Mabira CFR was estimated<br />

at UShs 142,014,600/year. Mabira CFR is about 30,000<br />

ha in size and it would be incorrect to allocate all <strong>the</strong><br />

annual value lost due to <strong>the</strong> impact area <strong>of</strong> 7186 ha.<br />

Hence, <strong>the</strong> proportionate share <strong>of</strong> ecotourism benefits<br />

lost was estimated as a fraction <strong>of</strong> <strong>the</strong> value for Mabira<br />

as a whole (that is, UShs 142,014,600/year x 7186/30000)<br />

giving a value <strong>of</strong> UShs 34,083,504/year. Subsequently<br />

<strong>the</strong> present value <strong>of</strong> <strong>the</strong> ecotourism benefits foregone<br />

translates into Ushs 284,029,200 (or US$167,076).<br />

This estimate must be considered a very conservative<br />

one and demonstrates <strong>the</strong> room available for ecotourism<br />

to grow in Mabira CFR. It is quite possible that once <strong>the</strong><br />

planned and <strong>the</strong> on-going ecotourism development<br />

projects are completed <strong>the</strong>re will be a dramatic increase<br />

in tourist numbers and <strong>Uganda</strong>n tourists will also begin<br />

to register significant consumer’s surpluses. These<br />

developments are likely, <strong>the</strong>refore, to propel <strong>the</strong> annual<br />

value <strong>of</strong> ecotourism closer to <strong>the</strong> $360/ha mark which<br />

was registered in Madagascar.<br />

F. CARBON STORAGE AND SEQUESTRATION<br />

When a forest is under threat <strong>of</strong> conversion, it is important<br />

to distinguish two values. The first is <strong>the</strong> value <strong>of</strong> <strong>the</strong><br />

carbon stored in a standing forest that is close to ‘carbon<br />

balance’. The second is <strong>the</strong> value <strong>of</strong> carbon sequestered<br />

in a growing forest. In o<strong>the</strong>r words <strong>the</strong> carbon storage<br />

value is <strong>the</strong> value held in <strong>the</strong> growing stock or standing<br />

timber volume. The sequestration value is <strong>the</strong> value <strong>of</strong><br />

<strong>the</strong> amount <strong>of</strong> additional carbon absorbed by <strong>the</strong> forest<br />

as it adds more volume annually.<br />

Brown and Pearce (1994) provide some benchmark<br />

figures for carbon content and loss for tropical forest<br />

conversion situations (Table 21). A closed primary forest<br />

has 283tC/ha <strong>of</strong> carbon and if converted to permanent<br />

agriculture would release 220tC/ha (283tC/ha less 63tC/<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 43<br />

ha).<br />

Table 20: Carbon content and loss for tropical forest conversion<br />

Forest type<br />

Forest Original<br />

Carbon (tC/ha)<br />

Permanent Agriculture<br />

Carbon (tC/ha)<br />

Closed primary forest 283 /a 63 /c -220<br />

Closed secondary forest 194 /b 63 -131<br />

Open forest 115 63 -52<br />

/ a – 116 soil, 167 biomass; / b – 84 soil, 110 biomass; / c – mainly soil<br />

Source: Brown and Pearce (1994)<br />

Quantity <strong>of</strong> Carbon Released by<br />

conversion (tC/ha)<br />

For closed secondary and open forests, <strong>the</strong> corresponding figures are 131tC/ha and 52tC/ha, respectively. A large


part <strong>of</strong> <strong>the</strong> area <strong>proposed</strong> for degazettement in Mabira<br />

may be characterised as a combination <strong>of</strong> open forest<br />

and closed secondary forest. Taking <strong>the</strong> carbon loss<br />

value <strong>of</strong> open forest (52tC/ha) <strong>the</strong> conversion <strong>of</strong> 7186ha<br />

<strong>of</strong> Mabira to permanent agriculture would release<br />

373672tC. Using this value as a benchmark, <strong>the</strong> next<br />

question is what <strong>the</strong> <strong>economic</strong> value <strong>of</strong> such carbon<br />

stock is. A significant literature exists on <strong>the</strong> <strong>economic</strong><br />

value <strong>of</strong> global warming damage and <strong>the</strong> translation <strong>of</strong><br />

<strong>the</strong>se estimates into <strong>the</strong> <strong>economic</strong> value <strong>of</strong> a marginal<br />

tonne <strong>of</strong> carbon (Pearce & Pearce 2001). According to<br />

Zhang (2000) if <strong>the</strong>re were no limitations placed on<br />

worldwide carbon trading, carbon credits would by <strong>the</strong>n<br />

have exchanged at just under $10tC. If ‘hot air’ trading<br />

were excluded, <strong>the</strong> price would be $13tC. Therefore,<br />

taking $10tC as a conservative estimate, <strong>the</strong> one-<strong>of</strong>f<br />

value <strong>of</strong> carbon released into <strong>the</strong> atmosphere would be<br />

$3,736,720 (or Ushs 6,352,424,000).<br />

Secondly, once <strong>the</strong> area is converted into permanent<br />

agriculture, <strong>the</strong>n its annual carbon sequestration<br />

capacity is severely restricted. The removal <strong>of</strong> tree cover<br />

as a result <strong>of</strong> <strong>the</strong> permanent agriculture (plantation) will<br />

result in a loss <strong>of</strong> some <strong>of</strong> <strong>the</strong> carbon storage capacity <strong>of</strong><br />

Mabira CFR. According to Bush et al (2004), at <strong>the</strong> global<br />

level, <strong>the</strong> forestry sub-sector is an important carbon<br />

sink, helping to reduce accumulation <strong>of</strong> greenhouse<br />

gases and hence global warming which will lead to<br />

adverse changes in climate. Emerton & Muramira<br />

(1999) and Bush et al (2004) give <strong>the</strong> following carbon<br />

sequestration values for different <strong>Uganda</strong>n vegetation<br />

types: primary closed forest UShs 54,660/ha/year;<br />

degraded forest UShs 32,538/ha/year; and woodland,<br />

bushland and grassland UShs 2,603/ha/year. The forest<br />

conversion is expected to leave <strong>the</strong> cleared impact area<br />

under grassland (sugarcane) instead <strong>of</strong> bare ground.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> Production Zone should have a carbon<br />

sink value <strong>of</strong> UShs 40,996/ha/year, using <strong>the</strong> average<br />

value for a primary closed forest and a degraded forest<br />

and deducting grassland values.<br />

Multiplying <strong>the</strong> carbon sink value by <strong>the</strong> size <strong>of</strong> <strong>the</strong><br />

applicable impact area, is expected to result in a loss<br />

44<br />

<strong>of</strong> carbon sink values equivalent to UShs 294,597,256/<br />

year. Capitalised at <strong>the</strong> social opportunity cost <strong>of</strong><br />

capital, <strong>the</strong> annual stream gives a present value <strong>of</strong> UShs<br />

2,454,977,133 (or $1,444,104).<br />

G. WATERSHED PROTECTION<br />

Typically, <strong>the</strong> functions forests play in watershed<br />

regulation include: soil conservation (siltation and<br />

sedimentation), water flow regulation (including flood<br />

and storm protection, water supply, water quality<br />

regulation – including nutrient outflow). The effects <strong>of</strong><br />

forest cover removal can be dramatic. Unfortunately,<br />

<strong>economic</strong> studies <strong>of</strong> watershed protection functions are<br />

few, none<strong>the</strong>less progress is being made. From existing<br />

studies Krieger (nd) was able to arrive at average values<br />

<strong>of</strong> tropical forests as follows: water regulation ($6/<br />

ha); water supply/quality ($8/ha); erosion control and<br />

sediment retention $245/ha, resulting in a total <strong>of</strong> $259/<br />

ha. When <strong>the</strong>se average values for all tropical forests <strong>of</strong><br />

<strong>the</strong> world are applied to <strong>the</strong> Mabira case, it translates<br />

into annual watershed protection values <strong>of</strong> $1,760,570<br />

and present value <strong>of</strong> $14,671,417. According to Hamilton<br />

& King (1983), care needs to be taken not to exaggerate<br />

<strong>the</strong>se estimates. Yaron (2001) estimated <strong>the</strong> value <strong>of</strong><br />

flood protection (using <strong>the</strong> value <strong>of</strong> avoidable crop and<br />

tree losses as a basis) and came up with a figure <strong>of</strong> $0-<br />

24/ha. Using Yaron’s upper estimate <strong>of</strong> $24/ha, <strong>the</strong> flood<br />

protection value for <strong>the</strong> Mabira impact area would be<br />

$172,464/year (or UShs 293,188,800 using exchange rate<br />

<strong>of</strong> 1 US$ = UShs 1700) and present value <strong>of</strong> $1,437,200.<br />

While this conservative estimate applies to flood<br />

protection and not <strong>the</strong> o<strong>the</strong>r watershed functions, it<br />

may be used for watershed protection values lost in <strong>the</strong><br />

Mabira impact area.<br />

H. OPTION AND EXISTENCE VALUES<br />

According to Pearce &Pearce (2001), <strong>the</strong> notion <strong>of</strong><br />

<strong>economic</strong> value includes willingness to pay for <strong>the</strong><br />

conservation <strong>of</strong> a forest or ecosystem even though <strong>the</strong><br />

individual expressing <strong>the</strong> willingness to pay secures<br />

no use value from <strong>the</strong> forest. The authors went on to<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


describe three contexts in which such values might<br />

arise. They are:<br />

» someone may express a willingness to pay to<br />

conserve <strong>the</strong> forest in order that <strong>the</strong>y may make<br />

some use <strong>of</strong> it in <strong>the</strong> future, e.g. for recreation.<br />

This is known as an option value;<br />

» someone may express a willingness to pay to<br />

conserve a forest even though <strong>the</strong>y make no<br />

use <strong>of</strong> it, nor intend to. Their motive may be that<br />

<strong>the</strong>y wish <strong>the</strong>ir children or future generations to<br />

be able to use it. This is a form <strong>of</strong> option value<br />

for o<strong>the</strong>rs’ benefit, sometimes called a bequest<br />

value; and<br />

» someone may express a willingness to pay<br />

to conserve a forest even though <strong>the</strong>y make<br />

no use <strong>of</strong> it, nor intend to, nor intend it for<br />

o<strong>the</strong>rs’ use. They simply wish <strong>the</strong> forest to<br />

exist. Motivations may vary, from some feeling<br />

about <strong>the</strong> intrinsic value <strong>of</strong> <strong>the</strong> forest through<br />

to notions <strong>of</strong> stewardship, religious or spiritual<br />

value, <strong>the</strong> rights <strong>of</strong> o<strong>the</strong>r living things, etc. This<br />

is known as existence value (Pearce & Pearce<br />

2001).<br />

While extremely difficult to determine <strong>the</strong> relevance<br />

<strong>of</strong> <strong>the</strong> option and existence values is that <strong>the</strong>y may<br />

be ‘capturable’ through mechanisms such as debt-for-<br />

nature swaps, <strong>of</strong>ficial aid, donations to conservation<br />

agencies, and pricing mechanisms (Pearce &Pearce<br />

2001). According to Swanson & Kontoleon (2000), an<br />

example <strong>of</strong> using a price is <strong>the</strong> suggestion that visitors<br />

to China would have <strong>the</strong> option <strong>of</strong> paying $1 extra<br />

for a panda stamp’ in <strong>the</strong>ir passports, along with <strong>the</strong>ir<br />

visa, to indicate that <strong>the</strong>y have donated towards panda<br />

conservation in China.<br />

Some option and existence value estimates for <strong>the</strong><br />

world’s tropical forests have been reported elsewhere<br />

including: Sri Lankan forests (villagers, rural and urban<br />

groups <strong>of</strong> use, bequest and existence values) by<br />

Gunawardena et al (1999) using a contingent <strong>valuation</strong><br />

method (CVM); and US residents’ willingness to pay ‘one-<br />

<strong>of</strong>f’ payment <strong>of</strong> $21-31 per household for protection <strong>of</strong> 5<br />

percent more <strong>of</strong> <strong>the</strong> world’s tropical rain forests (Kramer<br />

