This is a study on the current status of forest plantations and natural forests in Tanzania conducted from September 2010 to June 2011. The main focus is on analysing the local supply and market demand of forest products from these forests, taking into consideration raw material supply, primary and secondary processing industry, trading and final end users. Timber demand and supply projections for the next 20 years are done for the domestic market. Other aspects studied include evaluations of the current revenue collection system and performance, income and employment situation, incentives that could promote rapid forest plantation establishment, options for improved establishment, expansion and management of public and private forest plantations, and evaluation of the current processing capacity of industrial round wood.