Zambia’s wood processors need financial support to grow capacity following the introduction of a new 25% tax on exports of raw timber, says the country’s Private Sector Development Association (PSDA).
The PSDA says the tax, introduced in this year’s budget, will help crack down on exploitative raw timber exports and boost domestic processing, but the mills do not have enough capacity to meet market demand. It believes raw timber may not find a market in the country as a result.
The association says the tax could lead to lower profitability in the industry because the Zambian market is not big enough.
It believes investment would help processors produce for markets outside the country.