&Mercer 1997). However, for purposes <strong>of</strong> arriving at a<br />

relevant estimate for <strong>the</strong> impact area in Mabira three<br />

studies are particularly pertinent. The first concerns use<br />

<strong>of</strong> a willingness to pay study to estimate <strong>the</strong> implied<br />

‘world’ willingness to pay for limited forest areas covered<br />

by debt-for-nature swaps at $5/ha (Pearce 1996).<br />

The second study is a similar one by <strong>the</strong> same author<br />

on implied ‘world’ willingness to pay via <strong>the</strong> Global<br />

Environmental Facility (GEF) <strong>of</strong> $2/ha.<br />

The third study was estimates <strong>of</strong> option and existence<br />

values revealed in a study <strong>of</strong> debt-for-nature swaps<br />

and grant aid to Mexico forest conservation <strong>of</strong> $12/ha.<br />

For <strong>the</strong> impact area in Mabira, <strong>the</strong> implied willingness<br />

to pay via <strong>the</strong> GEF facility was chosen mainly because<br />

it represents <strong>the</strong> most conservative estimate but also<br />

because <strong>Uganda</strong> has been a beneficiary <strong>of</strong> several GEF<br />

funding arrangements 9 .<br />

From <strong>the</strong> foregoing, <strong>the</strong> unit option and existence<br />

value for <strong>the</strong> Mabira impact area would be $2/ha,<br />

which when multiplied by <strong>the</strong> 7186ha translates into<br />

$14,372/annum (or UShs 24,432,400/year using 1 US$<br />

= UShs 1,700) and a present value <strong>of</strong> about $119,767<br />

(or UShs 203,603,900).<br />

5.4. SUMMARY<br />

The results <strong>of</strong> <strong>the</strong> foregoing analysis are summarised<br />

in Table 21. The value <strong>of</strong> <strong>the</strong> timber growing stock in<br />

<strong>the</strong> impact area (40 cm dbh+) was estimated at about<br />

US$35.2 million. Irrespective <strong>of</strong> <strong>the</strong> use to which <strong>the</strong><br />

timber maybe put, it holds a stored carbon value <strong>of</strong><br />

US$3.7 million. For purposes <strong>of</strong> comparing <strong>the</strong> merits<br />

and demerits <strong>of</strong> <strong>the</strong> <strong>proposed</strong> land conversion, <strong>the</strong><br />

stored carbon value will be ignored. It is assumed that <strong>the</strong><br />

growing timber stock will be converted into sawnwood<br />

and used fur<strong>the</strong>r in o<strong>the</strong>r processes or products (e.g.<br />

9 Including part <strong>of</strong> <strong>the</strong> World Bank support to <strong>Uganda</strong> under<br />

<strong>the</strong> Environment Management Capacity Building Project (EMCBP)<br />

for NEMA; and <strong>the</strong> Protected Area Management and Sustainable Use<br />

(PAMSU) whose beneficiaries include UWA, MTTI, Museums &<br />

Antiquities and UWEC, among o<strong>the</strong>rs.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 45


The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettment <strong>of</strong> Mabira CFR<br />

___________________________________________________________________________________<br />

furniture,<br />

Both <strong>the</strong><br />

building,<br />

actual<br />

construction,<br />

and potential<br />

etc.) hence<br />

(pharmaceutical<br />

retaining Community<br />

values) stream<br />

benefits in<br />

<strong>of</strong><br />

terms<br />

net<br />

<strong>of</strong><br />

benefits<br />

poles and<br />

were<br />

firewood,<br />

its estimated stored carbon at values. US$ 1,081,243/year The value <strong>of</strong> <strong>the</strong> growing <strong>of</strong> which stock 54 non-timber percent represents forest products <strong>the</strong> annual and water value supplies <strong>of</strong> were<br />

becomes exploitable relevant timber for purposes value, <strong>of</strong> whereby any compensation <strong>the</strong> amount as harvested estimated to does represent not ano<strong>the</strong>r exceed 10 mean percent annual <strong>of</strong> <strong>the</strong> annual<br />

discussed increment in Chapter (MAI) 5.0. and a fur<strong>the</strong>r 16 percent each benefits are contributed stream. by carbon sequestration<br />

and watershed protection values. Community benefits in terms <strong>of</strong> poles and firewood,<br />

Both non-timber <strong>the</strong> actual forest and potential products (pharmaceutical and water values) supplies The were present estimated value to <strong>of</strong> <strong>the</strong> represent annual ano<strong>the</strong>r stream <strong>of</strong> 10 benefits<br />

stream<br />

percent<br />

<strong>of</strong> net<br />

<strong>of</strong><br />

benefits<br />

<strong>the</strong> annual<br />

were<br />

benefits<br />

estimated<br />

stream.<br />

at US$ 1,081,243/ was estimated at about US$10 million, which when<br />

year <strong>of</strong> which 54 percent represents <strong>the</strong> annual value combined with <strong>the</strong> value <strong>of</strong> growing stock would give a<br />

The present value <strong>of</strong> <strong>the</strong> annual stream <strong>of</strong> benefits was estimated at about US$10 million,<br />

<strong>of</strong> exploitable timber value, whereby <strong>the</strong> amount total net present value <strong>of</strong> US$45.1 million for <strong>the</strong> area <strong>of</strong><br />

which when combined with <strong>the</strong> value <strong>of</strong> growing stock would give a total net present<br />

harvested value <strong>of</strong> does US$45.1 not exceed million mean for <strong>the</strong> annual area increment <strong>of</strong> impact in impact Mabira in Mabira CFR. CFR.<br />

(MAI) and a fur<strong>the</strong>r 16 percent each are contributed by<br />

carbon sequestration and watershed protection values.<br />

Table 21: 21: Summary <strong>of</strong> Values <strong>of</strong> Values<br />

One<br />

– <strong>of</strong>f<br />

Values<br />

Amount<br />

Ushs US $<br />

Timber Stock<br />

59,<br />

902,<br />

000,<br />

000<br />

35,<br />

236,471<br />

Value <strong>of</strong> Carbon Stored 6,352,424,000 3,736,720<br />

Annual Stream <strong>of</strong> Benefits<br />

Amount/<br />

Year<br />

Ushs<br />

US<br />

$<br />

Timber<br />

986,<br />

349,<br />

333<br />

580,<br />

205<br />

Poles & Firewood 61,045,070 35,909<br />

Non – Timber forest products (NTFP) 68,834,694 40,491<br />

Ecotourism<br />

18,<br />

324,<br />

300<br />

10,<br />

779<br />

Community water supplies 57,258,416 33,681<br />

Pharmaceutical values 34,083,504 20,049<br />

Carbon Sequestration 294,597,256 173,293<br />

Watershed protection 293,188,800 172,464<br />

Option/existence values 24,432,400 14,372<br />

1,838,113,773 1,081,243<br />

Net Present Value <strong>of</strong> Annual Benefits Streams<br />

Amount<br />

Ushs<br />

US$<br />

1.<br />

Timber<br />

8,<br />

219,<br />

577,<br />

775<br />

4,<br />

835,<br />

046<br />

2. Poles & Firewood 508,708,917 299,241<br />

3 . NTFP<br />

573,<br />

622,<br />

450<br />

337,425<br />

4. Domestic water supply for communities 157,702,500 898,825<br />

5. Pharmaceutical values 477,153,468 280,679<br />

6.<br />

Ecotourism<br />

value<br />

284,<br />

029,<br />

200<br />

167,<br />

076<br />

7. Carbon sequestration values 2,454,977,133 1,444,104<br />

8. Watershed protection values 2,443,240,000 1,437,200<br />

9. Option/Existence values 203,603,900 119,767<br />

15,322,615,343 9,819,363<br />

_____________________________________________________________________<br />

By Yakobo Moyini, PhD<br />

46<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

53


6.0. DISCUSSIONS AND CONCLUSION<br />

6.1. DISCUSSIONS<br />

The decision to degazette or not to degazette part <strong>of</strong><br />

Mabira CFR for sugar cane growing involves a range<br />

<strong>of</strong> considerations. The most important consideration is<br />

<strong>the</strong> comparative net returns to land from <strong>the</strong> different<br />

land uses, <strong>the</strong> o<strong>the</strong>rs being national policy, equity<br />

and environmental considerations and international<br />

obligations. The following section clearly demonstrates<br />

that whereas sugar cane growing is an important<br />

investment area for <strong>the</strong> economy, conservation <strong>of</strong><br />

Mabira Central Forest Reserve is an equally important<br />

land use option.<br />

• Why favour SCOUL only?<br />

A very disturbing question arising from a review <strong>of</strong> <strong>the</strong><br />

Mabira issue is why <strong>of</strong> all things <strong>the</strong> GoU feels SCOUL is <strong>the</strong><br />

producer best equipped to fill <strong>the</strong> production shortfall<br />

<strong>of</strong> 40,000 mt that currently exists when <strong>the</strong>re is ample<br />

evidence to show that despite being <strong>the</strong> oldest factory<br />

in <strong>the</strong> country and perhaps because <strong>of</strong> this, SCOUL is <strong>the</strong><br />

least efficient in terms <strong>of</strong> yield and conversion. It is true<br />

that SCOUL can point to some precedents in allocation<br />

<strong>of</strong> CFR land to agriculture, including sugarcane<br />

production. However, <strong>the</strong> argument is not sufficient to<br />

encourage <strong>the</strong> repeat <strong>of</strong> what obviously would appear<br />

to be a less than socially optimum decision.<br />

• Is sugarcane production superior?<br />

The first level <strong>of</strong> analysis is to ascertain whe<strong>the</strong>r it is<br />

better to convert 7,186 ha <strong>of</strong> Mabira CFR into sugarcane<br />

production instead <strong>of</strong> leaving it intact for conservation.<br />

The <strong>proposed</strong> land conversion to permanent agriculture<br />

would mean losing about US$ 35,236,471 <strong>of</strong> timber<br />

growing stock. It would also mean foregoing US$<br />

9,819,363 in form <strong>of</strong> annual benefits. Hence a total loss<br />

<strong>of</strong> about US$ 45,055 834 <strong>of</strong> conservation benefits would<br />

be incurred.<br />

On <strong>the</strong> o<strong>the</strong>r hand, converting a part <strong>of</strong> Mabira CFR<br />

for sugarcane production will require extensive land<br />

clearing which itself will be a significant cost to SCOUL.<br />

Secondly, benefit streams from sugarcane growing<br />

would start flowing about 18 to 24 months after land<br />

clearing (assuming planting is immediate). This time lag<br />

also represents opportunities foregone.<br />

Notwithstanding <strong>the</strong> foregoing, if <strong>the</strong> land clearing<br />

costs and those costs associated with <strong>the</strong> length <strong>of</strong> time<br />

it would take to harvest <strong>the</strong> first crop <strong>of</strong> sugarcane are<br />

set aside, it is possible to estimate <strong>the</strong> future net benefits<br />

realisable from sugarcane growing. In Chapter 3.0 <strong>of</strong> this<br />

report, it was reported that <strong>the</strong> average gross pr<strong>of</strong>it from<br />

sugarcane production by out-growers was US$ 490/<br />

ha. Therefore, <strong>the</strong> annual benefit stream <strong>of</strong> sugarcane<br />

growing would be US$ 3,593,000/year, over three times<br />

<strong>the</strong> estimated annual value from conservation. This<br />

probably is <strong>the</strong> justification by those who advocate<br />

for <strong>the</strong> conversion <strong>of</strong> forest land to agricultural use.<br />

However, this is a partial story, a ra<strong>the</strong>r narrow view<br />

<strong>of</strong> <strong>the</strong> benefits attributable to conservation.The net<br />

present value <strong>of</strong> <strong>the</strong> total benefits <strong>of</strong> conservation was<br />

estimated at US$ 45.1 million (standing timber stock plus<br />

present value <strong>of</strong> annual benefits). It is this value, ra<strong>the</strong>r<br />

than annual benefits alone which need to be compared<br />

with <strong>the</strong> alternative <strong>of</strong> agriculture. The net present value<br />

