EAMCEF IN PERSPECTIVE (10 th RedLAC General Assembly Belize City, Belize)

Transcription

1 EASTERN ARC MOUNTAINS CONSERVATION ENDOWMENT FUND (EAMCEF) MFUKO WA HIFADHI YA MILIMA YA TAO LA MASHARIKI EAMCEF IN PERSPECTIVE (10 th RedLAC General Assembly Belize City, Belize) By Francis B.N. Sabuni Executive Director Plot No. 30,Kingalu Road P.O. Box 6053 MOROGORO- TANZANIA Tel: ; Fax: [email protected]; Website: November 11 th, 2008

2 I. INTRODUCTION Rationable The Eastern Arc Mountains Conservation Endowment Fund (EAMCEF) is a Trust Fund that was established as a mechanism to provide long-term reliable support for Community Development, Conservation Projects and Research Activities, which promote the biological diversity, ecological functions and sustainable use of natural resources in the Eastern Arc Mountains of Tanzania. The main intention of establishing the Trust Fund is to address the need for a long-term sustainable approach to funding the conservation of forest biodiversity in the important ecosystem. Activities which contribute to the promotion of economic development and social welfare of the local communities in the target areas are given high priority for funding by EAMCEF.

3 TANZANIA, GEOGRAPHICAL LOCATION

4 SOME BASIC FACTS ON TANZANIA Tanzania is one of the developing countries in the world. It has an area of 945,090 km 2 with 59,050 Km 2 covered with water. The economy is heavily dependent on agriculture, which accounts for half of the GDP, provides 85% of exports, and employs 90% of the workforce. The total population by 2002 was about 35,922,454 people with a density of 20 people/km². The topography and climatic conditions, however, have limited the cultivated crops to only 4% of the land area. The industrial sector is limited mainly to processing agricultural products and light consumer goods. Although it has vast amount of natural resources like gold deposits, fisheries and beautiful national parks e.g. Serengeti and Mt. Kilimanjaro, they are mostly underdeveloped and less exploited thus they generate little revenue. Tanzania is a United Republic comprising of Tanzania Mainland and the Isles of Zanzibar. It is a multi-party democracy with a liberalised economy which now boasts an investment climate very attractive for foreign investments.

5 II. Eastern Arc Mountains Conservation Endowment Fund Conserving Biodiversity for Sustainable Development

6 EAMCEF in Action In the Mufindi District, Uzungwa Scarp Forest Reserve, 480 villagers in four villages have been trained on: Savings and credit schemes Construction & use of energy efficient stoves Rehabilitation In addition, in all four villages: Economic groups have been formed and are continuing Construction of energy conserving stoves is well underway and will be a continuing process In all cases Villagers have been imparted with knowledge and skills on environmental conservation Seedlings This project was funded for one year by EAMCEF at a cost of Tshs 11,500,000/= It was implemented through Incomet 2001 Ltd., an NGO located in Mafinga-Mufindi District Efficient Stoves

7 EAMCEF The Permanent Eastern Arc Conservation Fund History: Founded in 2001 component of Tanzania Forest Conservation & Management Project (TFCMP) Funded by GEF, GOT, World Bank - IDA Mission: Catalyze resources to foster conservation of forest biodiversity in the Eastern Arc Mountains through investment in sustainable community development, sustained financing for protected areas management and financial support to applied research. Grant Making for: Direct conservation of priority forest blocks Community based sustainable development Applied research

8 The Urgent Need for Conservation & Sustainable Development 5,350 sq Kilometers of Mountain Blocks Mwanga Same Lushoto Spread over 15 districts in 5 regions Mvomero Kilosa Kilindi Korogwe Mkinga Muheza Mpwapwa Biodiversity, Water, Livelihoods, Carbon Mufindi Kilolo Morogoro Kilombero Ulanga

9 Urgent Need: Part of the Eastern Afromontane Region - A top 34 Global Biodiversity Hotspot 97 species of endemic vertebrates, 1500 plants, 100 invertebrates Highest rate of endemism per hectare in the world Highest rate of threat per hectare in the world

10 Urgent Need: Critical source of Water, Energy, Carbon Water supply to 9 million 25% of TZ population estimated value $17.5 million per year Provides 60% of TZ hydroelectricity estimated value $7.9 million Billions of tons of carbon sequestration in 300,000+ hectares of forest

11 Urgent Need: Supports the livelihoods of millions Provides for 40% of household consumption in many adjacent communities firewood, building materials, herbs, fruits Basis for economies of DSM & central coast Sustains large scale agriculture sugarcane, tea, & coffee Supports tourism Habitat for wildlife & birdlife Attracts eco-tourists Brings $ to diverse communities

