This presentation is by Dr. Junzuo Zhang, programme director, InFIT Programme, who summarised the key points made in a discussion group on how Chinese guidelines and future policies regarding land-use sectors can address Africa’s forest governance issues to ensure sustainability and benefits for the poor. The presentation was made at the third event of the China-Africa Forest Governance Learning Platform, held in Beijing 24-25 October 2016. The event explored how China can help sustain Africa’s forests with a focus on the role of private sector actors and Chinese stakeholders in working with African stakeholders to promote pro-poor and sustainable investments and trade in Africa’s forests. More details: www.iied.org/mists-china-africa-forests

1. 中非森林管理学习平台第三届国际学习平台
China-Africa Forest Governance Learning Platform
Group 2: 30 participants
中国未来相关政策以及指导文件如何应对非洲及其他发展中国家森林治理的
复杂问题，从而确保可持续性，避免投资风险，以及造福贫困群体？
How can Chinese guidelines and future policies regarding land-use
sectors address the complex issues associated with Africa’s forest
governance (and shared by other tropical countries) to ensure
sustainability and benefits the poor?

2. Recap
MofCom policy support
Chinese Green Finance System – WWF China
Ideas for pro-poor investments in Africa – China as a
leading country in Africa – Cameroon
CSR Risks and Responsible Action of Multinational
Enterprises – CCCMC
Environmental and social disclosure policies in China –
Forest Trends
Investment in the land sector in Uganda: issues for
consideration

3. Key points
• Respect laws and regulations of host/local
countries
• In alignment with good international practices
and norms
• Guidelines (e.g. green credit guidelines,
sustainable palm oil guide, mining guidelines,
sustainable natural rubber guide) – support
green industry, risk management, regulatory
measures

4. Issues and recommendations
Development of green finance system for overseas
investment, need to strength:
•Institutional coordination
•Regulatory measures (operational
handbooks/tools/manuals)
•Cooperation to test/pilot guidelines for
demonstration and replication

5. China as a leading country in Africa
• Investment-related policies
Need to make sure:
▫ Communication
▫ Participation/engagement of local population -
information sharing; fuller understanding of local
development reality
▫ Respect local context – to hear voices of local
population; be consistent with local
development/needs

6. China as a leading country in Africa
• Investment-related policies - enforceable
Need to make sure:
▫ Country’s reputation - one company’s performance can
affect other companies’ behavior
▫ Requesting expertise from producing counties
▫ Bring investors at the table – multi stakeholder
engagement
▫ Prioritized tasks for next steps

7. China as a leading country in Africa
• Investment-related policies
Need to make sure:
▫ Also need to understand and follow up the
development at regional/continent level

8. Beyond forest sector - CCCMC
Experience at early stage
• Lack of awareness on participation
• Lack of understanding of social context – social
responsibility
• Lack of strategic communication and engagement
• How to understand social responsibility – mission for
integration to create benefits for all

9. • From passive participation to pro-active participation
• development of standards, criteria & index, operational
tools/manuals, action plans –
▫ Integration/inclusive
▫ Stakeholder engagement – enterprise network,
partner network
▫ Due diligence framework / management system
▫ Best practice – good business case

10. ▫ Approaches to the guideline development: stokehold
engagement approach – risk identification and
mitigation, sustainability, due diligence approach,
supply chain management – traceability and
transparency

11. Gap analysis of environmental and social disclosure policies
▫ Corporate disclosure policies made by Chinese
government
▫ Understanding of the roles, activities and environmental,
social and governance impacts of publicly-listed
companies engaged in land-based sectors – both in
terms of company behavior and financial performance
▫ 8 perspectives – human rights, environment
management team, environmental investment
initiatives, sustainable packaging policies, CSR external
audit, CSR sustainability report, land environment
impact policy, and biodiversity impact reduction policy

12. Key findings – over 780 companies
• A big gap – especially concerning CSR sustainability
reporting
• Financial performance – at least one ESG policy - 85%
big companies
• Sector bias – renewable energy sector, few other sectors
such as forest
“Disclosure Guidelines by Stock Exchanges” - HK, SZSE

13. Investment in the land sector in
Uganda: key issues for consideration
• Land tenure and procedure for accessing land for
investment
• Need to understand the dynamics and complex nature of
the tenure – land rights
• Need to understand and compliance with land use plans
– preservation
• Understand the investment incentive regimes for
different sectors in forest, agriculture, processing

14. Investment in the land sector in
Uganda: key issues for consideration
• Compliance with investment licence
• Understanding and compliance with environmental laws to
avoid environmental harm
• Legality – sourcing legal timber
• Social corporate responsibility – consultation of local
communities
• Local employment – number of local people/communities,
local suppliers to be involved

15. • Importance of land rights (custom right takes up
a biggest percentage ) – land for tree planting
available
• Information on undocumented land

16. Three challenges facing Chinese companies overseas
• Awareness vs capacity
• Communication skills – local communities,
NGOs and other stakeholders
• Community relations – lack of community
participation

17. Biggest challenge facing Africa
• Lacking in international investment experience
– Chinese companies
• Language – a barrier – thus difficult to
communicate
• Support local initiatives
• Poor information and communication
• Poor community engagement

18. • Development aid
• Infrastructure project
• Tools for green finance
▫ Green development projects - green credit, ppp
model
▫ Financial institutions – benefit returns, regulatory
measures to prevent, control local risks (political,
financial, enviornmental etc.)

19. Thank you very much