<strong>of</strong> <strong>the</strong> annual benefits from agriculture was estimated at<br />

US$ 29.9 million without making any deductions for <strong>the</strong><br />

initial costs associated with establishing <strong>the</strong> sugarcane<br />

plantation plus <strong>the</strong> time it would take for <strong>the</strong> first crop<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 47


to mature. Subsequently, conservation is superior to<br />

agriculture; and converting 7,186 ha <strong>of</strong> Mabira CFR<br />

into agriculture would result into a net loss <strong>of</strong> US$ 15.2<br />

million to society. In fact, because sugarcane is a ratoon<br />

crop <strong>the</strong> value <strong>of</strong> <strong>the</strong> cane lasts only <strong>the</strong> five years <strong>of</strong> <strong>the</strong><br />

ratoon and a new crop is replanted. Therefore, <strong>the</strong> true<br />

value <strong>of</strong> a sugar crop is US$ 12.3 milion, which is US$<br />

32.8 milion inferior to <strong>the</strong> conservation option.<br />

• What if degazettement goes ahead?<br />

The National Forestry and Tree Planting Act has provisions<br />

for compensatory measures in case <strong>of</strong> degazettement<br />

– that is, fair and equal value. Also, <strong>Uganda</strong>’s social<br />

and environmental safeguard policies are clear on<br />

compensation. Hence, despite <strong>the</strong> evidence that <strong>the</strong><br />

conservation is a superior alternative to sugarcane<br />

growing, if o<strong>the</strong>r reasons compel <strong>the</strong> degazettement<br />

<strong>of</strong> <strong>the</strong> 7186 ha <strong>of</strong> Mabira CFR, <strong>the</strong>n <strong>the</strong> developer must<br />

compensate for <strong>the</strong> values lost from <strong>the</strong> conservation<br />

alternative. This total value is estimated at US$ 45.1<br />

million, payable to <strong>the</strong> NFA for conservation activities in<br />

general and Mabira in particular. However, before doing<br />

so, <strong>the</strong> land use change should in addition be subjected<br />

to <strong>the</strong> environmental impact assessment (EIA) process<br />

to satisfy legal, and social and environmental safeguard<br />

policies <strong>of</strong> GoU.<br />

The pertinent question for SCOUL is whe<strong>the</strong>r paying<br />

<strong>the</strong> US$ 45.1 million represents a cheaper alternative to<br />

buying or leasing private land. An expenditure <strong>of</strong> US$<br />

45.1 million would purchase 30,668 ha <strong>of</strong> land (at Ushs<br />

2,500,000 per hectare assuming an exchange rate <strong>of</strong><br />

1US$ = Ushs 1,700) compared to <strong>the</strong> 7,186 ha at Mabira<br />

CFR.<br />

• Can SCOUL or <strong>the</strong> sugar industry<br />

48<br />

meet <strong>the</strong> national requirements for<br />

sugar?<br />

An answer to <strong>the</strong> above question is a resounding ‘no’.<br />

The reason is that even if <strong>the</strong> four sugar companies<br />

can produce volumes <strong>of</strong> sugar equal to <strong>the</strong> national<br />

requirement, imports will still be necessary. At <strong>the</strong><br />

moment <strong>the</strong> factories are unable to produce all grades<br />

<strong>of</strong> sugar in sufficient quantities to meet <strong>the</strong> aggregate<br />

national demand. The firms, <strong>the</strong>refore, need to first invest<br />

in processing capacity for <strong>the</strong> different grades <strong>of</strong> sugar<br />

before consideration can be given to self-sufficiency in<br />

sugar production (assuming this is a socially desirable<br />

goal).<br />

• Is <strong>the</strong>re a national sugar industry<br />

strategy?<br />

What one may call <strong>the</strong> ‘Mabira saga’ has over-shadowed<br />

an important debate about <strong>the</strong> sugar industry. This is<br />

wrong. Mabira is an issue because a single firm SCOUL,<br />

and not <strong>the</strong> whole industry wants an access to some<br />

<strong>of</strong> <strong>the</strong> CFR land. There are important industry issues<br />

to be addressed. For example, is a strategy towards<br />

self-sufficiency in sugar production desirable? Is it<br />

efficient? Can <strong>Uganda</strong> produce all <strong>the</strong> grades <strong>of</strong> sugar<br />

required by both household and industrial consumers?<br />

If <strong>the</strong> GoU is fully satisfied that <strong>the</strong> country has a clear<br />

and demonstrable comparative advantage in sugar<br />

production, <strong>the</strong>n why not produce as much sugar as<br />

possible to satify both domestic and export demands?<br />

Where should <strong>the</strong> incremental sugar production come<br />

from? In o<strong>the</strong>r words, are <strong>the</strong>re o<strong>the</strong>r parts <strong>of</strong> <strong>the</strong><br />

country where sugar can be produced competitively?<br />

Can increased sugar production be used as one strategy<br />

to promote poverty reduction and satisfy <strong>the</strong> ‘wealth for<br />

all’ objective?<br />

Answering <strong>the</strong> foregoing questions will require an<br />

examination <strong>of</strong> <strong>the</strong> whole sugar industry and not just<br />

<strong>the</strong> tribulations <strong>of</strong> SCOUL alone. By devoting exclusive<br />

energy to <strong>the</strong> Mabira debate, an opportunity to examine<br />

<strong>the</strong> whole sugar industry is lost and it forces GoU to make<br />

some ra<strong>the</strong>r obscure ‘seat <strong>of</strong> <strong>the</strong> pants’ decisions. There is,<br />

<strong>the</strong>refore, a need to re-direct <strong>the</strong> Mabira debate to focus<br />

on <strong>the</strong> entire sugar industry and not just SCOUL alone<br />

so as to come up with more comprehensive solutions to<br />

<strong>the</strong> challenges facing, and <strong>the</strong> opportunities presented<br />

by, <strong>the</strong> sugar industry.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


6.2. CONCLUSION<br />

Despite <strong>the</strong> difficulties <strong>of</strong> estimating some <strong>of</strong> <strong>the</strong> goods<br />

and services provided by a forest, an attempt was made<br />

to arrive at <strong>the</strong> TEV <strong>of</strong> <strong>the</strong> area <strong>of</strong> impact in Mabira<br />

CFR and compare it with <strong>the</strong> alternative <strong>of</strong> growing<br />

sugarcane. In doing so, effort was made to ensure<br />

that very conservative estimates were used for <strong>the</strong><br />

ecological services <strong>of</strong>fered by <strong>the</strong> forest. On <strong>the</strong> o<strong>the</strong>r<br />

hand, in arriving at net benefits <strong>of</strong> sugarcane growing,<br />

<strong>the</strong> cost <strong>of</strong> land preparation was recognised but <strong>the</strong>n<br />

excluded from <strong>the</strong> calculations. The two actions in effect<br />

meant that very conservative estimates were used in<br />

estimating <strong>the</strong> benefits <strong>of</strong> conservation, while generous<br />

allowances were made for those <strong>of</strong> sugarcane growing.<br />

From <strong>the</strong> analysis carried out, it was clear that <strong>the</strong> benefits<br />

<strong>of</strong> <strong>the</strong> conservation <strong>of</strong> Mabira CFR far exceeded those <strong>of</strong><br />

sugarcane growing. The respective total <strong>economic</strong> value<br />

<strong>of</strong> conservation was estimated at US$ 45.1 compared to<br />

US$ 29.9 million which is <strong>the</strong> net present value <strong>of</strong> <strong>the</strong><br />

annual benefits from <strong>the</strong> <strong>proposed</strong> sugar cane growing.<br />

As already indicated, in addition to <strong>the</strong> <strong>economic</strong><br />

values, a number <strong>of</strong> policy issues were also raised or<br />

highlighted. They include <strong>the</strong> need for compensation<br />

at ‘fair and equal’ value, <strong>the</strong> current implied objective <strong>of</strong><br />

national self-sufficiency in sugar production; and land<br />

acquisition options available to <strong>the</strong> developer.<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 49


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The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 57


ANNEXES<br />

ANNEX 1 BIODIVERSITY DATA<br />

Table A1: Species list <strong>of</strong> plants recorded from Mabira Forest Reserve<br />

Family Species Family Species<br />

Malvaceae Abuitilon Africana Sapindaceae Lecaniodiscus fraxinifolius<br />

Fabaceae Acacia brevispica Meliaceae Lepidotrichilia volkensii<br />

Fabaceae Acacia hecatophylla Icacinaceae Leptaulus daphnoides<br />

Fabaceae Acacia hockii Sterculiaceae Leptonychia mildbraedii<br />

Fabaceae Acacia polyacantha Flacourtiaceae Lindackeria bukobensis<br />

Euphorbiaceae Acalypha bipartite Flacourtiaceae Lindackeria mildbraedii<br />

Euphorbiaceae Acalypha neptunica Flacourtiaceae Lindackeria schweinftirthii<br />

Euphorbiaceae Acalypha ornate Oleaceae Linociera johnsonii<br />

Acanthaceae Acanthus arborescens Celastraceae Loeseneriella africana<br />

Rutaceae Aeglopsis eggelingii Celastraceae Loeseneriella africanum<br />

Zingiberaceae Afromomum mildbraedii Poaceae Loudetia kagerensis<br />

Rubiaceae Aidia micrantha Meliaceae Lovoa swynnertonii<br />

Alangiaceae Alangium chinense Meliaceae Lovoa trichilioides<br />

Fabaceae Albizia coriaria Sapindaceae Lychnodiscus cerospermus<br />

Fabaceae Albizia ferruginea Euphorbiaceae Macaranga barteri<br />

Fabaceae Albizia glaberrima Euphorbiaceae Macaranga monandra<br />

Fabaceae Albizia grandibracteata Euphorbiaceae Macaranga schweinfurthii<br />

Fabaceae Albizia gummifera Euphorbiaceae Macaranga spinosa<br />

Fabaceae Albizia zygia Capparaceae Maerua duchesnei<br />

Euphorbiaceae Alchornea cordifolia Myrtaceae Maesa lanceolata<br />

Euphorbiaceae Alchornea floribunda Rhamnaceae Maesopsis eminii<br />

Euphorbiaceae Alchornea hirtella Sapindaceae Majidea fosteri<br />

Euphorbiaceae Alchornea laxiflora Euphorbiaceae Mallotus oppositifolius<br />

Sapindaceae Allophylus dummeri Sapotaceae Manilkara dawei<br />

Sapindaceae Allophylus macrobotrys Sapotaceae Manilkara multinervis<br />

Apocynacedae Alstonia boonei Sapotaceae Manilkara obovata<br />

Araceae Amorphophallus abyssinicus Euphorbiaceae Margaritaria discoideus<br />

Sapotaceae Aningeria adolfi-friederici Bignoniaceae Markhamia lutea<br />

Sapotaceae Aningeria altissima Celastraceae Maytenus senegalensis<br />

Moraceae Antiaris toxicaria Celastraceae Maytenus serratus<br />

Euphorbiaceae Antidesma laciniatum Celastraceae Maytenus undata<br />

58 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Family Species Family Species<br />

Euphorbiaceae Antidesma membranaceum Sapindaceae Melanodiscus sp.<br />

Anacardiaceae Antrocaryon micraster Meliaceae Memecylon jasminoides<br />

Sapindaceae Aphania senegalensis Meliaceae Memecylon myrianthum<br />

Euphorbiaceae Argomuellera macrophylla Flacourtiaceae Mildbraediodendron excelsum<br />