12 Urgent Need: Threats from all sides FIRE Illegal logging Livestock grazing Subsistence agriculture Commercial agriculture Mining Lack of: Awareness Management Resources POVERTY Mining in the Forest Subsistence Agriculture in the Ulugurus Illegal Logging

13 By Funding EAMCEF, one of the world s hotspots can be saved, providing water, power, carbon, and economic opportunities for millions of people

14 What if no additional funds are provided? Work on conservation & sustainable development can continue only to 2 of 12 target areas (the Udzungwas and Usumbaras) 63,000 of 300,000 hectares 6 districts (53 villages) out of 15 Only 4 of 150 forest sites in dire need of attention can receive funding Ability to respond to long term challenges associated with population and economic growth will be limited In areas with no funding, current negative trends will continue unabated

15 EAMCEF s vision for the future Eastern Arc forests are protected, with boundaries clearly delineated and respected Local communities act as stewards of their forests and are beneficiaries of payments for the water, carbon, and biodiversity they care for

16 Target Funding Sources 2013 $4,500 Funded by donor and ecosystem service revenues helps to sustain conservation efforts for a long time to come $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 Annual Funding Perpetual Revenue Sources Endowment $500 The source of water remains intact; forests remain as a resource to combat climate change and provide a healthy habitat for the region s unique biodiversity $0 ECOSYSTEM SERVICES NGO and Private Donors Government Donors

17 Funds are needed to: Provide grant funding to additional forest reserves and villages in both current & new forest blocks $200,000 - $400,000 annual grants or sinking fund equivalent Provide sustainable long-term support in areas where existing programs are ending the Ulugurus $100,000- $200,000 annual grants Dr. Felician Kilahama, Director of Forestry and Beekeeping Division, Ministry of Natural Resources and Tourism, Tanzania EAMCEF is a very good organization and is well recognized for its work so far. They need more money. I have made appeals personally on their behalf and feel frustrated. Why can t people see the importance of giving this organization more resources?

18 Funds are needed to Increase EAMCEF s endowment to allow for full sustainability $7 mm - $30 mm will preclude need for grants Support EAMCEF s efforts to serve as an independent, honest broker for water services payments, carbon credits, and microfinance channeling resources to the people who steward the forest resource $100,000 -$200,000 for program development and pilot programs EAMCEF is a very good model which many are looking to for permanent funding for conservation. But, they need to be a $30 million dollar fund to fulfill all of their mission for the Eastern Arc Forests. Ms Nike Doggart, Tanzania Forest Conservation Group

19 Why Contribute to EAMCEF? 1. Demonstrated success: a strong track record to date 2. Effective grant making: a rigorous, transparent, performancebased project selection & review mechanism 3. Connected to local communities; proven ability to work at the micro level 4. Fully developed, permanent capacity & Infrastructure to implement grants & make on-the-ground investments happen 5. Demonstrated good stewardship of funds 6. Robust relationships and partnerships 7. Unique positioning to implement cutting edge programs 8. Strong, independent leadership at staff & board level 9. Lean & non-regulatory: not a bureaucracy, carrot not stick 10. Leverage & Permanence existing resources; long term approach

20 1. Demonstrated Success Fully achieved all major milestones in the establishment phase: Secured initial $7 million grant from GEF Selected offshore investment manager (UBS) & invested funds in diversified portfolio Created grant making guidelines & procedures Established office; hired staff Conducted situation analysis; established priorities Funded 27 projects in pilot phase of grant program Developed strategic plan & fundraising framework Formed Local Advisory Committees in targeted forest blocks Indicator Actual Status (%) EAMCEF is established and is fully functional by June (October 2004) All eight benchmarks and one indicator for the GEF Capital Endowment attained by December (March 2006)

21 2. Effective Grant Making Created and implemented grant making mechanism Established criteria and procedures for grant selection including a process for independent review and vetting of proposals; only 1 in 3 proposals are accepted for funding Created performance-based 3 trenche system for distributing funds Recipients must document activities relative to plan and account for all monies before receiving subsequent funds Butterfly Farming High degree of accountability and transparency 27 grants awarded to date totaling 260 million Tshs; additional 23 grants recently approved with initial funds ($400,000) waiting distribution Boundary Clearing

22 3. Connected to Local Communities EAMCEF active in 53 villages, working with community groups, leaders, and individuals dependent on the forest 5 Local Advisory Committees established engaged in program outreach and grant implementation Grant projects implemented at village level technology transfer, income generation (beekeeping, agroforestry), forest boundary clearing, awareness building. Many communities now connect their well being to conservation of the forest

