a b s t r a c tThis study assesses the livelihoods of rural households in a proposed green field forestry area located in Sanga district of Niassa province, Mozambique. The livelihood analysis was used to analyze potential socio-economic impacts of introducing forest plantations to rural households located within the proposed afforestation area. The study made use of household interviews, key informant interviews and secondary data. The sustainable livelihoods framework was used in the research process to develop the household questionnaire and to identify livelihood strategies. Data were analyzed using 331 household questionnaires collected throughout the proposed afforestation area in various communities in the study area. Findings from the study indicated that there is minimal wealth gaps between rural households; but that the introduction of the forestry industry and the subsequent employment created thereof may result in larger wealth gaps between wage earning and non-wage earning households. The study further concludes by linking the potential socio-economic impacts with mitigation recommendations that could be harmonized with FSC Standard requirements for forestry companies interested in developing a forest industry in the study area.