Aristolochiaceae Aristolochia triactina Moraceae Milicia excelsa<br />

Davalliaceae Arthropteris palisota Flacourtiaceae Mimosa pigra<br />

Fabaceae Baikiaea insignis Sapindaceae Mimusops bagshawei<br />

Balanitaceae Balanites wilsoniana Annonaceae Monodora myristica<br />

Rutaceae Balsamocitrus dawei Rubiaceae Morinda lucida<br />

Fabaceae Baphiopsis parviflora Moraceae Morus mesozygia<br />

Lauraceae Beilschmiedia ugandensis Cecropiaceae Musanga cecropioides<br />

Rubiaceae Belonophora hypoglauca Cecropiaceae Myrianthus arboreus<br />

Sapotaceae<br />

Bequaertiodendron<br />

oblanceolatum<br />

Cecropiaceae Myrianthus holstii<br />

Meliaceae Bersama abyssinica Euphorbiaceae Neoboutonia macrocalyx<br />

Sapindaceae Blighia unijugata Ochnaceae Ochna afzelii<br />

Sapindaceae Blighia welwitschii Ochnaceae Ochna bracteosa<br />

Bombacaeae Bombax buonopozense Ochnaceae Ochna membranacea<br />

Poaceae Brachiaria scalaris Labiatae Ocimum suave<br />

Euphorbiaceae Bridelia micrantha Olacaceae Olax gambecola<br />

Euphorbiaceae Bridelia scieroneura Rubiaceae Oldenlandia corymbosa<br />

Cyperaceae Bulbostylis dense Oleaceae Olea welwitschii<br />

Fabaceae Caesalpina vollcensii Apocynaceae Oncinotis tenuiloba<br />

Palmae Calamus deeratus Flacourtiaceae Oncoba spinosa<br />

Burseraceae Canarium schweinftirthii Poaceae Oplismenus hiterlus<br />

Rubiaceae Canthium vulgare Poaceae Oreobambos buchwaldii<br />

Capparaceae Capparis tomentosa Ochnaceae Ouratea densiflora<br />

Fabaceae Cassia petersiana Rubiaceae Oxyanthus speciosus<br />

Rhizophoraceae Cassipourea congensis Rubiaceae Oxyanthus unilocularis<br />

Rhizophoraceae Cassipourea gummiflua Sapotaceae Pachystela brevipes<br />

Rhizophoraceae Cassipourea ruwensorensis Sapindaceae Pancovia turbinata<br />

Ulmaceae Celtis adolfi-fridericii Poaceae Panicum pleianthum<br />

Ulmaceae Celtis Africana Sapindaceae Pappea capensis<br />

Ulmaceae Celtis durandii Passifoliaceae Parapsia guineensis<br />

Ulmaceae Celtis mildbraedii Aristolochiaceae Parastolochia triactina<br />

Ulmaceae Celtis wightii Fabaceae Parkia filicoidea<br />

Ulmaceae Celtis zenkeri Passifloraceae Paropsia guineensis<br />

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Family Species Family Species<br />

Rutaceae Chaetacme aristata Poaceae Paspalum conjugatum<br />

Sapotaceae Chrysophyllum albidum Sapindaceae Paulinia pinnata<br />

Sapotaceae Chrysophyllum delevoyi Rubiaceae Pavetta molundensis<br />

Sapotaceae<br />

Chrysophyllum<br />

gorungosanum<br />

Rubiaceae Pavetta oliveriana<br />

Sapotaceae Chrysophyllum muerense Thymelaeceae Peddiea fischeri<br />

Sapotaceae Chrysophyllum perpulchrum Piperaceae Peperomia molleri<br />

Rutaceae Citropsis articulate Palmae Phoenix reclinata<br />

Rutaceae Clausena anisata Euphorbiaceae Phyllanthus ovalifolius<br />

Euphorbiaceae Cleistanthus polystachyus Phytolaccaceae Phytolacca dodecandra<br />

Verbenaceae Clerodendrum formicarum Apocynaceae Picralima nitida<br />

Verbenaceae Clerodendrum rotundifolium Piperaceae Piper capensis<br />

Verbenaceae Clerodendrum silvanum Fabaceae Piptadeniastrum africanum<br />

Connaraceae Cnestis ugandensis Nyctaginaceae Pisonia aculeata<br />

Curcubitaceae Coccinea adoensis Pittosporacedae Pittosporum mannii<br />

Rubiaceae C<strong>of</strong>fea canephora Pittosporaceae Pittosporum mannii<br />

Rubiaceae C<strong>of</strong>fea eugenioides Polypodiaceae Platycerium elephantotis<br />

Sterculiaceae Cola gigantean Apocynaceae Pleiocarpa pyenantha<br />

Labiatae Coleus barbatus Commelinaceae Polia condensata<br />

Combretaceae Combretum molle Araliaceae Polyscias fulva<br />

Connaraceae Connarus longistipitatus Verbenaceae Premna angolensis<br />

Boraginaceae Cordia Africana Celastraceae Pristimera plumbea<br />

Boraginaceae Cordia millenii Rosaceae Prunus africana<br />

Orchidaceae Corymborkis corymbis Fabaceae Pseudarthria hoockeri<br />

Costaceae Costus afer Anacardiaceae Pseudospondias microcarpa<br />

Fabaceae Craibia brownie Guttiferae Psorospemum febrifugum<br />

Asteraceae Crassocephalum mannii Adiantaceae Pteris catoptera<br />

Rubiaceae<br />

Craterispermum<br />

schweinfurthii<br />

Adiantaceae Pteris dentata<br />

Euphorbiaceae Croton macrostachyus Fabaceae Pterolobium stellatum<br />

Euphorbiaceae Croton megalocarpus Sterculiaceae Pterygota mildbraedii<br />

Euphorbiaceae Croton sylvaticus Myrtaceae Pycnanthus angolensis<br />

Araceae Culcasia falcifolia Palmae Raphia farinifera<br />

Fabaceae Dalbergia lacteal Apocynaceae Rauvolfia oxyphylla<br />

Tiliaceae Desplatsia dewevrei Apocynaceae Rauvolfia vomitoria<br />

Orchidaceae Diaphanan<strong>the</strong> fragrantissima Flacourtiaceae Rawsonia lucida<br />

Fabaceae Dichrostachys cinerea Anacardiaceae Rhus natalensis<br />

Rubiaceae Dictyandra arborescens Anacardiaceae Rhus ruspolii<br />

Dioscoreaceae Dioscorea minutiflora Anacardiaceae Rhus vulgaris<br />

60 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Family Species Family Species<br />

Ebenaceae Diospyros abyssinica Rubiaceae Rhytigynia butanguensis<br />

Sterculiaceae Dombeya goetzenii Euphorbiaceae Ricinodendron heudelotii<br />

Sterculiaceae Dombeya mukole Violaceae Rinorea beniensis<br />

Flacourtiaceae Dovyalis macrocalyx Violaceae Rinorea dentata<br />

Dracaenaceae Dracaena fragrans Violaceae Rinorea ilicifolia<br />

Dracaenaceae Dracaena laxissima Violaceae Rinorea oblongifolia<br />

Dracaenaceae Dracaena steudneri Capparaceae Ritehiea albersii<br />

Euphorbiaceae Drypetes bipindensis Rubiaceae Rothmannia urcelliformis<br />

Euphorbiaceae Drypetes gerrardii Rosaceae Rubus apetalus<br />

Euphorbiaceae Drypetes ugandensis Celastraceae Salacia elegans<br />

Acanthaceae Dyschoriste radicans Euphorbiaceae Sapium ellipticum<br />

Boraginaceae Ehretia cymosa Araliaceae Schefflera barteri<br />

Meliaceae Ekebergia senegalensis Oleaceae Schrebera alata<br />

Palmae Elaeis guineensis Flacourtiaceae Scolopia rhamnophylla<br />

Euphorbiaceae Elaeophorbia drupifera Rhamnaceae Scutia myrtina<br />

Fabaceae Entada abyssininca Asclepiadaceae Secamone africana<br />

Meliaceae Entandrophragma angolense Oleaceae Schrebera arborea<br />

Meliaceae Entandrophragma utile Fabaceae Sesbania sesban<br />

Papilionaceae Eriosema psoroloides Celastraceae Simirestis brianii<br />

Fabaceae Erythrina abyssinica Smilacaceae Smilax anceps<br />

Fabaceae Erythrina excelsa Solanaceae Solanum indicum<br />

Euphorbiaceae Erythrococca bongensis Solanaceae Solanum ineanum<br />

Euphorbiaceae Erythrococca sp. Bignoniaceae Spathodea campanulata<br />

Fabaceae Erythrophleum suaveolens Euphorbiaceae Spondianthus preussii<br />

Capparaceae Euadenia eminens Myrtaceae Staudtia kamemnensis<br />

Myrtaceae Eugenia bukobensis Umbelliferae Steganotaenia araliacea<br />

Rutaceae Fagaropsis angolensis Sterculiaceae Sterculia dawei<br />

Moraceae Ficus asperifolia Bignoniaceae Stereospermum kunthianum<br />

Moraceae Ficus barteri Olacaceae Strombosia scheffleri<br />

Moraceae Ficus conraui Loganiaceae Strychnos mitis<br />

Moraceae Ficus craterostoma Euphorbiaceae Suregada procera<br />

Moraceae Ficus cyathistipula Guttiferae Symphonia globulifera<br />

Moraceae Ficus dicranostyla Myrtaceae Syzygium guineense<br />

Moraceae Ficus exasperate Apocynaceae Tabemaemontana holstii<br />

Moraceae Ficus ingens Apocynaceae Tabemaemontana usambarensis<br />

Moraceae Ficus lingua Dichapetalacaeae Tapura fiseheri<br />

Moraceae Ficus mucuso Rubiaceae Tarenna pavettoides<br />

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Family Species Family Species<br />

Moraceae Ficus natalensis Rutaceae Teclea eggelingii<br />

Moraceae Ficus ovarifolia Rutaceae Teclea grandifolia<br />

Moraceae Ficus ovata Rutaceae Teclea nobilis<br />

Moraceae Ficus polita Combretaceae Terminalia glaucescens<br />

Moraceae Ficus pseudomangifera Fabaceae Tetrapleura tetraptera<br />

Moraceae Ficus sansibarica Euphorbiaceae Tetrorchidium didymonstemon<br />

Moraceae Ficus saussureana Euphorbiaceae Thecacoris lucida<br />

Moraceae Ficus sur Belanophoraceae Thonningia coccinia<br />

Moraceae Ficus thonningii Menispermaceae Tiliacora latifolia<br />

Moraceae Ficus trichopoda Rutaceae Toddalia asiatica<br />

Moraceae Ficus vallis-choudae Moraceae Treculia africana<br />

Flacourtiaceae Flacourtia indica Ulmaceae Trema orientalis<br />

Euphorbiaceae Flueggea virosa Rubiaceae Tricalysia bagshawei<br />

Apocynaceae Funtumia Africana Meliaceae Trichilia dregeana<br />

Apocynaceae Funtumia elastica Meliaceae Trichilia martineaui<br />

Rubiaceae Geophila reniformis Meliaceae Trichilia prieureana<br />

Tiliaceae Glyphaea brevis Meliaceae Trichilia rubescens<br />

Annonaceae<br />

Greenwayodendron<br />

suaveolens<br />

Moraceae Trilepisium madagascariensis<br />

Tiliaceae Grewia mollis Tiliaceae Triumfetta macrophylla<br />

Tiliaceae Grewia pubescens Meliaceae Turraea floribunda<br />

Tiliaceae Grewia trichocarpa Meliaceae Turraea robusta<br />

Meliaceae Guarea cedrata Meliaceae Turraea vogelioides<br />

Rubiaceae Hallea stipulosa Rubiaceae Uncaria africana<br />

Simaroubaceae Harrisonia abyssinica Malvaceae Urena lobata<br />

Guttiferae<br />

Harungana<br />

madagascariensis<br />

Annonaceae Uvaria angolensis<br />

Malvaceae Hibiscus calyphyllus Annonaceae Uvaria welwitschii<br />

Malvaceae Hibiscus calyphyllus Annonaceae Uvariopsis congensis<br />

Phytollacaceae Hilleria latifolia Rutaceae Vangueria apiculata<br />

Ulmaceae Holoptelea grandis Rhamnaceae Ventilago africana<br />

Linaceae Hugonia platysepala Asteraceae Vernonia adoensis<br />

Euphorbiaceae Hymenocardia acida Asteraceae Vernonia amygdalina<br />

Simaroubaceae Irvingia gabonensis Asteraceae Vernonia auriculifera<br />

Rubiaceae Keetia venosa Verbenaceae Vitex amboniensis<br />

Meliaceae Khaya antho<strong>the</strong>ca Verbenaceae Vitex doniana<br />

Bignoniaceae Kigelia Africana Apocynaceae Voacanga thouarsii<br />

Simaroubaceae Klainedoxa gabonensis Canellaceae Warburgia ugandensis<br />

Cyperaceae Kylinga chrysantha Monimiaceae Xymalos monospora<br />

62 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Family Species Family Species<br />

