Cameroon Loses CFA 162.8bn a Year to Timber Export Mispricing, Report Says

Cameroon is losing an estimated 162.8 billion CFA francs annually through illicit financial flows linked to timber export mispricing, according to a report released on May 26 by the Financial Transparency Coalition in Financial Secrets of the Forests: How Secrecy Fuels Deforestation in Brazil and Cameroon.

The report found that between 2013 and 2023, illicit financial flows in Cameroon’s timber sector averaged $289 million per year, nearly five times the $59 million annual loss estimated by the National Agency for Financial Investigation. The discrepancy stems from undervaluation of timber exports, where declared export values differ from import records reported by destination countries.

The analysis focused on Cameroon because of its position as Africa’s largest timber exporter. In 2025, the country recorded 105,000 hectares of primary forest loss, the highest on record.

Timber trade losses widen

The report identifies China, Vietnam, European Union countries and the United States among the main destinations where pricing discrepancies were recorded. According to the coalition, the losses represent foregone customs duties, taxes and other public revenues.

Cameroon has tightened forestry export policies in recent years, increasing duties on raw log exports from 17.5% in 2017 to 75% under the 2024 Finance Act, while preparing a ban on exports of 76 wood species from 2028 to encourage local processing. The report says illicit financial flows continue to undermine these efforts by allowing timber products to leave the country at under-declared values.

Matti Kohonen, Executive Director of the Financial Transparency Coalition, said:

“This report shows that billions of dollars are illicitly channelled each year from Global South countries through illegal deforestation and financial secrecy. The lack of public data on land ownership and beneficial ownership makes it difficult to trace who profits directly from forest destruction.”

Transparency gaps complicate enforcement

Researchers said financial and land ownership secrecy prevents authorities from identifying the ultimate beneficiaries of logging concessions.

Using Geographic Information Systems data, the coalition mapped forest concessions and ownership structures but said beneficial ownership information remains inaccessible, complicating enforcement efforts.

Jean Mballa Mballa, Executive Director of CRADEC in Cameroon, said:

“This report confirms that although Cameroon can map forest loss and identify the legal owners of concessions, beneficial ownership records remain closed. Without transparency, efforts to sanction illegal operators and enforce international anti-deforestation regulations will face serious limits.”

The report also states that Cameroon has continued granting logging licences to companies previously sanctioned for illicit trade, allowing some operators to continue exporting to markets that prohibit illegally sourced timber.

Trade rules and market access implications

The findings come as international market requirements tighten ahead of the European Union Deforestation Regulation, due to take effect in December 2026, prohibiting products linked to deforested land from entering EU markets.

Victor Galaz, associate professor at the Stockholm Resilience Centre and contributor to the report, said stronger transparency measures are increasingly tied to market competitiveness.

“Crimes linked to deforestation often thrive in opaque financial systems. Making ownership and concession data more accessible is essential not only for accountability but also for preserving long-term access to export markets.”

The Financial Transparency Coalition is calling for the creation of public beneficial ownership registries, improved access to land ownership records and publication of sanctions data related to environmental offences.

The report warns that unresolved transparency gaps could continue draining billions of francs from public revenues while exposing timber exports to compliance risks in international markets.

Mercy Fosoh