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Challenge

Timber is Fiji's third-largest export commodity and the sector still has considerable growth potential. However, land-use conflicts arising from the pattern of ownership have contributed to the degradation of the forest resource, particularly in natural forest, and have often been viewed as a major constraint to sustainable forestry management. With 55,000 hectares of plantation of the high-value species mahogany the Government sought a way to improve the governance and operation of this valuable resource.


Strategy

Our forestry and economic experts were brought in to help corporatize the forestry operation then run by the government to explicitly separate political considerations (support of favored groups who vote or provide campaign funds for candidates) from economic considerations (involving the financial sustainability of the SOE and performance improvements). Our experts established a new entity that could operate as a forest grower, marketer of logs, and processor and marketer of sawn timber and value-added solid wood products. As part of this process, our experts developed strategic and functional business plans (marketing, operations, HR, financial and R&D), an external financing plan, capacity development plan and KPIs for senior management, a Cash Management Plan, undertook a review of geographic land information issues, including assessing data quality and adequacy, population on and abutting forestry land, detailing population densities, topographic and other prominent features, and land tenure and use.


Transformation

By vesting management authority into the new Fiji Hardwood Corporation, forestry planning was decentralized, and the new entity was able to reward success more effectively than government management, and the forestry and land use decision makers were more accountable for the risks they take. The responsiveness of the new entity to local environmental constraints and economic priorities also improved because managers would not be subject to national quotas or directives and were able to better take into account sustainable forestry management and ESG issues.

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Capacity Development.

Economic Growth.

Governance.

Private Sector Development.

Social Development.

Promoting Economic Efficiency and Enabling Business Environment.

Client Relations, Network and Partnership Development.

Developing Rural Areas.

Eco-Efficiency.

Institutional Development.

Knowledge Science and Technological Capacities.

Organizational Development.

Promoting Economic Efficiency and Enabling Business Environment.

Widening Access to Markets and Economic Activities.

Infrastructure.

Environment.