Cameroon has cut the annual forest royalty paid by logging companies by between 25 percent and 35 percent from January 1, 2026, as part of a fiscal incentive aimed at curbing illegal logging and promoting sustainable forest management, according to the country’s 2026 finance law.
Under a budget execution circular signed on December 31, 2025, by Finance Minister Louis Paul Motazé, companies holding valid exploitation permits are eligible for a 25 percent reduction in the annual forest royalty, known locally as the RFA. The reduction rises to 35 percent for operators able to demonstrate certification for sustainable forest management.
The measure is intended to “encourage the sustainable management of forest resources,” the finance minister said in the circular, as authorities seek to address long-standing environmental degradation and revenue losses linked to non-compliant practices in the forestry sector.
Cameroon, which holds vast tropical forests forming part of the Congo Basin, has struggled for years with illegal and uncontrolled logging despite a regulatory framework governing forest concessions. Official reports have repeatedly highlighted economic and environmental damage caused by illicit exploitation, including the loss of public revenue and the degradation of protected areas.
In a 2021 report, the National Financial Investigation Agency (ANIF) recalled that illegal forestry and wildlife exploitation generated a revenue shortfall of nearly CFA33 billion per year for the state. The agency cited a March 2019 letter from the minister of territorial administration calling for disciplinary and criminal proceedings against individuals involved in such activities.
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However, illegal logging is not the sole source of losses in the sector. Environmental groups say false declarations of timber volumes particularly for exports have had an even greater impact on public finances. By underreporting production and export values, some operators reduce their tax liabilities and deprive the state of significant revenue.
According to a joint report published in 2020 by the Environmental Investigation Agency (EIA) and Cameroon’s Centre for the Environment and Development (CED), the country lost more than CFA170 billion between 2014 and 2017 due to under-declared timber exports to Vietnam alone. The estimate was based on discrepancies between values declared by Cameroonian exporters and those recorded by Vietnamese importers.
The report, titled “Stolen wood, desecrated temples: the harmful consequences of the timber trade between Cameroon and Vietnam on Cameroonian populations and forests,” described a trade that contributed little to state revenue because of largely clandestine financial transactions. It said deals were often conducted in cash and supported by false documentation, allowing exporters to conceal part of their turnover.
Between 2014 and 2017, the report found, Cameroonian exporters declared $308 million less in timber exports than what Vietnamese import statistics recorded over the same period. The authors also accused some Vietnamese-linked operators active in Cameroon of widespread violations, including illegal logging, tax evasion, encroachment on protected areas and money laundering.
The study highlighted the rapid growth of trade between the two countries. Within a few years, Vietnam became Cameroon’s second-largest timber market after China, while Cameroon emerged as Vietnam’s leading supplier of tropical logs, accounting for about a quarter of Vietnam’s imported logs between 2016 and 2019.
By offering tax relief to certified operators, Cameroonian authorities hope to shift incentives in favour of legal and sustainable practices, while improving oversight and protecting one of the country’s most valuable natural resources.