Cyperaceae Kylinga sphaerocephala Sapindaceae Zanha golungensis<br />

Ancardiaceae Lannea barteri Rutaceae Zanthoxylum gilletii<br />

Ancardiaceae Lannea welwitschii Rutaceae Zanthoxylum leprieurii<br />

Verbenaceae Lantana trifolia Rutaceae Zanthoxylum rubescens<br />

Rhamnaceae Lasiodiscus mildbraedii<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

63


Table A2: Species list <strong>of</strong> birds recorded from Mabira Forest Reserve<br />

Britton No. Species Common Name<br />

23 Ixobrychus minutus Little Bittern<br />

27 Ardea melanocephala Black-headed Heron<br />

33 Butorides striatus Green-backed Heron<br />

36 Egrella garzetta Little Egret<br />

42 Scopus umbretta Hamerkop<br />

44 Ciconia abdimii Abdim’s Stork<br />

49 Leploptilos crumeniferus Marabou<br />

51 Bostrychia hagedash Hadada<br />

84 Gypohierax angolensis Palm-nut Vulture<br />

85 Gyps africanus African White-backed Vulture<br />

87 Necrosyrtes monachus Hooded Vulture<br />

96 Polyboroides typus African Harrier Hawk<br />

97 Circaetus cinerascens Western Banded Snake Eagle<br />

101 Terathopius ecaudalus Bateleur<br />

102 Accipiter badius Shikra<br />

106 Accipiter melanoleucus Great Sparrowhawk<br />

111 Accipiter tachiro African Goshawk<br />

120 Buteo augur Augur Buzzard<br />

125 Spizaetus africanus Cassin’s Hawk Eagle<br />

126 Hieraaetus ayresii Ayres’ Hawk Eagle<br />

128 Hieraaetus spilogaster African -Hawk Eagle<br />

129 Kaupfalco monogrammicus Lizard Buzzard<br />

130 Lophaetus occipitalis Long-crested Eagle<br />

131 Micronisus gabar Gabar Goshawk<br />

134 Polemaetus bellicosus Martial Eagle<br />

135 Stephanoaetus coronatus African Crowned Eagle<br />

137 Haliaeetus vocifer African Fish Eagle<br />

138 Milvus migrans Black Kite<br />

142 Elanus caeruleus Black-shouldered Kite<br />

143 Macheiramphus alcinus Bat Hawk<br />

161 Falco tinnunculus Kestrel<br />

174 Francolinus lathami Forest Francolin<br />

178 Francolinus nahani Nahan’s Francolin<br />

184 Francolinus squamatus Scaly Francolin<br />

188 Guttera pucherani Crested Guineafowl<br />

194 Balearica regulorum Grey Crowned Crane<br />

202 Porphyrio alleni Allen’s Gallinule<br />

211 Sarothrura elegans Buff-spotted Flufftail<br />

64 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Britton No. Species Common Name<br />

213 Sarothrura pulchra White-spotted Flufftail<br />

230 Charadrius asialicus Caspian Plover<br />

337 Aplopelia larvata Lemon Dove<br />

342 Columba livia Feral Pigeon<br />

344 Columba unicincta Afep Pigeon<br />

346 Streptopelia capicola Ring-necked Dove<br />

350 Streptopelia semitorquata Red-eyed Dove<br />

355 Turtur afer Blue-spotted Wood- Dove<br />

357 Turtur tympanistria Tambourine Dove<br />

358 Treron calva African Green Pigeon<br />

363 Agapornis pullarius Red-headed Lovebird<br />

371 Psittacus erithacus Grey Parrot<br />

372 Corythaeola cristata Great Blue Turaco<br />

376 Crinifer zonurus Eastern Grey Plantain- Eater<br />

377 Musophaga rossae Ross’s Turaco<br />

384 Tauraco schuetti Black-billed Turaco<br />

385 Cercococcyx mechowi Dusky Long-tailed Cuckoo<br />

388 Chrysococcyx caprius Didric Cuckoo<br />

389 Chrysococcyx cupreus Emerald Cuckoo<br />

391 Chrysococcyx klaas Klaas’s Cuckoo<br />

394 Oxylophus levaillantii Levaillant’s Cuckoo<br />

395 Cuculus canorus Eurasian Cuckoo<br />

396 Cuculus clamosus Black Cuckoo<br />

398 Cuculus rochii Madagascar Lesser Cuckoo<br />

399 Cuculus solitarius Red-chested Cuckoo<br />

401 Ceuthmochares aereus Yellowbill<br />

406 Centropus superciliosus White-browed Coucal<br />

416 Strix woodfordii African Wood Owl<br />

436 Caprimulgus pectoralis Fiery-necked Nightjar<br />

443 Apus affinis Little Swift<br />

444 Apus apus Eurasian Swift<br />

447 Apus caffer White-rumped Swift<br />

452 Cypsiurus parvus Palm Swift<br />

455 Neafrapus cassini Cassin’s Spinetail<br />

456 Rhaphidura sabini Sabine’s Spinetail<br />

457 Telacanthura ussheri Mottled Spinetail<br />

459 Colius striatus Speckled Mousebird<br />

462 Apaloderma narina Narina Trogon<br />

466 Alcedo cristata Malachite Kingfisher<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

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Britton No. Species Common Name<br />

467 Alcedo leucogaster White-bellied Kingfisher<br />

468 Alcedo quadribrachys Shining-blue Kingfisher<br />

472 Halcyon chelicuti Striped Kingfisher<br />

473 Halcyon leucocephala Grey-headed Kingfisher<br />

474 Halcyon malimbica Blue-breasted Kingfisher<br />

475 Halcyon senegalensis Woodland Kingfisher<br />

477 Ispidina lecontei African Dwarf Kingfisher<br />

478 Ispidina picta African Pygmy Kingfisher<br />

479 Merops albicollis White-throated Bee-eater<br />

490 Merops persicus Blue-checked Bee-eater<br />

491 Merops pusillus Little Bee-eater<br />

493 Merops superciliosus Madagascar Bee-eater<br />

494 Merops variegatus Blue-breasted Bee-eater<br />

497 Coracias garrulus European Roller<br />

500 Eurystomus glaucurus Broad-billed Roller<br />

501 Eurystomus gularis Blue-throated Roller<br />

503 Phoeniculus bollei White-headed Wood- hoopoe<br />

504 Phoeniculus castaneiceps Forest Wood- Hoopoe<br />

513 Bycanistes subcylindricus Black- and- white- casqued Hornbill<br />

515 Tockus alboterminatus Crowned Hornbill<br />

519 Tockus fasciatus African Pied Hornbill<br />

529 Buccanodon duchaillui Yellow-spotted Barbet<br />

533 Gymnobucco bonapartei Grey-throated Barbet<br />

534 Lybius bidentatus Double-too<strong>the</strong>d Barbet<br />

538 Tricholaema hirsuta Hairy-breasted Barbet<br />

548 Pogoniulus bilineatus Yellow-rumped Tinkerbird<br />

553 Pogoniulus scolopaceus Speckled Tinkerbird<br />

555 Pogoniulus subsulphureus Yellow-throated Tinkerbird<br />

556 Trachylaemus purpuratus Yellow-billed Barbet<br />

562 Indicator exilis Least Honeyguide<br />

563 Indicator indicator Black-throated Honeyguide<br />

566 Indicator minor Lesser Honeyguide<br />

569 Indicator variegatus Scaly-throated Honeyguide<br />

572 Prodotiscus insignis Cassin’s Honeybird<br />

580 Campe<strong>the</strong>ra cailliautii Green-backed Woodpecker<br />

581 Campe<strong>the</strong>ra caroli Brown-eared Woodpecker<br />

582 Campe<strong>the</strong>ra nivosa Buff-spotted Woodpecker<br />

584 Campe<strong>the</strong>ra tullbergi Fine-banded Woodpecker<br />

585 Dendropicosfuscescens Cardinal Woodpecker<br />

66 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Britton No. Species Common Name<br />

587 Dendropicos poecilolaemus <strong>Uganda</strong> Spotted Woodpecker<br />

592 Dendropicos xantholophus Yellow-crested Woodpecker<br />

594 Dendropicos namaquus Bearded Woodpecker<br />

596 Smithornis capensis African Broadbill<br />

598 Pitta angolensis African Pitta<br />

599 Pitta reichenowi Green-breasted Pitta<br />

624 Hirundo abyssinica Lesser Striped Swallow<br />

627 Hirundo angolensis Angola Swallow<br />

628 Hirundo atrocaerulea Blue Swallow<br />

634 Hirundo rustica Barn Swallow<br />

635 Hirundo semirufa Rufous-chested Swallow<br />

639 Psalidoprocne albiceps White-headed Saw-wing<br />

641 Riparia cincta Banded Martin<br />

643 Riparia riparia Sand Martin<br />

644 Dicrurus adsimilis Fork-tailed Drongo<br />

645.1 Dicrurus modestus Velvet-mantled Drongo<br />

646 Oriolus auratus African Golden Oriole<br />

647 Oriolus brachyrhynchus Western Black-headed Oriole<br />

654 Corvus albus Pied Crow<br />

664 Parus funereus Dusky Tit<br />

666 Parus guineensis White-shouldered Black Tit<br />

668 Anthoscopus caroli African Penduline Tit<br />

674 Illadopsis albipectus Scaly-breasted Illadopsis<br />

675 Illadopsisfulvescens Brown Illadopsis<br />

677 Illadopsis rufipennis Pale-breasted illadopsis<br />

684 Turdoides plebejus Brown Babbler<br />

688 Campephaga flava Black Cuckoo-Shrike<br />

691 Campephaga quiscalina Purple-throated Cuckoo-Shrike<br />

697 Andropadus curvirostris Cameroon Sombre Greenbul<br />

698 Andropadus gracilirostris Slender-billed Greenbul<br />

699 Andropadus gracilis Little Grey Greenbul<br />

701 Andropadus latirostris Yellow-whiskered Greenbul<br />

705 Andropadus virens Little Greenbul<br />

706 Baeopogon indicator Honeyguide Greenbul<br />

707 Bleda eximia Green-tailed Bristlebill<br />

708 Bleda syndactyla Red-tailed Bristlebill<br />

709 Chlorocichla flavicollis Yellow-throated Leaflove<br />

711 Chlorocichla laetissima Joyful Greenbul<br />

714 Criniger calurus Red-tailed Greenbul<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

67


Britton No. Species Common Name<br />

716 Nicator chloris Western Nicator<br />

718 Phyllastrephus albigularis White-throated Greenbul<br />

719 Phyllastrephus hypochloris Toro Olive Greenbul<br />

720 Phyllastrephus cabanisi Cabanis’s Greenbul<br />

728 Pyrrhurus scandens Leaf-love<br />

732 Pycnonotus barbatus Common Bulbul<br />

734 Ale<strong>the</strong> diademata Fire-crested Ale<strong>the</strong><br />

736 Ale<strong>the</strong> poliocephala Brown-chested Ale<strong>the</strong><br />

750 Cossypha cyanocampter Blue-shouldered Robin -Chat<br />

751 Cossypha heuglini White-browed Robin- Chat<br />

752 Cossypha natalensis Red-capped Robin -Chat<br />

753 Cossypha niveicapilla Snowy-headed Robin- Chat<br />

761 Cossypha polioptera Grey-winged Robin-Chat<br />

775 Oenan<strong>the</strong> isabellina Isabelline Wheatear<br />

784 Saxicola torquata Common Stonechat<br />

789 Stiphrornis erythrothorax Forest Robin<br />

790 Stizorhina fraseri Rufous Flycatcher-Thrush<br />

801 Turdus pelios African Thrush<br />

817 Apalis cinerea Grey Apalis<br />

819 Apalis jacksoni Black-throated Apalis<br />

823 Apalis nigriceps Black-capped Apalis<br />

826 Apalis rufogularis Buff-throated Apalis<br />

829 Bathmocercus rufus Black-faced Rufous Warbler<br />

834 Bradypterus carpalis White-winged Warbler<br />

837 Camaroptera brachyura Grey-backed Camaroptera<br />

838 Camaroptera chloronota Olive-green Camaroptera<br />

841 Camaroptera superciliaris Yellow-browed Camaroptera<br />

843 Chloropeta natalensis Yellow Warbler<br />

850 Cisticola brachypterus Siffling Cisticola<br />

853 Cisticola carru<strong>the</strong>rsi Carru<strong>the</strong>r’s Cisticola<br />

857 Cisticola erythrops Red-faced Cisticola<br />

864 Cisticola lateralis Whistling Cisticola<br />

869 Cisticola robustus Stout Cisticola<br />

873 Cisticola woosnami Trilling Cisticola<br />

875 Eminia lepida Grey-capped Warbler<br />

889 Hylia prasina Green Hylia<br />

891 Hyliota flavigaster Yellow-bellied Hyliota<br />

895 Macrosphenus concolor Grey Longbill<br />

896 Macrosphenus fiavicans Yellow Longbill<br />

68 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Britton No. Species Common Name<br />

