The Gabon junta has taken complete control of the country’s timber industry after signing a memorandum of understanding that gives it full access to its $620 million industry. As Bloomberg reported, the military leader Brice Oligui Nguema took over the Société Nationale des Bois du Gabon, which Dubai-based Arise IIP had managed in a joint venture with the national government.
Wood Central understands that the military rulers took control of the Société Nationale des Bois du Gabon from the Gabon Special Economic Zone, managed by Dubai-based Arise IIP and the African nation’s government. According to the World Bank, Gabon’s timber industry accounts for about 3.2% of the $19.4 billion economy.
The new decree brings over 600,000 hectares (or 1.5 million acres) of some of the world’s most precious forests under the junta’s control. “This shows our determination to protect our resources, manage them responsibly, and make them a driving force for the development of our country,” Mr Nguema told X last week.
The junta has been busy repossessing national assets.
Earlier this year, it used its preemptive rights to buy back shares in Assala Energy, preventing the Carlyle Group from selling them to Etablissements Maurel & Prom SA. According to Marc Ona Essangui, head of Brainforest, a non-state organisation and third vice-president of the Senate, the move will help the military rulers improve the use of Gabon’s forest assets.
“The challenge today is to set up the mechanism for controlling logging,” Essangui said. “We must have systems for the monitoring and the traceability of wood. We must have a forest code that lives up to international standards and guarantees the sustainable exploitation of forest resources.”
Does a coup in the timber-rich Gabon threaten supply chains?
Last year, Wood Central revealed that a military coup – which saw Brice Oligui Nguema, the former head of the Presidential Guard, topple former President Ali Bongo – could have significant implications for African timbers used in Chinese, Indian and Vietnamese furniture bound for the United States and Europe.
Over 88% of the country is covered in tropical rainforests, giving rise to its second-highest export: timber. Now Africa’s third largest exporter of forestry products, Gabon manufactures and exports thinly sliced veneer overproduced wood to provide a polished look to furniture, cabinets, and flooring.
According to the UK-based Timber Trade Portal, more than 40% of timber product exports end up in China, with 30% of processed exports ending up in the EU – making the country one of the world’s most important destinations for global furniture suppliers.
- To learn more about the importance of Gabon timber to global furniture and the impact of the military coup on supply, click here for Wood Central’s special feature.