23 4. Developed Capacity & Infrastructure EAMCEF fully established staff, office, vehicles, granting & control mechanisms Handling of funds is highly transparent Investment in capacity building will be completed by end 2009 subsequent funds will all go to grants and program implementation. Ready ability to scale up as additional resources are obtained Staff & Associates

24 5. Demonstrated Good Stewardship Rigorous, proven process for ensuring accountability and performance based grant funding Approach implemented on 27 grants during pilot phase Careful management of the endowment Diversified portfolio Strong growth in 2007 up 7.4% Nov 07 June 08 decline of 1.2%, way better than major indices AMOUNT ($) 7, , , , , , , Dec. '06 Jan. '07 Febr. '07 March '07 TOTAL ACCUMULATED CAPITAL PERIOD April '07 May '07 June '07 July '07 Aug. '07 Sept. '07 Oct. '07 Nov. '07 Dec. '07 Total /Accumulated Capital

25 6. Robust Partnerships EAMCEF works in partnership to accomplish goals, leveraging resources and expertise of others Key partners include: CARE, WWF, TFCG, TAFORI, SUA,FBD/GOT, District Councils Strong support from & close working relationships with Forestry & Beekeeping Division, MNRT Ongoing support from World Bank IDA credit extended for 2 more years 5 successful performance reviews 5 clean audit reports

26 7. Unique positioning for innovative programs New approaches such as Payment for Water Services (PWS) and carbon credit schemes will require an effective, efficient entity to: 1. Channel funds from buyers to local communities doing conservation 2. Monitor and audit to ensure performance & outcomes EAMCEF is also well positioned for micro-finance programs that focus on both poverty reduction & conservation Dr. George Jambiya, WWF Tanzania Programme Office Work going on with establishing a mechanism for the buying and selling of carbon credits in Tanzania will make EAMCEF even more viable than they are today. They are the model for how to transfer benefits to local communities and their good work thus far has laid an excellent foundation.

27 7. Unique positioning for innovative programs EAMCEF is uniquely positioned to provide these services due to its: Independence Reputation for transparency and as an honest broker Performance-based funds disbursement and audit capabilities Ability to make investments that can lead to income flows Dr. Balaram Thapa, Assistant Country Director and Director of Programs, CARE International, Tanzania EAMCEF is well placed to be a channeler to sellers of eco services in the Eastern Arc Mountains. We are interested in seeing if this can be done. They have a very good reputation and track record.

28 8. Strong, Independent Leadership Operates as an NGO independent of the Government 9 member board with diverse representation from the private, legal, academic, NGO, local community, and government sectors Run by an Executive Director reporting to the Board and a Secretariat office out of Morogoro Current Chair: Dr. Magnus Ngoile; Past Chair: Professor Said Iddi Dr. Magnus Ngoile, Chairman, EAMCEF The EAMCEF is an extremely popular program and is increasingly so. It took years of groundwork for EAMCEF to communicate why the Eastern Arc Mountains are so important. By being careful and thorough in their approach, they have a very positive image

29 9. Lean & Non-regulatory Small staff of 10 Executive Director 1 Program & 2 Field Officers Accountant Support staff Responsible for $7 million Endowment Fund and all grant funding activities Enabler, not regulator; non-governmental BOARD OF TRUSTEES (BOT) EXECUTIVE DIRECTOR (ED) FINANCE AND ADMINISTRATION OFFICER SUPPORT STAFF SECRETARIES, DRIVERS, ATTENDANTS, etc. RESEARCH REVIEW COMMITTEE TECHNICAL REVIEW COMMITTEE PROGRAMME OFFICER - PLANNING AND COMMUNICATION FIELD PROJECT OFFICERS UDZUNGWA EAST USAMBARA LOCAL ADVISORY COMMITTEES (LACs) UDZUNGWA EAST USAMBARA LOCAL COMMUNITIES/FIELD PARTNERS UDZUNGWA EAST USAMBARA DISTRICT COUNTERPARTS

30 10. Leverage & Permanence Contributions to EAMCEF are leveraged by existing endowment and capacity: Grants can allow the Endowment Fund to grow faster and ensure sustainability over time Grants can also be matched by endowment fund income Grants will be spent on program implementation, not development and infrastructure Contributions to EAMCEF contribute to permanence: Endowment contributions build the capital base for long term implementation of field activities Direct funding of field projects and operations will help EAMCEF not to make withdrawals from its investment and thus re-invest the earnings to enhance the capital base EAMCEF takes a long term perspective like the forests, biodiversity, and communities it is dedicated to conserving and sustaining

31 EAMCEF Conserving biodiversity for sustainable development Your support of EAMCEF will help save one of the world s s hotspots, providing water, power, carbon, and economic opportunities for millions

32 Your contribution will make us very happy!

33 THANK YOU FOR YOUR ATTENTION