Gabon under military control

Military leaders have seized power in Gabon after the West African state’s election body announced former President Ali Bongo’s re-election.

Much of the news has centred on the impact on global supplies of oil and minerals – with Gabon the second largest supplier of manganese. Beyond its mineral wealth, Gabon’s forests are also a major economic powerhouse. The state is a major regional player in processed forest exports.

Significantly, over 88% of the country is covered in a tropical rainforest – which made timber the second-highest export from the country. By forest area, this makes Gabon the second most forested country on earth. The country manufactures and exports veneer.

In 2010, Gabon banned exports of raw logs to encourage local wood processing, which would add value to exports and increase revenue. The decision to ban export logs led to the establishing of the Special Investment Zone (SIZ). Twelve years after its establishment, the SIZ has brought together 144 companies, 84 dedicated to wood processing.

With its oil reserves waning, Gabon is betting that careful logging can safeguard the vast wealth of its forests, halving its associated carbon emissions while producing more timber.

Over 40% of processed timber product are exported to China, 30% to EU and an almost equal portion to India. Veneer from Gabon is majorly exported to China, Vietnam and India.

Pre-Covid, Gabon produced 801,000 cubic metres of sawn wood (82% for export), 271,000 cubic metres of veneer (47% for export), 64,000 cubic metres of plywood (50% for export) and 2,320 cubic metres of logs (less than 2% for export).

Forest authorities in Gabon use the TraCer monitoring system to ensure the legality and traceability of the supply of logs to the SIZ. Since October 2021, the EU has recognised TraCer as compliant with the EU Timber Regulation (EUTR). This allows TraCer to issue certificates to European importers, guaranteeing the timber leaving the SIZ complies with EU criteria.

In 2004, Gabon became the first African country to embrace forest certification and join the PEFC alliance. In March 2021, Gabon developed a new standard that the FSC recognised – making it one of the first countries in Africa to have dual certifications for both schemes.

It is understood that the coup may not impact forest trade, although whole picture will be cleared in next few days. There is a concern among business community, as lots of Indian Business houses have presence in Gabon. Although, they are confident that the matter will be sorted and business will be regularized in nest few days.