901 Pholidornis rushiae Tit -Hylia<br />

907 Phylloscopus sibilatrix Wood Warbler<br />

911 Prinia leucopogon White-chinned Prinia<br />

913 Prinia subflava Tawny-flanked Prinia<br />

917 Sylvia atricapilla Blackcap<br />

921 Sylvietta brachyura Nor<strong>the</strong>rn Crombec<br />

924 Sylvietta virens Green Crombec<br />

926 Muscicapa infuscata Sooty Flycatcher<br />

934 Melaenornis edolioides Nor<strong>the</strong>rn Black Flycatcher<br />

936 Muscicapa adusta African Dusky Flycatcher<br />

938 Muscicapa caerulescens Ashy Flycatcher<br />

940 Muscicapa comitata Dusky Blue Flycatcher<br />

942 Myioparus griseigularis Grey-throated Flycatcher<br />

946 Myioparus plumbeus Lead-coloured Flycatcher<br />

949 Batis minor Black-headed Batis<br />

955 Bias musicus Black and White Shrike- Flycatcher<br />

956 Megabias fiammulatus AfricanShrike Flycatcher<br />

957 Dyaphorophyia jamesoni Jameson’s Wattle-eye<br />

958 Dyaphorophyia castanea Chestnut Wattle-eye<br />

960 Platysteira cyanea Brown-throated Wattle-eye<br />

961 Platysteira peltata Black-throated Wattle-eye<br />

963 Elminia longicauda African Blue Flycatcher<br />

967 Terpsiphone rufiventer Red-bellied Paradise -Flycatcher<br />

968 Terpsiphone viridis African-Paradise Flycatcher<br />

972 Trochocercus nigromitratus Dusky Crested- Flycatcher<br />

973 Trochocercus nitens Blue-headed Crested- Flycatcher<br />

978 Anthus leucophrys Plain-backed Pipit<br />

984 Anthus trivialis Tree Pipit<br />

988 Macronyx croceus Yellow-throated Longclaw<br />

991 Motacilla aguimp African Pied Wagtail<br />

996 Motacilla flava Yellow Wagtail<br />

998 Dryoscopus angolensis Pink-footed Pufflack<br />

1004 Laniarius aethiopicus Tropical Boubou<br />

1007 Laniarius leucorhynchus Sooty Boubou<br />

1008 Laniarius luehderi Luhder’s Bush -Shrike<br />

1009 Laniarius mufumbiri Papyrus Gonolek<br />

1013 Malaconotus bocagei Grey-green Bush Shrike<br />

1022 Tchagra australis Brown-crowned Tchagra<br />

1035 Lanius mackinnoni Mackinnon’s Fiscal<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

69


Britton No. Species Common Name<br />

1038 Lanius senator Woodchat Shrike<br />

1048 Cinnyricinclus leucogaster Violet-backed Starling<br />

1052 Creatophora cinerea Wattled Starling<br />

1058 Lamprotornis purpureiceps Purple-headed Starling<br />

1061 Lamprotornis splendidus Splendid Starling<br />

1063 Onychognathus fulgidus Chestnut-winged Starling<br />

1080 Hedydipna collaris Collared Sunbird<br />

1081 Deleornis axillaris Grey-headed Sunbird<br />

1082 Anthreptes longuemarei Western Violet-backed Sunbird<br />

1087 Anthreptes rectirostris Green Sunbird<br />

1093 Cinnyris bouvieri Orange-tufted Sunbird<br />

1094 Cinnyris chloropygia Olive-bellied Sunbird<br />

1096 Cinnyris cuprea Copper Sunbird<br />

1097 Cyanomitra cyanolaema Blue-throated Brown Sunbird<br />

1098 Cinnyris erythrocerca Red-chested Sunbird<br />

1103 Cinnyris kilimensis Bronze Sunbird<br />

1112 Cinnyris olivacea Olive Sunbird<br />

1120 Chalcomitra rubescens Green-throated Sunbird<br />

1121 Anthreptes seimundi Little Green Sunbird<br />

1122 Chalcomitra senegalensis Scarlet-chested Sunbird<br />

1125 Cinnyris superba Superb Sunbird<br />

1128 Cinnyris venusta Variable Sunbird<br />

1130 Cyanomitra verticalis Green-headed Sunbird<br />

1133 Zosterops senegalensis Yellow White-eye<br />

1134 Amblyospiza albifrons Grosbeak Weaver<br />

1140 Euplectes axillaris Fan-tailed Widowbird<br />

1155 Malimbus rubricollis Red-headed Malimbe<br />

1159 Ploceus baglafecht Baglafecht Weaver<br />

1165 Ploceus cucullatus Black-headed Weaver<br />

1173 Ploceus melanocephalus Yellow-backed Weaver<br />

1174 Ploceus melanogaster Black-billed Weaver<br />

1175 Ploceus nigerrimus Vieillot’s Black Weaver<br />

1176 Ploceus nigricollis Black-necked Weaver<br />

1177 Ploceus ocularis Spectacled Weaver<br />

1184 Ploceus superciliosus Compact Weaver<br />

1186 Ploceus tricolor Yellow-mantled Weaver<br />

1188 Ploceus weynsi Weyns’s Weaver<br />

1206 Passer griseus Grey-headed Sparrow<br />

1211 Vidua chalybeata Village Indigobird<br />

1216 Vidua macroura Pin-tailed Whydah<br />

1226 Estrilda astrild Common Waxbill<br />

70 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Britton No. Species Common Name<br />

1230 Estrilda nonnula Black-crowned Waxbill<br />

1231 Estrilda paludicola Fawn-breasted Waxbill<br />

1233 Estrilda rhodopyga Crimson-rumped Waxbill<br />

1239 Lagonosticta rubricata African Firefinch<br />

1242 Mandingoa nitidula Green-backed Twinspot<br />

1246 Nigrita canicapilla Grey-headed Negr<strong>of</strong>inch<br />

1247 Nigrita fusconota White-breasted Negr<strong>of</strong>inch<br />

1254 Pyrenestes ostrinus Black-bellied Seedcracker<br />

1259 Spermophaga rujicapilla Red-headed Bluebill<br />

1265 Lonchura bicolor Black -and -White Mannikin<br />

1266 Lonchura cucullata Bronze Mannikin<br />

1283 Serinus citrinelloides African Citril<br />

1293 Serinus sulphuratus Brimstone Canary<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

71


Table A3: Species list <strong>of</strong> Mammals (small and large) in Mabira Forest Reserve<br />

Species<br />

Insectivora<br />

Nor<strong>the</strong>rn Swamp Musk Shrew (Crocidura maurisca)<br />

Nor<strong>the</strong>rn Giant Musk Shrew (Crocidura olivieri)<br />

Hero Shrew (Scutisorex somereni)<br />

Chiroptera<br />

Straw colored Fruit Bat (Eidolon helvum)<br />

Little epauletted Fruit Bat (Epomophorus labiatus)<br />

Franquet’s Fruit Bat (Epomops franqueti)<br />

Short Pallate fruit bat (Casinycteris argynnis)<br />

Hammer-headed fruit Bat (Hypsignathus monstrosus)<br />

African Long-tongued Fruit Bat (Megaloglossus woermanni)<br />

Greater collared Fruit Bat (Myonycteris torquarta)<br />

Bocage’s Fruit Bat (Rousettus angolensis)<br />

Bates’ Slit-faced Bat (Nycteris argae)<br />

Dwarf Slit-faced Bat (Nycteris nana)<br />

Sundevall’s Leaf-nosed bat (Hipposideros caffer)<br />

Noack’s Leaf-nosed Bat (Hipposideros rubber)<br />

Halcyon Horseshoe Bat (Rhinolophus alcyone)<br />

Pel’s Pouched Bat (Saccolaimus peli)<br />

Schlieffen’s Bat (Nycticeinops schliefeni)<br />

Banana Bat (Pipistrellus nanus)<br />

Cape Serotine (Pipistrellus capensis)<br />

Forest Brown House Bat (Scotophilus nux)<br />

Little Free tailed Bat (Chaerophon pumila)<br />

Primates<br />

Red tailed Monkey (Cercopi<strong>the</strong>cus ascanius)<br />

Potto (Perodictictus potto)<br />

Galago (Galago senegalensis)<br />

Grey Cheeked Mangabey (Cercocebus abigena)<br />

Baboons (Papio anubis)<br />

Carnivora<br />

Side Striped Jackal (Canis adustus)<br />

Marsh Mongoose (Atilax paludinosus)<br />

Forest Genet (Genetta victoriae)<br />

Dwarf Mongoose (Hologale parvula)<br />

Slender Mongoose (Herpestes ichneumon)<br />

72 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Serval (Felis serval)<br />

Leopard (Pan<strong>the</strong>ra pardus)<br />

Pholidota<br />

Tree Pangolin (Manis tricupsis)<br />

Hyracoidea<br />

Tree Hyrax (Dendrohyrax aboreaus)<br />

Artiodactyla<br />

Blue Duiker (Cephalophus monticola)<br />

Bushpig (Potamochoerus porcus)<br />

Red Forest Duiker (Cephalophus harveyi)<br />

Bushbuck (Tragelaphus scriptus)<br />

Rodentia<br />

Congo forest Rat (Deomys ferugeneous)<br />

Stella Wood Mouse (Hylomyscus stella)<br />

Eastern Brush-furred Mouse (Lophuromys flavopunctatus)<br />

Common Brush furred Mouse (Lophuromys sikapusi)<br />

Peter’s Stripped Mouse (Hybomys univitattus)<br />

Long footed rat (Malacomys longipes)<br />

Jackson’s S<strong>of</strong>t-furred Rat (Praomys jacksoni)<br />

Striped Ground Squirrel (Xerus erythropus)<br />

Crested Porcupine (Hystrix cristata)<br />

Brush tailed Porcupine (A<strong>the</strong>rurus africanus )<br />

Macroscelidea<br />

Giant Elephant Shrew (Rhynchocyon cirnei)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011<br />

