Country Risk Profiles

Republic of Congo's forest cover represents about 65% of the national territory and is particularly located in the North and South-West of the country (FAO, 2020). 

There are fairly large disparities in the state of the Congolese forests: forests of the North are better preserved due to the low population and forests of the South more threatened by human activities as well as the selective and intensive exploitation of a few species (Okoumé and Limba) (ATIBT, 2019). 

Forest exploitation contributes about 5% to the Republic of Congo's GDP (ATIBT, 2019), and is thus the second largest national source of income after the hydrocarbon sector. Most log production is destined for export markets, with Asia (and in particular China) being the primary export destination, followed by Europe (ATIBT, 2019). 

Forest legislation 

In the Congolese Constitution of 25 October 2015, the Congolese state solemnly reaffirms its permanent right of inalienable sovereignty over all national wealth and natural resources as fundamental elements of its development. The current Forestry Code was adopted in July 2020. The process of revising the previous Forestry Code, which dated from 2000, had started in 2014.

The Forest Code determines the overarching fundamental principles of forest management, the spatial distribution of the forest domain, the classification and declassification of forest land within the state-owned domain, the general conditions for the harvesting and processing of timber resources, the sale of timber products, reforestation, and access to forest genetic resources, etc. The ATIBT [International Tropical Timber Technical Association] notably reports that “the new forest code makes major breakthroughs, leading to progress or advancements in some cases, but restrictions to be lifted by implementing texts in others. In general, compared to the old legislation, the new forest code introduces several new concepts and greater definition of existing concepts (PES [payments for ecosystem services], certification, legality, factoring in of local communities, deforestation, climate change, carbon credits, occupancy tax, residue tax, forest or wild fauna inventory, FPIC, civil society, forestry subcontracting, etc.).” (ATIBT, 2020). 

The new additions to the 2020 Forest Code “were driven by inadequacies reported during the application of the former law, and from experience acquired in sustainable forest management. They also include elements that adapt the law to the new sub-regional (Congo Basin) and international (tropical forests) context. That’s why they primarily focus on new topics (climate change, deforestation, carbon credits, certification, legality and traceability, payments for environmental services, etc.), taking into consideration the requirements of all agreements, treaties and conventions signed by the Congo (VPA-FLEGT, REDD+, CDB).” (ATIBT, 2020). It is important to note that some new elements in the 2020 Forest Code require additional implementing texts, particularly regarding matters like FPIC, forest communities, private forests, the running of the forest classification committee, the organisation of public tender procedures, and the exercise of user rights, etc. Various regulatory texts are explicitly provided for by this new law and are therefore expected to be developed in the near future. 

Furthermore, other elements could create problems in terms of legal interpretation, such as the status (applicable or obsolete) of obligations arising from Decree n°437-2002 (Decree implementing the old Forest Code), which are not contrary to the new Forest Code. 

Forest domain and logging titles 

The Forest Code clearly distinguishes the state-owned forest domain from the private forest domain. 

The state-owned forest domain is estimated at more than 20 million hectares, including 15 million hectares set as production forests, 3.9 million hectares for forest conservation and around 60,000 hectares for industrial plantations (FAO, 2020) (essentially made of Eucalyptus, Pine and Limba crops). 

1. Private forest domain: This forest domain comprises private forests and forest plantations. Private forests are those located on land belonging to natural or legal persons of private law. Private forest plantations are acquired - for a natural person of Congolese or foreign nationality, or a legal person incorporated under Congolese law - by planting forest species on a plot of land that is part of the state-owned non-permanent forest domain. By planting trees, the interested parties therefore acquire the exclusive right to use the planted land and ownership of the trees planted there, subject to any third party rights and on the condition that the number of planted trees exceeds the number of trees naturally present, and that the planted land is properly marked out. Although the acquired rights can be transferred, they shall however be lost if the land is cleared, abandoned or subject to forest dieback. 
2. State-owned forest domain: There are two types of state-owned forest domains: non-permanent and permanent. The non-permanent forest domain comprises protected forests that have not been classified and fall under the public domain. Timber in the non-permanent forest domain can only be harvested with a special permit. The permanent forest domain, on the other hand, comprises forests that have been classified. It is for the most part divided into forest management units (Unités Forestière d’Aménagement, UFA), which act as the base units for the purpose of development, management, protection, conservation, restoration and production. As well as these natural resources, the permanent forest domain also includes artificial and planted forests. These are primarily composed of Eucalyptus, Pine, Okoumé and Limba. Furthermore, a division not initially provided for by the legislation was introduced notably in the country’s southern UFAs, which have been divided into forest exploitation units (unités forestières d’exploitations, UFE), primarily for the purposes of providing small- and medium-sized operators with access to them. Instead, the new Forest Code has set up Domestic Logging Units, which are aiming to fuel the domestic market needs. 

