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 enshrine the sharing of production between the state as owner and forestry companies.

The principle of timber production sharing is one of the reforms included in the Republic of Congo's new 2020 forestry code. However, the complexity of the production-sharing arrangements between the state and concession holders is currently hindering its implementation. To address this, the authorities have commissioned a study to define the parameters of the reform and launched a consultation with stakeholders, including parliamentarians, technical and financial partners, the private sector, and civil society.

By initiating production sharing for forest products, the government aims to increase the sector's contribution to the gross domestic product. The revision of forest taxation, with the introduction of two new taxes—the land occupancy tax and the residue tax—stems from the government's desire to boost revenue in the forestry and timber sector. This policy is reinforced by the objective of developing a timber industry capable of supplying the domestic market.

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Indeed, production sharing can range from 20 to 601 TP3T, depending on the volume of logs produced by the concession holder. The duration of the management and processing agreement has been extended to 30 years, compared to 25 years under the previous law. This longer term allows for the completion of the management plan and secures the investments made by the forestry concession holder. There is also a requirement to obtain a certificate of legality before carrying out industrial logging operations.

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

Forest concessions are awarded to 35 forestry companies. In 2022, 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 with the construction of a restaurant for employees of the Wildlife Conservation Society Congo (WCS) and the Nouabale Ndoki Foundation (FNN). CIB is the leading national forestry company, followed by the private company Industrie Forestière de Ouesso (IFO).

The measure banning the export of logs has been in effect in the Republic of Congo since January 1, 2023. The main challenge remains strengthening local skills in wood processing, the use of materials and the choice of species.