All over the world and in locations challenged by diminishing ecosystems through deforestation and ultimately changing climate conditions, it is slowly dawning on environmentalists, agriculturalists, investors and entrepreneurs alike that there is money to be made from trees.
It has been noted that a tree-based economy is possible and has high yields for investors, entrepreneurs as well as the environment.
Profitable Trees
Trees represent a profitable and renewable resource which is a versatile income as the initial investment is minimal though the rewards substantial.
As the biggest plants on the earth, they give us oxygen, store carbon, stabilise the soil and give life to the world’s wildlife.
Trees are vital for the environment and the revenue, as their value will increase with its growth every year.
According to a report from the World Resources Institute (WRI), it has been found that businesses can make money from planting trees, with sales growing up to 10 times per year.
The time for trees is now
WRI President and Chief Executive Officer (CEO), Andrew Steer and The Nature Conservancy president and CEO Mark Tercek state in their ‘The Business of Planting trees: A growing investment Opportunity’ report that there has never been a better time to invest in land restoration.
“Restoring degraded land has the potential to become big business. Established companies and entrepreneurs are finding new ways to make money from sustainably managed forests and farms.”
Emerging business of carbon capture through trees
Some entrepreneurs are betting that a huge new business for natural carbon capture and sequestration will emerge, which in this case include Zambia as per its signatory to the Kyoto Protocol and COP21, as more governments charge for a fee for emissions that drive climate change since these could provide more than a third of the emissions reductions necessary to keep global warming under 2 degrees Celsius.
The tree-based economy
According to WRI and The Nature Conservancy the restoration economy which is similar in nature to a tree-based economy refers to the network of business, investors and consumers that engage in economic activity related to restoring land, which in this instance focuses primarily on tree-based restoration – completely replanting a defrosted area with trees – to agroforestry – establishing agricultural systems that incorporate trees.
United States restoration economy $15 billion
There are no official measures to the size of the global restoration economy.
This is not surprising because restoration spans a broad range of industries, ecosystems and regions.
At the national level, data are seemingly scarce in most countries.
In the United States, a 2015 BenDorstudy estimated that the American restoration economy generated US$9.5 billion in annual economic output and created an additional US$15 billion in indirect and induced output.
The study found that the ecological restoration industry employed 126,000 Americans in 2014, exceeding jobs in coal mining by 59 per cent.
The case of trees in Kenya
In Kenya, a company called Komaza seeks to provide an alternative source of timber as its support towards the restoration economy and creating a domestic supply of sustainable wood while augmenting farmers’ incomes and generating environmental benefits in a biodiversity hotspot.
Ultimately, Komaza uses a distributed plantation model which works with smallholder farmers to plant eucalyptus and mukau (a native mahogany tree) on farmers’ land.
Currently, Komaza provides seedlings, tools, and training, while farmers provide the labour and the land.
When the trees are ready for harvest, Komaza buys the timber from the farmers at a fair price, providing families that rely on subsistence farming with a new—and significant—source of income.
Kenya tree economy with 9,000 farmers investing US$9 million
To date, Komaza has planted two million trees in cooperation with around 9,000 farmers.
It has raised more than $9 million in its Series A investment round in 2017 and expanded from a team of 110 to 450 in two years.
Komaza is part of a broader trend of entrepreneurs and companies aiming to make money by restoring degraded forests and farmland.
The fruit tree business in Zambia
In Zambia, communities have been trading and earning a living from the public fruit trees found along the countryside, grown in the backyard as well the various species of fruits trees found in the woodland, forests and countryside across the country.
As such it can be said that tree haves indeed sustained and assisted in the livelihood of varied Zambian families, however, there is need for a concerted effort to mitigate the effects of deforestation and mitigate the effects of climate change affecting the Zambian ecosystem resulting from population growth.
Plant A Million trees approach
Plant A Million (PAM), an initiative of Munich Advisors Group believes that indeed a restoration economy can aid the country in changing the economic outlook and directly the Zambia people.
