Strenthening the sustainable intra-African timber trade to promote inclusive green growth

This study uses the forest and timber sector as a case study to examine how the African Continental Free Trade Area (AfCFTA) could boost intra-African trade, promote sustainability and inclusive green growth (IGG). The timber sector is a relevant case study for examining Africa’s sustainable development pathway. According to Sivadas (2022), forest resources contribute to all three pillars of sustainability: income generation and economic growth; the provision of critical environmental services; and supporting social well-being. However, the governance of the timber trade in Africa also illustrates the tensions between global market demands, regional integration and local realities (Carodenuto et al., 2024).

This study examines how global and continental sustainability ambitions and the IGG converge with the practical challenges of intra-African timber trade. Adopting a mixed-methods approach, it generates insights grounded in the realities experienced by those involved in Africa's timber trade discourse. The study then narrows down to examine on the extent to which micro, small and medium-sized enterprises (MSMEs) in Ghana’s timber value chain operate in the formal sector and the factors influencing their decision to do so. Finally, the study examines the potential for an all-African timber value chain within the framework of the AfCFTA, using Ghana and Cameroon as a test case.

The study's main objective is to provide empirical evidence in support of policies that will promote sustainable intra-African timber trade and encourage inclusive growth within the AfCFTA framework.

It addresses three main objectives:

1. To what extent do African governments consider forests and timber in their green growth strategies?

2. To what extent do MSMEs in Ghana's timber value chain operate within formal structuresand what factors influence their decisions to formalise?

3. What measures are needed to promote an all-African timber value chain under the AfCFTA?

The study puts forward three key propositions:

1. Forest-rich countries are more likely to consider forests and timber in their green growth-related strategies.

2. Enterprises that perceive the benefits of formalisation as greater than the costs exhibit higher levels of formality than those that perceive compliance as costly and burdensome.

3. The establishment of an all-African timber value chain under the AfCFTA depends on regional integration, trade facilitation, industrial upgrading and infrastructure development.