Forest governance in the Congo 

The forestry sector in the Congo has been the subject of major difficulties in terms of governance. Chatham House assessed Congo’s legal and institutional framework and law enforcement as “weak” (2018). Moreover, Chatham House evaluates that timber exports contain between 60% and 70% of illegal timber (2011 to 2014). In addition, artisanal or so-called “informal” logging is also fuelling illegal timber logging. Some recent progress has been made in the form of improvements to the legislative framework, traceability procedures as well as to the allocation of harvesting rights. The elaboration of a voluntary partnership agreement (VPA) with the European Union as well as the establishment of an Independent Monitor (IM) of forest law enforcement and governance within the VPA-FLEGT process were the main drivers behind this change. The Congo indeed signed its VPA - the first in the Congo Basin - in 2010, and it entered into force in March 2013. However, FLEGT licensing is still not operational, mainly due to difficulties in implementing the computer-based legality verification system. 

An outline of the forestry sector in the Congo

Since the 2000s, State-based forest entities, which were very active between 1970 and 1980, have massively withdrawn from the forestry industry, leaving their place to private companies. There are currently around 30 forestry operators and 60 processing units in Congo (ATIBT, 2019). These supply the export market with logs and sawnwood. Despite the strategy to increase local processing, log exports continue to increase. 

The informal and artisanal sector covers most of the domestic needs for wood products. A possible classification of logging companies (Duhesme, C., 2014; ATIBT, 2019) makes the distinction between: 

1. Companies belonging to international groups and with significant resources. They have large concessions in the Likouala and Sangha departments. These concessions are largely under forest management and certified or likely to be involved in a certification process. 
2. Companies with large but unmanaged concessions in the departments of Cuvette, Cuvette-Ouest and Plateaux. 
3. Companies operating in the southern zone, with significant resources but more diversified capitals (particularly Chinese and Malaysian) and more diversified markets. These concessions are engaged in the forest management process. 
4. Small and medium-sized enterprises with national capital operating in the southern zone and with weak resources and means and difficulties in accessing funding. They do not have direct access to the European market. 

Congolese bodies involved in forest management 

Ministry of Forest Economy (MEF): Institutionally, the management of the country’s national forest resources is the exclusive responsibility of the Ministry of Forest Economy (MEF). The MEF is structured as follows:

• a Minister’s Cabinet headed by a Director; 
• four departments that report to the cabinet: 
  • Research & Planning Department (DEP), 
  • Cooperation Department (DC), 
  • Communication & Popularisation Department (DCV), 
  • Forest Fund Department (DFF); 
• a General Inspectorate of Forest Economy Services (IGSEF) with three inspectorates and several divisions; 
• a General Forest Economy Directorate (DGEF) with notably four central directorates and several services; 
• several Departmental Forest Economy Directorates (DDEF) with numerous forest economy brigades and checkpoints in the country’s main administrative centres; and finally;
• four self-managed public bodies under the supervision of the cabinet: 
  • National Reforestation Service (SNR); 
  • National Centre for the Inventory and Management of Forest and Fauna Resources (CNIAF); 
  • Forest Products Export Control Service (SCPFE) with branches in the localities that produce timber; 
  • Congolese Agency for Fauna and Protected Areas (ACFAP).
• Departmental Forest Economy Directorate: Companies with concessions and forest plantations fall under the administrative supervision of the Departmental Forest Economy Directorate in which their concessions are located. 
• SCPFE: Finally, all wood exports (logs and cut timber) are checked by the SCPFE (body operating under the administrative supervision of the MEF cabinet).

Legality Risks

Several legality risks are present in the Republic of Congo's timber supply chains. The risks are wide-ranging and appear across all categories of law. If you are sourcing timber from the Republic of Congo, you should take care to ensure the extensive risks identified are not present in your supply chains or have been sufficiently mitigated. VIEW LESS