Conservation of biodiversity and sustainable management of natural resources and forests (VPT 1)

active

The project finances the establishment of private reforestation areas on communal land in 6 neighboring districts in Amhara and supports their management at village level. 75% of the reforestation areas are planted and managed with short-rotation tree species and 25% of the area with long-term valuable wood. This is implemented in close cooperation with the state regional forestry company (AFE) and the local authorities. Loans are granted to the user groups via a regional microfinance institute (ACSI) to finance the reforestation and maintenance costs of the plantations. If the 25% of the valuable wood area, which is to be permanently established as mixed forest, is still preserved after 6 years, the repayment of the loan will be waived. In order to better use the wood and increase added value in the forestry sector and wood processing industry, the project also supports wood harvesting, transport and processing. Forestry contractors, processing companies and sawmills as well as service providers and craftsmen receive sustainable access to adapted loan and leasing offers. The granting of loans and leasing contracts is also carried out by a microfinance institute according to defined economic criteria. The project supports both the procurement and the introduction to the handling of tools, machines and consumables. Overall, the project aims to increase and diversify the income of the local population and to preserve biodiversity in the selected rural areas through reforestation and sustainable management of municipal forest areas by communities and user groups and the improvement of local value creation by promoting the wood processing industry (module objective).