Assessment of the Economic feasibility of Community Forests Case Study of Sinnar State (Sudan)

Abstract

Community forestry is practiced in various countries throughout the world for livelihood, forest protection purposes and also for urban amenity values. The main objective of this study was to assess the economic feasibility of different types of community forests in Sinnar State. Specifically, the study aimed to investigate the elements of costs and benefits of community forests, estimate the value of costs and benefits, and to assess the socioeconomic impacts of communal forests. The study was carried out in Sinnar State purpose by where different community forestry practices exist. Two types of data were collected namely, primary and secondary data. The sources of the secondary data were mainly the Forest National Corporation documents, files, articles, and annual reports. The methods for primary data collection were; structural face-toface interview with primary stakeholders (private forests – village forests), group discussion with key informants, and a self-administered questionnaire with the staff of FNC. The collected data was analyzed using the Statistical Package for Social Sciences (SPSS). Descriptive statistics including frequency distribution and cross tabulations were used to obtain the percentages to interpret the qualitative information collected from the respondents. ChiSquare test, and t-test were used as tools for conducting tests of significant differences between the variables (return, guarding, taxes, area, production, Price), where it was deemed necessary. Financial feasibility analysis and Multiple Regression Analysis were carried using Excel programme. Results of this research revealed that there was significant variation (P<0.01) in education level among respondents. The result of the study showed that private and village forests owners are highly aware of forests cultivation and community forestry in the study area provides services to the community (water, electricity, and building of schools, health care centers). The study reveals that the forests were sources of income and community members were involved in their management. The result of the multiple regression of private forests (the area per feddan, cost of fencing, cost of guarding and cost of taxes) showed coefficient of determination was 0.66 (meaning that the explanatory variables included in the model explained 66% of the variations in the dependent variable (revenue per feddan). The results of the multiple regression of village forests (cost guarding, taxes, the area per fedden, the production /m3/fed) showed that coefficient of determination was 0.62 (meaning that the explanatory variables included in the model explained 62% of variations in the dependent variable (revenue per feddan). The indicators of the economic feasibility studies of the private and village forests showed that the two types of forests were profitable under the specified discounting rate for development projects (12%).The Results showed that private forests in the study area were profitable because NPV was 2561.97 (SDG/fed), B/C ratio was 4.01, PI = 7 years, IRR = 16.50% .In the village forests NPV was 1351.0(SDG/fed), B/C ratio was 4.50, PI = one year, IRR = 13.08%. The indicators of the Sensitivity analysis studies of the private and village forests showed that profitable the two types of forests to increase costs and decrease of revenues with percentage (5%) were under the specified discounting rate for development projects (12%).The Results showed that private forests in the study area were profitable because NPV was 2348.74 (SDG/fed), B/C ratio was 3.63, IRR = 16.15% .In the village forests NPV was 1244.93(SDG/fed), B/C ratio was 4.08, IRR = 12.87%. The study recommended that Forests National Corporation should train the local people in management and supervision of the different communal forest activities. Different forms of direct and indirect taxes imposed by the government need to be revised and government should find outlets to finance the farmers. Finally, government should open channels for the marketing of forest products.