73


Table A4: Amphibians <strong>of</strong> Mabira Forest Reserve -<br />

LC = Least Concern<br />

DD = Data Deficient<br />

FAMILY SPECIES COMMON NAME<br />

BUFONIDAE Bufo regularis Square-marked Toad LC<br />

HYPEROLIDAE Afrixalus fulvovitattus<br />

Hyperolius<br />

Four-lined Leaf Frog<br />

Dimorphic Reed Frog<br />

LC<br />

LC<br />

cinnamomeoventris<br />

Hyperolius kivuensis Kivu Reed Frog LC<br />

Hyperolius nasutus Gun<strong>the</strong>r’s Sharp-nosed Reed Frog LC<br />

Kassina senegalensis Bubbling Kassina LC<br />

Leptopelis bocagii Bocage’s Burrowing Frog LC<br />

RANIDAE Haplobatrachus occipitalis Groove-crowned Bullfrog LC<br />

Ptychadena oxhyrhynchus DD<br />

Ptychadena porossissima Mascarene Rigded Frog DD<br />

Ptychadena mascarenieneis Grassland Ridged Frog LC<br />

Phrynobatrachus natelensis Snoring Puddle Frog LC<br />

Phrynobatrachus acridoides East African Puddle Frog LC<br />

PIPIDAE Xenopus laevis African Clawed Toad LC<br />

ARTHROLEPTIDAE Artholeptis adolfifriederici LC<br />

Table A5: Reptiles <strong>of</strong> Mabira Forest Reserve -<br />

LC = Least Concern<br />

DD = Data Deficient<br />

IUCN (Red List)<br />

STATUS<br />

FAMILY SPECIES COMMON NAME STATUS*<br />

CHMAELEONIDAE Chamaeleo bitaneatus Side-striped chameleon LC<br />

GECKONIDAE Hemidactylus mabouia House Gecko LC<br />

SCINCIDAE Mabouia maculilabris Speckle-lipped Skink LC<br />

LACERTIDAE Lacerta jacksonii Jackson’s Forest Lizard LC<br />

VARANIDAE Varanus niloticus Nile Monitor LC<br />

TYPHLOPIDAE Typholps punctatus Spotted Blind Snake LC<br />

LEPTYPHLOPIDAE Leptotyphlops sp DD<br />

COLUBRIDAE Lamprophis olivaceous Olive House Snake DD<br />

Philothamnus semivaruiagatus Variable Green Snake LC<br />

Thrasops jacksonii Jackson’s Tree Snake LC<br />

Dispholidus typus Boomslang LC<br />

Natriceteres olivaceous Olive Marsh Snake LC<br />

Dasypeltis scabra Egg-eater Snake LC<br />

Bothrophthalmus lineatus Red and Black-striped Snake DD<br />

PYTHONIDAE Python sebae African Rock Python LC<br />

ELAPIDAE Dendroaspis jamesoni Jameson’s Forest Mamba LC<br />

Pseudohaje goldii Gold’s Tree Cobra LC<br />

Naja melanoleuca Forest Cobra LC<br />

Boiga blandignii Fanged Tree Snake LC<br />

VIPERIDAE A<strong>the</strong>ris squamiger Bush Viper LC<br />

Bitis gabonica Gaboon Viper LC<br />

Bitis nasicornis Rhinoceros Viper LC<br />

Causus rhombeatus Rhombic night Adder LC<br />

*IUCN, Conservation International, and <strong>Nature</strong>Serve. 2006. Global Amphibian Assessment. <br />

74 The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Table A6: Species list <strong>of</strong> butterflies recorded in Mabira Forest Reserve<br />

PAPILIONIDAE<br />

Papilioninae<br />

Papilio bromius Broad-banded Swallowtail<br />

Papilio cynorta<br />

Papilio dardanus Mocker Swallowtail<br />

Papilio demodocus Citms Swallowtail<br />

Papilio lormieri Central Emperor Swallowtail<br />

Papilio nireus Narrow G-Banded Swallowtail<br />

Papilio phorcas Green Patch Swallowtail<br />

Papilio zoroastres Zoroaster Swallowtail<br />

Graphiumpolicenes Small Striped Swordtail<br />

PIERIDAE<br />

Coliadinae<br />

Eurema hapale Marsh Grass Yellow<br />

Eurema hecabe Common Grass Yellow<br />

Eurema senegalensis Forest Grass Yellow<br />

Pierinae<br />

Nepheronia argia Large Vagrant<br />

Nepheronia pharis<br />

Nepheronia thalassina Cambridge Vagrant<br />

Colotis elgonensis Elgon Crimson Tip<br />

Belenois calypso Calypso Caper White<br />

Belenois creona African Caper<br />

Belenois solilucis<br />

Belenois subeida<br />

Belenois <strong>the</strong>ora<br />

Belenois thysa False Dotted Border<br />

Belenois victoria Victoria White<br />

Dixeia charina African Small White<br />

Dixeia orbona<br />

Appias epaphia African Albatross<br />

Appias sabina Sabine Albatross<br />

Appias sylvia Albatross<br />

Mylothris continua<br />

Leptosia alcesta African Wood White<br />

Leptosia hybrida Hybrid Wood White<br />

Leptosia nupta Immaculate Wood White<br />

Leptosia wigginsi Opaque Wood White<br />

LYCAENIDAE<br />

Lipteninae<br />

Pentilapauli Spotted Pentila<br />

Epitola catuna<br />

Miletinae<br />

Megalopalpus zymna<br />

Lachnocnema bibulus Woolly Legs<br />

Theclinae<br />

Tanue<strong>the</strong>ira timon<br />

Hypolycaena ant faunus<br />

Hypolycaena hatita<br />

Polyommatinae<br />

An<strong>the</strong>ne definita Common Ciliate Blue<br />

An<strong>the</strong>ne indejinita<br />

An<strong>the</strong>ne larydas Spotted Ciliate Blue<br />

An<strong>the</strong>ne ligures<br />

An<strong>the</strong>ne schoutedeni Schouteden’s Ciliate Blue<br />

Uranothaumafalkensteini<br />

Phlyaria cyara<br />

Cacyreus audeoudi Audeoud’s Bush Blue<br />

Cacyreus lingeus Common Bush Blue<br />

Tuxentius cretosus<br />

Tuxentius margar`itaceus<br />

Azanus isis<br />

Azanusjesous African Babul Blue<br />

Azanus mirza Pale Babul Blue<br />

Azanus moriqua Black-Bordered Babul Blue<br />

Azanus natalensis Natal Babul Blue<br />

Eicochrysops hippocrates White Tipped Blue<br />

Oboronia punctatus<br />

NYMPHALIDAE<br />

Danainae<br />

Danaus chrysippus African Queen<br />

Amauris albimaculata Layman<br />

Amauris hecate Dusky Danaid<br />

Amauris niavius Friar<br />

Amauris tartarea Monk<br />

Tirumalaformosa Beautiful Tiger<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 75


Tirumala petiverana African Blue Tiger<br />

Satyrinac<br />

Gnophodes betsimena Banded Evening Brown<br />

Melanitis leda Common Evening Brown<br />

Bicyclus auricrudus<br />

Bicyclus campinus<br />

Bicyclus funebris<br />

Bicyclus graueri<br />

Bicyclus jefferyi Jeffery’s Bush Brown<br />

Bicyclus mesogena<br />

Bicyclus mollitia<br />

Bicyclus sajitza Common Bush Brown<br />

Bicyclus sambulus<br />

Bicyclus sandace<br />

Bicyclus sebetus<br />

Bicyclus smithi Smith’s Bush Brown<br />

Bicyclus sop hrosyne<br />

Bicyclus unformis<br />

Bicyclus vulgaris<br />

Henotesiapeitho<br />

Ypthima albida Silver Ringlet<br />

Ypthima asterope Common Three Ring<br />

Charaxinae<br />

Charaxes ameliae<br />

Charaxes bipunctatus Two Spot Charaxes<br />

Charaxes boueti Red Forest Charaxes<br />

Charaxes brutus White Barred Charaxes<br />

Charaxes candiope Green Veined Charaxes<br />

Charaxes castor Giant Charaxes<br />

Charaxes cedreatis<br />

Charaxes cynthia Western Red Charaxes<br />

Charaxes etesipe Savannah Charaxes<br />

Charaxes e<strong>the</strong>ocles Demon Charaxes<br />

Charaxes eupale Common Green Charaxes<br />

Charaxesfulvescens Forest Pearl Charaxes<br />

Charaxes lucretius Violet Washed Charaxes<br />

Charaxes numenes<br />

Charaxes pleione<br />

Charaxes porthos<br />

Charaxes protoclea Flame Bordered Charaxes<br />

76<br />

Charaxes pythodoris Powder Blue Charaxes<br />

Charaxes subornatus Ornata Green Charaxes<br />

Charaxes tiridates<br />

Charaxes varanes Pearl Charaxes<br />

Charaxes virilis<br />

Charaxes zingha<br />

Euxan<strong>the</strong> crossleyi Crossley’s Forest Queen<br />

Palla ussheri<br />

Apaturinae<br />

Apaturopsis cleochares Painted Empress<br />

Nymphalinae<br />

Euryphura albimargo<br />

Euryphura chalcis<br />

Cymothoe caenis Migratory Glider<br />

Cymothoe herminia<br />

Cymothoe hobarti Hobart’s Red Glider<br />

Harma <strong>the</strong>obene<br />

Pseudathyma plutonica<br />

Pseudoneptis bugandensis Blue Sailer<br />

Bebearia cocalia Spectre<br />

Euphaedra eleus Orange Forester<br />

Euphaedra harpalyce<br />

Euphaedra medon Common Forester<br />

Euphaedra preussi<br />

Euphaedra uganda <strong>Uganda</strong>n Forester<br />

Aterica galene Forest Glade Nymph<br />

Catuna cri<strong>the</strong>a<br />

Pseudacraea clarki<br />

Pseudacraea eurytus False Wanderer<br />

Pseudacraea lucretia False Diadem<br />

Neptisconspicua<br />

Neptis melicerta Streaked Sailer<br />

Neptis metella<br />

Neptis nemetes<br />

Neptis nicomedes<br />

Neptis saclava Small Spotted Sailer<br />

Neptis trigonophora<br />

Cyrestis camillus African Map Butterfly<br />

Sallya boisduvali Brown Tree Nymph<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011


Sallya garega<br />

Sallya natalensis Natal Tree Nymph<br />

Sallya occidentalium Velvety Tree Nymph<br />

Byblia anvatara African Joker<br />

Ariadne enotrea African Castor<br />

Ariadne pagenstecheri Pagenstecher’s Castor<br />

Neptidopsis ophione Scalloped Sailer<br />

Eurytela dryope Golden Piper<br />

Eurytela hiarbas Pied Piper<br />

Hypolimnas dinarcha<br />

Hypolimnas dubius Variable Diadem<br />

Hypolimnas misippus Diadem<br />

Hypolimnas salmacis Blue Diadem<br />

Salamis cacta Lilac Beauty<br />

Salamis parhassus Forest Mo<strong>the</strong>r-<strong>of</strong>-Pearl<br />

Junonia chorimene Golden Pansy<br />

Junonia Sophia Little Commodore<br />

Junonia stygia Brown Pansy<br />

Junonia terea Soldier Commodore<br />

Junonia westermanni Blue Spot Pansy<br />

Antanartia delius Orange Admiral<br />

Phalanta eurytis African Leopard Fritillary<br />

Acraeinae<br />

Acraea aganice Wanderer<br />

Acraea alth<strong>of</strong>fi Alth<strong>of</strong>fs Acraea<br />

Acraea aurivilli Aurivillius’ Acraea<br />

Acraea cabira Yellow Banded Acraea<br />

Acraea egina Elegant Acraea<br />

Acraea epaea<br />

Acraea eponina Orange Acraea<br />

Acraeajodutta<br />

Acraeajohnstoni Johnston’s Acraea<br />

Acraea lycoa<br />

Acraea macaria<br />

Acraea macarista<br />

Acraea natalica Natal Acraea<br />

Acraea orinata<br />

Acraea peneleos<br />

Acraea penelope Penelope’s Acraea<br />

Acraea pharsalus<br />

Acraea pseudegina<br />

Acraea guirinalis<br />

Acraea rogersi Rogers’ Acraea<br />

Acroeo semivitreo<br />

Acraea servono<br />

Acroeo tellus<br />

Acroeo viviono<br />

Liby<strong>the</strong>inae<br />

Liby<strong>the</strong>o lobdoco African Snout<br />

HESPERHDAE<br />

Coeliadinae<br />

Coeliodesforeston Striped Policeman<br />

Pyrginae<br />

Celoenorrhinus bettoni<br />

Celoenorrhinus golenus Orange Sprite<br />

Celoenorrhinus proximo<br />

Eretis lugens<br />

Sorongeso bouvieri<br />

Sorongeso Jucidello Marbled Fifin<br />

Hesperiinae<br />

Gomolio elmo African Mallow Skipper<br />

Cerotrichio mobirensis<br />

Acleros mockenii Macken’s Skipper<br />

Coenides doceno<br />

Monzo cretoceo<br />

Borbo gemello Twin Swift<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | 2011 77


