Project

Client

Customers

Project Status

Ongoing

Slidetec modern sawmill technology

Project objectives

The overall objective of this project is to enhance small scale saw millers to acquire efficient sawing technology which will increase timber output and profitability.

The specific objectives of this project are:

i. To enhance saw millers to acquire modern sawmill through self-financing or access to financial institutions.

ii. To increase saw mill recovery rate and reduce wood wastage and hence reduce environmental pollution caused by burning of slabs and sawdust.

iii. To enhance forest management to supply raw materials (logs) on sustainable basis and hence conserving forest and environment.

iv. To enhance saw mill manufacture and selling partner to sell about 50 units by June 2018 and hence generate sufficient profit.

v. To build capacity of sawmill owners and operators in managing and operating machines through specialized training course.

Project beneficiaries

The project will benefit the following target groups as follows:

i. Individual saw millers

Through project activities the saw millers will be able to increase the current sawmill recovery rate of 23% up to 53%. This means double increment in their production which on the other hand means double increment in profitability. The financial increment means that the saw millers will be able to pay back the loans of machine at specified period of time.

ii. Forest management

TFS customers will be able to increase the recovery rate whereby they will be able to obtain more timber from the current quantity of raw materials allocated annually and hence reduce the pressure of more allocation of raw materials. TFS can also limit the number of saw mills to work with and allocate the optimum quantity of raw materials as per annual forest allowable cut target.

iii. Central and local government

Central and local government will benefit from tax paid by individual saw millers in form of income tax, VAT and CESS. It is expected that as the production increases it will increase the government earnings and hence increase capacity of government in financing social services.

iv. Community

The community surrounding Mufindi district will benefit from the employment offered by saw millers and community beyond Mufindi district will benefit by increment of timber production which will eventually lower timber price and hence increases its affordability.

v. Timber traders

Timber traders will benefit as increment in timber production will lower the price and they will be able to supply timber to the market at reduced price while maintaining their profitability.

vi. Funding institutions

Funding institutions will benefit as loans will be returned at a specified time and hence lending agencies will benefit from the amount of interest paid on loans.

Status of the project

One saw mill unit have been brought in the country and it participated in Forest and Forest industries trade fair hosted by Private Forestry Programme (PFP) operating in the Southern Highlands of Tanzania. The trade fair took place in Mafinga – Iringa from 21st to 23rd March, 2018. Slidetec modern sawmill attracted the attention of Saw millers and Timber traders. From this trade fair 18 participants registered for application to buy the sawmill and negotiation are under way to obtain loans from EFTA - Tanzania, a company which offer loans for procurement of machinery equipment.