The vision of PAM is to create a ‘Tree-based Economy’ which will enable to mitigate climate change with economic benefits for Zambia, dubbed ‘Growing your money from Trees!’.
Through an initiative such as PAM, communities in Zambia from the urban to the rural setting can change and/or improve the livelihood through growing trees.
This can be done through: landscaping, growing sustainable timber, agri-food processing, planting of exotic and indigenous tree fruits, nuts and edible products, fruits and value added products, commercial and exotic wood for wood products, growing seedlings – the nurseries, natural carbon capture through carbon credits, as well many other additional uses.
Landscaping plants – These are different types of shrubs and trees that are in constant demand as they are used in beautifying a piece of land.
Sandy’s creation started the trend and this has seen many landscaping businesses dotted around the city and country.
Landscaping refers to any activity that modifies the visible features of an area of land, including living elements such as flora and fauna; or what is commonly called gardening, the art and craft of creating a beauty within a landscape.
Growing sustainable timber – This helps to improve the land quality and support small holder farmers.
This refers to timber that is harvested responsibly and in a way that safeguards that each tree removed is replaced by another tree, either naturally grown or planted.
This also involves ensuring that the there is no ecological damage to the surrounding environment or its native flora and fauna.
This timber is consequently sold at lucrative prices, the world over.
Agri-food processing – This sector is the process of food production and distribution, and includes a vast range of roles from farming to the point of eating.
This is a value addition industry that supports the agronomic environment through a large and diverse range of crops and livestock.
Planting of exotic and indigenous tree fruits,nuts and edible products – Native fruits offer nutrients that often come up short in some diets, and they grow on trees that provide a range of ecosystem services.
These trees are stimulating market demand due to their properties and health benefits, while creating jobs for locals in rural areas.
Fruits and value-added products – This includes growing commercially popular fruits that are exotic to the region, such as avocadoes, oranges, mangoes, papaya’s, lemons, guava’s and other fruits which are often in high demand by the Zambian public, the region and global market.
The value added products such as jams, juices and health snacks also fetch high-end prices.
Commercial and exotic wood for wood products–This different types of wood produce wood products that are required locally, the region and international market due to the versatile quality of commercial and exotic trees.
Growing seedlings – the nurseries: these nursery businesses provide a substantial income as people are always looking to beautify their home and landscape.
Apart from having seedlings and potted plants for planting, some nurseries also offer lessons in planting of the potted plants as there is always a market for trees.
Natural carbon capture through carbon credits – as carbon dioxide, the most popular greenhouse gas produced by combustion of fuels continue to affect the planet, developing nations such as Zambia have and can continue to partner with developed countries to set technology that is eco-friendly in capturing this carbon dioxide thus earning a developing nation “credits’.
Agroforestry and biodiversity
In addition, traditional agroforestry systems often harbor high biodiversity that can deliver a wide array of tree foods including fruits and leafy vegetables that are both cultivated and are remnants of natural forest; this has a wide market amongst lovers of native traditional food. As such when agroforestry systems are established in combination with shade trees, food diversity and sustainability of tree crop systems increase.
In Ethiopia, for example, the inclusion of fruit-bearing trees as shade in coffee plantations provides farmers with access to additional foods, such as mangoes, oranges, bananas and avocados, as well as firewood and timber.
Thus, it can be said that there are several ways in which communities across the world and Zambia in particular can make money from trees. It all depends on their choice of tree and vested interest.
Zambia – Plant A Million
The Plant – A – Million Initiative is a tree planting movement with the expanse and ambition to become Africa’s premier example of a ‘Tree-based economy’.
The vision of the initiative is to create a ‘Tree-based Economy’ which will enable to mitigate climate change with economic benefits for Zambia. Growing your money from Trees!
Stop Talking. Start Acting!
For more information contact Emanuel Chibesakunda at info@PlantAMillion.co.zm: +260 (211)257800.