Congo - Wood processing within the national territory

The Congolese government wants better governance of the forestry sector with the adoption of the new 2020 forestry code and the state's commitment to ban the export of logs to promote the development of the wood processing industry at the local level through special economic zones.

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The Congolese government wants to pass a specific law to establish the sharing of production between the state owner and the logging companies.

The principle of timber production sharing is one of the reforms of the Republic of Congo's new 2020 forestry code. However, the complexity of the production sharing arrangements between the state and concessionaires has so far hampered its implementation. To this end, the authorities have initiated a study to define the scope of the reform and launched a consultation with stakeholders, including parliamentarians, technical and financial partners, the private sector, and civil society.

By initiating the sharing of forest product production, the government intends to increase the sector's contribution to the gross domestic product. The revision of forestry taxation with the introduction of two new taxes, namely the occupation tax and the residue tax, is the result of the government's desire to boost revenues from the forestry and timber sector. This policy is consolidated by the idea of developing a timber industry capable of supplying the national market.

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Indeed, the production share can range from 20 to 60%, depending on the volume of logs produced by the concessionaire. The duration of the management and processing agreement has been increased to 30 years, compared to 25 years under the previous law. This duration allows for the completion of the management and secures investments in the management carried out by the forest concessionaire. There is also the obligation to obtain a certificate of legality to be able to carry out the logging for industrial purposes.

At the same time, the implementation of the Voluntary Partnership Agreement (VPA) between the Republic of Congo and the European Union (EU) aims to deploy a computerized timber legality verification system (SIVL). This tool is intended to allow Congo to sell its timber transparently on the European market.

Forest concessions are allocated to 35 forestry companies. Congolaise Industrielle des Bois (CIB), a subsidiary of Olam Agri, became the first company in Africa to complete a Forest Stewardship Council™ (FSC™) certified project in 2022 with the construction of a restaurant for employees of the Wildlife Conservation Society Congo (WCS) and the Nouabale Ndoki Foundation (FNN). CIB is the national flagship of the forestry industry, followed by the private company Industrie forestière de Ouesso (IFO).

The measure banning the export of logs came into effect in the Republic of Congo on January 1, 2023. The main challenge remains strengthening local skills in wood processing, material use, and species selection.