In the last quarter of 2023, the forestry and timber industry emerged as the primary driver of growth in the primary sector in Cameroon. According to the report released on May 7, 2024, by the National Institute of Statistics (INS) on the national accounts for the fourth quarter of 2023, this sector recorded a 12.2% increase in activities year-on-year.
The shift towards local wood processing was spurred by measures to gradually reduce log exports, leading to a notable 0.5-point contribution to sector growth. Cameroon has been imposing higher export taxes on logs and minimally processed wood products for nearly a decade, aiming to promote further wood processing within the country.
As part of the Central African Economic and Monetary Community’s plan to ban log exports by 2028, Cameroon has steadily increased log export taxes, with rates rising from 17.5% to 60% between 2017 and 2023. The recent 2024 finance law further raised the tax to 75% of the Free on Board (FOB) value. This taxation strategy has incentivized local wood processing, leading to a decrease in log exports.
Operators in the industry have taken advantage of state incentives like tax exemptions and equipment deductions to engage more in local wood processing. This shift has resulted in residual logs in Cameroon’s exports, with only 746 m3 of logs exported in 2022 compared to 958.3 m3 in 2021, out of a total shipment of 1.7 million m3 of wood and wood products sent to the international market that year, as reported by the INS.
The trend towards local wood processing in Cameroon reflects a strategic move to add value to the country’s timber resources and align with regional export regulations, setting the stage for sustainable growth in the forestry sector.