Views: 234 Author: SENHEDA WOOD Publish Time: 2025-10-31 Origin: Site
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This week, Africa’s bulk timber market has been hit by a “tax compliance shockwave.” Driven by the EU Deforestation Regulation (EUDR) mandatory traceability requirements and intensified tax audits across multiple countries, suppliers in major timber-producing nations like Ghana, Cameroon, and Gabon have broadly raised quotes. International log and sawn timber prices rose an average of 7.2% in one week, with some hardwoods climbing as high as 12%.
On October 28, the Ghana Revenue Authority (GRA) launched surprise audits on 10 major timber exporters, uncovering VAT underreporting, with total fines exceeding GHS 2 million. Affected firms immediately passed on costs, raising Teak log EU FOB prices from USD 850/ton to USD 925/ton — a 9% jump.
The same day, the Cameroonian government announced a temporary increase in timber export tax from 12% to 15% to bolster the National Forest Protection Fund. Jean-Paul Mvondo, Executive Chairman of the Cameroon Timber Exporters Association (SYNAFORT), warned:
“The new tax has directly pushed Iroko sawn timber European CFR prices to USD 725/m³, up 11% from last week.”
In Gabon, a wave of carbon tax compliance fines drove Okoume plywood quotes up 5% to USD 505/ton. In the Democratic Republic of Congo, cross-border tax monitoring under the AfCFTA framework tightened, lifting Sapele hardwood prices by 6%.
The International Tropical Timber Organization (ITTO) latest report shows the Central-West Africa timber price index rose 7.2% this week — the highest in nearly three months. ITTO market analysts noted:
“Tax compliance has overtaken currency fluctuations as the primary driver of this price surge.”
Short-term: Prioritize FLEGT-certified Ghanaian suppliers to avoid audit red flags; shift to lighter-tax regions like Mozambique in East Africa.
Mid-term: Invest in EUDR compliance tracking systems (annual cost ~USD 5,000) or secure AfDB low-interest loans (3-5%) to upgrade local processing and offset export taxes.
Long-term: Recommend signing 3-month forward price-lock contracts with Chinese buyers to negotiate 2-3% discounts using cash flow advantages.
Hugh C. A. Brown, CEO of the Ghana Forestry Commission, reaffirmed on X this week:
“Legal compliance is the passport for African timber — and the ballast for price stability.”
HONG KONG SENHEDA WOOD LIMITED (SHD) brings 16 years of specialized experience in African hardwood trade, operating direct sourcing bases and professional sawmills across the continent.
Website: https://www.shdtimber.com
Media Contact:
Anna , Marketing Director
Email: ANNALIU1@SHDWOOD.COM
Tel / WhatsApp: +86 13534205619
