Charcoal is a major source of household energy in Sub-Saharan Africa (for an estimated 93% of rural households and 58% of urban households). Urbanisation and an increased demand for charcoal are expected to put pressure on peri-urban tree sources, but charcoal could be a renewable fuel. This presentation discusses options for formalising charcoal production and woodfuel management as a way of making the process more sustainable – the aim of formalisation to date has primarily been to manage and control economically valuable resources rather than to improve livelihoods. CIFOR associate Jolien Schure gave this presentation at a session titled ‘From the forest and further: forest product value chains’ at the 13th Congress of the International Society of Ethnobiology, held on 20-25 May 2012 in Montpellier, France.

1. Formalisation of charcoal value
chains and livelihood outcomes in
Central and West Africa
Jolien Schure, Verina Ingram, Maam Suwadu Sakho-Jimbira, Patrice Levang, K. Freerk Wiersum
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2. Objective
“To examine the link between formalisation of
charcoal institutions and livelihood outcomes
for actors involved in woodfuel value chains in
Central and West African countries”
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3. Approach
• Combining: Institutional studies, value chain
analysis and livelihoods approach.
• Charcoal institutions: The formal and informal
regularised patterns of behaviour between
different actors in society that shape access,
rights and obligations related to charcoal
production and trade.
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4. Formalisation (of charcoal institutions)
 
Avoid costs of penalties and bribes Promote corruption
Decrease dependence of harvesters Marginalise harvesters
Mitigate negative environmental Obstruct effective customary laws
outcomes
Woodfuel part of urban, environmental, Criminalise extraction practices
forestry, energy planning
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5. Assumptions
1. Formalisation is likely to advance primarily
urban actors further along the chain.
2. In countries with formalised charcoal
institutions rural actors gain more benefits
than in countries with informal institutions.
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6. Concepts
Variable Indicator
Formalisation 1. Existence of written rules and policies dealing with
charcoal value chains
2. Degree to which penalties for rule violations are
clearly stipulated and enforced
3. Ease and accessibility of formalising
Socio-economic benefits to 4. Number of actors involved in charcoal sector
value chain actors 5. Net revenues gained from charcoal production or
trade
6. Extent and equity of benefit distribution among
actors
Inspired by: Hall and Haas, 1967; Helmke and Levitsky, 2004; Belcher, 2005; Ribot, 1998; Kappel and
Ishengoma, 2006.
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7. Figure 2: Selected urban centres for study on formalisation of charcoal institutions
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8. Results (1): Formalisation of charcoal
institutions
Central Africa West Africa
Woodfuel policies exist related to forest Woodfuel policies exist, related to forest,
and environment but are largely not environment and energy policy, but
implemented (<3% of charcoal under Implementation is low (<13% charcoal
permit) under permit)
Sector is informal BUT organised Participatory forest management.
according to local rules of access. Differentiated tax incentives.
Free riders behaviour.
Unfavourable business environment. Unfavourable business environment.
Importance of political connections even
after entering formal system.
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9. Results (2): Socio-economic benefits
to actors
Central Africa West Africa
>22,000 - >324,000 actors involved per 13,500 - >50,000 actors involved per city
city
Large part of household income Large part of household income
producers e.g. 75% charcoal producers producers e.g. 83% charcoal producers
Kinshasa Ouagadougou
Relatively equal distribution Unequal distribution with wholesalers
and transporters making greatest profits
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10. Conclusion (1)
• Positive examples: dedicated forest management areas with participatory
approach in West Africa, reinvestment of taxes in social and environmental
projects, rural woodfuel markets with differentiated tax incentives in Mali
and Niger
• Negative unintended outcomes of formalisation: conflicts over tax revenues,
difficulties monitoring and permitting trade, free riders, rich or powerful
urban actors dominating access to permit system, corruption ‘informal’ taxes
deeply embedded, discrepancy between receipts of revenues from taxes
and reinvestments in woodfuel resources and communities.
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11. Conclusion (2)
• Formalisation advances actors further along the value chain and can
have adverse socio-economic impacts for rural charcoal producers.
• Countries with more formalised charcoal institutions, such as those
in West Africa have systems in place to distribute benefits to rural
actors. However, the implementation of this and actual benefits for
these rural citizens remain low.
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12. Thank you !
• Website: http://makala.cirad.fr/
• Jolien Schure (j.schure@cgiar.org/ jolien.schure@wur.nl)
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