ANNEX 2 INVENTORY DATA<br />

Table III<br />

Mabira Forest Reserve<br />

Stand table <strong>of</strong> Total volume (m3) for Cpt 184 (605.6 ha, 33 plots)<br />

Species Diameter class (cm) Quality (50cm+)<br />

Code Botanical name 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90+ 10+ 50+ 70+ Relict Fair Good Merchandable<br />

volume<br />

241 Celtis zenkeri 633 1,091 1,589 1,885 0 5,199 4,566 3,475 2,977 1,589 4,566<br />

240 Celtis mildbraedii 229 252 400 1,110 886 1,325 0 4,202 3,321 1,325 555 2,766 2,766<br />

228 Alstonia boonei 1,629 0 1,629 1,629 1,629 1,629 1,629<br />

243 Chrysophyllum albidum 90 1,582 0 1,673 1,582 791 791 1,582<br />

465 Ficus spp 806 1,190 925 592 865 0 4,378 1,458 865 1,458<br />

238 Celtis durandii 608 868 637 849 0 2,962 849 849<br />

231 Antiaris toxicaria 123 60 425 555 0 1,163 555 555 555<br />

204 Albizia gummifera 477 0 477 477 477<br />

308 Broussonetia papyrifera 3,216 4,984 7,896 545 397 0 17,037 397 397<br />

212 Markhamia lutea 327 889 321 0 1,537<br />

542 Trema orientalis 210 332 270 0 812<br />

423 Bosquiea phoberos 50 320 705 0 1,075<br />

242 Celtis wightii 302 297 316 0 916<br />

Magaritaria (Phyllanthus)<br />

510<br />

306 43 0 349<br />

discoideus<br />

444 Croton macrostachys 64 463 0 527<br />

604 Croton oxypetalus (sylivaticus) 190 218 0 408<br />

549 Uvariopsis congensis 230 0 230<br />

545 Trichilia prieuriana 72 138 0 210<br />

420 Blighia unijugata 131 0 131<br />

205 Albizia zygia 104 79 0 182<br />

286 Spathodea campanulata 53 88 0 140


264 Funtumia elastica 111 0 111<br />

272 Morus (lactea) mesozygia 93 0 93<br />

245 Chrysophyllum mnerense 78 0 78<br />

583 Maerua duchensii 57 0 57<br />

Sub total <strong>of</strong> common spp 6,484 9,825 12,246 2,189 3,388 4,152 3,779 3,515 0 45,578 14,835 7,294 3,736 4,323 6,776 11,099<br />

Sub total <strong>of</strong> o<strong>the</strong>r spp 0<br />

TOTAL 6,484 9,825 12,246 2,189 3,388 4,152 3,779 3,515 0 45,578 14,835 7,294 3,736 4,323 6,776 11,099<br />

Sampling error % 14.7% 10.2% 17.6% 34.8% 44.6% 59.5% 57.6% 100.0% 13.1% 31.6% 55.3% 39.3% 53.1% 42.8%<br />

RME (P=95.0%) 4,537 7,777 7,867 639 312 33,448 5,297 745 874 519<br />

Table IV: Summary Table <strong>of</strong> Key Timber Species and Paper Mulberry in Compartment 184 for graphical analysis<br />

Botanical Names Midpoint 39375 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90+<br />

Celtis zenkeri 15 0 0 0 633 0 1091 1589 1885 0<br />

Celtis mildbraedii 25 229 252 400 0 1110 886 1325 0 0<br />

Chrysophyllum albidum 35 0 90 0 0 0 1582 0 0 0<br />

Celtis durandii 45 608 868 637 0 849 0 0 0 0<br />

Antiaris toxicaria 55 123 60 0 425 555 0 0 0 0<br />

Broussonetia papyrifera 65 3216 4984 7896 545 397 0 0 0 0<br />

Celtis wightii 75 0 302 297 316 0 0 0 0 0<br />

Trichilia prieuriana 85 72 0 138 0 0 0 0 0 0<br />

Albizia zygia 105 104 79 0 0 0 0 0 0 0<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | March 2008 79


Fig AI<br />

Icut id nonsimu sperurbitiac rei cus, fuium tuastio in publibus sterace remover essimissatin at. Mulego<br />

ex sedo, Catum crentro hala nonsule simius publicut omnostandest perritam prips, quius cupiostod im<br />

in tionsus nos Mulica; halestistori ingultus et, veriorum occhilicae ficient? Qua cae quem consupie tuis<br />

Distribution <strong>of</strong> Paper Mulberry, Key Timber Species and Total Volume by Diameter Classes,<br />

cae, nocurente at. Sp. Hossimihica vivit ius cernum publicit.<br />

Compartment 184<br />

Estro ca L. Sendam pra, sa enat vit. ete, Cast faccissente, et? in ducid coentiu is, nos actus iu videpervivid<br />

Cato condam mo urnis.<br />

14000<br />

Ectum teste consulic maximpotia? Hus porentra vendestrum ius, pato incere pultorum inatum octum in<br />

senatis eribunt.<br />

Lut viverte 12000mperioribus;<br />

nonsunticaet nes, ca inte, norditu mum Roma, clut factuiurbis, nocaper fernum<br />

quam horum sena, quam me ad C. Overo, consus, orest pris, coneniu et Catiena tilnem rem trari patus<br />

nos erebatuit quam, consuam verit, seniam nox muntum ocaed re tam. Verit; hos horibus, Catusa L. Mae<br />

condacrei 10000 publicu pplicienit, cont dessena, dempl. Sulis estere mus publi, oc, aris.<br />

Dem perrio, quam deo ermius, cri ta, que ma, te in vaterebatus es reo Cat.<br />

Dectemque constis cavemo a Sima, qui seniculegere acture me con viviriondam in Etractuam di con re<br />

priampe 8000 rtemquam hos mediestem tem te re, Casdam scrum reo, furs adduc facerem mantis conemus<br />

labulium senervider que iam ad caetici ses adhuspiorum iu mist accis Mae hori cupplist L. Halessuperes<br />

mor iaelabul vilnes hos, octe, vide ex sa publissolus, quos anulictaris aut castrestris? Viu vissolinpro<br />

horituidies 6000contemuri<br />

isseniu mus, con huciis con suliconfecii in tem facios etemei popte ium que es<br />

ex mandi pri pra? An venatu consce remei sesi ideatam moruntil con horum pero mum ore am is vem<br />

prorum postracci in publiura? Nam ve, simus, ubitis bonsulatius constri sunita, quam conde iu verit.<br />

4000<br />

Terferfiris cusquasterte me quodien terrarid cientrac teremus am nonum Romanti ferobse nimulem auc<br />

fachilin Ita L. Sa nox serital arbis, conture, Ti. Vivis dit.<br />

Irmium, moenderi st que porterei silin viverni quastis me deri simantemura re audem popublicam ilis.<br />

2000<br />

Sime quius, sesua prae patus actus cone con trum senatur hacchil convent, optimanum dervirtus C.<br />

Ibunclerce con anum curox mentic iu clus, C. Torum intium ter ac trendam. Ostorio iae consilin horte<br />

hordie ia? Etratus 0 culissolus ellem tuus, nos veret rebus confice ca me derteri es coeniam con teroptis<br />

spiossu liquos, noniu 15 cupici 25 cotis bonte 35nequam 45 tem etodius, 55 iam arissenatror 65 75 iam hinatum 85 il veniam 105<br />

inaterfinte inatque no. Nam es confex niri, contra Diameter peres cae Mid-Point iam re conc (cm) factam. Catum quidendie orbit,<br />

faci probut publicaequo pubita ca; nequiti stanum factu consulvita, quamenterit? Nam diu condeo<br />

patabit. Sendum, ompordi caedo, sentemu ntiacci consul hostemquis, seres dicae tur, quidem idiu vid<br />

Key Timber Species<br />

Paper Mulberry<br />

Total Volume<br />

Volume (m 3 )


dem quastanum publicaet publici orbit? Tum, quem cleris? Mantero pticast notessentem sulto C.<br />

Fig AII<br />

Distribution <strong>of</strong> Paper Mulberry, Key Timber Species ,Total Volume By Diameter Mid Point Classes in<br />

Compartment 184<br />

Celtis zenkeri<br />

Celtis midbraedii<br />

Chrysophyllum albidum<br />

Celtis durandii<br />

Antiaris toxicaria<br />

Broussonetia papyrifera<br />

Celtis wightii<br />

Trichilia prieuriana<br />

13000<br />

12500<br />

12000<br />

11500<br />

11000<br />

10500<br />

10000<br />

9500<br />

9000<br />

8500<br />

8000<br />

7500<br />

7000<br />

6500<br />

6000<br />

5500<br />

5000<br />

4500<br />

4000<br />

3500<br />

3000<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

Volume (M 3 )<br />

Albizia zygia<br />

Total Volume<br />

15 25 35 45 55 65 75 85 105<br />

Diameter Mid Point (Cm)<br />

The Economic Valuation <strong>of</strong> <strong>the</strong> Proposed Degazettement <strong>of</strong> Mabira CFR | March 2008 81


About <strong>Nature</strong><strong>Uganda</strong><br />

<strong>Nature</strong><strong>Uganda</strong>, <strong>the</strong> East Africa Natural History Society is <strong>the</strong> oldest conservation organization<br />

in East Africa having been set up in 1909 as a scientific organization with <strong>the</strong><br />

primary aim <strong>of</strong> documenting <strong>the</strong> diversity <strong>of</strong> wildlife in East Africa. Although <strong>the</strong> activities<br />

<strong>of</strong> <strong>the</strong> society were disrupted by political instability in <strong>Uganda</strong> in 1970s-1980s, <strong>the</strong><br />

activities were rejuvenated in early 1990s with <strong>the</strong> identification <strong>of</strong> Key Biodiversity<br />

Areas (KBAs) such as <strong>the</strong> Important Bird Areas (IBAs) and Ramsar sites. Over <strong>the</strong> past<br />

20 years, <strong>the</strong> activities <strong>of</strong> <strong>the</strong> organization have diversified to embrace biodiversity<br />

conservation and sustainable Natural Resource Management.<br />

The organization implements research, conservation and advocacy programmes with<br />

particular focus on priority species, sites and habitats across <strong>the</strong> country. This is<br />

achieved through conservation projects, environmental education toge<strong>the</strong>r with government<br />

lead agencies, local government and local communities, and membership<br />

programmes activities such as Public Talks, excursions and <strong>Nature</strong>-walks that are key<br />

advocacy and public awareness tools.<br />

Our mission is to promote <strong>the</strong> understanding, appreciation and conservation <strong>of</strong> nature.<br />

In pursuing this mission <strong>Nature</strong><strong>Uganda</strong> strives to:<br />

• Create a nature-friendly public<br />

• Enhance knowledge <strong>of</strong> <strong>Uganda</strong>’s natural history<br />

• Advocate for policies favorable to <strong>the</strong> environment<br />

• Take action to conserve priority species sites and habitats<br />

<strong>Nature</strong><strong>Uganda</strong> is <strong>the</strong> BirdLife International partner in <strong>Uganda</strong> and a member <strong>of</strong> IUCN.<br />

Contact address:<br />

<strong>Nature</strong><strong>Uganda</strong>, The East African Natural History Society<br />

P. O Box 27034, Kampala, Plot 83 Tufnell Drive, Kamwokya,<br />

Tel.: +256-414-540719, Fax: +256-414-533528,<br />

Website: www.natureuganda.org or email: nature@natureuganda.org<br />

Promoting <strong>the</strong> Understanding, Appreciation and Conservation <strong>of</strong> <strong>Nature</strong>

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