Kenya Emerges as a Central Hub in the Plywood Trade under China's Belt and Road Initiative

Posted on : Monday, 14th October 2024

China and India are increasingly targeting Kenya's Blue Gum tree plantations, sparking a rise in timber processing plants producing veneers. These operations are expanding rapidly post-pandemic. According to The Nation, Africa's largest independent media outlet, Chinese and Indian nationals are competing in veneer processing in several Kenyan regions, including Chepseon, Bungoma, Kisii, Isiolo, and Meru.

 

The Timber Manufacturers Association of Kenya reports that these investors process 250-300 tonnes of wood daily. Africa, home to 17% of the world’s forests, remains underutilized in global timber production, with only 9% of its forests actively in use.

 

Exporters have set up large warehouses, exporting plywood and blockboards from Mombasa. Chinese investors, incentivized by their government, are dominating the market, purchasing eucalyptus trees from farmers and processing them for export.