Timber production in Cameroon is set to grow in 2025, even though the country has been tightening taxes on wood exports for several years. The Central Bank of Central African States (BEAC) forecasts a national output of 5.22 million cubic meters for the year, up from 5.19 million in 2024. That marks a year-on-year increase of 28,700 cubic meters.

This rise in production is expected despite Cameroon’s increasingly strict tax policy on the forestry sector. Between 2017 and 2023, the government gradually raised the export duty on logs, lifting it from 17.5% to 60%. According to BEAC, this change represents a total increase of 343% over that period.

In 2024, the export duty was raised again, from 60% to 75% of the FOB value. That means exporters now pay three-quarters of the declared value of each log in taxes. The same trend applies to sawn timber, which is wood that has gone through a first level of processing. Between 2016 and 2023, the export tax on these products jumped by 165%, according to the Cameroonian Timber Industry Group (GFBC).

The government says the goal of these higher taxes is to discourage raw and semi-processed wood exports and to promote value-added processing inside the country. To support this strategy, Cameroon is also offering tax breaks on wood processing equipment.

These incentives were introduced in the 2023 finance law, which exempts companies from paying import taxes on machinery used in wood transformation. At the same time, the government has set aside two industrial zones dedicated to wood processing. Located in the eastern region, Cameroon’s main forestry and mining area, these zones cover a total of 224 hectares and are now open to businesses in the sector.

Whether these efforts will lead to more factories and jobs remains to be seen. For now, the production outlook suggests that despite the heavier tax burden, the forestry sector is still pushing forward.

Source: businessincameroon.com